Texas 2023 - 88th 2nd C.S.

Texas House Bill HB62

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.

Impact

The impact of HB 62 could be significant, as it could reform how public school districts collect and manage property taxes. By shifting some of the financial responsibilities away from property owners through mechanisms like rent relief, the bill could lead to a reallocation of funding that continues to support public education without disproportionately burdening any single group. Additionally, the adjustments the bill proposes may encourage local governments to rethink their approach to school financing, leading to innovative strategies that better serve the community’s educational needs.

Summary

House Bill 62 aims to provide relief for property taxes specifically targeting school districts. The bill proposes a system of rent relief alongside adjustments to entitlements, tax compression, and exemptions within the public school finance framework. By addressing property tax limitations, the bill intends to alleviate financial burdens placed on homeowners and tenants due to rising school district property taxes. The overall objective is to create a more sustainable taxation environment for education while ensuring that financial resources remain adequate for school operations.

Sentiment

Generally, the sentiment surrounding HB 62 appears to be cautiously optimistic. Supporters argue that the bill is a necessary intervention to assist families facing high taxes, and they believe it represents a proactive step toward making education more affordable. However, critics express concern about potential ramifications for school funding and the long-term viability of the education system. They warn that rent relief measures, if not structured effectively, could end up diluting school funding in the long run or creating inequities among districts.

Contention

Key points of contention include how the bill will balance the need for property tax relief with the essential funding required for quality education. Some legislators and stakeholders argue that the financial implications of the proposed rent relief and adjustments could create disparities in funding across different regions, particularly affecting less wealthy districts. The bill's focus on property tax adjustments raises further questions regarding the sufficiency and stability of alternative funding sources to ensure that schools can maintain their operational integrity and educational offerings.

Texas Constitutional Statutes Affected

Education Code

  • Chapter 49. Options For Local Revenue Levels In Excess Of Entitlement
    • Section: New Section
    • Section: 0042
  • Chapter 48. Foundation School Program
    • Section: New Section
    • Section: 2555

Tax Code

  • Chapter 25. Local Appraisal
    • Section: 23
  • Chapter 26. Assessment
    • Section: 04
    • Section: 08
    • Section: 09
    • Section: 15
  • Chapter 31. Collections
    • Section: 01
    • Section: 02

Companion Bills

TX HJR14

Enabling for Proposing a constitutional amendment to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads, to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts, to establish the property tax relief to rental households fund and authorize the legislature to provide payments to rental households from that fund based on a proportion of rent paid, and to except certain appropriations to pay for school district ad valorem tax relief and property tax relief payments to rental households from the constitutional limitation on the rate of growth of appropriations.

TX HJR14

Enabling for Proposing a constitutional amendment to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads, to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts, to establish the property tax relief to rental households fund and authorize the legislature to provide payments to rental households from that fund based on a proportion of rent paid, and to except certain appropriations to pay for school district ad valorem tax relief and property tax relief payments to rental households from the constitutional limitation on the rate of growth of appropriations.

Similar Bills

TX SB1

Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression, an increase in the amount of certain exemptions from ad valorem taxation by a school district applicable to residence homesteads, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX SB1

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.

TX SB26

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.

TX SB3

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.

TX SB2

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.