Relating to the value of personal property exempt from seizure by creditors.
Impact
The impact of SB1201 is significant, as it directly alters the legal landscape for debtor protections in Texas. By increasing the exemption thresholds, the bill addresses the economic realities faced by many families and individuals who may be subjected to financial hardships. This legislative change will help ensure that basic needs and essential personal property can remain intact during creditor actions, thus promoting a level of financial security and stability for potentially vulnerable populations.
Summary
SB1201 introduces substantial amendments to the Texas Property Code concerning the value of personal property that is exempt from seizure by creditors. Specifically, the bill raises the exemption limits for personal property to an aggregate fair market value of $150,000 for family units and $75,000 for single adults. These adjustments aim to provide better protection for individuals and families from financial distress caused by creditors, allowing them to retain more of their belongings during legal proceedings related to debts.
Contention
While the bill aims to safeguard its constituents, the proposed amendments may also invite contention regarding the balance between creditor rights and debtor protections. Supporters of the bill argue that increasing exemption limits is a necessary step toward protecting the most vulnerable from aggressive collection practices. However, critics may voice concerns about the implications for creditors and the potential difficulty in recovering debts. The nuances of these changes may spark debates on the appropriate thresholds for exemption and equity within the system of debt recovery.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property a person owns that is held or used for the production of income.
Relating to civil asset forfeiture proceedings, to the seizure and forfeiture of certain property, and to the reporting and disposition of proceeds and property from civil asset forfeiture.
Relating to a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.