Relating to the authority of a taxing unit other than a school 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.
If enacted, HB 670 would significantly impact several provisions within the Texas Tax Code. The proposed tax limitation would apply to any of the non-school district taxing units -- such as counties and municipalities -- that determine a need to impose taxes on residence homesteads. The bill aligns with existing provisions for school districts, which already have similar limitations in place. A new framework for these taxing units to follow will be created, which is anticipated to create uniformity across the state when imposing taxes on the homes of disabled individuals and seniors.
House Bill 670 seeks to amend current Texas tax statutes by allowing taxing units, other than school districts, to establish limitations on the ad valorem taxes imposed on the residential homesteads of individuals who are elderly or disabled, as well as their surviving spouses. The bill aims to provide greater financial relief to these vulnerable groups, ensuring that their tax burden remains manageable, particularly in light of rising property values. This legislative effort intends to promote home affordability for seniors and disabled individuals, allowing them to remain in their homes without the fear of disproportionate tax increases.
While the bill garners support from many advocacy groups representing the elderly and disabled, there are concerns regarding its potential implications on local government revenues. Critics argue that imposing such limitations could hinder the ability of local governments to fund essential services and infrastructure projects. The bill's impact on property tax revenues has sparked debates about balancing the needs of the elderly and disabled with the fiscal realities faced by municipalities. Therefore, discussions are ongoing regarding how to best protect the financial interests of vulnerable residents without adversely impacting local finances.
The provisions of HB 670 will become effective beginning January 1, 2026, contingent upon the approval of a constitutional amendment related to tax limitations for disabled and elderly homeowners. This proposed amendment will need to be ratified by Texas voters, making public sentiment an essential factor in the bill's future. If the amendment fails, the bill will not take effect, which underscores the importance of community awareness and advocacy leading up to the vote.