LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 5, 1995 TO: Honorable John T. Montford, Chair IN RE: Senate BillNo. 1614 Committee on Finance By: Whitmire Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 1614 (Relating to the granting, repeal, or reduction of local option residence homestead exemptions.) this office has determined the following: The bill would require voter approval to repeal or reduce a local option homestead exemption adopted under Section 11.13 (d) and 11.13 (n), Tax Code. Section 11.13 (d), Tax Code, allow individual taxing units to adopt a homestead exemption of $3,000 or more on homesteads of the elderly or disabled or both. The exemption may be adopted by a taxing unit action or by an election. Section 11.13 (n), Tax Code, allows individual taxing units to exempt a maximum 20 percent of the market value of all residential homesteads. If the percentage set by the taxing unit produces an exemption of less than $5,000, an individual is entitled to an exemption of $5,000 of the appraised value. Passage of this bill would not cause a change in school district taxable values reported to the Commissioner of Education by the Comptroller, since the dollar value of optional homestead exemptions is reported as taxable school district wealth. No fiscal implication to the State is anticipated. The fiscal implication to units of local government cannot be determined. Source: Legislative Budget Board LBB Staff: JK, BR, DF