BILL ANALYSIS

H.B. 851

By: Schofield

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Texas homeowners who are over the age of 65, have at least one qualifying disability, or are disabled veterans are entitled to a limitation on the total amount of property taxes that school districts may impose on their properties. However, the bill author has informed the committee that the state currently lacks comprehensive data on how many qualifying homestead owners are eligible for these limitations and how many actually utilize them, which hinders the development of policies that effectively serve the interests of both the state and its homeowners. H.B. 851 seeks to address the issue by requiring the comptroller of public accounts to annually report the number of residence homesteads of certain property owners for which the owners are receiving certain property tax benefits.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 851 amends the Tax Code to require the chief appraiser of an appraisal district, for each public school district in the appraisal district, to report, not later than September 1 of the applicable tax year, to the comptroller of public accounts in a form prescribed by the comptroller the following numbers, as determined by the chief appraiser:

· residence homesteads of individuals who are elderly or disabled that are subject to the limitation on school district tax increases for such individuals for the current tax year;

· residence homesteads of individuals who are elderly or disabled or disabled veterans for which a property owner deferred collection of a tax, abated a suit to collect a delinquent tax, or abated a sale to foreclose a tax lien during any portion of the preceding tax year; and

· appreciating residence homesteads for which a property owner deferred or abated a suit to collect a delinquent tax during any portion of the preceding tax year.

H.B. 851 requires the comptroller, not later than November 1 of each tax year, to report to the lieutenant governor, the speaker of the house of representatives, and each member of the legislature the total number of residence homesteads as collected by the comptroller under the bill's provisions. The bill requires such reports to include the number of the applicable residence homesteads in each school district or a reference to where the information for each school district may be accessed.

H.B. 851 applies only to the determination and reporting of information during a tax year beginning on or after the bill's effective date.

EFFECTIVE DATE

January 1, 2026.