Texas Senate Bill SB1079

Texas 2019 - 86th Regular

Caption

Relating to a study regarding ad valorem tax relief through the use of a circuit breaker program.

Impact

The implications of implementing SB1079 could be substantial, as it directly addresses the financial burdens faced by low-income and moderate-income households related to property taxes. By establishing a framework for a circuit breaker program, the bill aims to protect homestead interests, ensuring that homeowners are not disproportionately affected by rising property taxes. This study will likely engage various stakeholders, such as representatives from school districts, real estate organizations, and financial services, thereby fostering a more holistic approach to housing affordability and tax policy.

Summary

SB1079 is a legislative proposal aimed at exploring the potential of a circuit breaker program to provide ad valorem tax relief for low- and moderate-income families in Texas. The bill tasks the state comptroller with conducting a study to assess the feasibility and effectiveness of such a program. A circuit breaker program traditionally functions by limiting the amount of property taxes that homeowners face based on their income levels, potentially offering significant financial relief to those who are most in need of assistance.

Contention

While the bill does not appear to have highlighted notable points of contention during the initial discussions, there are inherent challenges regarding the feasibility of a circuit breaker initiative. Concerns may arise around the fiscal impact of implementing such a program on local government revenue, as reduced tax collections could create budgetary pressures. Additionally, debates about the efficacy of targeting assistance based on income and the overall structure of property tax systems could emerge as the study progresses and stakeholders offer diverse perspectives.