Enrolled Bill Summary

            House Bill 1940 amends sections of the Tax Code relating to residence homestead exemptions for persons 65 years of age or older to clarify certain provisions pertaining to property that is owned only part of a year. The bill makes clear that if an elderly person qualifies for an exemption on a property on January 1 but moves during the course of the year and qualifies a new property for a residence homestead exemption, then a statutory formula applies to prorate the taxes on the first property for the remainder of the year following the change. If the elderly person dies, or moves without activating a residence homestead exemption on a new property, then taxes on the property remain lowered, with the benefit of a full elderly exemption, as if it had been the elderly person's residence homestead the entire year. Previous law was not clearly consistent on certain of these scenarios.