Texas Senate Bill SB196

Texas 2023 - 88th Regular

• Filed: 11/14/22

Caption

Relating to the authority of the governing body of a taxing unit to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead.

Impact

Should SB196 be enacted, it would directly affect state laws related to taxation by providing local governments the authority to reduce tax burdens on residential properties through the establishment of homestead exemptions. This could lead to a decrease in tax revenues for local governments that adopt such exemptions, necessitating adjustments in budget planning and funding allocations for public services. The introduction of these exemptions may also encourage more local units to consider property tax relief measures, thus altering the overall landscape of property taxation in Texas.

Summary

SB196 proposes to amend the Texas Tax Code to permit the governing body of a taxing unit to adopt an exemption from ad valorem taxation for a specific dollar amount of the appraised value of an individual's residence homestead. Under this bill, if local governments opt to implement such an exemption, it must be a minimum of $5,000 and needs to be adopted before July 1 of the applicable tax year. This law aims to give more flexibility to local jurisdictions in providing tax relief to homeowners, potentially increasing affordability in residential housing markets.

Sentiment

The sentiment surrounding SB196 appears to be largely supportive among local government officials and residential advocacy groups who see it as a means to provide substantial tax relief to homeowners. However, there could be opposition from budgetary watchdogs and entities concerned about the implications of reduced tax revenues on essential services. Proponents argue that the ability to provide targeted tax relief can help with housing affordability, particularly in high property value areas, while opponents might caution about the long-term sustainability of such measures.

Contention

A notable point of contention may arise from discussions regarding the adequacy of funding for local services, as a decrease in tax revenues could lead to challenges in maintaining public services like education, infrastructure, and emergency services. Critics of SB196 may express concerns about the potential for inequitable benefits, where only certain segments of the community experience tax relief. Additionally, there may be debates regarding the appropriate threshold for tax exemptions, with differing opinions on how much relief is adequate and sustainable for local governance.

Texas Constitutional Statutes Affected

Tax Code

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

Education Code

• Chapter 45. School District Funds
  • Section: New Section

• Chapter 48. Foundation School Program
  • Section: 259

Government Code

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