Enrolled Bill Summary

            House Bill 136 amends the Tax Code to require that the residence homestead of a person who is 65 years of age or older or disabled be appraised and taxed based on the property qualifying for a limitation of county, municipal, or junior college district taxes that may be imposed. The bill limits the ad valorem taxes that a county, municipality, or junior college district may impose on the residence homestead of a disabled person or of a person 65 years of age or older, or of a surviving spouse who is disabled or who is 55 years of age or older, to not more than the amount imposed on the residence homestead during the first year immediately following the first year for which the individual qualified the residence homestead for the tax exemption. House Bill 136 provides a method for determining the increase in ad valorem taxes on a residence homestead to which the owner makes an improvement, the tax limitation on a different residence homestead that an owner subsequently qualifies for exemption in the same county, municipality, or junior college district, and the imposition of back taxes on a limitation that was erroneously allowed. The bill establishes conditions under which a limitation on ad valorem taxes imposed on a residence homestead expires. House Bill 136 takes effect January 1, 2004, contingent on voter approval of a constitutional amendment proposed by House Joint Resolution 16.