Texas House Bill HB288

Texas 2017 - 85th 1st C.S.

Caption

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.

Impact

The modifications to the Tax Code under HB288 will have significant implications for state laws regarding property taxation, particularly concerning exemptions for vulnerable populations, such as the elderly and disabled. By establishing a direct correlation between the exemption amount and the median market value of residential properties, the bill aims to lessen the tax burden on homeowners who fall into these categories. The adjustments made by this bill can lead to an increase in disposable income for these individuals, potentially enhancing their quality of life.

Summary

House Bill 288 aims to amend the Tax Code by providing an exemption from ad valorem taxation for a portion of the appraised value of residence homesteads. This portion is based on a percentage of the highest median market value of residence homesteads across Texas. Specifically, the legislation proposes a 25% exemption for eligible homeowners starting from the 2018 tax year. Additionally, the bill seeks to reduce the cap on ad valorem taxes that school districts can impose on the homesteads owned by elderly or disabled individuals. This is intended to align with the increased exemption amount and provide further tax relief for these groups.

Contention

There may be points of contention surrounding HB288, primarily regarding the impact on local school district revenues. While the bill includes provisions to protect school districts from revenue losses resulting from the tax exemptions, questions remain about the long-term sustainability of funding for public education. Critics might argue that these tax exemptions could lead to a reduction in the funding pool for schools if not adequately balanced by state-level compensatory mechanisms. Stakeholders may voice concerns about the equity and distribution of tax benefits, especially in varying economic conditions across different regions of the state.