LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 85TH LEGISLATURE 1st CALLED SESSION - 2017
Revision 1
 
July 27, 2017

TO:
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB179 by Roberts (Relating to an exemption from ad valorem taxation of the residence homesteads of certain disabled first responders and their surviving spouses.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend Chapter 11 of the Tax Code, regarding property tax exemptions, to define "first responder", "qualifying disabled first responder", "residence homestead", and "surviving spouse". The bill would entitle a qualifying disabled first responder to an exemption from taxation of the total appraised value of the qualifying disabled first responder's residence homestead.
 
The surviving spouse of a qualifying disabled first responder who qualified for an exemption when the qualifying disabled first responder died would be entitled to an exemption from taxation of the total appraised value of the same property to which the qualifying disabled first responder's exemption applied if:
1.      the surviving spouse has not remarried since the death of the qualifying disabled first responder; and
2.      the property was the residence homestead of the surviving spouse when the qualifying disabled first responder died, and remains the residence homestead of the surviving spouse.
 
If a surviving spouse who qualifies for the exemption subsequently qualifies a different property as the surviving spouse's residence homestead, the surviving spouse is entitled to an exemption from taxation of the subsequently qualified homestead in an amount equal to the dollar amount of the exemption from taxation of the former homestead in the last year in which the surviving spouse received the exemption if the surviving spouse has not remarried since the death of the qualifying disabled first responder.
 
The bill would make conforming changes elsewhere in the Property Tax Code.

The bill's proposed total exemption for the residential homesteads of disabled first responders would create a cost for local taxing units, school districts and the state through the school finance formulas, however the cost is not expected to be significant.
 
This bill would take effect January 1, 2018, contingent on voter approval of a constitutional amendment (HJR 30).

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
UP, KK, SD, SJS