Texas House Bill HB124

Texas 2021 - 87th 2nd C.S.

Caption

Relating to the repeal of the additional ad valorem taxes imposed as a result of a sale or change of use of certain land.

Impact

Should HB 124 be enacted, it may significantly impact local tax revenue derived from property tax collections. By eliminating additional taxes related to land use changes, the bill could lead to a decrease in tax income for municipalities that rely on such revenues for funding public services and infrastructure. However, proponents believe that the repeal will encourage landowners to manage their properties more flexibly, fostering agricultural use and investment in local land development.

Summary

House Bill 124 proposes the repeal of additional ad valorem taxes that are imposed on certain land when it has been sold or its use has changed. The primary objective of this bill is to alleviate the tax burden on property owners who might be penalized for making changes to their land designation or use, particularly concerning agricultural land. The bill aims to repeal various sections of the Tax Code that outline these additional tax provisions, which could potentially simplify the tax structure surrounding property sales and usage changes.

Contention

Discussions surrounding HB 124 may center around the potential conflict between the need for local governments to fund services and the desire to reduce unnecessary taxation on landowners. Opponents of the repeal might argue that removing these additional taxes could hinder local governments' abilities to provide essential services, as they may rely heavily on property tax income. On the other hand, supporters may contend that the current tax framework disproportionately penalizes changes in land use that could benefit local economies.