HBA-JLV H.B. 1940 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1940 By: Bonnen Ways & Means 6/14/2001 Enrolled BACKGROUND AND PURPOSE The 76th legislature amended the Property and Tax codes to allow a homeowner who turns 65 during a calendar year to receive the over-65 exemption on their homestead as if they were age 65 on January 1 of that year. Under this provision, the homeowner would benefit for the entire year because there was not a provision for prorating the exemption. Prior to the 77th Legislative session, if a homeowner that was receiving the over-65 exemption passed away during the year, the over-65 exemption was prorated off the property for the remainder of the calendar year. There have been concerns that this action could cause undue hardship on the estate or family of an elderly person. House Bill 1940 clarifies when to prorate because of an over-65 residence homestead exemption and modifies other provisions regarding residence homestead exemptions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1940 amends the Tax Code to modify provisions relating to certain residence homestead exemptions. If the appraisal roll shows that a residence homestead exemption for an individual 65 years of age or older applicable to a property on January 1 of a year terminated during the year and if the owner qualifies a different property for a residence homestead exemption during the same year, the bill sets forth provisions relating to the calculation of the tax due against the former residence homestead. The bill removes provisions providing 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 for an individual 65 years of age or older with respect to property. EFFECTIVE DATE January 1, 2002.