Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB982 by Wilson (Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of certain low-income individuals who are disabled or elderly and their surviving spouses.), As Introduced
No significant fiscal implication to the State is anticipated.
Contingent on the passage of HJR 73, the bill would authorize a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of property tax imposed on the residence homesteads of low-income individuals who are age 65 or older or disabled. The bill would provide definitions and calculations, establish the expiration of the limitation, the correction mechanism for an erroneously granted limitation, the transfer of the limitation to an eligible surviving spouse or a subsequently qualified residence homestead, and the applicability of the limitation to an heir property owner. The bill would permit a chief appraiser to require an individual to provide any information that is reasonably necessary to determine eligibility for the limitation.
Local Government Impact
Contingent on the passage of a constitutional amendment, the bill would grant the ability for a taxing unit other than a school district, county, municipality, or junior college district to offer a limitation on the amount of property tax imposed on residence homesteads of low-income individuals (household income does not exceed 200 percent of the federal poverty level) who are aged 65 or older or disabled. It is not known how many special purpose districts would establish such limitation and how much taxable value would be foregone by the local taxing entities.