83R2930 CJC-D
By: Farias H.B. No. 780
A BILL TO BE ENTITLED
AN ACT
relating to a study by the Legislative Budget Board of the effect of
ad valorem tax exemptions for certain veterans and their surviving
spouses and children on local and state revenue and the state's
economy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. DEFINITION. In this Act, "board" means the
Legislative Budget Board.
SECTION 2. STUDY OF EFFECT OF EXEMPTIONS. (a) The board
shall conduct a comprehensive study to determine the effect of the
exemption described by Subsection (b) of this section on local and
state revenue and the state's economy.
(b) The exemption would exempt from ad valorem taxation
$5,000 of the assessed value of a property owned by a veteran of the
armed services of the United States if the veteran is a resident of
this state and:
(1) served on active duty during:
(A) World War II;
(B) the national emergency that began on June 27,
1950, and that is referred to as the Korean War;
(C) the conflict in Vietnam, which began on
December 21, 1961, and ended on May 7, 1975;
(D) the Persian Gulf War, which began on August
2, 1990, and ended on April 6, 1991; or
(E) the military operations against Afghanistan
or Iraq that began after September 11, 2001; or
(2) was awarded, as a result of the veteran's service
in the armed services, any of the following medals:
(A) the Armed Forces Expeditionary Medal;
(B) the Navy Expeditionary Medal;
(C) the Marine Corps Expeditionary Medal; or
(D) the Global War on Terrorism Expeditionary
Medal.
(c) In conducting the study, the board shall consider the
additional effect on local and state revenue and the state's
economy if on the death of the veteran receiving the exemption:
(1) the veteran's surviving spouse is entitled to
receive an exemption from taxation of a portion of the assessed
value of property the surviving spouse owns in the amount of the
veteran's exemption at the time of the veteran's death for as long
as the surviving spouse remains unmarried; or
(2) each of the veteran's surviving children who are
under 18 years of age and unmarried are entitled to receive an
exemption from taxation of a portion of the assessed value of
property the child owns in the amount of the veteran's exemption at
the time of the veteran's death, if the veteran does not leave a
surviving spouse.
SECTION 3. REPORT. Not later than December 1, 2014, the
board shall submit a report of the results of the study to the
lieutenant governor, the speaker of the house of representatives,
and the presiding officer of each standing committee of the senate
and house of representatives having primary jurisdiction over
matters affecting tax revenue. The report must:
(1) describe the methods used by the board to
determine the effect of the exemptions described by Section 2 of
this Act on local and state revenue and the state's economy;
(2) state in a dollar amount the estimated effect on
local and state revenue of:
(A) the exemption described by Section 2(b) of
this Act; and
(B) the exemption described by Section 2(c) of
this Act; and
(3) include a complete discussion of:
(A) the effect of any reduction in the amount of
available local revenue attributable to the exemptions described by
Section 2 of this Act on:
(i) school district staffing levels and the
diversity of educational and extracurricular programs offered by
school districts; and
(ii) social services programs offered to
the public by counties, municipalities, and other local taxing
units; and
(B) the effect of any aid that school districts
may be entitled to receive under state law as a result of the
exemptions described by Section 2 of this Act on:
(i) the state's current and long-term
economic health; and
(ii) the continued operation of social
services programs currently offered by the state to the public.
SECTION 4. EXPIRATION DATE. This Act expires January 1,
2015.
SECTION 5. EFFECTIVE DATE. 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, 2013.