82R13027 CJC-F
 
  By: Watson S.B. No. 1288
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a study regarding ad valorem tax relief through the use
  of a circuit breaker program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a) In this section, "circuit breaker program"
  means a program that limits the amount of ad valorem taxes that may
  be imposed on a residence homestead based on the owner's annual
  income.
         (b)  The comptroller shall conduct a study to examine circuit
  breaker programs.
         (c)  Before collecting information for purposes of the
  study, the comptroller shall establish an advisory committee to
  assist the comptroller in conducting the study. The advisory
  committee must be composed of representatives of:
               (1)  school districts and other taxing units;
               (2)  home builders;
               (3)  real estate agents;
               (4)  mortgage lenders;
               (5)  financial agencies involved in mortgage markets;
               (6)  organizations interested in housing for
  low-income and moderate-income households;
               (7)  organizations interested in the effect of ad
  valorem taxes on low-income and moderate-income households;
               (8)  organizations interested in the effect of public
  policy on low-income and moderate-income households; and
               (9)  other appropriate, interested organizations or
  members of the public, as determined by the comptroller.
         (d)  The comptroller, with the assistance of the advisory
  committee, shall study:
               (1)  methods to implement a circuit breaker program,
  including the use of rebates or tax credits;
               (2)  methods to create a simple, transparent process
  for the owner of a residence homestead to apply for and receive a
  limitation on the amount of ad valorem taxes that may be imposed on
  the homestead under a circuit breaker program;
               (3)  the effects of different designs of a circuit
  breaker program, including the effect of:
                     (A)  limiting which taxing units are involved;
                     (B)  basing eligibility on a maximum annual income
  level;
                     (C)  limiting the dollar amount of the benefit
  that a property owner could receive in the program; and
                     (D)  basing eligibility on a minimum ratio of
  residence homestead ad valorem taxes imposed to annual income,
  including a progressive scale of minimum ratios based on annual
  income; and
               (4)  methods to ensure the reliability of a property
  owner's statement of annual income.
         (e)  The comptroller and the advisory committee shall
  analyze the information studied and prepare a report that:
               (1)  describes the parameters, techniques, and legal
  assumptions established under Subsection (d) of this section that
  were used in conducting the study;
               (2)  estimates the benefit of alternative designs of a
  circuit breaker program for property owners in various annual
  income brackets and with varying amounts of residence homestead ad
  valorem tax liability, including an estimate of the percentage of
  property owners in various annual income brackets that would
  benefit and the dollar amount of the benefit to those property
  owners;
               (3)  estimates the cost to the state and taxing units of
  implementing alternative designs of a circuit breaker program,
  including the percentage by which the amount of ad valorem taxes
  collected would be reduced;
               (4)  analyzes the effects on this state's economy of
  implementing a circuit breaker program, including the effect on
  home ownership rates, the residential housing market, and economic
  development; and
               (5)  specifies any necessary statutory changes the
  comptroller and the advisory committee determine are necessary to
  implement a circuit breaker program described by the study.
         (f)  In preparing the report required under Subsection (e) of
  this section, the comptroller may not consider or recommend a
  circuit breaker program that:
               (1)  proposes a state income tax to provide ad valorem
  tax relief;
               (2)  functions as a progressive income tax; or
               (3)  requires an election under Section 24(a), Article
  VIII, Texas Constitution, to implement.
         (g)  The comptroller may contract with appraisal districts,
  taxing units, or other appropriate organizations for assistance and
  to obtain information necessary to conduct the study. A state
  agency, appraisal district, or taxing unit shall assist the
  comptroller if the comptroller requests information or assistance
  in conducting the study.
         (h)  Not later than December 1, 2012, the comptroller shall
  submit to the governor, lieutenant governor, and speaker of the
  house of representatives the report prepared under Subsection (e)
  of this section.
         SECTION 2.  This Act expires September 1, 2013.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.