LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 2, 2011 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB3039 by Chisum (Relating to exempting from ad valorem taxation certain real property used to provide housing to certain persons with disabilities.), As Introduced The bill's proposed exemptions for certain group homes and intermediate care facilities would create a cost to the state through the operation of the school funding formula. The bill would amend Chapter 11 of the Tax Code to provide a property tax exemption for group homes housing persons with mental retardation operating under a Social Security Act Section 1915(c) waiver program (waivers of certain Medicaid provisions in order to allow long-term care services to be delivered in community settings). The bill also would exempt group homes used as intermediate care facilities for persons with mental retardation if at least 95 percent of the residents of the facility are recipients of medical assistance under Chapter 32 of the Human Resources Code. The bill would define a group home as a home that furnishes food, shelter, and treatment or services to four or more persons unrelated to the owner, that is primarily for the diagnosis, treatment, or rehabilitation of persons with mental retardation or related conditions, and provides in a protected setting continuous evaluation, planning, supervision, coordination, and integration of health or rehabilitative services to help each resident. The bill's proposed exemptions for certain group homes and intermediate care facilities would create a cost to local governments and to the state through the operation of the school funding formula. No information is available regarding the number or value of group homes or intermediate care facilities that meet the bill's requirements. Consequently the fiscal impact cannot be estimated. The bill would take effect on January 1, 2012, contingent on passage of a constitutional amendment. Local Government Impact The bill's proposed exemptions for certain group homes and intermediate care facilities would create a cost to local governments. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, KK, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
May 2, 2011
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB3039 by Chisum (Relating to exempting from ad valorem taxation certain real property used to provide housing to certain persons with disabilities.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB3039 by Chisum (Relating to exempting from ad valorem taxation certain real property used to provide housing to certain persons with disabilities.), As Introduced
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB3039 by Chisum (Relating to exempting from ad valorem taxation certain real property used to provide housing to certain persons with disabilities.), As Introduced
HB3039 by Chisum (Relating to exempting from ad valorem taxation certain real property used to provide housing to certain persons with disabilities.), As Introduced
The bill's proposed exemptions for certain group homes and intermediate care facilities would create a cost to the state through the operation of the school funding formula.
The bill's proposed exemptions for certain group homes and intermediate care facilities would create a cost to the state through the operation of the school funding formula.
The bill would amend Chapter 11 of the Tax Code to provide a property tax exemption for group homes housing persons with mental retardation operating under a Social Security Act Section 1915(c) waiver program (waivers of certain Medicaid provisions in order to allow long-term care services to be delivered in community settings). The bill also would exempt group homes used as intermediate care facilities for persons with mental retardation if at least 95 percent of the residents of the facility are recipients of medical assistance under Chapter 32 of the Human Resources Code. The bill would define a group home as a home that furnishes food, shelter, and treatment or services to four or more persons unrelated to the owner, that is primarily for the diagnosis, treatment, or rehabilitation of persons with mental retardation or related conditions, and provides in a protected setting continuous evaluation, planning, supervision, coordination, and integration of health or rehabilitative services to help each resident. The bill's proposed exemptions for certain group homes and intermediate care facilities would create a cost to local governments and to the state through the operation of the school funding formula. No information is available regarding the number or value of group homes or intermediate care facilities that meet the bill's requirements. Consequently the fiscal impact cannot be estimated. The bill would take effect on January 1, 2012, contingent on passage of a constitutional amendment.
Local Government Impact
The bill's proposed exemptions for certain group homes and intermediate care facilities would create a cost to local governments.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KK, SD, SJS
JOB, KK, SD, SJS