Texas Senate Bill SB484

Texas 2019 - 86th Regular

Caption

Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.

Impact

If enacted, SB484 will amend existing sections of the Texas Tax Code to introduce this limitation, effectively safeguarding individuals who have maintained their homestead for at least 15 consecutive tax years. Survivors of qualifying homeowners will benefit from continued limitations on taxes, provided they continue to occupy the home. This move is intended to alleviate the financial pressure on families, particularly those on fixed incomes, as property taxes have a tendency to escalate with rising property values, which can lead to financial burdens.

Summary

Senate Bill 484 proposes a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a significant tax increase. Specifically, if the total school district taxes imposed in the 15th consecutive tax year on a qualifying residence homestead exceed 120% of the total taxes imposed in the first year of that period, the tax burden cannot increase further in subsequent years, capping it to the least of a few specified amounts. This legislation attempts to protect long-term homeowners from excessive taxation resulting from property value increases, aiming to maintain financial stability and affordability for residents.

Contention

The fiscal responsibility of the bill is a point of contention. Advocates argue that this limitation will protect vulnerable homeowners and provide predictability in tax expenses, which is especially crucial for individuals who may not have the means to cope with steep tax hikes. However, opponents may raise concerns regarding the potential loss of revenue for school districts, as the cap on property tax increases could impact funding for essential educational services. The debate centers on balancing the need for adequate school funding against the necessity of protecting homeowners from unsustainable tax burdens.