BILL ANALYSIS

 

 

Senate Research Center	S.B. 794
	By: Campbell
	Veteran Affairs & Border Security
	6/3/2021
	Enrolled

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

This act would clean up the language to clarify that veterans who are 100 percent service‑connected disabled are receiving the correct property tax exemption. Currently, the veteran must have a service-connected disability with a rating of 100 percent and be receiving 100 percent disability compensation. There is currently no statute detailing how an appraisal district is to determine that the veteran is receiving 100 percent disability compensation. Multiple cases have shown that 100 percent service-connected disabled veterans have been awarded 100 percent disability compensation but are having those payments deducted due to past debts, overpayments, and retirement benefits. S.B. 794 would simply change the qualifying statute from "received" to "awarded" to encompass the service-connected disabled veterans who have payment deductions.

 

S.B. 794 amends current law relating to eligibility for the exemption from ad valorem taxation of the residence homestead of a totally disabled veteran.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 11.131(b), Tax Code, as follows:

 

(b) Entitles a disabled veteran who has been awarded by, rather than receives from, the United States Department of Veterans Affairs or its successor 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or of individual unemployability to an exemption from taxation of the total appraised value of the veteran's residence homestead.

 

SECTION 2. Provides that the change in law made by this Act applies only to an ad valorem tax year that begins on or after the effective date of this Act.

 

SECTION 3. Effective date: January 1, 2022.