81R3547 UM-F
By: Villarreal H.B. No. 866
A BILL TO BE ENTITLED
AN ACT
relating to a study regarding ad valorem tax relief through the use
of a circuit breaker program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) In this section, "circuit breaker program"
means a program that limits the amount of ad valorem taxes that may
be imposed on a residence homestead based on the owner's annual
income.
(b) The comptroller shall conduct a study to examine circuit
breaker programs.
(c) Before collecting information for purposes of the
study, the comptroller shall establish an advisory committee to
assist the comptroller in conducting the study. The advisory
committee must be composed of representatives of:
(1) school districts and other taxing units;
(2) home builders;
(3) real estate agents;
(4) mortgage lenders;
(5) financial agencies involved in mortgage markets;
(6) organizations interested in housing for
low-income and moderate-income households;
(7) organizations interested in the effect of ad
valorem taxes on low-income and moderate-income households;
(8) organizations interested in the effect of public
policy on low-income and moderate-income households; and
(9) other appropriate, interested organizations or
members of the public, as determined by the comptroller.
(d) The comptroller, with the assistance of the advisory
committee, shall study:
(1) methods to implement a circuit breaker program,
including the use of rebates or tax credits;
(2) methods to create a simple, transparent process
for the owner of a residence homestead to apply for and receive a
limitation on the amount of ad valorem taxes that may be imposed on
the homestead under a circuit breaker program;
(3) the effects of different designs of a circuit
breaker program, including the effect of:
(A) limiting which taxing units are involved;
(B) basing eligibility on a maximum annual income
level;
(C) limiting the dollar amount of the benefit
that a property owner could receive in the program; and
(D) basing eligibility on a minimum ratio of
residence homestead ad valorem taxes imposed to annual income,
including a progressive scale of minimum ratios based on annual
income; and
(4) methods to ensure the reliability of a property
owner's statement of annual income.
(e) The comptroller and the advisory committee shall
analyze the information studied and prepare a report that:
(1) describes the parameters, techniques, and legal
assumptions established under Subsection (d) of this section that
were used in conducting the study;
(2) estimates the benefit of alternative designs of a
circuit breaker program for property owners in various annual
income brackets and with varying amounts of residence homestead ad
valorem tax liability, including an estimate of the percentage of
property owners in various annual income brackets that would
benefit and the dollar amount of the benefit to those property
owners;
(3) estimates the cost to the state and taxing units of
implementing alternative designs of a circuit breaker program,
including the percentage by which the amount of ad valorem taxes
collected would be reduced;
(4) analyzes the effects on this state's economy of
implementing a circuit breaker program, including the effect on
home ownership rates, the residential housing market, and economic
development; and
(5) specifies any necessary statutory changes the
comptroller and the advisory committee determine are necessary to
implement a circuit breaker program described by the study.
(f) The comptroller may contract with appraisal districts,
taxing units, or other appropriate organizations for assistance and
to obtain information necessary to conduct the study. A state
agency, appraisal district, or taxing unit shall assist the
comptroller if the comptroller requests information or assistance
in conducting the study.
(g) Not later than December 1, 2010, the comptroller shall
submit to the governor, lieutenant governor, and speaker of the
house of representatives the report prepared under Subsection (e)
of this section.
SECTION 2. This Act expires September 1, 2011.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.