By Danburg                                            H.B. No. 1773

         75R7273 SMH-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the residence homestead exemption from ad valorem

 1-3     taxation.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 11.13(h), Tax Code, is amended to read as

 1-6     follows:

 1-7           (h)  Joint or community owners may not each receive the same

 1-8     exemption provided by or pursuant to this section for the same

 1-9     residence homestead in the same year.  An eligible disabled person

1-10     who is 65 or older may not receive both a disabled and an elderly

1-11     residence homestead exemption but may choose either.  A person may

1-12     not receive an exemption under this section for more than one

1-13     residence homestead in the same year.

1-14           SECTION 2.  Section 11.41, Tax Code, is amended to read as

1-15     follows:

1-16           Sec. 11.41.  PARTIAL OWNERSHIP OF EXEMPT PROPERTY.  (a)  If

1-17     [Except as provided by Subsection (b) of this section, if] a person

1-18     who qualifies for an exemption as provided by this chapter is not

1-19     the sole owner of the property to which the exemption applies, the

1-20     exemption shall be multiplied by a fraction, the numerator of which

1-21     is [limited to] the value of the property interest the person owns

1-22     and  the denominator of which is the value of the property.

1-23           (b)  [If a person who qualifies for an exemption as provided

1-24     by Section 11.13 or 11.22 of this code is not the sole owner of the

 2-1     property to which the exemption applies, the amount of the

 2-2     exemption is calculated on the basis of the value of the property

 2-3     interest the person owns.]

 2-4           [(c)]  In the application of this section, community

 2-5     ownership by a person who qualifies for the exemption and the

 2-6     person's [his] spouse is treated as if the person owns the

 2-7     community interest of the  person's [his] spouse.

 2-8           SECTION 3.  Section 11.43, Tax Code, is amended by adding

 2-9     Subsection (j) to read as follows:

2-10           (j)  An application for an exemption under Section 11.13

2-11     must:

2-12                 (1)  list each owner of the residence homestead and the

2-13     interest of each owner;

2-14                 (2)  state that the applicant does not claim an

2-15     exemption under that section on another residence homestead;

2-16                 (3)  state that the facts contained in the application

2-17     are true; and

2-18                 (4)  include a sworn statement that the applicant has

2-19     read and understands the notice required by Subsection (f).

2-20           SECTION 4.  This Act takes effect January 1, 1998.

2-21           SECTION 5.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended.