Texas 2019 - 86th Regular

Texas Senate Bill SB1391

Caption

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation in homestead values, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.

Impact

The bill's passage could significantly affect state tax laws related to property taxation, particularly for school districts. It establishes guidelines to ensure that individuals aged 65 or older and disabled residents benefit from reduced tax burdens, as it reduces the total amount of ad valorem taxes a school district can impose on their homesteads. Additionally, the adjustment of exemption amounts based on inflation aims to protect these citizens from rising tax liabilities that could accompany increases in property values over time.

Summary

SB1391 proposes an increase in the amount of the residence homestead exemption from ad valorem taxation by school districts. Specifically, it aims to raise the exemption to $50,000 for the 2020 tax year and mandates that future exemption amounts will be adjusted annually based on inflation, reflecting changes in the median market value of residences. This bill addresses the financial burden on homeowners and intends to provide more substantial support for those in the disabled or elderly categories by adjusting taxable values accordingly.

Contention

Debate around SB1391 may arise from concerns about funding impacts on school districts. As increasing exemptions may hinder local revenue from property taxes, the bill includes provisions for state assistance to school districts to compensate for any revenue losses incurred as a result of these changes. Critics might argue that such financial relief measures could burden state budgets or neglect the needs of districts dependent on stable revenue for essential services. Supporters, however, emphasize the necessity of safeguarding the financial stability of vulnerable populations amid rising housing costs.

Companion Bills

TX SJR50

Enabling for Proposing a constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes, providing for the increase of the exemption amount in subsequent years to reflect inflation in homestead values, and providing for a reduction of the limitation on the total amount of ad valorem taxes that may be imposed for those purposes on the homestead of a disabled or elderly person to reflect the increased exemption amounts.

Similar Bills

TX SB1328

TX HB3570

Relating to an exemption from ad valorem taxation by a school district of a percentage, rather than a dollar amount, of the appraised value of a residence homestead, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of an elderly or disabled person to reflect any increase in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB1104

Relating to the phasing out of ad valorem taxes on the residence homesteads of elderly persons by 2021.

TX HB1519

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX SB278

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX SB489

Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB2455

Relating to the limitation of certain special district tax on the homesteads of the disabled and elderly.

TX HB115

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, a reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount, and the protection of school districts against the resulting loss in local revenue.