SRC-BWC S.B. 658 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 658
77R6258 SMH-DBy: Barrientos
Veteran Affairs & Military Installations
2/16/2001
As Filed


DIGEST AND PURPOSE 

Currently, there is a disparity in the exemption amounts defined by the
constitution and lower, superceded amounts listed in the corresponding tax
code section.  As proposed, S.B. 658 amends the tax code section describing
property tax exemptions available to disabled veterans and their family.
S.B. 658 also improves the exemption amounts to match levels currently
allowed within the constitution and increases the age of surviving children
who are eligible for the exemption. 

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 11.22(a)-(d), Tax Code, as follows:

(a)  Provides that a disabled veteran is exempt from taxation of a portion
of the property owned and designated as provided by Subsection (f) of this
section, and provides that the exempted amounts of the assessed value
change from $1,500 to $5000, $2,000 to $7,500, $2,500 to $10,000, and
$3,000 to $12,000;  

(b)  Makes a conforming change. 

(c)  Provides that if a veteran's spouse does not survive the veteran, the
veteran's surviving children who are younger than 30, rather than 18, years
of age and unmarried are entitled to an exemption from taxation of a
portion of the assessed value of a property the child owns and designates
as provided by Subsection (f).  Provides that the amount of exemption for
each eligible child is the amount of the veteran's exemption at time of
death.  Deletes text regarding computing the amount of the exemption by
dividing by the number of eligible children.  

(d)  Provides that an individual's spouse and surviving children are
entitled to an exemption from taxation of $5,000, rather than $2,500, and
$5,000, rather than a portion, respectively, of the assessed value of the
property owned and designated as provided by Subsection (f), if the
individual dies while on active duty as a member of the armed services of
the United States. Deletes text regarding the method of computing the
eligible child's exemption.  Makes a conforming change.   

SECTION 2.  Effective date:  January 1, 2002.
Makes application of the Act contingent upon passage and approval of the
constitutional amendment proposed by the 77th Legislature, Regular Session,
2001, to authorize the legislature to set the amount of the ad valorem tax
exemption for the surviving spouse and each child of a deceased disabled
veteran in an amount equal to the amount of the exemption to which the
disabled veteran was entitled.