TX
Texas House Bill HB4

Texas 2021 - 87th 2nd C.S.

Texas House Bill HB4

Caption

Relating to the authority of a person who acquires a residence homestead to receive an ad valorem tax exemption for the homestead in the year in which the property is acquired and to the protection of school districts against the resulting loss in revenue.

Impact

By implementing these changes to the Tax Code, the bill facilitates a smoother transition for individuals acquiring a homestead, ensuring they are not unfairly penalized with higher tax amounts solely due to the timing of their purchase. This adjustment has implications for local school funding, especially in areas where property acquisition rates are high. The bill also incorporates provisions that protect school districts from revenue loss as a result of these exemptions, thus helping maintain educational funding levels in light of changing property ownership.

Summary

House Bill 4 addresses the authority of individuals who acquire a residence homestead to receive an ad valorem tax exemption for that property in the same year it is acquired. The bill amends existing laws to allow new property owners to claim exemptions promptly if the previous owner did not qualify for the same exemption in the tax year of the property transfer. This provides financial relief to new homeowners who might otherwise face a full year's tax burden despite having just acquired their property. The modifications are aimed at fostering homeownership by making tax exemptions more accessible to new buyers.

Contention

Debate around HB4 may arise over concerns about balancing tax relief for new homeowners while ensuring that school districts maintain adequate funding. Some stakeholders may argue that while it aids new property owners, it could potentially inflame discussions regarding how school funding is sourced, especially in districts heavily dependent on property taxes. This issue of taxation fairness could lead to questions about the long-term funding stability for educational institutions versus the short-term benefits to new homeowners.

Companion Bills

TX SB8

Same As Relating to the authority of a person who acquires a residence homestead to receive an ad valorem tax exemption for the homestead in the year in which the property is acquired and to the protection of school districts against the resulting loss in revenue.

Previously Filed As

TX HB5013

Relating to an exemption from ad valorem taxation of 50 percent of the appraised value of the residence homestead of a person who has received a residence homestead exemption on the property for at least the preceding 10 years.

TX HB5046

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB3205

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB2467

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB2656

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB4029

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, an adjustment 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 increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB58

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, an adjustment 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 increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB610

Relating to a temporary increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, a temporary reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount, and a temporary protection of school districts against the resulting temporary loss in local revenue.

TX HB5042

Relating to an adjustment of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect the most recent increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against the resulting loss in local revenue.

TX SB1

Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression, an increase in the amount of certain exemptions from ad valorem taxation by a school district applicable to residence homesteads, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amounts, and the protection of school districts against the resulting loss in local revenue.

Similar Bills

ND HB1305

Criminal trespass; and to provide a penalty.

CA SB429

Wildfire Safety and Risk Mitigation Program.

IN SB0325

Homestead standard deduction.

CA SB240

Surplus state real property: affordable housing and housing for formerly incarcerated individuals.

IN HB1576

Deadline to apply for standard deduction.

IN SB0411

Short term rental properties.

IN SB0461

Short term rentals.

IN SB0355

Property tax matters.