Legislative Blog
J.B. Williams, J.D.
Ad Valorem Exemptions
A Blog about Property Tax and Sales Tax
A Bit of Background
The following backgrounds help summarize the author's views on both the general topic: Texas and more specifically Property Tax and Sales Tax as it relates to that topic.
Brief Summary of Texas
Texas is truly a Republic. There are a multitude of items that to modify the state constitution must be modified. So there are times when Constitutional amendments are on the voting ballots. While I sometimes abhor the wording, the concept that all of those legally able to vote in Texas must vote on the change is a good one. And bills in Texas are generally short, making it easier for everyone to understand.
Summary of Property Tax and Sales Tax
Blogs under this heading will focus on property taxes or sales taxes within Texas. They may hit upon other taxes that are implemented for specific areas. I'd love if our state could eliminate property taxes and go to a pure sales tax system. That way the more products/services you consume the more you pay. So higher earners would pay more in taxes. And food should remain a non-taxable item.
Blog Summary
SB3. Introduced on 3/3/2023. Passed Senate 3/22/2023. Passed House 3/23/2023. Not signed into law. This must pass voter approval to be implemented. There were multiple sponsors. I honestly can't imagine anyone saying no to a reduction in value to save you money in taxes.
Ad Valorem Exemptions
Published: 2023-05-06
Standard homestead exemptions for residents is increased from $40,000 to $70,000 for ISD taxation rates. For those over 65 or disabled, the additional $10,000 exemption is increased to $30,000. The remainder of the bill deals with the fact that this must be voter approved before it becomes law, and since it is for 2023 tax year, this creates some difficulties for ISD authorities. Therefore, if they end up with less funding than needed to meet required expenses, they may qualify for additional state funding for the school year. Also since this will be determined late in the year, the billing statements are to reflect the new higher exemptions but show the amount that would be additionally be owed should the exemptions not be voter approved.
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