Texas House Bill HB1705

Texas 2021 - 87th Regular

Caption

Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

Impact

If enacted, HB 1705 would impact various taxing units, including school districts, counties, and municipalities, by restricting their ability to increase property taxes on qualifying homesteads. This limitation would require these entities to adhere to the last year's property tax levels for individuals who qualify for the exemption due to age or disability, effectively protecting them from rising costs associated with housing and potentially alleviating the financial burden on these residents. It is expected that this legislation would lead to a more predictable tax environment for elderly and disabled homeowners.

Summary

House Bill 1705 proposes amendments to the Texas Tax Code, specifically targeting the imposition of ad valorem taxes on residence homesteads belonging to individuals who are elderly or disabled, as well as their surviving spouses. The bill seeks to establish a limitation on the total amount of taxes that can be imposed, preventing increases beyond what was levied in the first year the individual qualified for the relevant tax exemption. This measure aims to provide financial relief to vulnerable populations who may face difficulty due to escalating property taxes as their property values rise.

Contention

There may be points of contention surrounding HB 1705, as stakeholders express differing views on tax equity and local governance. Supporters argue that the bill represents a necessary step to protect vulnerable populations from the pressure of increasing property taxes, thereby helping them to maintain their homes. Conversely, some legislators and local revenue agencies may contend that such limitations could reduce the financial resources available for community services and education, setting up a potential conflict between fiscal responsibility and the need for social support.