Relating to the authority of an elderly or disabled person to defer or abate the collection of ad valorem taxes on the person's residence homestead if the homestead is subject to a mortgage.
Impact
The bill introduces significant changes in how property taxes can be managed by elderly or disabled taxpayers. It clarifies that these individuals can defer or abate their property taxes without needing permission from mortgage holders, given certain conditions are met. However, if the mortgage balance is high relative to the property's appraised value or if the mortgage is already in default for reasons other than tax nonpayment, the individual must obtain consent before filing for deferral. Thus, while broadly empowering homeowners, it also puts forth protections for creditors.
Summary
House Bill 1564 aims to provide financial relief to elderly or disabled individuals by allowing them to defer or abate the collection of ad valorem taxes on their residence homestead, even if it is subject to a mortgage. The bill amends Section 33.06 of the Tax Code, specifically addressing circumstances under which such individuals can seek this deferral without the consent of their mortgage holders. This change intends to relieve some burden from those who may be financially strained, promoting stability in housing for vulnerable populations.
Contention
This legislation may create points of contention regarding mortgage lender interests and borrower rights. Some lenders might oppose the reduced control over the deferral process, particularly in high-risk scenarios where a mortgage is significantly underwater, potentially leading to greater financial loss for the lender. Moreover, the lack of requirement for consent could prompt debates around protecting lenders while offering necessary support to elderly and disabled individuals, balancing the fiscal responsibility of both parties.
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 the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts and of the number of residence homesteads of certain property owners for which the owner deferred collection of a tax, abated a suit to collect a delinquent tax, or abated a sale to foreclose a tax lien.
Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts, or who utilize the property tax deferral program in section 33.06, Tax Code.
Relating to the establishment of a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts.
Relating to the authority of the owner of a residence homestead to receive a discount for making an early payment of the ad valorem taxes on the homestead.
Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts.