Texas House Bill HB5134

Texas 2023 - 88th Regular

• Filed: 3/10/23

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

The bill, upon implementation, will modify state tax laws pertaining to property tax exemptions. Specifically, it will amend existing provisions under the Tax Code to introduce new exemptions for qualifying seniors, significantly reducing their overall tax liability. This change is expected to have a direct financial impact on local revenue collections, necessitating adjustments in budgeting and financial planning by municipalities and counties that rely on property taxes.

Summary

House Bill 5134 proposes an exemption from ad valorem taxation for the total appraised value of the residence homesteads of individuals aged 80 or older, as well as their surviving spouses. This legislation aims to provide financial relief to senior citizens who have owned their homes for at least the preceding ten years and meet eligibility requirements. The exemption is designed to alleviate tax burdens that can disproportionately affect elderly homeowners on fixed incomes, allowing them greater financial stability while living in their homes.

Sentiment

General sentiment surrounding HB 5134 appears to be supportive, particularly among advocates for elderly rights and financial equity. Supporters argue that the bill represents a crucial step toward acknowledging the financial challenges faced by senior homeowners. However, there are concerns about potential negative consequences for local tax revenues and how these changes could affect public services funded through property taxes. Legislative discussions may reflect a balancing act between providing necessary tax relief and ensuring the maintenance of essential community resources.

Contention

Notable points of contention regarding this bill include the implications for local government budgets, which may face challenges due to decreased property tax revenue if the bill is enacted. Opponents may argue that while providing tax relief to seniors is vital, the potential shortfall in local funding could adversely affect public services, including education and infrastructure maintenance. Furthermore, the effectiveness of the proposed exemptions in achieving their intended financial relief while promoting fairness in the tax system remains a topic of debate.

Texas Constitutional Statutes Affected

Tax Code

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

• Chapter 33. Delinquency
  • Section: New Section

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