TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways and Means |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB216 by Hamric (Relating to the qualification of a disabled person for an exemption from ad valorem taxation on the person's residence homestead.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | ($685,000) |
2007 | ($719,000) |
2008 | ($755,000) |
Fiscal Year | Probable Savings/(Cost) fromFOUNDATION SCHOOL FUND 193 |
Probable Revenue Gain/(Loss) fromSchool Districts |
---|---|---|
2004 | $0 | $0 |
2005 | $0 | ($1,170,000) |
2006 | ($685,000) | ($1,227,000) |
2007 | ($719,000) | ($1,289,000) |
2008 | ($755,000) | ($1,353,000) |
The bill would amend Sections 11.42, 11.43, 26.10, and 26.112 of the Tax Code to make the homestead exemption for qualified disabled homeowners effective as of January 1 of the tax year in which the person qualified. The exemption would apply for the entire tax year.
A property tax exemption that under current law would be effective for the tax year following a disabled homeowner's qualification for the exemption would, under the bill, be effective for the year in which the person met all qualifications and filed an exemption application with the appraisal district.
School district reported information indicates that, between 1997 and 2002, an average of approximately 4,200 additional $10,000 disabled homestead exemptions and approximately 2,700 local option disabled homestead exemptions are granted each year (averaging approximately $11,000 each). Calculated losses were trended at five percent through the projection period to account for value and rate increases. School district losses for the mandatory $10,000 exemption would shift to the state after a one-year lag through the operation of the school funding formulas.
The fiscal impact assumes that the loss attributable to the optional disabled exemption would be absorbed by school districts.
Source Agencies: | 304 Comptroller Of Public Accounts
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LBB Staff: | JK, SD, WP, BR, DLBe
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