BILL ANALYSIS H.B. 1127 By: Hamric (Sponsor) Finance 05-10-95 Senate Committee Report (Amended) BACKGROUND Current law limits a school district's 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 a 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 years old. PURPOSE As proposed, H.B. 1127 extends the amount of tax exemption on a residence homestead of an elderly person to a surviving spouse that is over 55 years old. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.13, Tax Code, by adding Subsections (q) and (r), as follows: (q) Entitles the surviving spouse of an individual who received an exemption under Subsection (d) for the residence homestead of a person 65 or older to an exemption for the same property from the same taxing unit in an amount equal to that of the exemption received by the deceased spouse if the deceased spouse died in a year in which the deceased spouse received the exemption; the surviving spouse was 55 or older when the deceased spouse died; and the property was the residence homestead of the surviving spouse when the deceased spouse died and remains the residence homestead of the surviving spouse. (r) Provides that an individual who receives an exemption under Subsection (d) is not entitled to an exemption under Subsection (q). SECTION 2. (a) Provides that this section applies only to a county with a population of more than 225,000. (b) Validates an exemption from ad valorem taxation adopted by the commissioners court of a county under Section 11.13(n), Tax Code, after May 1, 1995, for the tax year as of the date the exemption was adopted. (c) Provides that the ad valorem taxation proceedings of the county occurring after the adoption of the exemption are validated and may not be held invalid because the exemption under Section 11.13(n), Tax Code, was not adopted in accordance with that section. (d) Provides that this section does not apply to any matter that on the effective date of this Act: (1) is involved in litigation if the litigation ultimately results in the matter being held invalid by a final judgment of a court of competent jurisdiction; or (2) has been held invalid by a final judgment of a court of competent jurisdiction. (e) Provides that this section expires January 1, 1996. SECTION 3. Provides that this Act takes effect January 1, 1996, and applies only to taxes imposed for tax years beginning on or after that date, but only if the constitutional amendment proposed by the 74th Legislature, Regular Session, 1995, exempting from ad valorem taxation the residence homestead of the surviving spouse of an elderly person is approved by the voters. Provides that if that amendment is not approved by the voters, this Act has no effect. SECTION 4. Emergency clause.