79R637 MFC-D

By:  Rodriguez                                                    H.B. No. 89 



A BILL TO BE ENTITLED

AN ACT

relating to requiring a person closing a real estate transaction to 
assist a purchaser or owner in applying for a residence homestead 
tax exemption.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 11, Tax Code, is amended by 
adding Sections 11.49 and 11.50 to read as follows:
	Sec. 11.49.  ASSISTANCE WITH EXEMPTION APPLICATION.  A 
person who for compensation prepares the closing documentation on a 
sale, encumbrance, or transfer of a single-family residential 
structure or a single unit of other residential property shall:
		(1)  provide to the purchaser or, in the case of an 
encumbrance, the owner of the property a copy of the form used by 
each appraisal district in which the property is located for 
applying for exemptions provided under Section 11.13; and
		(2)  disclose to the purchaser or owner, as applicable, 
the following information:
			(A)  the type of exemptions available under 
Section 11.13 and instructions on how to file an application for 
applicable exemptions with each appraisal district in which the 
property is located;
			(B)  the location, including the mailing and 
physical address, of each appraisal district in which the property 
is located; and
			(C)  the period in which the appraisal district 
must receive the application for the purchaser or owner to qualify 
for any applicable exemptions under Section 11.13.
	Sec. 11.50.  FEE FOR ASSISTANCE WITH RESIDENCE HOMESTEAD 
APPLICATION.  (a)  A person who assists another person by preparing 
or filing on behalf of the other person an application for an 
exemption under Section 11.13:
		(1)  may not charge a fee of more than $25 for that 
service; and     
		(2)  must timely file the application with the chief 
appraiser for each appraisal district in which the property is 
located.
	(b)  A fee under Subsection (a) must be paid directly by the 
person who receives the service.  A person providing a service 
described by Subsection (a) may not accept any part of a refund of 
taxes on any property in payment for those services.
	(c)  A person who violates this section is liable to the 
purchaser or owner, as applicable, for:
		(1)  actual damages;                                                   
		(2)  $1,000 in punitive damages; and                                   
		(3)  reasonable court costs and attorney's fees.                       
	SECTION 2.  Section 11.49, Tax Code, as added by this Act, 
applies only to a sale, encumbrance, or transfer of real property 
that occurs on or after the effective date of this Act.
	SECTION 3.  This Act takes effect September 1, 2005.