78R1952 JD-D


By:  Hamric, et al.                                               H.B. No. 216



A BILL TO BE ENTITLED

AN ACT

relating to the qualification of a disabled person for an exemption 
from ad valorem taxation on the person's residence homestead.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 11.42(c), Tax Code, is amended to read as 
follows:       
	(c)  An exemption authorized by Section 11.13(c) or (d) [for 
an individual 65 years of age or older] is effective as of January 1 
of the tax year in which the person qualifies for the exemption and 
applies to the entire tax year.
	SECTION 2.  Section 11.43(k), Tax Code, is amended to read as 
follows:       
	(k)  A person who qualifies for an [the] exemption authorized 
by Section 11.13(c) or (d) [for an individual 65 years of age or 
older] must apply for the exemption no later than the first 
anniversary of the date the person qualified for the exemption.
	SECTION 3.  Section 26.10(b), Tax Code, is amended to read as 
follows:       
	(b)  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 January 1 of a year terminated during the year and if 
the owner qualifies a different property for one of those [a] 
residence homestead exemptions [exemption] during the same year, 
the tax due against the former residence homestead is calculated 
by:
		(1)  subtracting:                                                             
			(A)  the amount of the taxes that otherwise would 
be imposed on the former residence homestead for the entire year had 
the individual qualified for the residence homestead exemption for 
the entire year;  from
			(B)  the amount of the taxes that otherwise would 
be imposed on the former residence homestead for the entire year had 
the individual not qualified for the residence homestead exemption 
during the year;
		(2)  multiplying the remainder determined under 
Subdivision (1) by a fraction, the denominator of which is 365 and 
the numerator of which is the number of days that elapsed after the 
date the exemption terminated;  and
		(3)  adding the product determined under Subdivision 
(2) and the amount described by Subdivision (1)(A).
	SECTION 4.  Section 26.112, Tax Code, is amended to read as 
follows:         
	Sec. 26.112.  CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF 
ELDERLY OR DISABLED PERSON.  (a)  Except as provided by Section 
26.10(b), if at any time during a tax year property is owned by an 
individual who qualifies for an exemption under Section 11.13(c) or 
(d) [for an individual 65 years of age or older], the amount of the 
tax due on the property for the tax year is calculated as if the 
person qualified for the exemption on January 1 and continued to 
qualify for the exemption for the remainder of the tax year.
	(b)  If a person qualifies for an exemption under Section 
11.13(c) or (d) [for an individual 65 years of age or older] with 
respect to the property after the amount of the tax due on the 
property is calculated and the effect of the qualification is to 
reduce the amount of the tax due on the property, the assessor for 
each taxing unit shall recalculate the amount of the tax due on the 
property and correct the tax roll.  If the tax bill has been mailed 
and the tax on the property has not been paid, the assessor shall 
mail a corrected tax bill to the person in whose name the property 
is listed on the tax roll or to the person's authorized agent.  If 
the tax on the property has been paid, the tax collector for the 
taxing unit shall refund to the person who paid the tax the amount 
by which the payment exceeded the tax due.
	SECTION 5.  This Act takes effect January 1, 2004, and 
applies only to an ad valorem tax year that begins on or after that 
date.