HBA-JLV H.B. 1940 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1940
By: Bonnen
Ways & Means
6/14/2001
Enrolled



BACKGROUND AND PURPOSE 

The 76th legislature amended the Property and Tax codes to allow a
homeowner who turns 65 during a calendar year to receive the over-65
exemption on their homestead as if they were age 65 on January 1 of that
year.  Under this provision, the homeowner would benefit for the entire
year because there was not a provision for prorating the exemption.  Prior
to the 77th Legislative session, if a homeowner that was receiving the
over-65 exemption passed away during the year, the over-65 exemption was
prorated off the property for the remainder of the calendar year.  There
have been concerns that this action could cause undue hardship on the
estate or family of an elderly person.  House Bill 1940 clarifies when to
prorate because of an over-65 residence homestead exemption and modifies
other provisions regarding residence homestead exemptions. 

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. 

ANALYSIS

House Bill 1940 amends the Tax Code to modify provisions relating to
certain residence homestead exemptions.  If the appraisal roll shows that a
residence homestead exemption for an individual 65 years of age or older
applicable to a property on January 1 of a year terminated during the year
and if the owner qualifies a different property for a residence homestead
exemption during the same year,  the bill sets forth provisions relating to
the calculation of the tax due against the former residence homestead. 

The bill removes provisions providing that the amount of the tax due on the
property for the tax year is calculated as if that individual owned the
property for the entire tax year, if property is the residence homestead of
more than one individual during a tax year and any of those individuals
qualify for an exemption for an individual 65 years of age or older with
respect to property. 

EFFECTIVE DATE

January 1, 2002.