Texas House Bill HB4060

Texas 2025 - 89th Regular

• Filed: 3/7/25

Caption

Relating to a local option exemption from ad valorem taxation by a taxing unit of all or part of the appraised value of the residence homestead of a peace officer employed by the taxing unit.

Impact

If enacted, the bill would create a tiered exemption system for peace officers, granting them a 20% exemption after five years of service, increasing up to a 100% exemption for those with 25 years or more. This modification aims to enhance the retention of experienced peace officers by providing them significant financial relief through property tax reductions. Such a policy could strengthen the law enforcement workforce, increasing community stability and potentially impacting local budgets reliant on property tax revenues.

Summary

House Bill 4060 proposes a local option exemption from ad valorem taxation for peace officers employed by a taxing unit in Texas. The bill amends the Tax Code, particularly Section 11.13, allowing taxing units to grant exemptions based on the years of service of the peace officers. The provision sets a percentage of the appraised value of an officer's residence homestead as exempt based on their duration of employment, encouraging long-term service within the community.

Contention

Opposition may arise regarding the financial implications of the bill for local governments, which might see reduced tax revenue as a result. Critics could argue that extending tax exemptions specifically to one profession sets a precedent that could lead to inequities among various essential service workers. Additionally, determining the long-term fiscal sustainability of granting these exemptions while maintaining adequate funding for public services could spark debate among state legislators and the public.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: 13
  • Section: New Section

Government Code

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