SRC-MKV H.B. 506 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 506
77R13 SMH-DBy: Smith (Staples)
Education
4/20/2001
Engrossed


DIGEST AND PURPOSE 

Current law limits school taxes imposed on the residence homesteads of
older Texans. When certain individuals reach the age of 65, the amount of
ad valorem taxes imposed by a school district may be frozen and these
individuals may be entitled to transfer the tax freeze to a subsequent
homestead. Ambiguity in the wording of the law, however, has created
differing interpretations as to the ability of certain surviving spouses to
transfer their deceased spouse's limitation to a subsequent homestead. To
avoid locking surviving spouses into homes that are too big or too
expensive for them, the homestead exemption for surviving spouses needs to
be portable. H.B.506 clarifies current law to guarantee that certain
surviving spouses are entitled to the limitation of school tax on their
subsequent homesteads. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 11.26(g) and (h), Tax Code, to add language
relating to a surviving spouse who receives a limitation under Subsection
(i) subsequently qualifying a different residence homestead for an
exemption under Section 11.13. 

SECTION 2.  (a) Effective date: January 1, 2002, and makes application of
this Act prospective. 

(b)  Provides that the change in law made by this Act is intended to
clarify existing law in effect before the effective date of this Act and is
not intended to make a substantive change in the law.  Provides that for
purposes of calculating the tax imposed on the residence homestead of a
surviving spouse for a tax year that begins on or after the effective date
of this Act, the governing body of a school district shall apply the
limitation on tax increases provided by Section 11.26(g), Tax Code, as
amended by this Act, to the residence homestead as if the change in law
made by this Act were in effect on August 25, 1997.