BILL ANALYSIS



C.S.H.B. 1127
By: Hamric
March 22, 1995
Committee Report (Substituted)


BACKGROUND

Presently, Section 11.13, Tax Code, limits the school district
portion of ad valorem taxes for persons who are 65 or older for
their residence homesteads.  The total amount of school district
taxes are limited to the amount in the first year of eligibility. 
The Texas Constitution provides that in the event of death, if the
surviving spouse is at least 55 years old, the surviving spouse
continues to qualify for the school district tax limitation. 
However, other taxing units that elect to offer an exemption to
elderly people cannot exempt a surviving spouse that is over 55.

PURPOSE

The bill extends the amount of tax exemption on a residence
homestead of an elderly person to a surviving spouse that is over
55.

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 11.13, Tax Code, by adding Subsections
           (q) and (r).

           (q) Extends the over 65 property tax exemption under
           Section 11.13(d) to a surviving spouse that is over 55. 
           The exemption is an equal amount to the deceased
           spouse's tax exemption.

           (r) Prohibits an individual from claiming the over 65
           exemption and the surviving spouse exemption.

SECTION 2. Effective Date:  January 1, 1996.  This Act applies only
           to tax years beginning on or after that date, and only
           if the constitutional amendment relating to this Act is
           approved by the voters.

SECTION 3. Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill, H.B. 1127, would extend tax limitations on the
residence homestead of a person that is over 65 to all taxing
units.  This limitation would then be passed on to a surviving
spouse that is over 55 (similar to the current school tax
limitation).

C.S.H.B. 1127, would pass on the current amount of exemptions that
a person over 65 receives on their residence homestead to the
surviving spouse if that person is over 55.






SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on February 28, 1995.  Representative Hamric
explained the bill.  Without objection, H.B. 1127 was left pending
before the committee.

On March 14, 1995, the committee met in a public hearing. 
Representative Hamric explained the substitute.  Without objection,
the committee adopted C.S.H.B. 1127, by Craddick.  By a record vote
of 8 ayes, 0 nays, 0 present not voting and 3 absent, the committee
voted to report H.B. 1127 to the House as substituted with the
recommendation that it do pass.


     Testimony received in favor of the bill:
           Alice J. Bixby, representing herself
           George H. Moff, representing himself (substituted
version)
           Leonard Spearman, representing Harris Cty. Judge, Robert
           Eckels

     Neutral testimony received on the bill:
           Jim Robinson, representing the Harris Cty. Appraisal
           Dist.
           Dan Wilson, representing the Comptroller of Public
           Accounts-Property Tax        Division