By Willis, Raymond, et al.                             H.B. No. 177
       74R1032 SMH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the exemption from ad valorem taxation of property
    1-3  owned by disabled veterans or by the surviving spouses and
    1-4  surviving minor children of disabled veterans.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 11.22, Tax Code, is amended to read as
    1-7  follows:
    1-8        Sec. 11.22.  DISABLED VETERANS.  (a)  A disabled veteran is
    1-9  entitled to an exemption from taxation of a portion of the assessed
   1-10  value of a property the veteran <he> owns and designates as
   1-11  provided by Subsection (g) <(f)> of this section in accordance with
   1-12  the following schedule:
   1-13     an exemption of                  for a disability rating of
   1-14         up to:                    at least:    but not greater than:
   1-15  $15,000 <$1,500> of the             10%                30%
   1-16           assessed value
   1-17   20,000 <2,000>                     31                 50
   1-18   25,000 <2,500>                     51                 70
   1-19   30,000 <3,000>                     71 and over
   1-20        (b)  A disabled veteran is entitled to an exemption from
   1-21  taxation of $30,000 <$3,000> of the assessed value of a property
   1-22  the veteran <he> owns and designates as provided by Subsection (g)
   1-23  <(f)> of this section if the veteran:
   1-24              (1)  is 65 years of age or older and has a disability
    2-1  rating of at least 10 percent;
    2-2              (2)  is totally blind in one or both eyes; or
    2-3              (3)  has lost the use of one or more limbs.
    2-4        (c)  A disabled veteran who is classified as permanently and
    2-5  totally disabled is entitled to an exemption from taxation of
    2-6  $30,000 of the assessed value of a property the veteran owns and
    2-7  designates as provided by Subsection (g) of this section if any
    2-8  part of the veteran's disability is service-connected.
    2-9        (d)  If a disabled veteran who is entitled to an exemption by
   2-10  Subsection (a), <or> (b), or (c) of this section dies, the
   2-11  veteran's surviving spouse is entitled to an exemption from
   2-12  taxation of a portion of the assessed value of a property the
   2-13  spouse owns and designates as provided by Subsection (g) <(f)> of
   2-14  this section.  The amount of the exemption is the amount of the
   2-15  veteran's exemption at time of death.  The spouse is entitled to an
   2-16  exemption by this subsection only for as long as the spouse remains
   2-17  unmarried.  If the spouse does not survive the veteran, each of the
   2-18  veteran's surviving children who is younger than 18 years of age
   2-19  and unmarried is entitled to an exemption from taxation of a
   2-20  portion of the assessed value of a property the child owns and
   2-21  designates as provided by Subsection (g) <(f)> of this section.
   2-22  The amount of exemption for each eligible child is computed by
   2-23  dividing the amount of the veteran's exemption at time of death by
   2-24  the number of eligible children.
   2-25        (e) <(d)>  If an individual dies while on active duty as a
   2-26  member of the armed services of the United States:
   2-27              (1)  the individual's surviving spouse is entitled to
    3-1  an exemption from taxation of $25,000 <$2,500> of the assessed
    3-2  value of the property the spouse owns and designates as provided by
    3-3  Subsection (g) <(f)> of this section; and
    3-4              (2)  each of the individual's surviving children who is
    3-5  younger than 18 years of age and unmarried is entitled to an
    3-6  exemption from taxation of a portion of the assessed value of a
    3-7  property the child owns and designates as provided by Subsection
    3-8  (g) <(f)> of this section, the amount of exemption for each
    3-9  eligible child to be computed by dividing $25,000 <$2,500> by the
   3-10  number of eligible children.
   3-11        (f) <(e)>  An individual who qualifies for more than one
   3-12  exemption authorized by this section is entitled to aggregate the
   3-13  amounts of the exemptions, except that:
   3-14              (1)  a disabled veteran who qualifies for more than one
   3-15  exemption authorized by Subsections (a), <and> (b), and (c) of this
   3-16  section is entitled to only one exemption but may choose the
   3-17  greatest exemption for which the veteran <he> qualifies; and
   3-18              (2)  an individual who receives an exemption as a
   3-19  surviving spouse of a disabled veteran as provided by Subsection
   3-20  (d) <(c)> of this section may not receive an exemption as a
   3-21  surviving child as provided by Subsection (d) <(c)> or (e) <(d)> of
   3-22  this section.
   3-23        (g) <(f)>  An individual may receive an exemption to which
   3-24  the individual <he> is entitled by this section against only one
   3-25  property, which must be the same for every taxing unit in which the
   3-26  individual claims the exemption.  If an individual is entitled by
   3-27  Subsection (f) <(e)> of this section to aggregate the amounts of
    4-1  more than one exemption, the individual <he> must take the entire
    4-2  aggregated amount against the same property.  An individual must
    4-3  designate on the individual's <his> exemption application form the
    4-4  property against which the individual <he> takes an exemption under
    4-5  this section.
    4-6        (h) <(g)>  An individual is not entitled to an exemption by
    4-7  this section unless the individual <he> is a resident of this
    4-8  state.
    4-9        (i) <(h)>  In this section:
   4-10              (1)  "Child" includes an adopted child or a child born
   4-11  out of wedlock whose paternity has been admitted or has been
   4-12  established in a legal action.
   4-13              (2)  "Disability rating" means a veteran's percentage
   4-14  of disability as certified by the Department of Veterans Affairs
   4-15  <Veterans' Administration> or its successor or the branch of the
   4-16  armed services in which the veteran served.
   4-17              (3)  "Disabled veteran" means a veteran of the armed
   4-18  services of the United States who is classified as disabled by the
   4-19  Department of Veterans Affairs <Veterans' Administration> or its
   4-20  successor or the branch of the armed services in which the veteran
   4-21  served and whose disability is service-connected.
   4-22              (4)  "Surviving spouse" means the individual who was
   4-23  married to a disabled veteran or member of the armed services at
   4-24  the time of the veteran's or member's death.
   4-25        SECTION 2.  This Act takes effect January 1, 1997, and
   4-26  applies only to taxes imposed for tax years beginning on or after
   4-27  that date, but only if the constitutional amendment proposed by the
    5-1  74th Legislature, Regular Session, 1995, relating to the exemption
    5-2  from ad valorem taxation of property owned by disabled veterans or
    5-3  by the surviving spouses and surviving minor children of disabled
    5-4  veterans is approved by the voters.  If that amendment is not
    5-5  approved by the voters, this Act has no effect.
    5-6        SECTION 3.  The importance of this legislation and the
    5-7  crowded condition of the calendars in both houses create an
    5-8  emergency and an imperative public necessity that the
    5-9  constitutional rule requiring bills to be read on three several
   5-10  days in each house be suspended, and this rule is hereby suspended.