Texas House Bill HB1679

Texas 2017 - 85th Regular

Caption

Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, 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 any increase in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

Impact

Should HB 1679 be enacted, it would substantially alter existing laws concerning school district property taxation. The proposed changes would provide property tax relief for specific groups, particularly the elderly and disabled. Moreover, the bill addresses the financial implications for school districts by including provisions intended to protect their funding from the reductions in local revenue resulting from the increased exemptions. The bill aims to balance the tax relief for homeowners with the necessity for school districts to sustain adequate funding levels to operate effectively.

Summary

House Bill 1679 proposes adjustments to the property tax code specifically concerning ad valorem taxation by school districts. The bill allows for an exemption of either $25,000 or 13% of the appraised value of a residence homestead, whichever is greater. Additionally, it seeks to reduce the cap on total ad valorem taxes that can be imposed on the homesteads of elderly and disabled individuals to reflect any increases in the exemption limit. This legislative move aims to provide financial relief to these vulnerable groups by capping their tax liabilities, thus helping them maintain stability in their housing situation.

Contention

While the bill is designed to assist homeowners, especially the elderly and disabled, it also raises concerns among school funding advocates who worry about potential revenue shortfalls for school districts. Critiques may arise regarding the sustainability of such tax exemptions and whether they could lead to larger funding gaps in state education budgets. Lawmakers discussing HB 1679 must grapple with the challenge of providing necessary tax relief to specific demographics, while also ensuring that the overall financial health of local school districts is not compromised.