TX
Texas House Bill HB642

Texas 2025 - 89th Regular

Texas House Bill HB642

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.

Impact

The implementation of HB 642 would have significant implications for state taxation laws. It expressly allows for limits to be set on tax burdens for qualifying homeowners, ensuring that these individuals are not disproportionately affected by escalated tax rates that may arise from overall district funding needs or market pressures. The bill also includes provisions for surviving spouses to continue benefiting from this tax limitation as long as the property remains their residence, further providing stability and protecting family homes. However, if the property is no longer a residence or if the individual dies and the property is transferred, the limitation would expire.

Summary

House Bill 642 introduces a significant amendment to the Texas Tax Code that seeks to impose a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads. This policy change is aimed specifically at homeowners who have resided in their properties for at least fifteen consecutive tax years. Under this bill, if the school district taxes increase by 120 percent or more in the 15th year compared to the first year of residency, a cap is placed on further tax increases for that residence. This aims to protect long-term residents from potentially unsustainable tax increases due to rising property values and local tax assessments.

Contention

While supporters argue that this bill provides essential protections for long-standing homeowners against abrupt tax increases, opponents might raise concerns regarding the overall funding for schools. There is apprehension about how school districts will manage to balance their budgets without the ability to raise taxes on these properties that have historically contributed to the school funding mechanism. Moreover, the effectiveness of the bill hinges on the approval of a proposed constitutional amendment, which would also face scrutiny from various stakeholders within the education and legislative community.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 11. Taxable Property And Exemptions
    • Section: New Section
  • Chapter 26. Assessment
    • Section: New Section

Government Code

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

Education Code

  • Chapter 44. Fiscal Management
    • Section: New Section

Latest TX HB642 Activity

View All Events: TX 2025 - 89th Regular HB642

Companion Bills

TX HJR68

Enabling for Proposing a constitutional amendment authorizing the legislature to limit the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.

Previously Filed As

TX HB117

Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.

TX HB4478

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.

TX HB2666

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.

TX HB3757

Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses and to the information required to be included in a tax bill.

TX HB5046

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB3205

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB2467

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB2656

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB707

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.

TX HB481

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.

Similar Bills

TX HB2878

Relating to the establishment for purposes of ad valorem taxation of an initial limit on the appraised value of the residence homestead of a disabled or elderly person that was rehabilitated or constructed as a replacement residence under the federal community development block grant program or a housing rehabilitation program of the Texas Department of Housing and Community Affairs.

TX HB3920

Relating to a limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of a lower-income individual that is located in a homestead preservation district.

TX HB2666

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.

TX HB2480

Relating to a limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of a lower-income individual that is located in a homestead preservation district.

TX HB117

Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.

TX HB183

Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.

TX SB484

Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.

TX HB1102

Relating to a limitation on the total amount of ad valorem taxes that a school district may impose on certain residence homesteads following a substantial school tax increase.