SRC-HRD H.B. 1773 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1773
By: Danburg (Barrientos)
Finance
5-2-97
Engrossed


DIGEST 

Article VIII (Taxation and Revenue), Texas Constitution, Section 1-b,
provides for an exemption from ad valorem taxation for the owner of a
residence homestead.  The principal qualifications for a general residence
homestead exemption are that a person must own the property, it must be
designed or adapted for human habitation, and a qualified owner must
occupy the property as a principal residence.  Additional qualifications
apply for over-65 and disabled persons' homestead exemptions.

Currently, the possibility exists for co-owners of property to claim
multiple exemptions.  It is also difficult to prosecute a person who
falsely claims entitlement to more than one homestead or misrepresents his
or her qualifications.  This bill would provide that no owner of a
property for which a residence homestead is claimed may claim a residence
homestead for any other property. In addition, H.B. 1773 requires an
applicant to make a sworn statement under oath that the application is
true and correct.        
            
PURPOSE

As proposed, H.B. 1773 clarifies that no owner of the property for which a
residence homestead is claimed may claim a residence homestead for any
other property.  The bill also requires an applicant to make a sworn
statement under oath that the application is true and correct.        
            
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.13(h), Tax Code, to prohibit a person from
receiving an exemption under this section for more than one residence
homestead in the same year. 

SECTION 2. Amends Section 11.41, Tax Code, to set forth the terms under
which an exemption is required to be multiplied by a fraction, the
numerator of which is the value of the property interest the person owns
and the denominator of which is the value of the property.  Deletes
Subsection (b) regarding a person who is not the sole owner of the
property to which the exemption applies.  Makes nonsubstantive and
conforming changes.   

SECTION 3. Amends Section 11.43, Tax Code, by adding Subsection (j), to
set forth requirements for an application for exemption under Section
11.13. 

SECTION 4. Effective date: January 1, 1998.

SECTION 5. Emergency clause.