BILL ANALYSIS

H.B. 3437

By: Goldman

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Senior citizens and individuals who are disabled often live on a fixed income. As such, rising property taxes are increasingly a threat to the ability of an elderly or disabled individual to remain in their home. Accordingly, many counties, municipalities, and junior college districts have adopted limitations on the amount of property taxes to be imposed on these individuals' residence homesteads. However, other taxing units such as water districts and hospital districts do not have the authority to establish such limitations. In order to further prevent rising property taxes on those typically with a fixed income, H.B. 3437 seeks to extend the authority to establish a property tax limitation to all taxing units other than school districts, which are already subject to a separate limitation.  

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS  

H.B. 3437 amends the Tax Code to extend to all taxing units other than a school district the authority that is currently provided to counties, municipalities, and junior college districts to establish a limitation on the amount of property taxes that may be imposed on the residence homestead of an individual who is disabled or is 65 years of age or older and their surviving spouse.

EFFECTIVE DATE

January 1, 2022, if the constitutional amendment to authorize a political subdivision other than a school district to establish a limitation on the amount of property taxes that the political subdivision may impose on the residence homesteads of persons who are disabled or elderly and their surviving spouses is approved by the voters.