LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 8, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HJR40 by Guillen (Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt a local option residence homestead exemption from ad valorem taxation of not less than $5,000 or more than $30,000. ), Committee Report 1st House, Substituted No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $90,882. The resolution would propose a constitutional amendment to Article VIII of the Texas Constitution to authorize taxing units to adopt a local option residence homestead exemption from ad valorem taxation of at least $5,000 and not more than $30,000. This would be an alternative exemption to the current percentage local option exemption, which may not exceed 20 percent. The bill would prohibit the Legislature from protecting school districts from revenue losses incurred as a result of adopting the new alternative homestead exemption. Adoption of the proposed constitutional amendment alone would not result in revenue losses to local units of government. To the extent that taxing units would adopt the new exemption proposed by the bill and the cost of the new exemption exceeds any existing percentage homestead exemption, the taxing units would incur revenue losses. Any fiscal impact would depend on the actions of the governing bodies of local taxing units. The actions of local taxing units in deciding whether to grant the local optional $30,000 homestead exemption cannot be predicted. The state would be protected from any revenue losses under the bill. The proposed amendment would be submitted to voters at an election to be held November 3, 2009. Local Government Impact Adoption of the proposed constitutional amendment alone would not result in revenue losses to local units of government. Any fiscal impact would depend on the actions of the governing bodies of local taxing units. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, SJS, MN, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 8, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HJR40 by Guillen (Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt a local option residence homestead exemption from ad valorem taxation of not less than $5,000 or more than $30,000. ), 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: HJR40 by Guillen (Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt a local option residence homestead exemption from ad valorem taxation of not less than $5,000 or more than $30,000. ), 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
HJR40 by Guillen (Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt a local option residence homestead exemption from ad valorem taxation of not less than $5,000 or more than $30,000. ), Committee Report 1st House, Substituted
HJR40 by Guillen (Proposing a constitutional amendment authorizing the governing body of a political subdivision to adopt a local option residence homestead exemption from ad valorem taxation of not less than $5,000 or more than $30,000. ), Committee Report 1st House, Substituted
No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $90,882.
No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $90,882.
The cost to the state for publication of the resolution is $90,882.
The resolution would propose a constitutional amendment to Article VIII of the Texas Constitution to authorize taxing units to adopt a local option residence homestead exemption from ad valorem taxation of at least $5,000 and not more than $30,000. This would be an alternative exemption to the current percentage local option exemption, which may not exceed 20 percent. The bill would prohibit the Legislature from protecting school districts from revenue losses incurred as a result of adopting the new alternative homestead exemption. Adoption of the proposed constitutional amendment alone would not result in revenue losses to local units of government. To the extent that taxing units would adopt the new exemption proposed by the bill and the cost of the new exemption exceeds any existing percentage homestead exemption, the taxing units would incur revenue losses. Any fiscal impact would depend on the actions of the governing bodies of local taxing units. The actions of local taxing units in deciding whether to grant the local optional $30,000 homestead exemption cannot be predicted. The state would be protected from any revenue losses under the bill. The proposed amendment would be submitted to voters at an election to be held November 3, 2009.
The resolution would propose a constitutional amendment to Article VIII of the Texas Constitution to authorize taxing units to adopt a local option residence homestead exemption from ad valorem taxation of at least $5,000 and not more than $30,000. This would be an alternative exemption to the current percentage local option exemption, which may not exceed 20 percent. The bill would prohibit the Legislature from protecting school districts from revenue losses incurred as a result of adopting the new alternative homestead exemption.
Adoption of the proposed constitutional amendment alone would not result in revenue losses to local units of government. To the extent that taxing units would adopt the new exemption proposed by the bill and the cost of the new exemption exceeds any existing percentage homestead exemption, the taxing units would incur revenue losses. Any fiscal impact would depend on the actions of the governing bodies of local taxing units. The actions of local taxing units in deciding whether to grant the local optional $30,000 homestead exemption cannot be predicted. The state would be protected from any revenue losses under the bill.
The proposed amendment would be submitted to voters at an election to be held November 3, 2009.
Local Government Impact
Adoption of the proposed constitutional amendment alone would not result in revenue losses to local units of government. Any fiscal impact would depend on the actions of the governing bodies of local taxing units.
Adoption of the proposed constitutional amendment alone would not result in revenue losses to local units of government. Any fiscal impact would depend on the actions of the governing bodies of local taxing units.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, SJS, MN, SD
JOB, SJS, MN, SD