LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 25, 2001 TO: Honorable Kip Averitt, Chair, House Committee on Financial Institutions FROM: John Keel, Director, Legislative Budget Board IN RE: HB2306 by Chisum (Relating to the extension of residence homestead ad valorem tax exemptions and protection from forced sale to a homestead owned by a family-owned business.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated if the * * constitutional amendment is not approved by the voters. * ************************************************************************** The bill would apply the standard homestead property tax exemptions to the residences owned by a family-owned business. The designation of a residence owned by a family-owned business as a homestead would be authorized for purposes of protection from forced sale. For the purposes of the bill, a family-owned business could be a firm, corporation, association, partnership, registered limited liability partnership, limited partnership, limited liability company, holding company, joint-stock company, joint venture, receivership, trust, or other business entity where a majority of the ownership rests with persons related within the second degree of affinity, or within the third degree of consanguinity. The bill would take effect on the date on which the constitutional amendment to extend residence homestead property tax exemptions and protection from forced sale to a homestead owned by a family-owned business was approved by voters. If that amendment were not approved by the voters, this bill would have no effect. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, JO, BR