LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 5, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1022 by Moody (Relating to the eligibility for an exemption from ad valorem taxation of the residence homestead of certain persons with a life estate in the homestead property.), As Engrossed Passage of the bill would expand the definition of a residence homestead to include residences occupied by a surviving spouse holding a life estate in the property making these residences eligible for various property tax homestead exemptions. These additional homestead exemptions would create a cost to the Foundation School Fund through the operation of the school finance formulas. The bill would amend Chapter 11 of the Tax Code, regarding taxable property and exemptions, to revise the definition of a residence homestead to include a residential structure occupied by an owner's surviving spouse who has a life estate in the property.The bill's proposed inclusion, in the definition of a residence homestead, of residences occupied by a surviving spouse holding a life estate in the property would make these residences eligible for various property tax homestead exemptions, assuming they met the other legal requirements. These additional homestead exemptions would create a cost to local taxing units, and to the state through the operation of the school funding formulas.The number of surviving spouses holding a life estate in residential homesteads who would qualify for a homestead exemption under the bill is unknown; consequently, the cost of the bill cannot be estimated. The bill would take effect January 1, 2016. Local Government Impact Passage of the bill would expand the definition of a residence homestead to include residences occupied by a surviving spouse holding a life estate in the property making these residences eligible for various property tax homestead exemptions. These additional homestead exemptions would create a cost to local taxing units. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD, SJS
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 5, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1022 by Moody (Relating to the eligibility for an exemption from ad valorem taxation of the residence homestead of certain persons with a life estate in the homestead property.), As Engrossed
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1022 by Moody (Relating to the eligibility for an exemption from ad valorem taxation of the residence homestead of certain persons with a life estate in the homestead property.), As Engrossed
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB1022 by Moody (Relating to the eligibility for an exemption from ad valorem taxation of the residence homestead of certain persons with a life estate in the homestead property.), As Engrossed
HB1022 by Moody (Relating to the eligibility for an exemption from ad valorem taxation of the residence homestead of certain persons with a life estate in the homestead property.), As Engrossed
Passage of the bill would expand the definition of a residence homestead to include residences occupied by a surviving spouse holding a life estate in the property making these residences eligible for various property tax homestead exemptions. These additional homestead exemptions would create a cost to the Foundation School Fund through the operation of the school finance formulas.
Passage of the bill would expand the definition of a residence homestead to include residences occupied by a surviving spouse holding a life estate in the property making these residences eligible for various property tax homestead exemptions. These additional homestead exemptions would create a cost to the Foundation School Fund through the operation of the school finance formulas.
The bill would amend Chapter 11 of the Tax Code, regarding taxable property and exemptions, to revise the definition of a residence homestead to include a residential structure occupied by an owner's surviving spouse who has a life estate in the property.The bill's proposed inclusion, in the definition of a residence homestead, of residences occupied by a surviving spouse holding a life estate in the property would make these residences eligible for various property tax homestead exemptions, assuming they met the other legal requirements. These additional homestead exemptions would create a cost to local taxing units, and to the state through the operation of the school funding formulas.The number of surviving spouses holding a life estate in residential homesteads who would qualify for a homestead exemption under the bill is unknown; consequently, the cost of the bill cannot be estimated. The bill would take effect January 1, 2016.
Local Government Impact
Passage of the bill would expand the definition of a residence homestead to include residences occupied by a surviving spouse holding a life estate in the property making these residences eligible for various property tax homestead exemptions. These additional homestead exemptions would create a cost to local taxing units.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD, SJS
UP, KK, SD, SJS