HBA-LCA H.B. 3701 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3701 By: Shields Public Education 4/20/1999 Introduced BACKGROUND AND PURPOSE Current law does not provide a school property tax credit for education-related expenses of a religious nature. H.B. 3701 provides such a credit for property owners or renters. This bill amends Chapter 11, Tax Code (Taxable Property and Exemptions) to provide that a person may receive a school property tax credit up to $1,000 per child, or $2,000 per family, for curricular instruction that includes instruction in religious teaching, doctrine, or worship. 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 11, Tax Code, by adding Subchapter D, as follows: SUBCHAPTER D. EDUCATION-RELATED EXPENSES TAX CREDIT. Sec. 11.50. Purpose. Sets forth the purpose of Subchapter D, Tax Code as providing a school property tax credit for certain education-related purposes. Provides that the intent of the legislature is that freedom of religion of all citizens is inviolate and that nothing in this Subchapter be construed to cause excessive governmental entanglement with the religious instruction of a nonpublic school. Provides that, with respect to a nonpublic school, nothing in this subchapter authorizes a government agency to regulate, control, supervise, or involve itself in the form, manner, or content of religious instruction, teaching, ministry, or curriculum offered by a nonpublic school. Provides that, with respect to a nonpublic school, nothing in this subchapter authorizes a government agency to regulate, control, supervise, or involve itself in the ability of a nonpublic school to select and supervise qualified personnel or otherwise control terms of employment, including the right to employ individuals who share the religious views of the school. Provides that, with respect to a nonpublic school, nothing in this subchapter authorizes a government agency to regulate, control, supervise, or involve itself in the internal self-governance and autonomy of a nonpublic school. Provides that, with respect to a nonpublic school, nothing in this subchapter authorizes a government agency to regulate, control, supervise, or involve itself in the religious environment of a nonpublic school, such as symbols, art, icons, and scripture. Sec. 11.51. CREDIT ALLOWED. Entitles an adult, whether a property owner or renter, to a credit against school property taxation by a school district (district) in an amount equal to the amount paid for education-related expenses, as defined in Section 11.52 of this Act (Definitions) for a dependent in kindergarten through grade 12. Sec. 11.52. DEFINITIONS. (a) Provides that "core curriculum," in this section, means required curriculum as defined in Section 28.002, Education Code (Definitions). (b) Provides that "education-related expenses," in this section, means fees and tuition for instruction in any core curriculum classes by a public or private instructor, regardless of whether it is provided by a public or private entity, in grade- or age-appropriate curricula, that may include the teaching of the Bible or other religious scripture, and may include instruction in religious tenets, doctrine, or worship. Sec. 11.53 ELIGIBILITY. (c) Sets forth the maximum credit allowable according to total school property tax per claimant. Caps the maximum credit allowable at $1,000 per child or $2,000 per family. Provides that no credit is allowed for education-related expenses for a claimant with total school-property taxes of more than $2,000 per year. Provides that "claimant" includes a person who pays school property tax through rent. Sec. 11.54. RENTERS PROVISIONS. Provides that a renter be allowed to make a claim against a county tax assessor-collector for a tax credit against school-property tax to the extent that the amount of rent represents the school property tax that the owner pays. Requires a renter to deliver to an owner or owner's agent a certified letter requesting the dollar amount of the rental payment that represents property tax. Requires an owner to produce a sworn statement describing the doller amount per year attributable to school property tax and the method of calculation, and provides that such a statement be delivered to the renter within 30 days of the signing, by the owner's agent, of the certified-mail return receipt on the renter's letter requesting the statement. Sec. 11.55. APPLICATION FOR CREDIT. (a) Provides that an adult must apply for a credit under this subchapter on or before June 1 of the tax year for which the credit is claimed. (b) Requires the comptroller of public accounts (comptroller) to promulgate all forms for the application of credit authorized under this subchapter. Requires an applicant to use such a form. (c) Requires the comptroller to prescribe the form and manner of proof required to obtain the credit authorized under this subchapter. (d) Requires the school property tax assessor-collector to make such forms available at all offices or locations where tax information is distributed. SECTION 2. Provides that the legislature declares that the provisions of this Act are not severable, and that this Act would not have been enacted without the inclusion of all provisions. Provides that if any provision of this Act is held invalid, the entire Act is invalid. SECTION 4. Provides that this Act takes effect January 1, 2000. SECTION 5. Emergency clause.