Texas House Bill HB41

Texas 2025 - 89th 2nd C.S.

• Filed: 8/15/25

Caption

Relating to the establishment of a limitation on the total amount of ad valorem taxes that certain taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

Impact

If enacted, the bill would amend existing property tax laws, potentially easing the financial burden on eligible individuals by preventing excessive taxation on their homes. This change could lead to increased stability for disabled and elderly residents, allowing them to remain in their homes without the fear of unaffordable tax increases. Additionally, it may encourage local governments to reconsider their tax policies, leading to broader discussions about property tax structures and fairness.

Summary

House Bill 41 is designed to establish a limitation on the total amount of ad valorem taxes that certain taxing units may impose on the residence homesteads of individuals who are disabled or elderly, as well as their surviving spouses. This bill aims to provide financial relief to vulnerable populations such as the elderly and persons with disabilities by capping their property tax obligations, recognizing the economic challenges these groups often face.

Contention

While the bill has support from various advocacy groups focused on the welfare of the disabled and elderly populations, it may encounter opposition from some legislators who argue that such limitations might restrict local governments' ability to raise necessary revenue. Critics may contend that capping taxes on certain populations could lead to funding shortfalls for essential services provided by local entities, raising questions about the trade-off between tax relief and community resources.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: 261

• Chapter 23. Appraisal Methods And Procedures
  • Section: 19

• Chapter 26. Assessment
  • Section: New Section