Relating to an exemption from ad valorem taxation of the total appraised value of real property for which the owner of the property has prepaid those taxes.
Impact
The bill amends the Texas Tax Code by adding specific provisions for prepayment exemptions, potentially affecting local revenue streams as property taxes would be reduced for those participating in the prepayment scheme. The comptroller will establish guidelines for the prepayment rate, which will dictate how much property owners will need to pay upfront. This change could lead to significant adjustments in how local taxing units budget for revenue, as they would not receive ad valorem tax income from exempted properties.
Summary
House Bill 5210 proposes an exemption from ad valorem property tax for real properties whose owners have prepaid their taxes. The bill aims to encourage property owners to take proactive measures regarding their tax obligations by allowing them to prepay taxes, thus obtaining an exemption for the total appraised value of their property. This legislation introduces a structured process wherein property owners can complete an enrollment form and submit payment, after which they receive a certificate of prepayment that they must file with their local appraisal district to receive the exemption.
Contention
The omission of provisions for properties undergoing new improvements during the tax year in which they prepay introduces a notable point of contention. Property owners who upgrade their properties won't be exempt unless they pay additional prepayment amounts to cover increased assessed values. This requirement may face opposition from those advocating for fairness in tax treatment for homeowners who invest in their properties. Furthermore, the effectiveness of HB 5210 hinges on a proposed constitutional amendment, which must be approved by voters. If the amendment fails, the bill has no bearing, raising questions about its long-term viability and support.
Final_note
Overall, HB 5210 represents a significant shift in property tax policy in Texas, aiming to provide relief and incentives for property owners. However, implications concerning tax revenue for local governments and debates over its fairness and execution are anticipated as discussions continue.
Enabling for
Proposing a constitutional amendment to provide for an exemption from ad valorem taxation of the total market value of real property on which the ad valorem taxes have been prepaid and to establish the prepaid property tax trust fund to provide annual distributions to political subdivisions affected by the exemption.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to an exemption from ad valorem taxation of the amount of the appraised value of real property that arises from the installation in the property of certain energy efficiency-related improvements.
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.
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.
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.
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.
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.
Relating to a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.
Relating to the provision of funding under the foundation school program on the basis of property values that do not take into account optional homestead exemptions.
Relating to the provision of funding under the foundation school program on the basis of property values that do not take into account optional homestead exemptions.
Relating to a local option election in a county to set a limit on the maximum appraised value of a residence homestead for ad valorem tax purposes of less than 110 percent but not less than 103 percent of the appraised value of the property for the preceding tax year.