1-1     By:  Bonnen (Senate Sponsor - Cain)                   H.B. No. 1940
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the proration of the taxes imposed on a residence
1-10     homestead in a year in which a residence homestead exemption for an
1-11     elderly person terminates.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Section 26.10(b), Tax Code, is amended to read as
1-14     follows:
1-15           (b)  If the appraisal roll shows that a [property is eligible
1-16     for taxation at its full appraised value for only part of a year
1-17     because a] residence homestead exemption for an individual 65 years
1-18     of age or older applicable to a property on January 1 of a [that]
1-19     year terminated during the year and if the owner qualifies a
1-20     different property for a residence homestead exemption during the
1-21     same year, the tax due against the former residence homestead
1-22     [property] is calculated by:
1-23                 (1)  subtracting:
1-24                       (A)  the amount of the taxes that otherwise would
1-25     be imposed on the former residence homestead for the entire year
1-26     had the individual qualified for the residence homestead exemption
1-27     for the entire year; from
1-28                       (B)  the amount of the taxes that otherwise would
1-29     be imposed on the former residence homestead for the entire year
1-30     had the individual not qualified for the residence homestead
1-31     exemption during the year;
1-32                 (2)  multiplying the remainder determined under
1-33     Subdivision (1) by a fraction, the denominator of which is 365 and
1-34     the numerator of which is the number of days that elapsed after the
1-35     date the exemption terminated; and
1-36                 (3)  adding the product determined under Subdivision
1-37     (2) and the amount described by Subdivision (1)(A).
1-38           SECTION 2.  Section 26.112, Tax Code, is amended to read as
1-39     follows:
1-40           Sec. 26.112.  CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
1-41     ELDERLY PERSON.  (a)  Except as provided by Section 26.10(b), if
1-42     [If] at any time during a tax year property is owned by an
1-43     individual who qualifies for an exemption under Section 11.13(c) or
1-44     (d) for an individual 65 years of age or older, the amount of the
1-45     tax due on the property for the tax year is calculated as if the
1-46     person qualified for the exemption on January 1 and continued to
1-47     qualify for the exemption for the remainder of the tax year.
1-48           (b)  [If property is the residence homestead of more than one
1-49     individual during a tax year and any of those individuals qualify
1-50     for an exemption under Section 11.13(c) or (d) for an individual 65
1-51     years of age or older with respect to the property, the amount of
1-52     the tax due on the property for the tax year is calculated as if
1-53     that individual owned the property for the entire tax year.]
1-54           [(c)]  If a person qualifies for an exemption under Section
1-55     11.13(c) or (d) for an individual 65 years of age or older with
1-56     respect to the property after the amount of the tax due on the
1-57     property is calculated and the effect of the qualification is to
1-58     reduce the amount of the tax due on the property, the assessor for
1-59     each taxing unit shall recalculate the amount of the tax due on the
1-60     property and correct the tax roll.  If the tax bill has been mailed
1-61     and the tax on the property has not been paid, the assessor shall
1-62     mail a corrected tax bill to the person in whose name the property
1-63     is listed on the tax roll or to the person's authorized agent.  If
1-64     the tax on the property has been paid, the tax collector for the
 2-1     taxing unit shall refund to the person who paid the tax the amount
 2-2     by which the payment exceeded the tax due.
 2-3           SECTION 3. This Act takes effect January 1, 2002, and applies
 2-4     only to ad valorem taxes imposed for a tax year that begins on or
 2-5     after that date.
 2-6                                  * * * * *