Texas 2017 - 85th 1st C.S.

Texas House Bill HB190

Caption

Relating to a temporary increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, a temporary reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount, and a temporary protection of school districts against the resulting temporary loss in local revenue.

Impact

If enacted, the bill would have significant implications for state tax laws. The increase in the exemption amount is expected to reduce the overall property tax burden on many homeowners who qualify, particularly benefiting elderly and disabled citizens. Additionally, the legislation provides temporary protections for school districts against loss of revenue due to these increased exemptions. This could help maintain funding levels for educational programs by compensating schools for the effects of reduced tax income.

Summary

House Bill 190 seeks to amend the existing tax code regarding the taxable value of residence homesteads, specifically focusing on a temporary increase in the exemption amount from ad valorem taxation by school districts. The bill proposes raising the exemption from $25,000 to $71,000 and establishes a framework for a temporary reduction in the limitations on school district ad valorem taxes for the residence homesteads of individuals who are elderly or disabled. This measure aims to alleviate the financial burdens faced by these groups by reducing their property tax obligations.

Contention

Notable points of contention surrounding HB 190 might arise from discussions about its fiscal impact on school funding and property tax equity. Critics may argue that while the intention is to support vulnerable groups, the temporary adjustments could strain school district budgets, necessitating a reliance on state funding to maintain operations. Others may voice concerns about the broader implications of increasing exemptions, as it could shift the tax burden onto other taxpayer categories or influence the allocation of educational resources across different districts.

Companion Bills

TX HJR32

Enabling for Proposing a constitutional amendment to appropriate money from the economic stabilization fund to the foundation school fund and use the money to finance a temporary increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and a temporary reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount.

Similar Bills

TX HB2268

TX SB1

Relating to certain restrictions on the imposition of ad valorem taxes and to the duty of the state to reimburse certain political subdivisions for certain revenue loss; making conforming changes.

TX HB1679

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.

TX HB4352

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, a reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX SB5

TX HB288

Relating to an exemption from ad valorem taxation by a school district of a portion of the appraised value of a residence homestead based on the median market value of all residence homesteads in this state, 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 any resulting loss in local revenue.

TX SB1

Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression, an increase in the amount of certain exemptions from ad valorem taxation by a school district applicable to residence homesteads, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX SB3

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.