HBA-JRA S.B. 868 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 868
By: Cain
Public Education
5/12/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, the state holds school districts harmless for losses due to the
10 percent homestead value cap by requiring the comptroller of public
accounts (comptroller) to deduct losses attributable to the limitation from
a school district's taxable value.  The comptroller determines this loss
based on school district reports.  The losses determined by the state
should be equivalent to the appraisal level in school districts where state
education funding is based on property values.  S.B. 868 sets forth
provisions regarding the comptroller of public account's determination of
school district property values related to the treatment of the limitation
on increases in the appraised value of a residential homestead. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 403.302, Government Code, by adding Subsection
(h), as follows: 

(h)  Requires the comptroller of public accounts (comptroller), in
determining the taxable value of property in the school district under
Subsection (d), for purposes of Subsection (d) (11), to subtract from the
market value as determined by the appraisal district of residence
homesteads to which Section 23.23 (Limitation on Appraised Value of
Residence Homestead), Tax Code, applies, the amount by which that amount
exceeds the appraised value of those properties as calculated by the
appraisal district under Section 23.23, Tax Code, if the comptroller
determines in the annual study that the market value of property in a
school district as determined by the appraisal district that appraises
property for the school district, less the total of the amounts and values
listed in Subsection (d) as determined by that appraisal district, is
valid. 

Requires the comptroller, in determining the taxable value of property in
the school district under Subsection (d), for purposes of Subsection (d)
(11), to subtract from the market value as estimated by the comptroller of
homesteads to which Section 23.23, Tax Code, applies, the amount by which
that amount exceeds the appraised value of those properties as calculated
by the appraisal district under Section 23.23, Tax Code, if the comptroller
determines in the annual study that the market value of property in a
school district as determined by the appraisal district that appraises
property for the school district, less the total of the amounts and values
listed in Subsection (d) as determined by that appraisal district, is not
valid. 

SECTION 2.Effective date: September 1, 1999.

SECTION 3.Emergency clause.