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TX HB4270

TX HB4270
Relating to the authority of certain taxing units to enter into an agreement to abate ad valorem taxes imposed on an individual's residence homestead that is located in a reinvestment zone.


summary

Introduced
03/10/2025
In Committee
04/01/2025
Crossed Over
Passed
Dead
06/02/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT relating to the authority of certain taxing units to enter into an agreement to abate ad valorem taxes imposed on an individual's residence homestead that is located in a reinvestment zone.

AI Summary

This bill modifies Texas tax law to provide new opportunities for tax abatement (temporary reduction or exemption of property taxes) specifically for residential homeowners in reinvestment zones. Under the proposed changes, taxing units like school districts can now enter into tax abatement agreements for residential properties under certain conditions. Specifically, the homeowner must be occupying the property as their primary residence for the first time within one year before entering the agreement, and they must commit to making at least $500 in property improvements during the first year. The tax abatement can exempt all or part of the property's value for up to 10 years, with agreements requiring the taxing unit to have inspection rights to ensure improvements are made. If the homeowner fails to complete the agreed-upon improvements, the taxing unit can recapture lost tax revenue or cancel the agreement. The bill aims to incentivize home improvements and provide tax relief for new homeowners in designated reinvestment zones, with the new provisions set to take effect on September 1, 2025.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Left pending in committee (on 05/05/2025)

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