Texas House Bill HB152

Texas 2021 - 87th 2nd C.S.

Caption

Relating to the maximum amount of the local option residence homestead exemption from ad valorem taxation by a taxing unit.

Impact

If approved, HB152 would directly impact the financial landscape for homeowners by potentially increasing the amount they can exempt from property taxes. This could offer significant tax relief for residents, especially in areas with fluctuating property values. The bill envisions a broader scope of tax relief which local taxing units would have the authority to establish based on their respective policies. However, it also requires that the changes be conditioned upon the approval of a corresponding constitutional amendment proposed by the 87th Legislature.

Summary

House Bill 152 aims to amend the Tax Code regarding the local option residence homestead exemption from ad valorem taxation by a taxing unit. The bill proposes that an individual is entitled to a minimum exemption of $5,000 on their residence homestead value, if the percentage set by the taxing unit produces a tax exemption of less than $5,000. Furthermore, it specifies that the maximum percentage of exemption cannot exceed 100%, which would allow for full exemption in certain cases where local governing bodies choose to implement such measures.

Contention

An important aspect of the bill is its dependency on a forthcoming constitutional amendment which, if rejected by voters, would render HB152 ineffective. This can be a point of contention in legislative discussions as stakeholders may debate the merits of increasing local taxing authority versus the potential impact on public funding for services that depend on property taxes. Opponents may argue that such measures jeopardize essential local funding, while proponents highlight the need for tax relief given economic conditions.