By Longoria                                             H.B. No. 69

      75R154 JD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the exemption from ad valorem taxation of the property

 1-3     of a disabled veteran or the surviving spouse or children of a

 1-4     disabled veteran.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 11.22, Tax Code, is amended to read as

 1-7     follows:

 1-8           Sec. 11.22.  Disabled Veterans.  (a)  A disabled veteran is

 1-9     entitled to an exemption from taxation of a portion of the assessed

1-10     value of a property the veteran [he] owns and designates as

1-11     provided by Subsection (f) [of this section] in accordance with the

1-12     following schedule:

1-13           an exemption of             for a disability rating of

1-14                up to:            at least:       but not greater than:

1-15           $5,000 [$1,500]            10%                  30%

1-16          of the assessed value                                     

1-17            7,500 [2,000]             31                   50 

1-18           10,000 [2,500]             51                   70 

1-19           12,000 [3,000]             71 and over

1-20           (b)  A disabled veteran is entitled to an exemption from

1-21     taxation of $12,000 [$3,000] of the assessed value of a property

1-22     the veteran [he] owns and designates as provided by Subsection (f)

1-23     of this section if the veteran:

1-24                 (1)  is 65 years of age or older and has a disability

 2-1     rating of at least 10 percent;

 2-2                 (2)  is totally blind in one or both eyes; or

 2-3                 (3)  has lost the use of one or more limbs.

 2-4           (c)  If a disabled veteran who is entitled to an exemption by

 2-5     Subsection (a) or (b) [of this section] dies, the veteran's

 2-6     surviving spouse is entitled to an exemption from taxation of a

 2-7     portion of the assessed value of a property the spouse owns and

 2-8     designates as provided by Subsection (f) [of this section].  The

 2-9     amount of the exemption is the amount of the veteran's exemption at

2-10     time of death.  The spouse is entitled to an exemption by this

2-11     subsection only for as long as the spouse remains unmarried.  If

2-12     the spouse does not survive the veteran, each of the veteran's

2-13     surviving children who is younger than 18 years of age and

2-14     unmarried is entitled to an exemption from taxation of a portion of

2-15     the assessed value of a property the child owns and designates as

2-16     provided by Subsection (f) [of this section].  The amount of

2-17     exemption for each eligible child is computed by dividing the

2-18     amount of the veteran's exemption at time of death by the number of

2-19     eligible children.

2-20           (d)  If an individual dies while on active duty as a member

2-21     of the armed services of the United States:

2-22                 (1)  the individual's surviving spouse is entitled to

2-23     an exemption from taxation of $5,000 [$2,500] of the assessed value

2-24     of the property the spouse owns and designates as provided by

2-25     Subsection (f) [of this section]; and

2-26                 (2)  each of the individual's surviving children who is

2-27     younger than 18 years of age and unmarried is entitled to an

 3-1     exemption from taxation of a portion of the assessed value of a

 3-2     property the child owns and designates as provided by Subsection

 3-3     (f) [of this section], the amount of exemption for each eligible

 3-4     child to be computed by dividing $5,000 [$2,500] by the number of

 3-5     eligible children.

 3-6           (e)  An individual who qualifies for more than one exemption

 3-7     authorized by this section is entitled to aggregate the amounts of

 3-8     the exemptions, except that:

 3-9                 (1)  a disabled veteran who qualifies for more than one

3-10     exemption authorized by Subsections (a) and (b) [of this section]

3-11     is entitled to only one exemption but may choose the greatest

3-12     exemption for which the veteran [he] qualifies; and

3-13                 (2)  an individual who receives an exemption as a

3-14     surviving spouse of a disabled veteran as provided by Subsection

3-15     (c) [of this section] may not receive an exemption as a surviving

3-16     child as provided by Subsection (c) or (d) [of this section].

3-17           (f)  An individual may receive an exemption to which the

3-18     individual [he] is entitled by this section against only one

3-19     property, which must be the same for every taxing unit in which the

3-20     individual claims the exemption.  If an individual is entitled by

3-21     Subsection (e) [of this section] to aggregate the amounts of more

3-22     than one exemption, the individual [he] must take the entire

3-23     aggregated amount against the same property.  An individual must

3-24     designate on the individual's [his] exemption application form the

3-25     property against which the individual [he] takes an exemption under

3-26     this section.

3-27           (g)  An individual is not entitled to an exemption by this

 4-1     section unless the individual [he] is a resident of this state.

 4-2           (h)  In this section:

 4-3                 (1)  "Child" includes an adopted child or a child born

 4-4     out of wedlock whose paternity has been admitted or has been

 4-5     established in a legal action.

 4-6                 (2)  "Disability rating" means a veteran's total

 4-7     [percentage of] disability rating as certified by the Veterans'

 4-8     Administration or its successor or the branch of the armed services

 4-9     in which the veteran served, including any consideration of the

4-10     veteran's unemployability.

4-11                 (3)  "Disabled veteran" means a veteran of the armed

4-12     services of the United States who is classified as disabled by the

4-13     Veterans' Administration or its successor or the branch of the

4-14     armed services in which the veteran served and whose disability is

4-15     service-connected.

4-16                 (4)  "Surviving spouse" means the individual who was

4-17     married to a disabled veteran or member of the armed services at

4-18     the time of the veteran's or member's death.

4-19           SECTION 2.  Section 2(d), Article VIII, Texas Constitution,

4-20     is repealed by this Act, as permitted by that section of the

4-21     constitution.

4-22           SECTION 3.  This Act takes effect January 1, 1998, and

4-23     applies only to taxes imposed for a tax year that begins on or

4-24     after that date.

4-25           SECTION 4.  The importance of this legislation and the

4-26     crowded condition of the calendars in both houses create an

4-27     emergency and an imperative public necessity that the

 5-1     constitutional rule requiring bills to be read on three several

 5-2     days in each house be suspended, and this rule is hereby suspended.