CS H.B. 41 75(R)BILL ANALYSIS WAYS & MEANS H.B. 41 By: McCall 2-17-97 Committee Report (Unamended) BACKGROUND According to the Comptroller of Public Accounts, in the past ten years, property taxes in Texas have more than doubled, and school property taxes have nearly tripled. While senior citizens may have their school property taxes frozen, many are on fixed incomes, and could benefit from alternatives to traditional employment. In 1990, the school district of Littleton, Colorado instituted a program that allows senior citizens to contribute service to the school district, and receive up to $513 credit against their school property taxes. Currently, 150 people participate in the program in Littleton, and fourteen other cities in Colorado have started similar programs. PURPOSE The bill would allow school districts the ability to enter into contracts with senior citizens who would contribute services to the district in lieu of paying school property taxes on their residence homestead. 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 Chapter 31, Tax Code, by adding Section 31.035, PERFORMANCE OF SERVICE IN LIEU OF PAYMENT OF SCHOOL TAXES ON HOMESTEAD OF ELDERLY PERSON. (a) Allows the governing body of a school district, by resolution, to permit individuals who are at least 65 years of age to perform service for the school district in lieu of paying school property taxes on the individual's residence homestead. (b) Allows the governing body of the school district to determine the number of property owners that will be permitted to participate in the program, and the maximum number of hours of service. (c) Requires that the governing body of the school district and the participants to enter into a contract, and specifies the content to be included in the contract. (d) Establishes that the hourly credit to be taken against property taxes is equal to the federal hourly minimum wage rate. (e) Specifies remedies to the school district if the service provided is unsatisfactory or incomplete. (f) Specifies that the participants, while performing service for the school district, are not employees, and are not entitled to any benefits including worker's compensation coverage. SECTION 2.Emergency clause.