SRC-JXG S.B. 1461 76(R) BILL ANALYSIS
Senate Research Center S.B. 1461
76R3947 SMH-DBy: Cain
Finance
4/13/1999
As Filed
DIGEST
In 1997, the legislature approved legislation to allow senior citizens to
qualify immediately for an exemption by directing appraisal districts to
prorate the exemption from the date the person turns 65 years old. Previous
to this legislation, senior citizens had to wait until the next tax year to
get their extra $10,000 homestead exemption. S.B. 1641 would allow a senior
citizen to qualify for a homestead exemption for the entire year upon
turning 65 years old, and would repeal the proration requirement.
PURPOSE
As proposed, S.B. 1461 requires a senior citizen to receive a homestead
exemption upon turning 65 years old.
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 11.13(h), Tax Code, to prohibit joint, community,
or successive owners from each receiving the same exemption provided by or
pursuant to this section for the same residence homestead in the same year.
Makes a nonsubstantive change.
SECTION 2. Amends Sections 11.26(a) and (j), Tax Code, to prohibit a school
district from increasing the total annual amount of ad valorem tax imposed
on the residence homestead of an individual 65 years old or older, in which
the individual qualified under Section 11.13(c). Provides that the
surviving spouse's school district taxes are determined, rather than
calculated under Section 26.112, as if the individual qualifying for the
exemption had lived for the entire year. Deletes text regarding an
exemption on residence homestead after the first year.
SECTION 3. Amends Section 11.42, Tax Code, to provide that eligibility for
an exemption is determined by a claimant's qualifications on January 1,
except as provided by Subsections (b) and (c) and other sections. Provides
that an exemption authorized by Sections 11.13(c) or (d) for an individual
65 years of age or older is effective as of January 1 of the tax year in
which the person qualifies for the exemption and applies for the entire tax
year. Entitles a person who acquires property after January 1 of a tax year
to receive an exemption authorized by Section 11.13, other than an
exemption authorized by Sections 11.13(c) or (d) for an individual 65 years
of age or older, for that entire tax year, if the person qualifies the
property for that exemption during that tax year. Deletes text regarding
Sections 11.13(c) or (d). Makes a conforming change.
SECTION 4. Amends Section 11.43(d), Tax Code, as amended by Chapters 1039,
1059, and 1155, Acts of the 75th Legislature, Regular Session, 1997, to
require a person who after January 1 of a tax year acquires property that
qualifies for an exemption covered by Section 11.42(d) to apply for the
exemption for that tax year, before the first anniversary of the date the
person acquires the property. Requires a person who after January 1 of a
tax year acquires property that qualifies for an exemption covered by
Section 11.42(e), rather than Section 11.42(c), to apply for an exemption.
SECTION 5. Amends Section 11.43(k), Tax Code, to delete text regarding a
portion of a tax year.
SECTION 6. Amends Section 26.112, Tax Code, as follows:
Sec. 26.112. New heading: CALCULATION OF TAXES ON RESIDENCE HOMESTEAD.
Provides that the amount of the tax due on the property for the tax year is
calculated as if the person qualified for the exemption on January 1 and
continued to qualify for the exemption for the remainder of the tax year,
if at any time during a tax year property is owned by an individual who
qualifies for an exemption under Section 11.13 with respect to the
property. Provides that the amount of the tax due on the property for the
tax year is calculated as if that individual owned the property for the
entire tax year, if property is the residence homestead of more than one
individual during a tax year and any of those individuals qualify for an
exemption under Section 11.13 (c) or (d) with respect to the property.
Requires the assessor for each taxing unit to recalculate the amount of tax
due on the property and correct the tax roll, if a person qualifies for an
exemption under Section 11.13 with respect to the property after the amount
of the tax due on the property is calculated and the effect of the
qualifications is to reduce the amount of the tax due on the property.
Requires the assessor to mail a corrected tax bill to the person in whose
name the property is listed on the tax roll or to the person's authorized
agent, if the tax bill has been mailed and the tax on the property has not
been paid. Requires the tax collector for the taxing unit to refund to the
person who paid the tax the amount by which the payment exceeded the tax
due, if the tax on the property has been paid. Deletes text regarding
Sections 11.13(c) and (d), and residence homestead of the individual.
Deletes text regarding the amount of taxes that would be imposed on
residence homestead. Makes conforming changes.
SECTION 7. Amends Section 26.113(a), Tax Code, to make a conforming change.
SECTION 8. Effective date: January 1, 2000.
Makes application of this Act prospective.
SECTION 9. Emergency clause.