Texas Senate Bill SB24

Texas 2021 - 87th 3rd C.S.

Caption

Relating to the calculation of a limitation on the total amount of ad valorem taxes that may be imposed by certain taxing units on the residence homestead of an individual who is elderly or disabled.

Impact

If enacted, SB24 would significantly affect state laws governing property taxes, particularly by reinforcing protections for elderly and disabled homeowners. The revisions to the Tax Code prevent school districts and various local taxing units from increasing property taxes beyond specified limits. Consequently, this could help preserve the affordability of housing for many low-income individuals within these groups, potentially leading to more stable living conditions and reducing the risk of displacement due to financial strain from increased taxes.

Summary

SB24 amends the Texas Tax Code to establish limitations on the total amount of ad valorem taxes that certain taxing units, including school districts, can impose on the residence homesteads of individuals who are elderly or disabled. The legislation seeks to ensure that once an individual qualifies for the homestead exemption, their property taxes will not exceed a fixed amount, which is based on the tax imposed in the year they first qualified for the exemption. This mechanism aims to provide financial relief and stability to vulnerable populations who may struggle with rising property tax rates as they age or manage disabilities.

Contention

However, the bill is not without controversy. Some critics argue that limiting the ability of taxing entities to adjust tax rates might impact funding for essential public services, such as education and infrastructure, which are often funded by property taxes. Opponents of the bill have voiced concerns that while it seeks to protect the elderly and disabled, it might simultaneously undermine local governments' capacities to respond to changing economic conditions and needs within their communities. The tension between ensuring financial protection for vulnerable populations and maintaining adequate funding for public services reflects the ongoing debate over tax reform and local governance in Texas.