Texas House Bill HB419

Texas 2023 - 88th Regular

• Filed: 11/14/22

Caption

Relating to an exemption from ad valorem taxation by a taxing unit other than a school district of a portion of the appraised value of a residence homestead based on the average appraised value in the preceding tax year of all qualified residence homesteads located in the same county.

Impact

The implementation of HB 419 is expected to significantly impact property tax structures within various local governmental units. By introducing such exemptions, the bill seeks to standardize relief options available to homeowners and potentially foster fairer tax practices. However, the effectiveness of the bill hinges on the passage of a proposed constitutional amendment by voters. Should voters ratify it, local governments will need to reassess taxation protocols to accommodate these exemptions, which could lead to changes in how revenue is raised for public services.

Summary

House Bill 419 proposes an exemption from ad valorem taxation by taxing units, excluding school districts, for a portion of the appraised value of a residence homestead. This exemption is based on the average appraised value from the preceding year of all qualified homesteads within the same county. Specifically, the bill allows for an exemption amount ranging between 5% and 25% of said average appraised value, as determined by the governing body of the taxing unit prior to July 1 each year. It aims to ease the financial burden on residents by providing a more consistent approach to property taxation across different counties.

Sentiment

The general sentiment surrounding HB 419 appears to be favorable among constituents who are advocating for tax relief measures, particularly homeowners who might benefit from lower tax liabilities. Proponents argue that this legislation represents a positive step toward affording residents financial respite in the face of rising property values. However, there may be concerns from local governments regarding revenue impacts and the complexity of implementing a variable exemption that differs by county. These sentiments reflect an underlying tension between the desire for residential tax relief and the financial sustainability of public services dependent on property tax revenues.

Contention

Notable points of contention likely arise from the implications of differing exemption rates among counties, which could lead to disparities in how tax relief is implemented across the state. Critics might argue that while HB 419 aims to provide relief to individuals, it could inadvertently create inequities between counties with different fiscal capacities and priorities, affecting the overall funding of essential public services. Moreover, the bill's reliance on voter approval for the constitutional amendment introduces an element of uncertainty that could influence both public support and its legislative viability.

Texas Constitutional Statutes Affected

Tax Code

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

• Chapter 25. Local Appraisal
  • Section: New Section