Relating to collection costs that may be imposed in connection with certain delinquent ad valorem taxes owed by disabled veterans.
Impact
Under the proposed law, taxing units or appraisal districts are allowed to levy an additional penalty to cover costs of collection for delinquent taxes; however, if the property owner is a disabled veteran and the property in question is their residence homestead, stricter limits on the penalty amounts are established. The bill specifies a cap on penalties set at percentages of the delinquent tax amount. For example, the additional penalty cannot exceed 6%, 15%, or 20% based on how long the taxes have remained unpaid, thereby alleviating the financial burden on disabled veterans who may struggle to pay these taxes.
Summary
House Bill 286 proposes specific amendments to the Tax Code of Texas regarding the imposition of collection costs linked to delinquent ad valorem taxes for disabled veterans. The bill aims to provide protections for these veterans by limiting the additional penalties that can be imposed when their property taxes become delinquent. This adjustment recognizes the unique circumstances faced by disabled veterans, particularly concerning their residence homestead, which is essential for their financial stability.
Contention
While HB286 seeks to provide essential support for disabled veterans, it also lays bare potential contentions regarding taxation and the regulation of ad valorem taxes. Stakeholders may express differing opinions on whether the state should implement such exemptions and penalties differently, as some may argue it could set a precedent for additional exemptions that might affect local revenue streams negatively. Conversely, proponents will assert that the bill fosters fairness and acknowledges the sacrifice of disabled veterans, warranting the protective measures outlined in the legislation.
Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads.
Relating to penalty and interest incurred on a delinquent ad valorem tax imposed on the residence homestead of an individual who is elderly or disabled.
Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.