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79R7691 CLG-D

By:  Raymond                                                      H.B. No. 2352



A BILL TO BE ENTITLED

AN ACT

relating to permitting an elderly or disabled person who owns 
property designated as a homestead to transfer the ownership of the 
property and the benefits and protections of the homestead 
designation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 41, Property Code, is 
amended by adding Section 41.009 to read as follows:
	Sec. 41.009.  TRANSFER OF HOMESTEAD.  (a)  In this section, 
"disabled" has the meaning assigned by Section 11.13, Tax Code.
	(b)  A person who is disabled or 65 years of age or older and 
who owns property designated as that person's homestead may 
transfer to another person by gift, sale, or otherwise:
		(1)  the ownership of the property; and                                
		(2)  any property tax benefits or other protections 
provided to that property by the constitution and laws of this state 
as a result of the property being designated as a homestead.
	(c)  Property transferred under Subsection (b) retains the 
property tax benefits and other protections provided to the 
property as a result of the property being designated as the 
homestead of the transferor only so long as the transferor 
continues to occupy the property as the transferor's principal 
residence.
	(d)  A person to whom property is transferred under 
Subsection (b) may not require the transferor of the property to pay 
rent to continue to occupy the property.
	SECTION 2.  Section 11.13(j)(1), Tax Code, is amended to 
read as follows:    
		(1)  "Residence homestead" means a structure 
(including a mobile home) or a separately secured and occupied 
portion of a structure (together with the land, not to exceed 20 
acres, and improvements used in the residential occupancy of the 
structure, if the structure and the land and improvements have 
identical ownership) that:
			(A)  is owned by one or more individuals, either 
directly or through a beneficial interest in a qualifying trust;
			(B)  is designed or adapted for human residence;                             
			(C)  is used as a residence;  and                                            
			(D)  is occupied as the person's [his] principal 
residence by:
				(i)  an owner;                                                
				(ii)  a transferor of the property under 
Section 41.009, Property Code; or
				(iii)  [,] for property owned through a 
beneficial interest in a qualifying trust, [by] a trustor of the 
trust who qualifies for the exemption.
	SECTION 3.  Section 11.13, Tax Code, is amended by adding 
Subsection (s) to read as follows:
	(s)  Notwithstanding any other provision of this title, if an 
owner of property who qualifies for an exemption under this section 
transfers the ownership of the property to another person as 
provided by Section 41.009, Property Code, the transferee is 
entitled to an exemption for the same property from the same taxing 
unit in an amount equal to that of the exemption for which the 
transferor qualified as well as any limitation on tax increases, 
limitation on appraised value, deferral or abatement of a suit to 
collect a delinquent tax, or other tax benefit applicable to the 
property to which the transferor was entitled by virtue of the 
property's having been the transferor's residence homestead.  If 
following a transfer described by this section the transferor would 
have qualified for a tax benefit described by this section if the 
transferor had not transferred the property, the transferee is 
entitled to the tax benefit.  A tax benefit described by this 
section continues in effect for as long as the transferor continues 
to occupy the property as the transferor's principal residence.
	SECTION 4.  This Act takes effect on the date on which the 
constitutional amendment proposed by the 79th Legislature, Regular 
Session, 2005, authorizing the legislature to permit an elderly or 
disabled person who owns property designated as a homestead to 
transfer the ownership of the property and the benefits and 
protections that result from that designation, takes effect.  If 
that amendment is not approved by the voters, this Act has no 
effect.