1-1     By:  Danburg (Senate Sponsor - Barrientos)            H.B. No. 1773

 1-2           (In the Senate - Received from the House April 27, 1997;

 1-3     April 29, 1997, read first time and referred to Committee on

 1-4     Finance; May 9, 1997, reported favorably by the following vote:

 1-5     Yeas 11, Nays 0; May 9, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the residence homestead exemption from ad valorem

 1-9     taxation.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 11.13(h), Tax Code, is amended to read as

1-12     follows:

1-13           (h)  Joint or community owners may not each receive the same

1-14     exemption provided by or pursuant to this section for the same

1-15     residence homestead in the same year.  An eligible disabled person

1-16     who is 65 or older may not receive both a disabled and an elderly

1-17     residence homestead exemption but may choose either.  A person may

1-18     not receive an exemption under this section for more than one

1-19     residence homestead in the same year.

1-20           SECTION 2.  Section 11.41, Tax Code, is amended to read as

1-21     follows:

1-22           Sec. 11.41.  PARTIAL OWNERSHIP OF EXEMPT PROPERTY.  (a)  If

1-23     [Except as provided by Subsection (b) of this section, if] a person

1-24     who qualifies for an exemption as provided by this chapter is not

1-25     the sole owner of the property to which the exemption applies, the

1-26     exemption shall be multiplied by a fraction, the numerator of which

1-27     is [limited to] the value of the property interest the person owns

1-28     and  the denominator of which is the value of the property.

1-29           (b)  [If a person who qualifies for an exemption as provided

1-30     by Section 11.13 or 11.22 of this code is not the sole owner of the

1-31     property to which the exemption applies, the amount of the

1-32     exemption is calculated on the basis of the value of the property

1-33     interest the person owns.]

1-34           [(c)]  In the application of this section, community

1-35     ownership by a person who qualifies for the exemption and the

1-36     person's [his] spouse is treated as if the person owns the

1-37     community interest of the  person's [his] spouse.

1-38           SECTION 3.  Section 11.43, Tax Code, is amended by adding

1-39     Subsection (j) to read as follows:

1-40           (j)  An application for an exemption under Section 11.13

1-41     must:

1-42                 (1)  list each owner of the residence homestead and the

1-43     interest of each owner;

1-44                 (2)  state that the applicant does not claim an

1-45     exemption under that section on another residence homestead;

1-46                 (3)  state that the facts contained in the application

1-47     are true; and

1-48                 (4)  include a sworn statement that the applicant has

1-49     read and understands the notice required by Subsection (f).

1-50           SECTION 4.  This Act takes effect January 1, 1998.

1-51           SECTION 5.  The importance of this legislation and the

1-52     crowded condition of the calendars in both houses create an

1-53     emergency and an imperative public necessity that the

1-54     constitutional rule requiring bills to be read on three several

1-55     days in each house be suspended, and this rule is hereby suspended.

1-56                                  * * * * *