LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 31, 2011 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB469 by Callegari (relating to the calculation of ad valorem taxes on the residence homestead of a 100 percent or totally disabled veteran for the tax year in which the veteran qualifies or ceases to qualify for an exemption from taxation of the homestead.), Committee Report 1st House, Substituted No fiscal implication to the State is anticipated. The bill would amend Chapter 11 and Chapter 26 of the Tax Code, regarding property taxation, to require that the total property tax exemption of homesteads of 100 percent or totally disabled veterans be prorated when the exemption terminates during the year, and when the exemption begins during the year. The proration, in both instances, would allow the exemption only for the portion of the year that the disabled veteran owns the homestead. Under current law, the total property tax exemption for qualified disabled veterans takes effect on January 1 following the date on which the veteran qualifies for the exemption and remains in place for the entire year regardless of the portion of the year the qualified veteran owns the property. The exemption does not commence on the date the qualified veteran moves into the homestead and does not terminate on the date the veteran moves from the homestead. The prorations proposed by the bill would cause a property tax levy gain to taxing units when a qualified disabled veteran moves from their old homestead and would cause an offsetting property tax levy loss when the veteran moves into a new homestead. Because the gains and losses are substantially equal, there would be no fiscal impact on units of local government or the state. The bill would take effect on January 1, 2012. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, KK, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 31, 2011
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB469 by Callegari (relating to the calculation of ad valorem taxes on the residence homestead of a 100 percent or totally disabled veteran for the tax year in which the veteran qualifies or ceases to qualify for an exemption from taxation of the homestead.), Committee Report 1st House, Substituted
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB469 by Callegari (relating to the calculation of ad valorem taxes on the residence homestead of a 100 percent or totally disabled veteran for the tax year in which the veteran qualifies or ceases to qualify for an exemption from taxation of the homestead.), Committee Report 1st House, Substituted
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
HB469 by Callegari (relating to the calculation of ad valorem taxes on the residence homestead of a 100 percent or totally disabled veteran for the tax year in which the veteran qualifies or ceases to qualify for an exemption from taxation of the homestead.), Committee Report 1st House, Substituted
HB469 by Callegari (relating to the calculation of ad valorem taxes on the residence homestead of a 100 percent or totally disabled veteran for the tax year in which the veteran qualifies or ceases to qualify for an exemption from taxation of the homestead.), Committee Report 1st House, Substituted
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 11 and Chapter 26 of the Tax Code, regarding property taxation, to require that the total property tax exemption of homesteads of 100 percent or totally disabled veterans be prorated when the exemption terminates during the year, and when the exemption begins during the year. The proration, in both instances, would allow the exemption only for the portion of the year that the disabled veteran owns the homestead. Under current law, the total property tax exemption for qualified disabled veterans takes effect on January 1 following the date on which the veteran qualifies for the exemption and remains in place for the entire year regardless of the portion of the year the qualified veteran owns the property. The exemption does not commence on the date the qualified veteran moves into the homestead and does not terminate on the date the veteran moves from the homestead. The prorations proposed by the bill would cause a property tax levy gain to taxing units when a qualified disabled veteran moves from their old homestead and would cause an offsetting property tax levy loss when the veteran moves into a new homestead. Because the gains and losses are substantially equal, there would be no fiscal impact on units of local government or the state. The bill would take effect on January 1, 2012.
The bill would amend Chapter 11 and Chapter 26 of the Tax Code, regarding property taxation, to require that the total property tax exemption of homesteads of 100 percent or totally disabled veterans be prorated when the exemption terminates during the year, and when the exemption begins during the year. The proration, in both instances, would allow the exemption only for the portion of the year that the disabled veteran owns the homestead.
Under current law, the total property tax exemption for qualified disabled veterans takes effect on January 1 following the date on which the veteran qualifies for the exemption and remains in place for the entire year regardless of the portion of the year the qualified veteran owns the property. The exemption does not commence on the date the qualified veteran moves into the homestead and does not terminate on the date the veteran moves from the homestead. The prorations proposed by the bill would cause a property tax levy gain to taxing units when a qualified disabled veteran moves from their old homestead and would cause an offsetting property tax levy loss when the veteran moves into a new homestead. Because the gains and losses are substantially equal, there would be no fiscal impact on units of local government or the state.
The bill would take effect on January 1, 2012.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KK, SD, SJS
JOB, KK, SD, SJS