LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

March 30, 2005

TO:	Honorable Jim Keffer, Chair, House Committee on Ways & Means
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB2328 by Villarreal (Relating to a limitation on the amount of ad valorem taxes that may be imposed on the residence homesteads of certain elderly individuals by a county.), As Introduced

No fiscal implication to the State is anticipated.

Subject to approval of the related constitutional amendment, HJR 68, this bill would allow a limitation of county property taxes on the residence homesteads of persons 65 or over to expire when the owners failed to meet the bill's income requirements.  To retain the limitation, eligible owners' household income for the preceding year could not exceed the greater of $35,000 or the median household income for individuals 65 years of age or older, according to the most recent U.S. Bureau of Census data.

Local Government Impact

It is assumed that the related constitutional amendment is approved by voters.  Since the bill would require limitations of property taxes under certain conditions to expire, taxable property values and the related ad valorem taxes for counties would increase.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, SD, WP, DLBe