Texas House Bill HB1421

Texas 2021 - 87th Regular

Caption

Relating to the temporary exemption from ad valorem taxation of a portion of the appraised value of certain property damaged by a disaster.

Impact

This legislation amends the Texas Tax Code, particularly Section 11.43, which outlines the procedures for tax exemptions available to property owners affected by disasters. The bill extends the application deadline for property owners to claim these exemptions, allowing them up to 105 days after a disaster declaration. Additionally, it repeals earlier provisions that required applications to be submitted within 45 days following the adoption of the exemption by a taxing unit, thereby simplifying the process and making it more accessible to those in need during times of crisis.

Summary

House Bill 1421 relates to the temporary exemption from ad valorem taxation on a portion of the appraised value of certain properties that have been damaged by a disaster. The bill aims to provide relief to property owners whose homes or businesses have suffered as a result of natural or man-made disasters. Specifically, it allows individuals to apply for a tax exemption within a set time frame following the declaration of a disaster by the governor, thus offering immediate financial relief during recovery and rebuilding efforts.

Contention

While the bill is largely aimed at providing aid, there may be implications regarding the funding and resources of local taxing authorities. Critics could point out that extending tax exemptions may leave local governments with reduced revenue during recovery periods, possibly affecting their ability to provide services. The balance between providing immediate assistance to property owners and ensuring adequate funding for local governments will likely be a point of discussion as the bill moves through the legislative process.