Texas 2021 - 87th 2nd C.S.

Texas House Bill HB126

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

The bill's introduction is likely to have significant implications for state laws governing property taxation. By capping the amount of ad valorem tax that can be levied on these vulnerable groups, it provides a measure of protection against rising property taxes that could lead to displacement or financial distress. The restrictions placed on taxing units reflect a recognition of the unique financial difficulties faced by elderly and disabled residents and their need for support, particularly in a fluctuating real estate market.

Summary

House Bill 126 aims to establish a limitation on the total amount of ad valorem taxes that taxing units can impose on the residence homesteads of individuals who are elderly or disabled, as well as their surviving spouses. This bill amends existing sections of the Texas Tax Code to impose stricter limits on how much these taxing units can increase property taxes, ensuring that elderly and disabled individuals, along with their spouses, are not subjected to escalating tax rates that could threaten their financial stability. It strives to create an environment where the elderly and disabled can maintain their homes without the fear of unaffordable tax increases.

Contention

Notably, the bill's passage hinges on the approval of a corresponding constitutional amendment proposed by the 87th Legislature. This detail has sparked debates amongst lawmakers and advocates, as it raises questions about the future of property tax policy in Texas. Supporters of the bill advocate for stronger protections for the elderly and disabled, asserting that without these limitations, many could be forced to leave their long-time homes due to financial burdens. Detractors, however, may raise concerns regarding the broader fiscal impacts on local government budgets and the potential reduction in revenue from property taxes.

Latest HB126 Activity

Companion Bills

TX HJR8

Enabling for Proposing a constitutional amendment establishing a limitation on the total amount of ad valorem taxes that political subdivisions may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HJR14

Enabling for Proposing a constitutional amendment providing for an exemption from ad valorem taxation for public school purposes of a dollar amount or a percentage, whichever is greater, of the market value of a residence homestead and providing for a reduction of the limitation on the total amount of ad valorem taxes that may be imposed for those purposes on the homestead of a person who is elderly or disabled to reflect any increase in the exemption amount.

Similar Bills

TX HB1648

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

TX HB4478

TX HB3757

Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses and to the information required to be included in a tax bill.

TX HB982

Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of certain low-income individuals who are disabled or elderly and their surviving spouses.