Texas Senate Bill SB540

Texas 2019 - 86th Regular

Caption

Relating to the period for which a property owner may receive a residence homestead exemption from ad valorem taxation for property that is rendered uninhabitable or unusable as a result of a disaster.

Impact

One of the key provisions of SB540 is the extension of the period during which a property owner can receive the exemption. If the property is in a disaster area declared by the governor, owners can remain exempt for up to five years, provided certain conditions are met. For situations not qualifying under this clause, the exemption duration is limited to two years. This potential alleviation in tax burden is intended to financially support affected homeowners, enabling them to manage the costs of rebuilding and displacement more effectively.

Summary

SB540 proposes amendments to Texas Tax Code, specifically Section 11.135, regarding the residence homestead exemption for property owners whose residences have become uninhabitable or unusable due to disasters. The bill allows property owners to maintain their tax exemption for an extended duration while they work to replace their damaged property. This provision is particularly crucial for homeowners who find themselves in disaster-stricken areas, addressing their immediate fiscal burdens during recovery periods.

Contention

The bill could engender discussions surrounding its potential implications for local tax revenues and the larger question of fiscal responsibility in the context of disaster recovery efforts. Critics may argue that extending tax relief could place additional pressure on local governments or state funds as they attempt to balance budgets in the face of natural disasters. Supporters, however, may emphasize the necessity of providing financial support to homeowners in dire circumstances, arguing that the long-term benefits of stability and recovery could outweigh short-term fiscal impacts.