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)