Texas House Bill HB38

Texas 2025 - 89th 2nd C.S.

• Filed: 8/15/25

Caption

Relating to the rate at which interest accrues in connection with the deferral or abatement of the collection of ad valorem taxes on certain residence homesteads.

Impact

If enacted, HB38 would modify existing regulations surrounding property taxation, potentially easing the financial strain placed on homeowners. By adjusting the rate at which interest accrues on deferred or abated taxes, the bill could lead to significant savings for families who rely on these provisions. Stakeholders argue that this could promote stability in homeownership and prevent displacement due to tax-related financial issues, thereby enhancing community sustainability. However, the specifics of the modifications and how they would be implemented remain a point of discussion among lawmakers and stakeholders.

Summary

House Bill 38 seeks to reform the way interest accrues on the deferral or abatement of ad valorem taxes specifically related to certain residence homesteads. The bill aims to provide homeowners with a more manageable financial environment by possibly reducing the burden of accruing interest on taxes owed. This measure could be particularly impactful for those facing hardships, as it addresses the financial implications of tax collection on residential properties, allowing people to retain their homes while managing tax responsibilities more effectively.

Contention

Discussions around HB38 may highlight a divide between those advocating for enhanced homeowner protections and those concerned about the implications for local government revenues. Critics might argue that changing interest accrual rates could lead to financial implications for local budgets dependent on property taxes, potentially straining resources that fund public services. Proponents, however, emphasize the importance of supporting homeowners amidst economic pressures and affording them greater stability, thus igniting a broader conversation about the balance between taxation and community support.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 33. Delinquency
  • Section: 06