Texas House Bill HB716

Texas 2019 - 86th Regular

Caption

Relating to the exemption from ad valorem taxation of part of the appraised value of the residence homestead of a severely disabled veteran or the surviving spouse of a severely disabled veteran based on the disability rating of the veteran.

Impact

The bill is expected to have a significant financial impact on local governments as it alters the tax revenue derived from residential properties owned by eligible veterans and their surviving spouses. Local governments will experience reduced ad valorem tax revenue based on the exemptions granted under this legislation. This aspect raises concerns among some legislators about the sustainability of funding for local services that depend heavily on property taxes. Proponents argue that such exemptions are a necessary acknowledgment of the sacrifices made by disabled veterans and their families.

Summary

House Bill 716 aims to amend the Tax Code by providing an exemption from ad valorem taxation for the residence homestead of severely disabled veterans and their surviving spouses. Specifically, veterans with a disability rating of 80% or higher will be entitled to an exemption that corresponds to their disability rating percentage. Additionally, the bill stipulates that the surviving spouses of these veterans may also claim this exemption under certain conditions, such as not having remarried since the veteran's death and continuing to occupy the property as their residence homestead.

Contention

Some legislators and stakeholders have raised concerns over the long-term financial implications of providing these tailored tax exemptions. Critics argue that while the intent behind the bill is commendable, it could set a precedent for expanding tax exemptions that may not be financially sustainable in the face of rising local government costs. There are also discussions surrounding eligibility definitions and the potential for administrative challenges in assessing and granting these exemptions consistently.