Texas House Bill HB384

Texas 2019 - 86th Regular

Caption

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

Impact

The enactment of HB 384 would directly influence state tax laws regarding property taxation. It modifies the Tax Code to amend existing provisions, potentially reducing the tax revenue collected from the elderly demographic in line with the exemptions outlined. This initiative could also necessitate adjustments in local tax policies as municipalities adapt to changes in tax revenue dynamics attributable to reduced property taxes on eligible residents.

Summary

House Bill 384 relates to the exemption from ad valorem taxation of the total appraised value of the residence homesteads owned by certain elderly persons and their surviving spouses. Specifically, the bill grants a full exemption from property taxes for individuals aged 80 and older who have received an exemption on their homestead for at least ten years. This significant measure aims to alleviate the financial burden of property taxes on the elderly, who may be living on fixed incomes and facing rising living costs.

Contention

While the bill has strong support from advocates for senior citizens, there is notable contention regarding its fiscal implications. Critics might argue that these exemptions could result in decreased funding for local services, such as education and public safety, since property taxes often constitute a primary funding source for local governments. Additionally, concerns could arise around the potential for unequal tax burdens on younger property owners who do not qualify for these exemptions, creating disparities in the taxation system.