Texas House Bill HB1564

Texas 2017 - 85th Regular

Caption

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.