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A BILL TO BE ENTITLED
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AN ACT
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relating to a study by the Legislative Budget Board of the effect of |
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ad valorem tax exemptions for certain veterans and their surviving |
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spouses and children on local and state revenue and the state's |
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economy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. DEFINITION. In this Act, "board" means the |
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Legislative Budget Board. |
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SECTION 2. STUDY OF EFFECT OF EXEMPTIONS. (a) The board |
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shall conduct a comprehensive study to determine the effect of the |
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exemption described by Subsection (b) of this section on local and |
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state revenue and the state's economy. |
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(b) The exemption would exempt from ad valorem taxation |
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$5,000 of the assessed value of a property owned by a veteran of the |
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armed services of the United States if the veteran is a resident of |
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this state and: |
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(1) served on active duty during: |
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(A) World War II; |
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(B) the national emergency that began on June 27, |
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1950, and that is referred to as the Korean War; |
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(C) the conflict in Vietnam, which began on |
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December 21, 1961, and ended on May 7, 1975; |
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(D) the Persian Gulf War, which began on August |
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2, 1990, and ended on April 6, 1991; or |
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(E) the military operations against Afghanistan |
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or Iraq that began after September 11, 2001; or |
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(2) was awarded, as a result of the veteran's service |
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in the armed services, any of the following medals: |
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(A) the Armed Forces Expeditionary Medal; |
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(B) the Navy Expeditionary Medal; |
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(C) the Marine Corps Expeditionary Medal; or |
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(D) the Global War on Terrorism Expeditionary |
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Medal. |
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(c) In conducting the study, the board shall consider the |
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additional effect on local and state revenue and the state's |
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economy if on the death of the veteran receiving the exemption: |
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(1) the veteran's surviving spouse is entitled to |
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receive an exemption from taxation of a portion of the assessed |
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value of property the surviving spouse owns in the amount of the |
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veteran's exemption at the time of the veteran's death for as long |
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as the surviving spouse remains unmarried; or |
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(2) each of the veteran's surviving children who are |
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under 18 years of age and unmarried are entitled to receive an |
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exemption from taxation of a portion of the assessed value of |
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property the child owns in the amount of the veteran's exemption at |
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the time of the veteran's death, if the veteran does not leave a |
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surviving spouse. |
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SECTION 3. REPORT. Not later than December 1, 2014, the |
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board shall submit a report of the results of the study to the |
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lieutenant governor, the speaker of the house of representatives, |
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and the presiding officer of each standing committee of the senate |
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and house of representatives having primary jurisdiction over |
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matters affecting tax revenue. The report must: |
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(1) describe the methods used by the board to |
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determine the effect of the exemptions described by Section 2 of |
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this Act on local and state revenue and the state's economy; |
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(2) state in a dollar amount the estimated effect on |
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local and state revenue of: |
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(A) the exemption described by Section 2(b) of |
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this Act; and |
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(B) the exemption described by Section 2(c) of |
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this Act; and |
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(3) include a complete discussion of: |
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(A) the effect of any reduction in the amount of |
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available local revenue attributable to the exemptions described by |
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Section 2 of this Act on: |
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(i) school district staffing levels and the |
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diversity of educational and extracurricular programs offered by |
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school districts; and |
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(ii) social services programs offered to |
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the public by counties, municipalities, and other local taxing |
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units; and |
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(B) the effect of any aid that school districts |
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may be entitled to receive under state law as a result of the |
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exemptions described by Section 2 of this Act on: |
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(i) the state's current and long-term |
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economic health; and |
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(ii) the continued operation of social |
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services programs currently offered by the state to the public. |
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SECTION 4. EXPIRATION DATE. This Act expires January 1, |
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2015. |
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SECTION 5. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2013. |