According to the Legislative Budget Board (LBB), SB 2521 is expected to have no significant fiscal implications for the State of Texas. According to the Legislative Budget Board’s fiscal note, while the bill introduces procedural responsibilities for local registrars and county appraisal districts, these duties are not anticipated to impose substantial costs. The registrars must transmit monthly death certificate abstracts to chief appraisers, and chief appraisers must use this data to verify ongoing eligibility for property tax exemptions tied to the deceased.

The bill’s provisions are intended to streamline exemption review processes within appraisal districts, potentially leading to more timely corrections of ineligible exemptions. Although this could result in modest revenue gains for local taxing entities due to the earlier termination of exemptions no longer justified, the overall fiscal impact at both the state and local levels is considered minimal.

There is a potential downstream effect on the state's school finance formulas, which are partially influenced by local property tax revenues. In theory, the earlier removal of exemptions could slightly increase local property tax collections and, in turn, impact the state's share of education funding. However, the LBB projects that any such impact would be too minor to be classified as significant.

SB 2521 represents a targeted administrative reform to ensure that property tax exemptions, particularly homestead exemptions, are accurately maintained and not improperly retained after the death of a property owner. The bill requires local registrars to send monthly abstracts of death certificates to appraisal districts and directs chief appraisers to review these records to determine whether a property still qualifies for an exemption. If no qualifying heir, such as a surviving spouse or child, remains, the exemption must be promptly canceled and noted in the appraisal record.

This proposal aligns with key principles of good governance: transparency, fiscal responsibility, and fairness in tax administration. The bill does not create or expand any tax exemptions; rather, it ensures that existing exemptions are responsibly managed and removed when no longer valid. In doing so, SB 2521 helps prevent property tax benefits from being wrongfully retained through administrative oversight or misuse, such as squatting on a deceased person's property while continuing to receive an exemption.

From a broader policy perspective, many fiscal conservatives and liberty-minded advocates rightly criticize exemptions for narrowing the tax base and increasing the burden on those who do not qualify, particularly renters, small businesses, and others who still depend on services funded by property taxes. While SB 2521 does not eliminate exemptions, it does reinforce the principle that they must be earned and actively maintained. By requiring timely updates and enforcement, the bill modestly constrains the unintended expansion of the exempt property base and supports a more equitable tax system.

Financially, the bill has no significant fiscal impact on the state or local governments, according to the Legislative Budget Board, though some minor local revenue benefits may arise as improperly retained exemptions are corrected earlier. These improvements in tax roll accuracy come at little cost and without expanding the size or scope of government.

In summary, SB 2521 is a responsible and liberty-consistent measure that reinforces the integrity of the tax system, limits misuse of exemptions, and contributes, albeit incrementally, to a broader, fairer tax base. As such, Texas Policy Research recommends that lawmakers vote YES on SB 2521.

• Individual Liberty: The bill does not restrict or infringe upon any individual rights. It involves a procedural update between government entities (local registrars and appraisal districts) and does not impose new requirements on private individuals. If anything, it indirectly protects taxpayers by ensuring their dollars aren't subsidizing ineligible exemptions. The rights of surviving spouses or children who may still qualify for the exemption are explicitly respected and preserved.
• Personal Responsibility: The bill reinforces personal responsibility by ensuring that tax benefits are not retained without a legal or factual basis. While it shifts some burden from heirs to appraisal districts to initiate exemption reviews, the bill creates a more accountable system overall, where exemptions are verified regularly rather than indefinitely presumed. This correction mechanism reflects the principle that public benefits must be tied to clear, valid conditions.
• Free Enterprise: The bill has no direct impact on free enterprise, but it supports a fairer tax structure by preventing the inadvertent expansion of exemptions. By ensuring tax liabilities are properly distributed, the bill promotes a more level playing field for businesses and individuals who pay their full share of property taxes without the benefit of exemptions.
• Private Property Rights: While the bill concerns tax administration, it indirectly supports private property rights by ensuring that exemptions, which can lower a property’s tax burden, are held only by those legally entitled to them. This protects the legitimacy of property ownership and the equitable application of property-related laws. It also safeguards against fraud or misuse, such as squatting or unauthorized occupation of properties falsely claimed to be exempt.
• Limited Government: Importantly, the bill does not expand the scope or authority of government. It imposes a narrowly tailored administrative requirement designed to enforce existing law more effectively. By leveraging already-collected death certificate data to keep exemption rolls accurate, it strengthens the precision of government functions without creating new agencies, penalties, or expansive rulemaking powers.