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