Relating to the eligibility of an individual to pay the ad valorem taxes imposed on the individual's residence homestead in installments.
Impact
If enacted, the bill would alter the provisions concerning the payment of residence homestead taxes, making it applicable to tax years beginning on or after its effective date. By allowing payments in installments, the legislation is designed to assist low-income homeowners who may find it difficult to pay their full property taxes upfront. This reform could lead to an increase in homeownership stability and assist in maintaining community ties, as homeowners will be less likely to lose their properties due to tax delinquency.
Summary
House Bill 254 proposes to amend the Tax Code in Texas by allowing individuals to pay ad valorem taxes imposed on their residence homestead in four equal installments without incurring penalties or interest. The bill aims to establish a more manageable payment mechanism for homeowners, especially those facing financial challenges. It outlines specific deadlines for each installment, with the intention of making tax payments less burdensome for residents who may struggle with lump-sum payments.
Contention
Activities around HB254 have generated discussions focusing on its implications for affordability in housing. Proponents, including representatives from homeowner advocacy groups, argue that the bill is a crucial step toward alleviating financial stress on homeowners. However, there are concerns regarding the potential long-term impacts on tax revenue and the administrative burden on local taxing authorities. Critics may highlight issues related to equitable treatment of different homeowner demographics concerning tax obligations.
Relating to penalty and interest incurred on a delinquent ad valorem tax imposed on the residence homestead of an individual who is elderly or disabled.
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.
Relating to the authority of the owner of a residence homestead to receive a discount for making an early payment of the ad valorem taxes on the homestead.
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.