TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways & Means |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB438 by Hochberg (Relating to the limitation on the maximum percentage increase in the appraised value of a residence homestead for ad valorem taxation. ), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | $0 |
2009 | ($14,967,000) |
2010 | ($16,756,000) |
2011 | ($17,768,000) |
2012 | ($18,839,000) |
Fiscal Year | Probable Savings/(Cost) from FOUNDATION SCHOOL FUND 193 |
Probable Revenue Gain/(Loss) from School Districts - Initial Impact |
Probable Revenue Gain/(Loss) from Counties |
Probable Revenue Gain/(Loss) from Cities |
---|---|---|---|---|
2008 | $0 | $0 | $0 | $0 |
2009 | ($14,967,000) | ($17,939,000) | ($6,046,000) | ($6,155,000) |
2010 | ($16,756,000) | ($19,046,000) | ($6,423,000) | ($6,496,000) |
2011 | ($17,768,000) | ($20,221,000) | ($6,822,000) | ($6,856,000) |
2012 | ($18,839,000) | ($21,467,000) | ($7,244,000) | ($7,235,000) |
This bill would amend Section 23.23 of the Tax Code to limit the annual increase in the appraised value of homesteads to 10 percent, regardless of whether the appraisal office had appraised the property and determined the market value for the tax year or the number of years since the last reappraisal of the property. The appraised value could not exceed the most recently determined market value.
Current law limits homesteads to a 10 percent annual increase, multiplied by the number of years since the last reappraisal of the property.
This bill would take effect January 1, 2008, contingent upon passage of a constitutional amendment authorizing the percentage increase.
The initial impact on school districts shown in the table above is provided for illustrative purposes only. The mechanics of the school finance system would likely transfer the fiscal impact to districts' M&O revenue to the state, resulting in a zero or negligible fiscal impact to the school districts. However, districts would experience a one-year lag between the loss of I&S revenue due to the provisions of the bill and the corresponding increase in state aid for debt service, which would occur the following year.
Source Agencies: | 304 Comptroller of Public Accounts, 701 Central Education Agency
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LBB Staff: | JOB, CT, SD, SJS
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