Texas House Bill HB969

Texas 2017 - 85th Regular

Caption

Relating to the deferral or abatement of the collection of ad valorem taxes on certain real property.

Impact

The implementation of HB 969 is expected to have significant implications on local tax revenues, particularly for regions with numerous historic properties. By allowing tax deferrals, families may retain ownership of properties that might otherwise be sold due to financial burdens imposed by tax liabilities. Moreover, the provision establishes a lower interest rate during the abatement period, contributing to further financial relief for qualifying owners. This bill can be seen as a way to encourage the preservation of family-owned historic properties that hold intrinsic value to communities.

Summary

House Bill 969 addresses the deferral or abatement of the collection of ad valorem taxes on specific categories of real property. The bill introduces provisions that allow individuals owning historic family properties the opportunity to defer tax collections or have suits to collect delinquent taxes abated, provided they meet certain eligibility criteria. Specifically, properties need to be owned continuously for at least 100 years by family members, defined as those related within the third degree by consanguinity or affinity. The bill seeks to preserve family heritage and provide financial relief during challenging economic times.

Contention

Despite its intent to offer support to property owners, concerns regarding HB 969 may stem from the potential reduction in immediate tax revenues for municipal and county governments. Opponents may argue that such tax deferrals could undermine local budgets and the services reliant on tax revenue, such as education and public safety. Additionally, there may be apprehensions about the subjective nature of the eligibility criteria and the process by which individuals can file for tax deferrals, with potential for misuse or bureaucratic delays. These aspects could spark debate among policymakers about the balance between historical preservation and fiscal responsibility.