HBA-RBT S.B. 435 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 435 By: Carona Ways & Means 4/27/1999 Engrossed BACKGROUND AND PURPOSE Currently, Texas law requires the governing body of a political subdivision to decide by May 1 whether to exempt from ad valorem taxation a percentage of a market value of a residence homestead. For many of the governing bodies the result of the May 1 adoption requirement is that they make this decision before their fiscal year budgeting process begins. Moving the date for adopting an exemption to later in the year will allow governing bodies to consider more complete information when deciding whether to adopt an optional homestead exemption. This bill would move the date for adopting this exemption to July 1. S.B. 435 establishes the deadline for the adoption of an optional exemption from ad valorem taxation on residence homesteads. 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 Section 11.13(n), Tax Code, to entitle a person a certain tax exemption regarding the value of the person's residence homestead, if that exemption is adopted by the governing body of the taxing unit before July 1, rather than May 1, in the manner provided by law for official action by the body. SECTION 2. Amends Section 25.23(a), Tax Code, to require the chief appraiser to prepare supplemental appraisal records listing certain conditions, including property that qualifies for an exemption under Section 11.13(n) that was adopted by the governing body of a taxing unit after the date the appraisal records were submitted. Makes conforming and nonsubstantive changes. SECTION 3. Emergency clause. Effective date: upon passage.