TO: | Honorable Steve Ogden, Chair, Senate Committee on Finance |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | SJR8 by Barrientos (Proposing a constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes to $30,000 and providing for an adjustment of the limitation on the total amount of taxes that may be imposed for those purposes on the homesteads of the elderly or disabled to reflect the increased exemption amount and changes in school district ad valorem tax rates.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | ($66,497) |
2007 | $0 |
2008 | ($1,222,193,000) |
2009 | ($1,327,732,000) |
2010 | ($1,439,719,000) |
Fiscal Year | Probable (Cost) from FOUNDATION SCHOOL FUND 193 |
Probable Revenue (Loss) from School Districts |
Probable (Cost) from GENERAL REVENUE FUND 1 |
---|---|---|---|
2006 | $0 | $0 | ($66,497) |
2007 | $0 | ($1,222,193,000) | $0 |
2008 | ($1,222,193,000) | ($105,539,000) | $0 |
2009 | ($1,327,732,000) | ($111,987,000) | $0 |
2010 | ($1,439,719,000) | ($103,145,000) | $0 |
The resolution would propose an amendment to Article VIII of the Texas Constitution to increase the $15,000 school property tax homestead exemption to $30,000.
The proposed amendment would provide that if a homeowner's school tax ceiling exceeded the amount of taxes calculated for 2006 with the proposed additional exemption, the homeowner would have the tax ceiling recalculated and set at the reduced 2006 amount if the homeowner was disabled or aged 65 or over. The new limitation would be the amount of school district taxes imposed for the 2006 tax year less the tax amount for the additional $15,000 exemption times the school district's 2006 tax rate (plus any 2006 taxes attributable to 2005 improvements, other than improvements made in compliance with governmental regulations or repairs).
The proposed amendment would be submitted to voters at an election to be held November 8, 2005.
The resolution would increase the school district homestead exemption from $15,000 to $30,000 (an additional $15,000), contingent on passage of a constitutional amendment. Some low-value residences are appraised at less than $30,000, so the entire amount of the new exemption would not be absorbed. The Comptroller's office multiplied the gross amount of the additional homestead exemption by an absorption factor to estimate the net value loss. The value loss was trended through the projection period, and trended school district tax rates were applied to estimate the cost of the exemption. School district costs would be reimbursed by the state after a one-year lag through the school funding formula. There would be no losses to taxing units other than the state and school districts.
The cost to the state for publication of the resolution is $66,497.Source Agencies: | 304 Comptroller of Public Accounts, 701 Central Education Agency
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LBB Staff: | JOB, WP, SJS, SD, DLBe
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