LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 25, 1995
TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 177
Committee on Ways & Means By: Willis, Raymond
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
177 (Relating to the exemption from ad valorem taxation of
property owned by disabled veterans or by the surviving spouses
and surviving minor children of disabled veterans.) this office
has determined the following:
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
The bill would amend Section 11.22, Tax Code, by increasing the
amounts of the property tax exemption for disabled veterans as
follows:
10 - 30% disabled - Existing Amount - $1,500 Proposed Amount -
$15,000
31 - 50% disabled - Existing Amount - $2,000 Proposed Amount -
$20,000
51 - 70% disabled - Existing Amount - $2,500 Proposed Amount -
$25,000
71% - Plus Existing Amount - $3,000 Proposed
Amount - $30,000
Survivor Benefit - Existing Amount - $2,500 Proposed Amount -
$25,000
Article VIII, Section 2(b), Texas Constitution, permits the
legislature to enact property tax exemptions for disabled
veterans, their survivors, and their spouses and children of
persons who die on active military service. Maximum exemption
amounts stated in the constitution are keyed to the percentage of
disability if the exemption applies to a disabled veteran or
survivor. Section 11.22, Tax Code enacts the exemptions in
essentially the same terms provided by the constitution.
The bill would take effect January 1, 1997, contingent on
adoption of a constitutional amendment relating to ad valorem
taxation of property owned by disabled veterans.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Cost Out Probable Revenue Probable Revenue
Year of General Loss Loss to Other
Revenue Fund 001 to School Local Government
Districts
1996 $0 $0 $0
1997 0 40,011,100 24,006,660
1998 0 40,011,100 24,006,650
1999 38,529,207 1,481,893 24,006,660
2000 38,529,207 1,481,893 24,006,660
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
Source: Comptroller of Public Accounts
LBB Staff: JK, BR, DF