BILL ANALYSIS H.B. 177 By: Willis April 28, 1995 Committee Report (Unamended) BACKGROUND Section 11.22 (Disabled Veterans), Tax Code, provides for exemptions from ad valorem taxation on the property of disabled veterans and their surviving spouses and minor children. In its report to the 74th Legislature, the Interim Committee on Veterans Affairs found that the current level of exemptions are too low. PURPOSE The bill would raise ad valorem tax exemptions on the property of disabled veterans and their surviving spouses and minor children. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.22, Tax Code, as follows: (a) Raises the maximum level of exemption on property of disabled veterans: Category Existing Amount Proposed Amount 10-30% Disabled $1,500 $15,000 31-50% Disabled $2,000 $20,000 51-70% Disabled, and survivors of persons killed on active duty $2,500 $25,000 71%-Total disability, or 10%+ disabled veterans over 65, or blindness, loss of limb $3,000 $30,000 (b) Raises the exemption from ad valorem taxation from $3,000 to $30,000 for property of veterans that: (1) are over 65 and at least 10% disabled; (2) are totally blind in at least one eye; or (3) have lost the use of at least one limb. (c) Adds a new exemption of $30,000 from ad valorem taxation for veterans who are permanently and totally disabled if any part of the disability is service-connected. Subsections (d)-(h) are re-lettered accordingly. (d) Provides that surviving spouses and minor children are eligible for the same amount of exemptions that the veteran was eligible for, including the exemptions in Subsection (c). (e) Raises the exemption from ad valorem taxation from $2,500 to $25,000 for property of the surviving spouse and minor children of veterans who die while on active duty. (f) Provides that veterans who are eligible for more than one exemption under Subsections (a), (b) and (c), must decide which one to take. (i) Replaces "Veterans Administration" with "Department of Veterans Affairs." SECTION 2. Effective Date: January 1, 1997, and applies only to taxes for tax years beginning on or after that date; Contingent on passage of constitutional amendment relating to ad valorem taxation of property owned by disabled veterans. SECTION 3. Emergency Clause. SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with the rules, and a public hearing was held on April 25, 1995. The chair laid out H.B. 177. By a record vote of 9 ayes, 0 nays, 0 present not voting and 2 absent, the committee voted to report H.B. 177 to the House without amendment with the recommendation that it do pass. Testimony received in favor of the bill: Samuel Bier, representing himself and the DAV and DAVA (Auxiliary), Dept. of Texas (HB 177, HB 627) Bill McLemore, representing himself and the Texas Assn. County Veterans Service Officers (HB 177, HB 627) Connie Rose, representing herself and the Texas Assessor-Collector Assn. (HB 177)