By Cain                                         S.B. No. 1642

      75R860 SMH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to applications for ad valorem tax exemptions and

 1-3     penalties for making certain erroneous exemption claims.

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

 1-5           SECTION 1.  Section 11.43(f), Tax Code, is amended to read as

 1-6     follows:

 1-7           (f)  The comptroller, in prescribing the contents of the

 1-8     application form for each kind of exemption, shall ensure that the

 1-9     form requires an applicant to furnish the information necessary to

1-10     determine the validity of the exemption claim.  The form must

1-11     require an applicant to provide the applicant's name and driver's

1-12     license number, personal identification certificate number, or

1-13     social security account number.  The comptroller  shall include on

1-14     the forms a notice of the penalties prescribed by Section 37.10,

1-15     Penal Code, for making or filing an application containing a false

1-16     statement.  The comptroller shall include, on application forms for

1-17     exemptions that do not have to be claimed annually, a statement

1-18     explaining that the application need not be made annually and that

1-19     if the exemption is allowed, the applicant has a duty to notify the

1-20     chief appraiser when the applicant's [his] entitlement to the

1-21     exemption ends.  In this subsection:

1-22                 (1)  "Driver's license" has the meaning assigned by

1-23     Section 521.001, Transportation Code.

1-24                 (2)  "Personal identification certificate" means a

 2-1     certificate issued by the Department of Public Safety under

 2-2     Subchapter E, Chapter 521, Transportation Code.

 2-3           SECTION 2.  Section 33.01, Tax Code, is amended by adding

 2-4     Subsections (d) and (e) to read as follows:

 2-5           (d)  In lieu of the penalty imposed under Subsection (a), a

 2-6     delinquent tax incurs a penalty of 50 percent of the amount of the

 2-7     tax without regard to the number of  months the tax has been

 2-8     delinquent if the tax is delinquent because the property owner

 2-9     received an exemption under:

2-10                 (1)  Section 11.13 and the chief appraiser subsequently

2-11     cancels the exemption because the residence was not the principal

2-12     residence of the property owner and the property owner received an

2-13     exemption for another residence homestead for the tax year in which

2-14     the tax was imposed;

2-15                 (2)  Section 11.13(c) or (d) for a person who is 65 or

2-16     older and the chief appraiser subsequently cancels the exemption

2-17     because the property owner was younger than 65 on the exemption

2-18     qualification date; or

2-19                 (3)  Section 11.13(q) and the chief appraiser

2-20     subsequently cancels the exemption because the property owner was

2-21     younger than 55 when the property owner's spouse died.

2-22           (e)  A penalty imposed under Subsection (d) does not apply

2-23     if, at any time before the date the tax becomes delinquent, the

2-24     property owner gives to the chief appraiser of the appraisal

2-25     district in which the property is located written notice of

2-26     circumstances that would disqualify the owner for the exemption.

2-27           SECTION 3.  (a)  The change in law made by Section 1 of this

 3-1     Act applies only to an application for an exemption from ad valorem

 3-2     taxation filed on or after the effective date of this Act.  An

 3-3     application for an exemption from ad valorem taxation filed before

 3-4     the effective date of this Act is covered by the law in effect on

 3-5     the date the application was filed, and that law is continued in

 3-6     effect for that purpose.

 3-7           (b)  The change in law made by Section 2 of this Act applies

 3-8     only to penalties incurred on ad valorem taxes that become

 3-9     delinquent on or after the effective date of this Act.  Penalties

3-10     incurred on ad valorem taxes that became delinquent before the

3-11     effective date of this Act are covered by the law in effect when

3-12     the taxes became delinquent, and that law is continued in effect

3-13     for that purpose.

3-14           SECTION 4.  This Act takes effect January 1, 1998.

3-15           SECTION 5.  The importance of this legislation and the

3-16     crowded condition of the calendars in both houses create an

3-17     emergency and an imperative public necessity that the

3-18     constitutional rule requiring bills to be read on three several

3-19     days in each house be suspended, and this rule is hereby suspended.