Texas 2021 - 87th Regular

Texas House Bill HB288

Caption

Relating to an exemption from ad valorem taxation by a school district for maintenance and operations purposes of the total appraised value of a residence homestead and the offsetting of the resulting revenue loss to school districts with state sales and use tax revenue.

Impact

In practical terms, HB288 seeks to offset the revenue losses incurred by school districts due to the proposed tax exemption. To counterbalance these losses, the bill stipulates that state sales and use tax revenue shall be utilized to compensate school districts for the shortfall in funds. This mechanism is designed to ensure that the educational funding remains stable despite the introduction of tax exemptions for certain homeowners.

Summary

House Bill 288 proposes an exemption from ad valorem taxation by school districts on the total appraised value of a residence homestead for maintenance and operations purposes. The bill intends to ease the tax burden on homeowners, particularly benefiting those aged 65 or older or individuals with disabilities. The legislation aims to modify the tax code to introduce this exemption, thereby potentially altering the financial obligations of school districts towards their local constituents.

Contention

The discussions surrounding the implementation of HB288 reflect important points of contention about the long-term fiscal sustainability for school districts. Proponents argue that the bill will assist vulnerable homeowners and enable them to retain their homes without facing prohibitive taxation. Critics, however, raise concerns about the reliance on state funding to cover potential revenue deficits, questioning whether this approach adequately protects the budgetary needs of school districts in the long run. Further, there is debate over the fairness of the tax break and whether it disproportionately benefits wealthier homeowners while neglecting alternative measures to support less affluent districts.

Latest HB288 Activity

Companion Bills

TX HJR19

Enabling for Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation by a school district for maintenance and operations purposes all or part of the appraised value of a residence homestead and to use state money to offset the resulting revenue loss to school districts.

Similar Bills

TX HB3793

TX SB278

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation, 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 disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX HB1519

TX SB1328

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation in homestead values, 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 disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX SB1391

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation in homestead values, 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 disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX HB4261

Relating to a limitation on increases in the appraised value for ad valorem tax purposes of the residence homesteads of military veterans, individuals who are disabled or 65 years of age or older, and their surviving spouses.

IN SB0001

Local government finance.

TX HB3570

Relating to an exemption from ad valorem taxation by a school district of a percentage, rather than a dollar amount, 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 an elderly or disabled person to reflect any increase in the exemption amount, and the protection of school districts against the resulting loss in local revenue.