Texas House Bill HB982

Texas 2015 - 84th Regular

Caption

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of an elderly or disabled person to reflect the increased exemption amount, and the protection of school districts against the resulting loss in local revenue.

Impact

The impact of HB 982 is twofold: it increases exemptions for a broad range of homeowners while also providing specific protections for elderly and disabled property owners. By raising the exemption limit, the bill directly reduces the taxable value of qualifying residences, which will result in lower taxes owed by homeowners across Texas. The provision addressing the elderly and disabled ensures that their financial burden remains limited compared to past tax years, allowing them to retain more of their income for essential living expenses.

Summary

House Bill 982 proposes significant changes to the ad valorem taxation system applicable to homesteads within school districts in Texas. Specifically, the bill aims to increase the residence homestead exemption from $15,000 to $25,000, providing substantial tax relief for property owners. Additionally, it seeks to reduce the total amount of ad valorem taxes that can be imposed on the homesteads of elderly or disabled individuals, ensuring their tax obligations remain manageable in light of the new exemption amount. This change is designed to enhance affordability and stability for vulnerable segments of the population.

Conclusion

Overall, HB 982 reflects a significant legislative effort to adjust the tax framework surrounding homestead exemptions in Texas, with a focus on providing relief for both homeowners at large and particularly vulnerable populations like the elderly and disabled. The balance between tax reduction and the viability of school district funding will likely be a central theme in ongoing discussions as the bill progresses through the legislative process.

Contention

While the bill has received support for its intention to provide tax relief, it also presents potential drawbacks. One point of contention arises from how this increase in exemptions may affect school funding, as local school districts could experience a reduction in revenue due to the lowered taxable values. The bill includes provisions to protect school districts from the consequent loss of local revenue, but there may still be concerns regarding the long-term sustainability of school funding amid these tax reforms. Critics may question whether these protections are sufficient to prevent negative impacts on educational resources.