HBA-EDN H.B. 887 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 887
By: Ramsay
Ways & Means
4/16/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, an individual is eligible for a residence homestead tax
exemption the year the individual turns 65.  This exemption merely freezes
the tax rate so as not to exceed that fixed rate and if the rate decreases
in later years, the exemption would reflect that new decrease.  However,
many individuals 65 years of age and older are not aware that they qualify
for this homestead tax exemption.  Having an applicant include their date
of birth on an application for a homestead tax exemption from a county or a
school district would provide the chief appraiser with the information
necessary to notify these individuals when they become eligible for the
exemption based on their age or disability.  House Bill 887 provides that
an application for a residence homestead tax exemption from a county or a
school district must include a space for the applicant's date of birth and
requires the chief appraiser to mail to an individual an application for a
homestead tax exemption based on age or disability in the year that the
individual becomes eligible.   
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 887 amends the Tax Code to provide that an application form for
a residence homestead tax exemption (exemption) must include a space on
which the applicant may indicate the applicant's date of birth.  If a
person receiving an exemption under current law from a county or a school
district based on the value of the residence homestead attains the age of
65, then the bill requires the chief appraiser, not later than December
31st of the tax year in which the person attains that age, to mail to the
person an application for exemption from a county or a school district
based on the applicant's age or disability, if applicable. These provisions
apply only to a person who applied for an exemption based on the value of
the residence homestead on or after September 1, 2001, and who stated the
person's date of birth on that application. 

EFFECTIVE DATE

September 1, 2001.