BILL ANALYSIS H.B. 1622 By: Jackson March 29, 1995 Committee Report (Unamended) BACKGROUND Article VIII, Section 1-b(e), Texas Constitution, allows taxing unit governing bodies to exempt a percentage (not to exceed 20%) of the market value of qualified homesteads within the unit. The minimum optional exemption is $5,000. Section 11.13, Tax Code, provides for residence homestead exemptions. County Education Districts (CEDs) existed during the 1991-92 and 1992-93 tax years, and Texas voters had provided by constitutional amendment for a 20 percent mandatory homestead exemption of the value of homesteads on CED tax rolls. However, with the termination of CEDs, this mandatory exemption was lost. PURPOSE This bill would allow voters within a school district to adopt, at an election, a percentage homestead exemption for school district taxable values. This is contingent on the passage of the constitutional amendment (HJR 75). 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(n), Tax Code, by entitling an individual to an exemption from taxation by a school district if the governing body adopts an exemption by May 1 or if the voters of the district approve an exemption through an election. An election shall be called by the governing body on petition of at least 20 percent of the voters in the last election. The school board cannot increase or decrease the amount of an exemption approved by the voters. Through election, the voters may increase or decrease the amount. The percentage adopted cannot exceed 20 percent of the market value of the homesteads. SECTION 2. Effective date: January 1, 1996, contingent upon the passage of a constitutional amendment. SECTION 3. Emergency clause SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with the rules, and a public hearing was held on March 21, 1995. Representative Jackson explained the bill. Without objection, H.B. 1622 was left pending before the committee. On March 28, 1995, the committee met in a public hearing and H.B. 1622 was laid out on pending business. Representative Jackson explained the bill. By a record vote of 7 ayes, 0 nays, 0 present not voting and 4 absent, the committee voted to report H.B. 1622 to the House without amendment with the recommendation that it do pass. Testimony received in favor of the bill (3-21-95): Margaret Baird, representing herself and the Citizens for Fiscal Responsibility in Education and Taxpayers Coalition of Clear Creek Roger E. Nylin (Mayor-City of El Lago), representing himself and the citizens of El Lago Jennifer Schlicke, representing herself and the Tax Assessor Collectors Assn.