Texas House Bill HB360

Texas 2017 - 85th 1st C.S.

Caption

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

Impact

If enacted, HB360 would specifically influence how local taxing authorities, including school districts, calculate and impose property taxes on qualified residences. This means that once individuals qualify for the tax exemption, their annual property taxes cannot exceed the amount that was levied during their first year of eligibility. The bill is designed to provide predictable tax obligations for elderly and disabled homeowners, easing the uncertainty of rising taxes over time. However, it is important to note that this change only applies to taxes imposed for tax years beginning on or after the bill's effective date, which will require local authorities to prepare for adjustments in their tax assessment processes.

Summary

House Bill 360 proposes to establish a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly, including their surviving spouses. By amending Section 11.26 of the Tax Code, the bill aims to protect these vulnerable populations from escalating property tax burdens, allowing them to remain in their homes without fearing significant tax increases as property values rise. The legislation reflects a growing concern over housing affordability for the elderly and disabled, acknowledging the unique challenges these groups face in maintaining their residences amidst financial pressures.

Contention

There may be some contention surrounding HB360, particularly regarding its implications for local government revenue. Proponents argue that the bill serves as an essential protection for vulnerable homeowners whose fixed incomes may not keep pace with rising property taxes. Conversely, critics may raise concerns about potential revenue losses for municipalities and school districts, as limiting tax increases could constrain their ability to fund essential services. The balance between providing relief for elderly and disabled homeowners while ensuring sufficient funding for community services and education will likely be a focal point of the debate surrounding this bill.