Texas House Bill HB2695

Texas 2019 - 86th Regular

Caption

Relating to an exemption from ad valorem taxation of a portion of the appraised value of a residence homestead based on the average appraised value of all qualified residence homesteads located in the same county.

Impact

If enacted, the provisions of HB 2695 will directly affect how property taxes are calculated for residential homesteads across Texas. By linking the exemption to the average appraised value of similar properties within a county, the bill aims to provide financial relief to homeowners, especially in areas experiencing rapid property value increases. This measure may contribute to easing the financial strain on residents and promoting more equitable taxation based on local market conditions, thereby fostering community stability and homeownership.

Summary

House Bill 2695 proposes significant changes to the property tax system in Texas, specifically addressing ad valorem taxation on residence homesteads. The legislation seeks to create an exemption based on the average appraised value of all qualified residence homesteads located within the same county. It allows individuals to be entitled to a tax exemption of 10% to 25% of the average appraised value of residential properties qualified under this provision, thereby reducing the tax burden on homeowners based on local property value averages known as the homestead exemption.

Contention

Notably, the bill may generate discussions surrounding local government funding and control. Critics may argue that by providing exemptions based on local averages, the bill could potentially decrease the revenue available for public services such as education and infrastructure, which heavily rely on tax income. Additionally, concerns regarding the administration of the tax exemption process and equal treatment across different counties could arise, emphasizing the need for robust guidelines and oversight to prevent disparities in application and benefits.