Texas House Bill HB150

Texas 2017 - 85th Regular

• Filed: 11/14/16

Caption

Relating to the exemption from ad valorem taxation of, and the deferral or abatement of ad valorem taxes on, certain residence homesteads.

Impact

The passage of HB150 is expected to have a significant impact on state tax law as it expands the existing framework concerning tax exemptions available to disabled veterans. By permitting this exemption for properties donated at under market value, the bill represents a proactive approach to providing necessary support to veterans and their families. The measure is particularly significant as it not only addresses the financial challenges disabled veterans face but also acknowledges the role of charitable organizations in facilitating home ownership for veterans. However, this legislation requires concurrent approval of a constitutional amendment, demonstrating the need for both legal and electoral processes for the bill to take effect.

Summary

House Bill 150 aims to amend the Texas Tax Code to provide an ad valorem tax exemption for the residence homestead of partially disabled veterans, as well as for surviving spouses of such veterans. Specifically, the bill allows for a percentage exemption from the appraised value based on the veteran's disability rating if the property was donated by a charitable organization at less than market value. This legislative effort intends to assist disabled veterans and their spouses in reducing financial burdens associated with property taxes, thereby making homeownership more affordable for this demographic. The exemption will only apply if the residence homestead donation meets specific conditions, thereby ensuring targeted support to those eligible beneficiaries.

Sentiment

The sentiment surrounding HB150 appears to be overwhelmingly supportive among legislators and stakeholders who advocate for improved benefits for disabled veterans. The notion of extending tax exemptions aligns with broader initiatives across the state to enhance veteran welfare. Supporters laud the bill as a step towards recognizing the sacrifices made by veterans, while also promoting a more equitable taxation system. However, there may be some opposition from fiscal conservatives who argue about the implications of tax exemptions on state revenue. The overall tone of discussions surrounding the bill appears to reflect a commitment to veteran support.

Contention

A notable point of contention surrounding HB150 lies in its dependency on the approval of a constitutional amendment, proposed during the 85th Legislature, to gain full effect. This requirement has raised concerns among some legislators about the potential for significant policy changes to hinge on voter decisions. Furthermore, there could be discussions regarding how this new exemption interacts with existing tax structures and whether it sets a precedent for future tax exemptions that may be sought for other groups. The necessity for precise criteria concerning the valuation and donation process may also incite debates about qualifications and fairness in the execution of this exemption.