Texas 2025 - 89th Regular

Texas House Bill HB2133

Filed

1/28/25

Out of House Committee

Voted on by House

Out of Senate Committee

Voted on by Senate

Governor Action

Bill Becomes Law

Caption

Relating to a one-time credit against the ad valorem taxes imposed by a taxing unit on the first property that a person purchases and qualifies as the person's residence homestead and to the effect of the credit on the determination of the taxable value of a school district.

Impact

The implementation of HB2133 would alter existing state tax regulations, specifically regarding ad valorem taxes on residential properties. The introduction of this tax credit could effectively reduce the financial strain on new homeowners by lowering their immediate tax liability. Additionally, it may encourage increased participation in the housing market, as potential buyers might be more inclined to make a purchase if they can benefit from a tax credit designed to alleviate initial costs.

Summary

House Bill 2133 aims to provide a one-time credit against the ad valorem taxes for individuals who purchase their first residence homestead. This bill specifies that the credit is applicable during the first tax year following the purchase of the property. The amount of the tax credit is determined based on a formula that calculates a percentage of the ad valorem taxes imposed by the taxing unit, with a cap of $3,000 or half of the taxes owed. This initiative seeks to make home ownership more accessible, particularly for first-time buyers who may face significant financial burdens upon purchasing a home.

Contention

While supporters of the bill argue that it promotes homeownership and supports first-time buyers, there are concerns regarding the financial implications for local taxing units. The bill includes provisions that detach the impact of the credit from the taxable value calculations of school districts, ensuring that local governments are compensated for revenue losses incurred due to the credit. However, critics may assert it could complicate tax collection and distribution processes, potentially leading to disputes over the calculation of credits and their effects on overall funding for public services.

Texas Constitutional Statutes Affected

Tax Code

Chapter 31. Collections
- Section: New Section

Government Code

Chapter 403. Comptroller Of Public Accounts
- Section: 302

Companion Bills

TX HJR209

Enabling for Proposing a constitutional amendment to authorize the legislature to provide for a one-time credit against the ad valorem taxes imposed by a political subdivision on the first property that a person purchases and qualifies as the person's residence homestead and to provide for the reimbursement of political subdivisions for the revenue loss incurred as a result of the credit.

Previously Filed As

TX HB5100

Relating to a one-time credit against the ad valorem taxes imposed by a taxing unit on the residence homestead of a first-time home buyer and to the effect of the credit on the determination of the taxable value of a school district.

TX SB830

Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB1083

TX HB4158

Relating to the determination and reporting of the number of residence homesteads of elderly or disabled persons that are subject to the limitation on the total amount of ad valorem taxes that may be imposed on the properties by school districts.

TX HB55

TX HB57

TX HB2889

Relating to a credit against the ad valorem taxes imposed by a taxing unit on the residence homestead of a married couple that increases in amount based upon the number of children of the couple and reimbursement to taxing units for the revenue loss incurred as a result of the credit.

TX HB419

Relating to an exemption from ad valorem taxation by a taxing unit other than a school district of a portion of the appraised value of a residence homestead based on the average appraised value in the preceding tax year of all qualified residence homesteads located in the same county.

TX HB2666

Relating to the limitation on the total amount of ad valorem taxes that a school district may impose on the residence homestead of an individual and the surviving spouse of the individual if the individual qualifies the property as the individual's residence homestead for at least 20 consecutive tax years.

TX HB3757

Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses and to the information required to be included in a tax bill.