Texas House Bill HB215

Texas 2023 - 88th Regular

• Filed: 11/14/22

Caption

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

Impact

If enacted, HB215 will significantly alter property tax liabilities for qualifying elderly homeowners in Texas. This shift in tax policy aims to provide financial relief to vulnerable segments of the population, allowing elderly residents to remain in their homes without facing escalating tax burdens. Analysts predict that this could lead to a decrease in property tax revenue for local governments, as the new exemptions might exempt a considerable number of properties from taxation, especially in areas with substantial elderly populations. To mitigate any revenue loss, the bill includes provisions for local school districts to receive additional state aid to offset deficits created by the property tax exemptions.

Summary

House Bill 215 proposes extensive amendments to the Texas Tax Code, specifically targeting exemptions from ad valorem taxation for residence homesteads owned by certain elderly individuals and their surviving spouses. The bill establishes that individuals aged 80 years or older are entitled to a total exemption from property taxes on their residence homestead if they have held an existing exemption for at least the preceding 10 years. Additionally, it extends similar benefits to the surviving spouses of qualifying individuals, provided specific conditions related to age and residency are met. Effective January 1, 2024, this exemption aims to relieve financial burdens on elderly property owners, thereby encouraging them to retain their homes.

Sentiment

The sentiment surrounding HB215 is predominantly positive among supporters who advocate for the financial protection of the elderly. Proponents emphasize that the bill recognizes the unique challenges faced by senior citizens in maintaining homeownership, especially in light of rising property values and taxes. Conversely, some detractors express concerns regarding the potential long-term impact on funding for public services, particularly in education, as property taxes are a vital source of revenue. Critics argue that while the intention of the bill is commendable, its implications could strain local budgets and hinder services offered to both elderly residents and younger populations.

Contention

Notable points of contention in the discussions around HB215 revolve around its implications for local taxation authority and funding for public services. Opponents question whether broad exemptions for the elderly could invite similar demands from other demographic groups, potentially leading to further complications in Texas's tax structure. Additionally, there is debate about balancing the need for property tax relief among seniors with the essential funding required for local services, raising questions on the sustainability of such tax policies if enacted. The potential loss of revenue for schools and local governments remains a hotly debated topic as stakeholders attempt to navigate the trade-offs associated with the proposed amendments.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: 13
  • Section: 42
  • Section: 43

• Chapter 26. Assessment
  • Section: 10
  • Section: 112

• Chapter 33. Delinquency
  • Section: 01

Education Code

• Chapter 48. Foundation School Program
  • Section: 2543

• Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
  • Section: 071

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 302