LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 28, 2025 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2631 by Creighton (Relating to the deferment of property taxes for certain individuals and the reduction of the eligible age for tax deferral.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB2631, As Introduced: a negative impact of ($19,077,000) through the biennium ending August 31, 2027. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($7,585,000)2027($11,492,000)2028($10,292,000)2029($13,039,000)2030($20,309,000)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromFoundation School Fund193 Probable Revenue Gain/(Loss) fromRecapture Payments Atten Crdts8905 Probable Revenue Gain/(Loss) fromSchool Districts Levy Loss2026($7,585,000)($2,102,000)($8,932,000)2027($11,492,000)($2,517,000)($10,390,000)2028($10,292,000)($1,637,000)($8,728,000)2029($13,039,000)($1,710,000)($9,306,000)2030($20,309,000)($3,159,000)($14,051,000) Fiscal AnalysisThe bill would reduce the age at which an individual is eligible to defer collection of a tax, abate a suit to collect a delinquent tax, or abate a sale to foreclose a tax lien from 65 to 60 years or older.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 28, 2025
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2631 by Creighton (Relating to the deferment of property taxes for certain individuals and the reduction of the eligible age for tax deferral.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB2631 by Creighton (Relating to the deferment of property taxes for certain individuals and the reduction of the eligible age for tax deferral.), As Introduced
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB2631 by Creighton (Relating to the deferment of property taxes for certain individuals and the reduction of the eligible age for tax deferral.), As Introduced
SB2631 by Creighton (Relating to the deferment of property taxes for certain individuals and the reduction of the eligible age for tax deferral.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB2631, As Introduced: a negative impact of ($19,077,000) through the biennium ending August 31, 2027.
Estimated Two-year Net Impact to General Revenue Related Funds for SB2631, As Introduced: a negative impact of ($19,077,000) through the biennium ending August 31, 2027.
General Revenue-Related Funds, Five- Year Impact:
2026 ($7,585,000)
2027 ($11,492,000)
2028 ($10,292,000)
2029 ($13,039,000)
2030 ($20,309,000)
All Funds, Five-Year Impact:
2026 ($7,585,000) ($2,102,000) ($8,932,000)
2027 ($11,492,000) ($2,517,000) ($10,390,000)
2028 ($10,292,000) ($1,637,000) ($8,728,000)
2029 ($13,039,000) ($1,710,000) ($9,306,000)
2030 ($20,309,000) ($3,159,000) ($14,051,000)
Fiscal Analysis
The bill would reduce the age at which an individual is eligible to defer collection of a tax, abate a suit to collect a delinquent tax, or abate a sale to foreclose a tax lien from 65 to 60 years or older.
Methodology
The amount of property taxes deferred each year pursuant to Sections 33.06 and 33.065, Tax Code is reported to the comptroller by county tax assessors. For purposes of the school district property value study, the deferred taxes are converted into equivalent amounts of reduction in taxable property value. The estimated fiscal impact of expanded eligibility for property tax deferral proposed by the bill, expressed in equivalent amounts of reduction in school district taxable property value, is based on data for the current law deferrals, multiplied by the ratio of population aged 60 64 to population aged 65 or older, adjusted in view of elements of current law deferral eligibility not affected by the age of the property owner. Under provisions of the Education Code, the school district tax revenue loss is partially transferred to the state. The estimated cost to the Foundation School Program (FSP) is $7.6 million in fiscal year 2026, $11.5 million in fiscal year 2027, increasing to $20.3 million in fiscal year 2030. The cost to the FSP includes estimated decreases in Recapture Payments - Attendance Credits of $2.1 million in fiscal year 2026, $2.5 million in fiscal year 2027, increasing to $3.2 million in fiscal year 2030 as a result of school district tax revenue loss. The decrease in recapture is reflected as a revenue loss in the table above because recapture is appropriated as a method of finance for the FSP in the General Appropriations Act.
Local Government Impact
Passage of the bill would reduce the age at which an individual is eligible to defer collection of a tax, abate a suit to collect a delinquent tax, or abate a sale to foreclose a tax lien from 65 to 60 years or older. As a result, collections could be reduced for units of local government.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, SZ, SD, BRI
JMc, SZ, SD, BRI