LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 22, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB1940 by Bonnen (Relating to the proration of the taxes imposed on a residence homestead in a year in which a residence homestead exemption for an elderly person terminates.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend Sections 26.10 and 26.112 of the Tax Code to require proration of a 65-and-over homestead exemption in situations where the over-65 owner (as of January 1 of the tax year) qualified a subsequent property for a residence homestead exemption during the same year. In the event a 65-and-over homestead exemption terminated during the tax year, and the 65-and-over owner did not qualify for another homestead in the same year, the impact of the exemption would remain in effect for the entire tax year. The bill would allow the value reduction for a 65-and-over homestead exemption to remain in effect for the entire tax year in those instances where under current law the exemption would be prorated. In 1999, 1,015,010 over-65 exemptions were granted. If 2 percent of those qualified for the over 65 exemption met the provisions of the bill, the amount of potential loss would be approximately $1.5 million per year. When compared to the 1999 school district tax levy of $12.0 billion, this potential loss would be insignificant. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, BR