Texas 2021 - 87th 2nd C.S.

Texas Senate Bill SB8

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

SB8 impacts existing state tax laws by amending the Tax Code to ensure that new homeowners can receive a tax exemption in the year they acquire the property, rather than having to wait until the next tax year. Additionally, the legislation includes protective measures for school districts concerned about potential revenue losses due to these exemptions. The bill mandates that school districts are entitled to additional state aid equal to the refunds provided under this new exemption policy, thereby mitigating the financial impact on education funding.

Summary

Senate Bill 8 (SB8) introduces provisions regarding ad valorem tax exemptions for individuals who acquire a residence homestead within a tax year. The bill allows a new property owner to receive an exemption for the portion of the tax year following the property's acquisition, provided that the previous owner did not receive the same exemption. This change aims to facilitate tax relief for new homeowners and ensure they have access to tax benefits even late in the tax year.

Sentiment

The sentiment surrounding SB8 appears to be largely positive, particularly among supporters who argue that it enhances the accessibility of tax exemptions for homeowners. The bill received unanimous support during voting in both the Senate and the House, indicating a broad consensus on its perceived benefits. However, there may be underlying concerns from local officials and some advocacy groups regarding the long-term implications of such exemptions on local tax revenues and school funding.

Contention

Notable points of contention related to SB8 revolve around the balance between providing financial relief to new homeowners and safeguarding the revenue streams essential for public services, particularly in education. While the provision of state aid to school districts may alleviate immediate concerns about tax revenue deficits, local entities may argue that reliance on state support could undermine their financial autonomy and resource planning. This tension highlights the complexities involved in tax policy adjustments impacting local governance and funding structures.

Latest TX SB8 Activity

View All Events: TX 2021 - 87th 2nd C.S. SB8

Companion Bills

TX HB4

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

TX HB2467

TX HB2656

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

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.