HBA-JEK, KDB H.B. 506 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 506 By: Smith Public Education 66/14/2001 Enrolled BACKGROUND AND PURPOSE State law limits school taxes imposed on the residence homesteads of older Texans. When individuals reach the age of 65, the amount of ad valorem taxes imposed by a school district may be frozen and the tax freeze may be transferrable to a subsequent homestead. However, ambiguity in the wording of the law created differing interpretations as to the ability of surviving spouses to transfer their deceased spouse's limitation to a subsequent homestead. A portable homestead exemption for surviving spouses helps them avoid being locked into homes that are too big or too expensive. House Bill 506 clarifies current law to guarantee that surviving spouses are entitled to the limitation of school property taxes on their subsequent homesteads. 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 506 amends the Tax Code to provide that a surviving spouse who receives the homestead exemption for the elderly on school district ad valorem taxes also qualifies for the limitation as it relates to subsequently qualified residence homesteads. EFFECTIVE DATE January 1, 2002.