Relating to the exemption of real property from ad valorem taxation during the period between the issuance of a judgment foreclosing a tax lien on the property and the sale of the property at a tax sale conducted under that judgment or the payment by the property owner of that judgment before the sale, as applicable.
Impact
If enacted, HB1833 would significantly impact the financial obligations of property owners in Texas who are subject to foreclosure. The proposed exemption aligns with efforts to ease the burden on economically vulnerable individuals, potentially allowing them to retain their properties or manage the selling process without the added stress of property taxes. This change could also encourage other legislative measures supporting housing stability in similar circumstances.
Summary
House Bill 1833 is aimed at amending the Tax Code to provide an exemption from ad valorem taxation for real property during a specific period: from the issuance of a judgment foreclosing a tax lien until the property is sold at a tax sale or the judgment is paid by the property owner. This bill recognizes the need for tax relief for property owners facing foreclosure, allowing them some leeway to either clear their dues or sell their property without the immediate burden of taxation during this difficult financial period.
Contention
As with many tax-related bills, HB1833 could face opposition stemming from concerns about funding for local governmental entities that rely on property taxes for their budgets. Some stakeholders might argue that providing exemptions could lead to further financial strain on these local bodies, which may result in cutbacks or decreased services. Additionally, questions might arise regarding the equitable treatment of property owners, with critics possibly highlighting that such provisions may disproportionately benefit some property owners over others.
Implementation
The bill outlines specific requirements for property owners to be eligible for the tax exemption. For instance, property owners will need to file for the exemption with the chief appraiser for each relevant appraisal district. Furthermore, if the judgment is settled before the property sale, a penalty equivalent to the unpaid taxes during the exemption period would be imposed, but this is intended to incentivize timely management of the property tax obligations. Overall, the bill aims to amend existing state laws while addressing both property tax regulations and challenges posed by foreclosure circumstances.
Relating to an exemption from ad valorem taxation of tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
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 the authority of a taxing unit to sell certain seized or foreclosed property to an owner of an abutting property without conducting a public sale.
Relating to the exemption from ad valorem taxation of certain assets used for agricultural production and to the authority of a county commissioners court to adopt an exemption from ad valorem taxation by each taxing unit that taxes the property of the portion of the appraised value of a person's property that is attributable to the installation in or on the property of certain water conservation systems.