Texas House Bill HB1648

Texas 2025 - 89th Regular

• Filed: 12/17/24

Caption

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

Impact

If enacted, HB 1648 will significantly affect the financial landscape for elderly and disabled homeowners in Texas. By limiting ad valorem taxes, the bill aims to make housing more affordable for these populations, ensuring that their tax burdens do not escalate uncontrollably. This legislative change is positioned to bolster the security of homeownership among those who may be on fixed incomes and are particularly sensitive to property taxation.

Summary

House Bill 1648 aims to establish a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly, as well as their surviving spouses. The bill amends existing sections of the Tax Code to ensure that once a county sets a tax limit for these groups, it cannot increase the taxes beyond the amount imposed in the first tax year when the individual qualified for the exemption. This action is intended to provide financial relief to vulnerable populations by preventing sudden tax increases that could jeopardize their ability to retain their homes.

Contention

The discussions surrounding the bill may revolve around its fiscal implications for local governments, which rely on property taxes as a primary revenue source. Some legislators may express concerns that limiting tax increases for certain demographics could lead to a shortfall in funding for local services. Conversely, proponents of the bill argue that protecting vulnerable homeowners from escalating taxes should take precedence. Their perspective highlights the moral obligation to assist those most likely to face economic hardship due to rising tax liabilities.

Texas Constitutional Statutes Affected

Tax Code

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