Texas House Bill HB382

Texas 2025 - 89th Regular

• Filed: 11/12/24

Caption

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

Impact

This legislation aims to alleviate the financial burden of property taxes on elderly citizens, allowing individuals who meet the qualifying criteria to retain more of their income in retirement. By changing the existing tax statute, HB382 could lead to a reduction in the tax obligation for qualified individuals, impacting the overall revenue collected through property taxes at the local level. As more elderly residents benefit from these exemptions, local governments may need to adjust their budgets and funding methods for public services, potentially relying more on state funding to compensate for the loss in property tax revenue.

Summary

House Bill 382 seeks to provide an exemption from ad valorem taxation for the total appraised value of residence homesteads owned by certain elderly individuals and their surviving spouses. The bill specifically targets individuals who are 72 years of age or older and who have held a homestead exemption for the past ten years. For surviving spouses, the bill extends this exemption under certain conditions, including age requirements and continued residency. These provisions represent a significant step in enhancing financial relief for older citizens, particularly those who have faced increased living costs over time.

Contention

While the bill is generally viewed positively among proponents who advocate for supporting the elderly, there may be concerns from some local governments regarding the potential loss in tax revenues. Critics may argue that this exemption could strain budgets, especially in areas where property taxes are a primary funding source for services such as schools and public safety. The financial implications of the legislation may spark debates about the balance between providing necessary support for senior citizens and maintaining adequate funding for community services.

Texas Constitutional Statutes Affected

Tax Code

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

• Chapter 26. Assessment
  • Section: New Section
  • Section: 112

• Chapter 33. Delinquency
  • Section: New Section

Education Code

• Chapter 44. Fiscal Management
  • Section: New Section

• Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
  • Section: 071

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 302