Texas House Bill HB3973

Texas 2023 - 88th Regular

• Filed: 3/7/23

Caption

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

Impact

The bill's passage could significantly alter the financial landscape for many elderly homeowners in Texas, particularly those who have lived in the same residence for decades. By allowing these individuals to exempt more value from their property taxes, it provides critical support to help them manage rising expenses amidst fixed incomes. However, the focus on property tax relief for a specific demographic raises questions about equity and the implications for other taxpayers. Local governments could face funding challenges as a result of diminished revenues from property taxes, necessitating adjustments in budgets and services provided to the broader community.

Summary

House Bill 3973 seeks to provide an exemption from ad valorem taxation for certain elderly individuals and their surviving spouses by allowing them to exempt a portion of the appraised value of their residence homesteads. Specifically, the bill proposes a $150,000 exemption for individuals aged 75 and older who have been beneficiaries of such exemptions for at least ten consecutive years. The proposed changes to the Tax Code are aimed at alleviating the financial burden on senior citizens living on fixed incomes by reducing their property tax liabilities, thereby enabling them to remain in their homes longer.

Sentiment

The general sentiment around HB 3973 appears to be supportive among advocates for senior rights and financial relief, who argue that the bill addresses a pressing need for many elderly residents struggling with property taxes. On the other hand, opposition may arise from fiscal conservatives who worry about the long-term impact on tax revenues and local government funding. The sentiment reflects a broader debate about balancing support for vulnerable populations while ensuring fairness in the tax system for all residents.

Contention

Key points of contention surrounding HB 3973 include concerns over the potential loss of tax revenue for local governments reliant on ad valorem taxes. Opponents may argue that such exemptions could set a precedent for further tax breaks that complicate the overall tax structure. Additionally, there could be discussions about whether the bill adequately addresses the needs of elderly individuals who do not meet the specified criteria yet also face financial hardship. Hence, while the bill aims to support a deserving group, it may overlook others who equally require assistance.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section

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

• Chapter 33. Delinquency
  • Section: New Section

Education Code

• Chapter 44. Fiscal Management
  • Section: New Section