HBA-EDN H.B. 3367 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3367
By: Hamric
Public Education
4/30/2001
Introduced



BACKGROUND AND PURPOSE 

Current tax provisions provide benefits to homeowners occupying a home as
their principal residence if the individual is over 65 years of age or is
disabled.  However, not all such benefits apply to both disabled
individuals and individuals over 65 years of age.  Disabled homeowners do
not qualify for as many property tax benefits as do homeowners over 65
years of age even though their economic circumstances are often very
similar.   One such difference is that homeowners over 65 years of age are
entitled to a limitation on the amount of school district ad valorem taxes
that can be imposed on the residence homestead while disabled homeowners
are not.  Homeowners over 65 years of age and disabled individuals should
be entitled to the same tax benefits since the primary purpose of limiting
the property taxes of both groups is to allow these individuals to remain
in their homes when they might not otherwise be able to do so.  House Bill
3367 extends the residential homestead tax limitation on school district ad
valorem taxes to disabled homeowners. 

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 3367 amends the Tax and Government codes to prohibit a school
district from increasing the total annual amount of ad valorem tax imposed
on the residence homestead of an individual who is disabled above the
amount of the tax imposed in the first tax year in which the individual
qualified that residence homestead for a tax exemption due to the
individual's disability.  The bill applies provisions regarding a
residential homestead tax limitation on school district ad valorem taxes
for persons over 65 to disabled individuals and sets forth provisions
regarding qualifying a residence homestead.  

EFFECTIVE DATE

January 1, 2002.  This Act takes effect only if the constitutional
amendment proposed by the 77th Legislature prohibiting an increase in the
total amount of school district ad valorem taxes that may be imposed on the
residence homestead of a disabled person is approved by the voters.  If
that amendment is not approved by the voters, the Act has no effect.