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.