H.B. 216 78(R)    BILL ANALYSIS


H.B. 216
By: Hamric
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Disabled homeowners do not qualify for the disabled exemption until
January 1 of the year following the year in which they become disabled.
House Bill 216 provides for disabled homeowners to receive their
disability exemption effective January 1 of the year in which they qualify
for the disability exemption. 

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. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

Providing disabled homeowners with an exemption in the year in which they
become disabled is accomplished by deleting the words "for an individual
65 years of age or older" from Sections 11.42(c), 11.43(k), and 26.112 of
the Tax Code.  Also added are the words "or a residence homestead
exemption for a disabled individual" to Section 26.10(b) fo the Tax Code,
and the words "or disabled" to Section 26.112 of the Tax Code. 

EFFECTIVE DATE

January 1, 2004 and only applies to an ad valorem tax year that begins on
or after that date.