Texas House Bill HB130

Texas 2021 - 87th 2nd C.S.

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

Should HB 130 be enacted, its implications on state laws are substantial. It modifies the Texas Tax Code to increase the limits on tax exemptions for individuals 65 years or older and those with disabilities. Furthermore, school districts will no longer have the option to raise the total annual amount of taxes imposed on these individuals above previously established limits. This shift aims to protect the financial interests of seniors and disabled individuals by capping taxation in accordance with their eligibility for exemptions.

Summary

House Bill 130 aims to provide a significant exemption from ad valorem taxation for residence homesteads, specifically benefiting individuals who are elderly or disabled. The bill proposes that school districts exempt a dollar amount or a percentage of the appraised value of a residence, with the greater of the two applying. This measure not only augments the existing framework for property tax exemptions but is designed to reduce financial burdens for vulnerable populations within Texas.

Contention

The bill has the potential to lead to contentious discussions, particularly regarding the financial impact on local school districts that typically rely on property tax revenues. While proponents argue the need for such exemptions to support the elderly and disabled communities, critics may point to concerns about diminishing local funding for public schools due to these tax exemptions. The provision for additional state aid is intended to address the potential deficit in local revenue that could arise from implementing these changes.