Texas House Bill HB827

Texas 2019 - 86th Regular

Caption

Relating to the exemption from ad valorem taxation of an improvement that is necessary to support the continued use or existence of a historic site.

Impact

The implications of HB 827 are significant for historic preservation efforts across Texas. By alleviating potential financial impediments associated with maintaining and updating historic properties, this bill supports the ongoing viability of these sites. Moreover, it encourages local governments to create and sustain policies that foster the preservation of architectural heritage. This could result in increased investment in these sites which, in turn, can enhance local tourism and community pride.

Summary

House Bill 827 aims to extend ad valorem tax exemptions to improvements made to historic sites deemed necessary for their continued use or existence. The bill modifies Section 11.24 of the Texas Tax Code to allow the governing body of a taxing unit to exempt all or part of the assessed value of such improvements, provided they are consistent with the architectural integrity of the historic structures. This legislative change seeks to encourage the preservation of Texas's culturally and historically significant sites by reducing the tax burden associated with necessary upgrades or maintenance.

Sentiment

The reception of HB 827 appears to be generally positive among stakeholders concerned with historic preservation. Legislators and representatives from cultural heritage organizations have advocated for similar measures, emphasizing the importance of protecting and enhancing the state's historical assets. However, there may be concerns from those who fear that such tax exemptions could lead to a reduction in overall tax revenues for local governments, thereby impacting public services funded through those revenues.

Contention

Notable points of contention may arise regarding the criteria for determining whether improvements are 'economically or physically necessary,' as well as the architectural standards for compliance with the historic nature of the properties. These discussions can lead to varying interpretations and potential disputes over property eligibility for tax exemptions. Balancing the need for local government funding while promoting historical conservation will likely remain a focal point of legislative debate regarding HB 827.