SWB H.B. 1773 75(R)BILL ANALYSIS WAYS & MEANS H.B. 1773 4-11-97 Committee Report (Unamended) BACKGROUND 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. PURPOSE The bill 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 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 Section 11.13(h), Tax Code (Residence Homestead), by prohibiting 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 (Partial Ownership of Exempt Property), to provide that the exemption for partial ownership of property shall be calculated by requiring the exemption to be multiplied by a fraction, calculated as the numerator being the value of the property interest the person owns and the denominator being the value of the property. Strikes language calculating the exemption based on the value of the property interest for a person who is not the sole owner as provided by Section 11.13, Tax Code (Residence Homestead), or 11.22, Tax Code (Disabled Veterans). Makes conforming and nonsubstantive changes. SECTION 3.Amends Section 11.43, Tax Code (Application for Exemption), by adding Subsection (j) to provide that an application for an exemption under Section 11.13, Tax Code (Residence Homestead), must: 1) list each owner and each owner's interest of the residence homestead; 2) state that the applicant does not claim an exemption under that section on another residence homestead; 3) state that the facts contained in the application are true; 4) include a sworn statement that the applicant has read and understands the notice required by Subsection (f). SECTION 4. Effective date: January 1, 1998. SECTION 5. Emergency clause.