SRC-ARR S.B. 541 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 541
76R2726 ESH-DBy: Shapiro
Education
4/6/1999
As Filed


DIGEST 

Currently, Texas law authorizes a school board to grant an optional
exemption for up to 20 percent of the appraised value of the homesteads.
As, a result, a percentage of the appraised value of the homesteads is
excluded from the tax base of those school districts in levying a local
property tax. S.B. 541 removes the optional homestead exemption from the
calculation of a school district's taxable wealth which will ensure that
the recaptured dollars are indeed tax dollars to which the school districts
has access.  

PURPOSE

As proposed, S.B. 541 redefines "taxable value" regarding computation of
school district property values for purposes of school finance. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 403.302(d), Government Code, as amended by
Chapters 1039, 1040, and 1071, Acts of the 75th Legislature, Regular
Session, 1997, reenacted and amended to redefine "taxable value" as the
market value of all taxable property less the total dollar amount of any
residence homestead exemptions lawfully granted under Section 11.13(b),
(c), or (n), Tax Code, (regarding exemptions from taxation). Makes a
nonsubstantive change. 

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.