HBA-TYH H.B. 51 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 51 By: Cuellar Public Education 2/9/1999 Introduced BACKGROUND AND PURPOSE Currently, Boulder County, Colorado, employs a system whereby senior taxpayers can earn back a portion of their property tax bills by working on a temporary basis in county offices. This gives the senior citizens an option to use their skills to perform services in the event that they cannot pay their property taxes. H.B. 51 authorizes a taxing entity to permit citizens at least 65 years of age to perform service for the taxing entity in lieu of paying taxes imposed by the taxing entity on property owned by the individual and occupied as the individual's homestead. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 31, Tax Code, by adding Section 31.035, as follows: Sec. 31.035. PERFORMANCE OF SERVICE IN LIEU OF PAYMENT OF TAXES ON HOMESTEAD OF ELDERLY PERSON. (a) Authorizes the governing body of a taxing unit to permit an individual who is at least 65 years of age to perform service for the taxing unit in place of paying the property tax owed on property owned by the individual and used as their residence. (b) Requires the governing body of the taxing unit to determine both the number of property owners who are permitted to perform service in place of paying property tax and the maximum number of hours of service that a property owner may perform. (c) Requires the governing body to require the property owner to execute a contract with the taxing unit before the delinquency date. Requires the contract to specify the nature of the service to be performed, the facility or location where the service will be performed, the number of hours of service, and when the service is to be performed. The contract must also set out provisions addressed in Subsections (d), (e), and (f). (d) Provides that each hour of service equals a credit against the taxes owed in the amount of one hour's work at the federal hourly minimum wage rate. Requires the service to be performed within one year after the delinquency date. (e) Provides that owed taxes are not considered delinquent on the delinquency date while the contract is in effect and are considered paid when the service is performed. Requires the taxing unit to terminate the contract and notify the property owner of the termination, if the property owner fails to perform the service or if the taxing unit determines the service unsatisfactory. Provides that unpaid taxes for which the property owner was to receive credit under the contract, but did not perform service for prior to termination, become delinquent and incur penalty and interest provided by Section 33.01 (Penalties and Interest), after either the delinquency date otherwise provided by this chapter for the unpaid taxes, or the first day of the next calendar month that begins at least 21 days after the date the taxing unit delivers notification of contract termination to the property owner, whichever is later. (f) Provides that, while performing services for a taxing unit, the property owner is not an employee of the taxing unit and is not entitled to any benefit provided by the taxing unit for its employees. (g) Provides that the services performed only supplement or complement those of the regular personnel of the taxing unit. Prohibits any reduction of hours or termination of positions of regular personnel of the tax unit because of the property owner's services. (h) Provides that the person performing the service for a taxing unit is not entitled to be indemnified by the taxing unit for any damage sustained or liability incurred while performing services. Provides that the taxing unit is not liable for damages arising from an act or omission of the person performing services under this section. SECTION 2. Amends Section 42.302 (a), Education Code, to redefine "DTR" (the district enrichment and facilities tax rate of the school district) as the amounts specified by Subsection (b) subtracted from the sum of the total amount of taxes collected by the school district for the applicable school year plus an amount equal to the total of all tax credits earned under Section 31.035, Tax Code (Discounts), for that school year, and dividing the difference by the quotient of the district's taxable value of property under Subchapter M, Chapter 403, Government Code, (Study of School District Property Values), divided by 100. SECTION 3. Emergency clause. Effective date: upon passage.