Texas House Bill HB4139

Texas 2019 - 86th Regular

Caption

Relating to the authority of the governing body of a taxing unit to adopt an exemption from ad valorem taxation of an individual's residence homestead.

Impact

If passed, HB 4139 would allow a percentage exemption of up to 30% on the appraised value of a homestead, which is an increase from the previous limit of 20%. It ensures that exemptions are effective only if adopted before July 1st of that tax year and may include a fixed dollar threshold. By revising the Tax Code, the bill empowers local taxing authorities to make adjustments that could ease financial pressure on homeowners, particularly benefiting those with constrained incomes.

Summary

House Bill 4139 aims to modify the existing Tax Code of Texas, particularly relating to the authority of taxing units to adopt exemptions from ad valorem taxation on individuals' residence homesteads. The bill specifically authorizes the governing bodies of these taxing units, provided they act within designated timelines and procedures, to offer tax exemptions based on a percentage of the appraised value of the homestead or a fixed dollar amount. This legislation seeks to provide more flexibility for local governments to support residents in managing their property tax burdens.

Contention

A significant point of contention surrounding HB 4139 involves concerns about fiscal implications for local governments. Critics may argue that increasing exemptions could reduce the tax revenue necessary for funding essential public services, including education and infrastructure. There is also a discussion about whether the bill adequately prevents potential inequities in tax relief, particularly regarding how exemptions might disproportionately benefit specific groups over others based on varying socio-economic conditions. Additionally, the effectiveness of the constitutional amendment proposed in the preceding legislative session could affect the bill's enactment, revealing a layer of dependency on broader legislative processes.