LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 11, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 841, Committee Report 1st House, Substituted Committee on State Affairs By: Cain Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB841 ( relating to ad valorem taxation.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB841-Committee Report 1st House, Substituted The cost to the state and units of local government would be a function on the number of over-65 homeowners who elect to avail themselves to the provisions of the bill. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend section of the Tax Code regarding appraisal district administration and membership. The bill also provides definitions of appraisal methods and techniques. The bill would expand the current 65-and over tax limitation on school taxes. Article VIII, Section 1-b(d) of the Texas Constitution and Section 11.26 of the Tax Code currently provides that once a person receives a 65-and over homestead exemption, the person would receive a tax ceiling for that home on total school taxes. The school taxes on that home cannot increase as long as the person owns and lives in that home. Under current law, property owners lose their 65-and over school tax freeze if they move to a different home. This bill would allow an owner to continue to pay the frozen amount of taxes on a subsequent homestead. This would be based a percentage factor of the new taxes vs. the frozen amount. The cost to the state and units of local government would be a function on the number of over-65 homeowners who elect to avail themselves of the provisions of the bill. Source: Agencies: LBB Staff LBB Staff: JK ,JD ,BR