SRC-PNG S.B. 1210 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1210
76R4494 SMH-DBy: Cain
Finance
4/9/1999
As Filed


DIGEST 

Currently, under Texas law, senior citizens may transfer a freeze of school
taxes on a homestead from one homestead to another.  However, there have
been abuses of this legislation with rapid turnovers of homesteads in order
to freeze taxes on lower value homesteads.  This bill would establish a
12-month period before the transfer of a freeze of tax increases on a
homestead is attached to the value of the homestead. 

PURPOSE

As proposed, S.B. 1210 establishes a 12-month period before the transfer of
a freeze of tax increases on a homestead is attached to the value of the
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 11.26(g), Tax Code, to prohibit a school district
from imposing ad valorem taxes under certain conditions if an individual
who receives a limitation on tax increases imposed by this section on a
residence homestead the person owned and occupied as a homestead for at
least 12 consecutive months subsequently qualifies a different residence
homestead for an exemption under Section 11.13.  Provides that the
limitation provided by this subsection applies to each subsequently
qualified homestead of the individual until the individual owns and
occupies a subsequently qualified homestead for at least 12 consecutive
months.  Prohibits the taxes imposed on the former residence homestead of
the individual from being used to determine the limitation of taxes
provided by this subsection for any later residence homestead of the
individual, after the individual owns and occupies a subsequently qualified
homestead for at least 12 consecutive months. Makes conforming and
nonsubstantive changes. 

SECTION 2.  Amends Section 11.26, Tax Code, by adding Subsection (m), to
provide that the limitation provided by Subsection (g) does not apply to
the homestead after the first year, if school district taxes imposed on an
individual's residence homestead are limited as provided by Subsection (g)
and the individual's residence homestead was under construction on January
1 of the first year in which the individual qualified that homestead for an
exemption under Section 11.13.  Prohibits the school district from imposing
ad valorem taxes that exceed certain amounts for certain years. 

SECTION 3. Effective date: January 1, 2000.
  Makes application of this Act prospective.

SECTION 4. Emergency clause.