Texas House Bill HB1095

Texas 2021 - 87th Regular

Caption

Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate.

Impact

If enacted, HB 1095 would amend the Tax Code to better protect elderly and disabled homeowners from increasing tax liabilities. By incorporating specific calculations to limit tax increase amounts based on school district's compressed rates, the bill seeks to create a more equitable tax environment for those who may be on fixed incomes. The law would apply only to tax years starting after the effective date and hinges on a constitutional amendment approval from previous sessions that could allow for such reductions in the first place.

Summary

House Bill 1095 focuses on the taxation of residence homesteads for individuals who are elderly or disabled. It introduces provisions to reduce the total amount of ad valorem taxes that school districts can impose on qualifying homesteads, specifically reflecting any reductions in the maximum compressed tax rate from previous tax years. The aim is to alleviate the financial burden on these vulnerable populations by ensuring that tax increases align with adjustments in district funding structures, particularly in the educational sector.

Contention

Some members of the legislature raised concerns about the long-term implications of HB 1095 on school funding. Critics argue that while the bill offers immediate relief to certain groups, it may strain resources for public education, as schools rely heavily on stable tax revenues. Additionally, discussions highlighted the potential disparities that might arise in funding adequacy among school districts, especially if tax reductions predominantly benefit only specific demographics, ultimately complicating the overall landscape of educational financing.