LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 10, 2003

TO:	Honorable Fred Hill, Chair, House Committee on Local Government Ways and Means
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB837 by Hilderbran (Relating to the ad valorem taxes imposed on the residence homestead of an elderly person.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would amend Tax Code Sections 11.13 and 26.112 to disallow a person 65 years of age or older who subsequently establishes a different residence homestead during the same tax year to qualify for a a 65-or-older homestead exemption on the subsequent residence homestead before January 1 of the following tax year.

The bill would also repeal Section 2610(b) to eliminate the proration section and require a person 65 or over who owns more than one residence homestead during a tax year to designate only one residence for the 65-or-over homestead exemption.

Passage of this bill could result in some revenue loss to units of local government and the state attributable to 65-or-over homestead exemptions in Texas. However, it is not anticipated that the amounts would represent a significant fiscal impact on the state or local taxing units.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:
LBB Staff:	JK, SD, DLBe