SRC-DBM C.S.S.B. 868 76(R)    BILL ANALYSIS


Senate Research CenterC.S.S.B. 868
76R8217  SMH-FBy: Cain
Finance
4/19/1999
Committee Report (Substituted)


DIGEST 

Currently, the state holds school districts harmless for losses due to the
10 percent homestead value cap by requiring the Comptroller of Public
Accounts (comptroller) to deduct losses attributable to the limitation from
a school district's taxable value; the comptroller determines this loss
based on school district reports.  The losses determined by the state
should be equivalent to the appraisal level in school districts where state
education funding is based on property values.  C.S.S.B. 868 would set
forth provisions regarding the comptroller of public account's
determination of school district property values related to the treatment
of the limitation on increases in the appraised value of a residential
homestead. 

PURPOSE

As proposed, C.S.S.B. 868 sets forth provisions regarding the comptroller
of public account's determination of school district property values
related to the treatment of the limitation on increases in the appraised
value of a residential homestead. 

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, Government Code, by adding Subsection
(h), to require the comptroller of public accounts (comptroller), in
determining the taxable value of property in the school district under
Subsection (d), for purposes of Subsection (d) (11), to subtract from the
market value as determined by the appraisal district of residence
homesteads to which Section 23.23, Tax Code, applies, the amount by which
that amount exceeds the appraised value of those properties as calculated
by the appraisal district under Section 23.23, Tax Code, if the comptroller
determines in the annual study that the market value of property in a
school district as determined by the appraisal district that appraises
property for the school district, less the total of the amounts and values
listed in Subsection (d) as determined by that appraisal district, is
valid.  Requires the comptroller, in determining the taxable value of
property in the school district under Subsection (d), for purposes of
Subsection (d) (11), to subtract from the market value as estimated by the
comptroller of homesteads to which Section 23.23, Tax Code, applies, the
amount by which that amount exceeds the appraised value of those properties
as calculated by the appraisal district under Section 23.23, Tax Code, if
the comptroller determines in the annual study that the market value of
property in a school district as determined by the appraisal district that
appraises property for the school district, less the total of the amounts
and values listed in Subsection (d) as determined by that appraisal
district, is not valid. 

SECTION 2.Effective date: September 1, 1999.

SECTION 3.Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 403.302, Government Code, by adding Subsection (h),
regarding school district property values.  Deletes proposed changes to
Subsection (d).