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.