Texas House Bill HB183

Texas 2025 - 89th 2nd C.S.

• Filed: 8/15/25

Caption

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

Impact

If enacted, HB183 would directly impact the property tax landscape in Texas, particularly benefiting elderly property owners by providing them financial relief. The bill's language indicates that it will also amend existing provisions to maintain a level of stability for these individuals concerning property tax assessments. However, the enactment of these exemptions is contingent upon approval from voters regarding a related constitutional amendment, H.J.R. 133, which creates a degree of uncertainty about the immediate applicability of the exemptions proposed in HB183.

Summary

House Bill 183 proposes a significant update to Texas Tax Code by introducing exemptions from ad valorem taxation for residence homesteads owned by elderly individuals aged 65 or older, as well as their surviving spouses. This bill aims to alleviate the tax burden on these demographic groups by allowing them to be exempt from taxes on the total appraised value of their homesteads if they have had an exemption in place for at least the previous ten years. The bill outlines specific eligibility conditions, both for elderly individuals and their surviving spouses, ensuring ongoing protection against property tax increases.

Contention

Despite its apparent advantages, the bill raises concerns among various stakeholders, primarily relating to its fiscal ramifications on local governments and school districts reliant on property tax revenue. Critics argue that granting blanket exemptions could hinder public funding for essential services, placing increased pressure on remaining taxpayers. There may also be debates about the fairness of extending such exemptions only to specific demographics, which could be perceived as inequitable relative to the broader tax base. Further deliberation will be necessary to address these viewpoints before any final decisions are made regarding the bill's passage.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: 13
  • Section: 42
  • Section: 43

• Chapter 26. Assessment
  • Section: 10
  • Section: 112

Education Code

• Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
  • Section: 071

• Chapter 48. Foundation School Program
  • Section: 2543

Government Code

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