SRC-TJG H.B. 216 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 216
78R1952 JD-DBy: Hamric, et al (Van de Putte)
Finance
5/20/2003
Engrossed


DIGEST AND PURPOSE 

Several provisions of the Tax Code provide benefits to over-65 and
disabled homeowners occupying a home as their principal residence.  Not
all of the provisions apply to both over-65 and disabled homeowners. 

Currently, homeowners qualify for the over-65 exemption for the entire
year in which they reach the age of sixty-five.  This is accomplished by
making the exemption effective as of January 1st of the year in which the
homeowner turns sixty-five.  

Disabled homeowners do not qualify for the disabled exemption until
January 1 of the year following the year in which they become disabled.
H.B. 216 provides for disabled homeowners to receive their disability
exemption effective January 1 of the year in which they qualify for the
disability 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 Section 11.42(c), Tax Code, to delete existing text
relating to an individual being 65 years of age or older as a
qualification for an exemption authorized by Section 11.13(c) or (d) which
is effective as of a certain date. 

SECTION 2.  Amends Section 11.43(k), Tax Code, to make a conforming and a
nonsubstantive change. 

SECTION 3.  Amends Section 26.10(b), Tax Code, to provide that if the
appraisal roll shows that a residence homestead exemption for an
individual 65 years of age or older or a residence homestead exemption for
a disabled individual applicable to a property on a certain date and if
the owner qualifies a different property for one of those, residence
homestead exemptions, rather than a residence homestead exemption, during
the same year, the tax due against the former resident homestead is
calculated by a certain equation. 

SECTION 4.  Amends Section 26.112, Tax Code, as follows:

Sec. 26.112.  New heading: CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
ELDERLY OR DISABLED PERSON.  (a)-(b) Makes conforming changes. 

SECTION 5.  Effective date: January 1, 2004.
            Makes application of this Act prospective.