Texas HB2133 proposes a one-time tax credit for the first property purchased as a residence homestead, affecting ad valorem taxes and school district.

HB2133 amends the Texas Tax Code to provide a one-time tax credit for the first property a person purchases as their residence homestead. The credit applies in the first tax year following the purchase if the property has not previously been designated as a homestead. The credit amount is the lesser of two calculations: either $3,000 multiplied by a fraction based on the taxing unit's share of total taxes, or half of the taxes imposed by the taxing unit.

Texas HB2133 proposes a one-time tax credit for the first property purchased as a residence homestead, affecting ad valorem taxes and school district.

HB2133 amends the Texas Tax Code to provide a one-time tax credit for the first property a person purchases as their residence homestead. The credit applies in the first tax year following the purchase if the property has not previously been designated as a homestead. The credit amount is the lesser of two calculations: either $3,000 multiplied by a fraction based on the taxing unit's share of total taxes, or half of the taxes imposed by the taxing unit.