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.