Texas House Bill HB990

Texas 2021 - 87th Regular

Caption

Relating to the repeal of the penalty on a delinquent ad valorem tax on a residence homestead.

Impact

The implications of HB 990 on state laws are significant. By repealing the penalty for late payments on ad valorem taxes for residence homesteads, the bill seeks to provide financial relief to property owners. It reflects an understanding of the economic difficulties homeowners may face, thus potentially reducing the financial strain on families who own their homes. However, it is important to note that while the penalty is removed, interest will still accrue on unpaid balances, ensuring that some fiscal responsibility remains in place for homeowners.

Summary

House Bill 990 aims to repeal the penalty imposed on delinquent ad valorem taxes specifically for residence homesteads in Texas. The bill amends various sections of the Tax Code to eliminate the penalty of six percent that applies when payments for property taxes are not made on time. Instead, the only consequence of a delinquent payment would be the accumulation of interest. This legislative action is primarily designed to ease the financial burden on homeowners who may struggle to meet tax payment deadlines, particularly during challenging economic times.

Contention

As with many legislative measures, the bill may face some opposition. Proponents of the bill argue that eliminating penalties for delinquent payments presents a more compassionate and practical approach to taxation in Texas, especially for residents who may be experiencing temporary financial hardships. Conversely, critics might express concerns that eliminating penalties could lead to increased delinquency rates or affect local governments' revenue streams, ultimately impacting their ability to fund essential services. Balancing the need for revenue with the need for support for homeowners will likely be a focal point of discussion as the bill moves forward.