H.J.R. 37 78(R)    BILL ANALYSIS


H.J.R. 37
By: Gutierrez
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently the Texas Constitution allows the legislature to exempt an
amount up to $10,000 of the market value of the residence homestead for an
elderly or disabled individual.  Disabled people and those that are over
65 often live on limited, fixed incomes and property values and rates
might rise disproportionately to their incomes.   In addition, since the
establishment of the current Tax Code in 1979, this exemption has not been
increased.  Increasing the exemption would provide relief for the
disparity between the income of people over 65 years of age and disabled
people and their rising property taxes.  HJR 37 proposes a constitutional
amendment to authorize the legislature to increase the current tax
exemption from $10,000 to $20,000.  

RULEMAKING AUTHORITY

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

ANALYSIS

SECTION 1
 Amends Section 1-b (c), Article VIII of the Texas Constitution to empower
the Legislature to exempt Twenty Thousand Dollars ($20,000) of the market
value of a residence homestead of an individual who is either disabled or
sixty-five years of age or older.   

SECTION 2
 Provides a temporary provision to the constitution to allow the 78th
Legislature to increase the tax exemption.  It also provides for the
amendment to take effect on January 1, 2004 and for the temporary
provision to expire January 2, 2004. 

SECTION 3
 Designates November 4, 2003 as the date for the amendment to be submitted
to the voters and provides language for the ballot. 


FOR ELECTION

November 4, 2003.