Texas House Bill HB2480

Texas 2019 - 86th Regular

Caption

Relating to a limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of a lower-income individual that is located in a homestead preservation district.

Impact

If enacted, this legislation is expected to create a significant impact on state tax law, particularly by providing greater financial protection to lower-income homeowners. The governing bodies of local taxing units would have the authority to adopt a tax limitation policy, thereby preventing annual tax assessments on qualifying residences from exceeding established thresholds. This could lead to more stable housing situations for lower-income residents, aligning with broader goals of housing affordability and community sustainability.

Summary

House Bill 2480 proposes a modification to the Texas Tax Code, specifically concerning the limitation on ad valorem taxes imposed on the residences of lower-income individuals within homestead preservation districts. The bill defines a 'lower-income individual' as someone whose household income does not exceed 60 percent of the area median family income for the respective metropolitan statistical area. By instituting this limitation, the bill aims to alleviate the tax burden on vulnerable populations, ensuring they are not subjected to unmanageable increases in property taxes on their primary residences.

Contention

However, there may be points of contention surrounding this bill, especially regarding the potential implications for local government funding. Critics may argue that limitations on property taxes could reduce revenue available for essential services provided by local governments, such as education and public safety. Consequently, while the bill seeks to protect low-income homeowners, it could instigate debates on the balance between necessary public funding and the protection of economically vulnerable citizens. Furthermore, the bill's effectiveness may hinge on whether local governments successfully adopt the proposed limitations and how they navigate their budget constraints.