Texas 2009 - 81st Regular

Texas Senate Bill SB1928 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R3547 UM-F
2	2	By: Watson S.B. No. 1928
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a study regarding ad valorem tax relief through the use
8	8	of a circuit breaker program.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. (a) In this section, "circuit breaker program"
11	11	means a program that limits the amount of ad valorem taxes that may
12	12	be imposed on a residence homestead based on the owner's annual
13	13	income.
14	14	(b) The comptroller shall conduct a study to examine circuit
15	15	breaker programs.
16	16	(c) Before collecting information for purposes of the
17	17	study, the comptroller shall establish an advisory committee to
18	18	assist the comptroller in conducting the study. The advisory
19	19	committee must be composed of representatives of:
20	20	(1) school districts and other taxing units;
21	21	(2) home builders;
22	22	(3) real estate agents;
23	23	(4) mortgage lenders;
24	24	(5) financial agencies involved in mortgage markets;
25	25	(6) organizations interested in housing for
26	26	low-income and moderate-income households;
27	27	(7) organizations interested in the effect of ad
28	28	valorem taxes on low-income and moderate-income households;
29	29	(8) organizations interested in the effect of public
30	30	policy on low-income and moderate-income households; and
31	31	(9) other appropriate, interested organizations or
32	32	members of the public, as determined by the comptroller.
33	33	(d) The comptroller, with the assistance of the advisory
34	34	committee, shall study:
35	35	(1) methods to implement a circuit breaker program,
36	36	including the use of rebates or tax credits;
37	37	(2) methods to create a simple, transparent process
38	38	for the owner of a residence homestead to apply for and receive a
39	39	limitation on the amount of ad valorem taxes that may be imposed on
40	40	the homestead under a circuit breaker program;
41	41	(3) the effects of different designs of a circuit
42	42	breaker program, including the effect of:
43	43	(A) limiting which taxing units are involved;
44	44	(B) basing eligibility on a maximum annual income
45	45	level;
46	46	(C) limiting the dollar amount of the benefit
47	47	that a property owner could receive in the program; and
48	48	(D) basing eligibility on a minimum ratio of
49	49	residence homestead ad valorem taxes imposed to annual income,
50	50	including a progressive scale of minimum ratios based on annual
51	51	income; and
52	52	(4) methods to ensure the reliability of a property
53	53	owner's statement of annual income.
54	54	(e) The comptroller and the advisory committee shall
55	55	analyze the information studied and prepare a report that:
56	56	(1) describes the parameters, techniques, and legal
57	57	assumptions established under Subsection (d) of this section that
58	58	were used in conducting the study;
59	59	(2) estimates the benefit of alternative designs of a
60	60	circuit breaker program for property owners in various annual
61	61	income brackets and with varying amounts of residence homestead ad
62	62	valorem tax liability, including an estimate of the percentage of
63	63	property owners in various annual income brackets that would
64	64	benefit and the dollar amount of the benefit to those property
65	65	owners;
66	66	(3) estimates the cost to the state and taxing units of
67	67	implementing alternative designs of a circuit breaker program,
68	68	including the percentage by which the amount of ad valorem taxes
69	69	collected would be reduced;
70	70	(4) analyzes the effects on this state's economy of
71	71	implementing a circuit breaker program, including the effect on
72	72	home ownership rates, the residential housing market, and economic
73	73	development; and
74	74	(5) specifies any necessary statutory changes the
75	75	comptroller and the advisory committee determine are necessary to
76	76	implement a circuit breaker program described by the study.
77	77	(f) The comptroller may contract with appraisal districts,
78	78	taxing units, or other appropriate organizations for assistance and
79	79	to obtain information necessary to conduct the study. A state
80	80	agency, appraisal district, or taxing unit shall assist the
81	81	comptroller if the comptroller requests information or assistance
82	82	in conducting the study.
83	83	(g) Not later than December 1, 2010, the comptroller shall
84	84	submit to the governor, lieutenant governor, and speaker of the
85	85	house of representatives the report prepared under Subsection (e)
86	86	of this section.
87	87	SECTION 2. This Act expires September 1, 2011.
88	88	SECTION 3. This Act takes effect immediately if it receives
89	89	a vote of two-thirds of all the members elected to each house, as
90	90	provided by Section 39, Article III, Texas Constitution. If this
91	91	Act does not receive the vote necessary for immediate effect, this
92	92	Act takes effect September 1, 2009.