Tag: Property taxes

Happy Clients Realty Group - Ali Palacios > Property taxes

Senate Bill – 4

Posted on by Ali Palacios - Broker

Senate Bill – 4 – Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against certain losses in local revenue.

This bill increases the homestead exemption for school district property taxes from $100,000 to $140,000, contingent on voter approval of a constitutional amendment in November 2025.

This bill will require voter approval in November if it passes through legislature. Read the entire bill here.

This just a summery

Key Points:
1. Tax Relief for Homeowners
– Raises the school district homestead exemption by $40,000, reducing taxable value for homeowners.
– Effective: January 1, 2025 (if voters approve the amendment).

2. Protection for School Districts
– Provides state aid to offset lost revenue for districts impacted by the exemption increase.
– Ensures districts can still service debt (bonds) despite lower local tax revenue.

3. Transition Rules for 2025 Tax Year
– Provisional tax bills will be issued, reflecting the new exemption.
– If the amendment fails, supplemental tax bills will be sent to cover the difference.

4. Enforcement & Adjustments
– The Texas Education Agency (TEA) and local appraisal districts must adjust tax rates and aid calculations accordingly.
– Deadlines & safeguards are in place to ensure smooth implementation.

Impact:
– Homeowners: Lower property taxes if the amendment passes.
– School Districts: Guaranteed state aid to compensate for lost revenue.
– Tax Process: Temporary adjustments in 2025 until the amendment’s fate is decided.

This bill aims to balance tax relief for homeowners with financial stability for schools, pending voter approval.

HB 2392 – 2025 – A New Proposal for Paying Property Taxes in Installments

Posted on by Ali Palacios - Broker

Please note that the following is my personal summary of the referenced bill. To review the full text, please visit their page here.

If this bill impacts you, make your voice heard by contacting your representatives via phone or email. Not sure who represents you, go to this site?

You can also use the 5 Calls app, which helps identify your representatives and provides a list of current bills along with scripts supporting or opposing them for your convenience.

Understanding H.B. No. 2392: A New Proposal for Paying Property Taxes in Installments

If you’ve ever felt the financial strain of paying your property taxes in one lump sum, there’s some good news on the horizon. H.B. No. 2392, a bill introduced in the Texas Legislature, aims to make it easier for homeowners to pay their ad valorem taxes—those property taxes based on the value of your home—by allowing payments in installments.

What Does HB 2392 Propose?

Currently, property taxes on your residence homestead are typically due in a single payment by January 31st of the following year. For many Texans, especially those on fixed incomes or facing other financial hardships, this can create a serious financial burden. H.B. No. 2392 proposes to change that by allowing homeowners to split their payments into multiple installments over the course of the year.

Key Details of the Bill

  1. Installment Payments: Homeowners could choose to pay their ad valorem taxes in up to four equal installments, reducing the immediate financial burden that comes with paying the full amount in one go.
  2. Eligibility: The bill is designed primarily for residence homesteads, so it targets homeowners who live in the property as their primary residence, not rental properties or commercial buildings.
  3. Flexibility and Relief: By spreading payments over a longer period, this bill could provide some much-needed relief to those struggling with the “lump-sum” nature of property taxes.
  4. Late Fees and Interest: While this bill offers an installment option, it’s important to note that late fees and interest charges may still apply if payments are missed or delayed. Homeowners will need to stay on top of their installments to avoid additional charges.

Why It Matters

This bill has the potential to ease the financial stress that many homeowners face each year when taxes are due. By giving homeowners the option to pay in installments, H.B. No. 2392 offers greater flexibility and could help prevent financial hardship and even tax delinquencies.

If you’re a Texas homeowner, keep an eye on this bill as it progresses through the legislative process. It’s one step toward making homeownership more affordable and manageable for many families in the state.

If you want to learn more about the details of H.B. No. 2392 or how it might affect you, reach out to your local representative or track the bill’s progress through the Texas Legislature’s website.

Proposed Texas HB 165 (2025) – Property Taxes

Posted on by Ali Palacios - Broker

Texas legislature has Proposed Texas HB 165 (2025) that focuses on the elimination of ad valorem taxes and establishes a joint interim committee to study the feasibility and potential impact of such an elimination. Remember that this is a bill, it has not been approved. Let your representative know how you feel Property taxes are a huge issue in Texas.

Here’s a concise summary of the bill:

Key Points of HB 165:

  1. Elimination of Ad Valorem Taxes:
    • The bill proposes to eliminate ad valorem taxes, which are taxes levied based on the value of property (real estate, personal property, etc.). These taxes are currently a major source of revenue for local governments in Texas, particularly for funding public services such as schools, public safety, and infrastructure.
    • The proposal calls for a complete removal of these taxes at a state level, shifting the financial burden away from property owners.
  2. Creation of a Joint Interim Committee:
    • To evaluate the feasibility of eliminating these taxes, the bill proposes the creation of a joint interim committee.
    • This committee would consist of members from both the Texas House of Representatives and the Texas Senate, tasked with studying the economic, social, and fiscal impacts of eliminating ad valorem taxes.
    • The committee would work to develop alternative revenue streams to replace the funds currently generated by property taxes, ensuring that local governments can still meet their financial obligations.
  3. Committee’s Responsibilities:
    • The committee would be responsible for gathering data, consulting with experts, and analyzing the impactof tax elimination on public services and the economy.
    • The committee would also explore other tax alternatives, such as sales taxes, or methods of generating revenue without relying on property taxes.
  4. Timeline and Report:
    • The joint interim committee would be required to report its findings and make recommendations to the legislature, potentially influencing future tax reforms or policies in Texas.

Why This Bill Matters:

  • Ad Valorem Taxes are a significant revenue source for local governments, so eliminating them could have major implications for public funding and service delivery.
  • The bill aims to explore alternative tax structures and potentially reduce the tax burden on property owners, but it also recognizes the need for careful planning to avoid disruptions to public services.

Conclusion:

HB 165 seeks to eliminate ad valorem taxes in Texas and replace them with alternative revenue sources. It creates a joint interim committee to study the feasibility and impacts of this proposal, ultimately helping lawmakers evaluate the potential consequences of such a significant tax reform.