Texas House Bill HB455

Texas 2025 - 89th Regular

• Filed: 11/12/24

Caption

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

Impact

If enacted, HB 455 would significantly modify how local entities assess property taxes for individuals who qualify under the provisions of this bill. Specifically, the legislation would restrict taxing units from increasing the total annual amount of property taxes imposed on the qualifying individuals' homesteads beyond the amount charged in the first year of exemption qualification. This would provide these individuals with a more predictable tax burden and help safeguard their financial stability, particularly for those on fixed incomes.

Summary

House Bill 455 aims to establish a limitation on the total amount of ad valorem taxes that certain taxing units may impose on the residence homesteads of individuals who are elderly, disabled, and their surviving spouses. This legislation is proposed with the intention to provide financial relief to vulnerable populations by preventing sudden increases in property taxes that could lead to affordability issues in housing. This limitation would apply to counties, municipalities, and junior college districts, thereby standardizing the tax structures for these demographics across the state of Texas.

Contention

The deliberations surrounding HB 455 may involve debate about its effects on local revenue and governance. Supporters assert that this bill is necessary to protect vulnerable citizens from the financial pressures of rising property taxes, while critics may argue that it could impede local governments' ability to fund essential services such as education and infrastructure, as their revenue could be significantly curtailed. Moreover, there could be concerns regarding the potential implications for fairness in taxation across different income groups, as this bill predominantly benefits only certain segments of the population.

Texas Constitutional Statutes Affected

Tax Code

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

• Chapter 26. Assessment
  • Section: New Section