LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 14, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB69 by Guillen (Relating to a limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of an eligible person who is a member of a reserve component of the United States armed forces and is ordered to active military duty.), Committee Report 1st House, Substituted The bill would authorize local taxing units to adopt a limit on the ad valorem taxes on the residence homestead of a person who is a member of a reserve component of the U.S. armed forces and is called to active duty. The future actions of local taxing units cannot be predicted, so the cost of the bill cannot be estimated. However, to the extent that school district taxable property values could be reduced, related costs to the Foundation School Fund could be increased as a result of the school funding formulas. The fiscal implication to the State is contingent upon passage of a constitutional amendment authorizing the exemption. The bill would amend the Tax Code to authorize local taxing units to adopt a limit on the ad valorem taxes on the residence homestead of a person who is a member of a reserve component of the U.S. armed forces and is called to active duty. The taxes paid on the person's homestead in the year preceding the year the person qualified would become a tax ceiling. Taxes on certain improvements to the property would be added to the ceiling amount. The limitation would begin the first year after the year in which the taxing unit authorized the limit. Limits would be imposed on eligibility based on the distance of the duty station from the residence homestead and the active duty time served. The bill provides for taxing improvements to the property. An eligible individual would have to initially apply for the limit, but the application would not have to be renewed unless requested by the chief appraiser. The Comptroller would prescribe the contents of the application form. The bill would require the chief appraiser to calculate the amount not taxed because of the limit by school districts and notify the Comptroller of the appraised value not taxed because of the limit. The bill would provide a formula for prorating the tax calculation if an eligible person establishes a different homestead within the same jurisdiction. The bill would make the limitation applicable to interests in cooperative housing corporations. The bill would make conforming changes to provisions to the Tax Code (affecting jurisdictions that have adopted the additional sales and use tax, also commonly known as the sales tax to reduce property taxes); to provisions in Chapter 403 of the Government Code providing for the Comptroller's property value study; and to certain notices required by the Education Code regarding the limit authorized by this bill. The limit on the ad valorem taxes of residence homesteads of members of certain reserve components of the armed forces could be created at the option of local taxing units. The future actions of taxing units cannot be predicted, so the cost of the bill cannot be estimated. The bill would be effective January 1, 2010 contingent on the adoption of a constitutional amendment (HJR 17). Local Government Impact The bill would authorize local taxing units to adopt a limit on the ad valorem taxes on the residence homestead of a person who is a member of a reserve component of the U.S. armed forces and is called to active duty. The future actions of local taxing units cannot be predicted, so the cost of the bill cannot be estimated. However, to the extent that taxable property values could be reduced, the related ad valorem tax revenue for units of local government could also be reduced. The fiscal implication to units of local government is contingent upon passage of a constitutional amendment authorizing the exemption. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, MN, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 14, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB69 by Guillen (Relating to a limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of an eligible person who is a member of a reserve component of the United States armed forces and is ordered to active military duty.), Committee Report 1st House, Substituted
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB69 by Guillen (Relating to a limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of an eligible person who is a member of a reserve component of the United States armed forces and is ordered to active military duty.), Committee Report 1st House, Substituted
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB69 by Guillen (Relating to a limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of an eligible person who is a member of a reserve component of the United States armed forces and is ordered to active military duty.), Committee Report 1st House, Substituted
HB69 by Guillen (Relating to a limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on the residence homestead of an eligible person who is a member of a reserve component of the United States armed forces and is ordered to active military duty.), Committee Report 1st House, Substituted
The bill would authorize local taxing units to adopt a limit on the ad valorem taxes on the residence homestead of a person who is a member of a reserve component of the U.S. armed forces and is called to active duty. The future actions of local taxing units cannot be predicted, so the cost of the bill cannot be estimated. However, to the extent that school district taxable property values could be reduced, related costs to the Foundation School Fund could be increased as a result of the school funding formulas. The fiscal implication to the State is contingent upon passage of a constitutional amendment authorizing the exemption.
The bill would authorize local taxing units to adopt a limit on the ad valorem taxes on the residence homestead of a person who is a member of a reserve component of the U.S. armed forces and is called to active duty. The future actions of local taxing units cannot be predicted, so the cost of the bill cannot be estimated. However, to the extent that school district taxable property values could be reduced, related costs to the Foundation School Fund could be increased as a result of the school funding formulas. The fiscal implication to the State is contingent upon passage of a constitutional amendment authorizing the exemption.
The bill would amend the Tax Code to authorize local taxing units to adopt a limit on the ad valorem taxes on the residence homestead of a person who is a member of a reserve component of the U.S. armed forces and is called to active duty. The taxes paid on the person's homestead in the year preceding the year the person qualified would become a tax ceiling. Taxes on certain improvements to the property would be added to the ceiling amount. The limitation would begin the first year after the year in which the taxing unit authorized the limit. Limits would be imposed on eligibility based on the distance of the duty station from the residence homestead and the active duty time served. The bill provides for taxing improvements to the property. An eligible individual would have to initially apply for the limit, but the application would not have to be renewed unless requested by the chief appraiser. The Comptroller would prescribe the contents of the application form. The bill would require the chief appraiser to calculate the amount not taxed because of the limit by school districts and notify the Comptroller of the appraised value not taxed because of the limit. The bill would provide a formula for prorating the tax calculation if an eligible person establishes a different homestead within the same jurisdiction. The bill would make the limitation applicable to interests in cooperative housing corporations. The bill would make conforming changes to provisions to the Tax Code (affecting jurisdictions that have adopted the additional sales and use tax, also commonly known as the sales tax to reduce property taxes); to provisions in Chapter 403 of the Government Code providing for the Comptroller's property value study; and to certain notices required by the Education Code regarding the limit authorized by this bill. The limit on the ad valorem taxes of residence homesteads of members of certain reserve components of the armed forces could be created at the option of local taxing units. The future actions of taxing units cannot be predicted, so the cost of the bill cannot be estimated. The bill would be effective January 1, 2010 contingent on the adoption of a constitutional amendment (HJR 17).
The bill would amend the Tax Code to authorize local taxing units to adopt a limit on the ad valorem taxes on the residence homestead of a person who is a member of a reserve component of the U.S. armed forces and is called to active duty.
The taxes paid on the person's homestead in the year preceding the year the person qualified would become a tax ceiling. Taxes on certain improvements to the property would be added to the ceiling amount. The limitation would begin the first year after the year in which the taxing unit authorized the limit. Limits would be imposed on eligibility based on the distance of the duty station from the residence homestead and the active duty time served. The bill provides for taxing improvements to the property.
An eligible individual would have to initially apply for the limit, but the application would not have to be renewed unless requested by the chief appraiser. The Comptroller would prescribe the contents of the application form.
The bill would require the chief appraiser to calculate the amount not taxed because of the limit by school districts and notify the Comptroller of the appraised value not taxed because of the limit. The bill would provide a formula for prorating the tax calculation if an eligible person establishes a different homestead within the same jurisdiction. The bill would make the limitation applicable to interests in cooperative housing corporations.
The bill would make conforming changes to provisions to the Tax Code (affecting jurisdictions that have adopted the additional sales and use tax, also commonly known as the sales tax to reduce property taxes); to provisions in Chapter 403 of the Government Code providing for the Comptroller's property value study; and to certain notices required by the Education Code regarding the limit authorized by this bill.
The limit on the ad valorem taxes of residence homesteads of members of certain reserve components of the armed forces could be created at the option of local taxing units. The future actions of taxing units cannot be predicted, so the cost of the bill cannot be estimated.
Local Government Impact
The bill would authorize local taxing units to adopt a limit on the ad valorem taxes on the residence homestead of a person who is a member of a reserve component of the U.S. armed forces and is called to active duty. The future actions of local taxing units cannot be predicted, so the cost of the bill cannot be estimated. However, to the extent that taxable property values could be reduced, the related ad valorem tax revenue for units of local government could also be reduced. The fiscal implication to units of local government is contingent upon passage of a constitutional amendment authorizing the exemption.
The bill would authorize local taxing units to adopt a limit on the ad valorem taxes on the residence homestead of a person who is a member of a reserve component of the U.S. armed forces and is called to active duty. The future actions of local taxing units cannot be predicted, so the cost of the bill cannot be estimated. However, to the extent that taxable property values could be reduced, the related ad valorem tax revenue for units of local government could also be reduced. The fiscal implication to units of local government is contingent upon passage of a constitutional amendment authorizing the exemption.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, MN, SD, SJS
JOB, MN, SD, SJS