Texas House Bill HB2294

Texas 2021 - 87th Regular

Caption

Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a person who is elderly or disabled to reflect any increase in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

Impact

With the implementation of HB 2294, there are implications for local school districts regarding tax revenue. The bill includes measures to protect school districts from losses in local revenue resulting from the increased exemption amounts. To offset potential deficits in funding, the bill establishes provisions for additional state aid to school districts, effectively ensuring that their operations and funding for education will not suffer as a result of the new exemption rules. This balance is essential for maintaining the quality of education while also providing needed financial relief to individuals who are elderly or disabled.

Summary

House Bill 2294 focuses on enhancing property tax relief for elderly and disabled homeowners in Texas by introducing exemptions from ad valorem taxation on a residence homestead. The bill proposes that a school district can exempt either a specified dollar amount or a percentage of the appraised value of such properties, depending on which is higher. This approach aims to reduce the financial burden on vulnerable populations, allowing them to retain their homes despite rising property values and taxes. The specified exemption is set at $25,000 or 13% of the appraised value, ensuring that the exemptions remain significant as property values fluctuate.

Contention

Although the intent behind HB 2294 is widely supported due to its focus on helping vulnerable populations, there may be points of contention regarding the financial implications for school districts. Critics may argue that while the bill aims to provide necessary exemptions, it could potentially lead to significant revenue losses that would impact the school districts' financial stability and their ability to support public education adequately. Balancing the needs of property taxpayers with the fiscal requirements of school districts will be key in the discussions as the bill advances through the legislative process.