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.