LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 18, 2021 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1705 by Schofield (Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Chapter 11 of the Tax Code, regarding taxable property and exemptions, to repeal the optional city, county or junior college limitation of taxes on homesteads of individuals who are elderly or disabled (over-65 or disabled tax ceiling) and require all taxing units to grant the tax ceiling. Currently, all school districts; and cities, counties, and junior colleges that have opted to do so grant the tax ceiling. Tax ceilings would be transferable to a subsequent homestead in a different taxing unit of the same type, however the transfer would not apply to a taxing unit if the former homestead was not subject to taxation by a taxing unit of the same type in the last year in which the individual received the exemption for the former homestead.The bill would include surviving spouses who are disabled as individuals who are entitled to the tax ceiling applicable to their spouse at time of death.The bill would make conforming changes.Because the associated constitutional amendment (HJR 84) is self-implementing, the cost of the bill's proposed requirement that all taxing units grant the tax ceiling is shown in the fiscal note for that amendment.The bill would take effect January 1, 2022, contingent on the approval by voters of a constitutional amendment (HJR 84). Local Government ImpactThe bill would have no fiscal impact on units of local government. Any fiscal impact is shown in the fiscal note for the corresponding constitutional amendment. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 18, 2021
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1705 by Schofield (Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1705 by Schofield (Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.), As Introduced
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1705 by Schofield (Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.), As Introduced
HB1705 by Schofield (Relating to the establishment of a limitation on the total amount of ad valorem taxes that taxing units may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 11 of the Tax Code, regarding taxable property and exemptions, to repeal the optional city, county or junior college limitation of taxes on homesteads of individuals who are elderly or disabled (over-65 or disabled tax ceiling) and require all taxing units to grant the tax ceiling. Currently, all school districts; and cities, counties, and junior colleges that have opted to do so grant the tax ceiling. Tax ceilings would be transferable to a subsequent homestead in a different taxing unit of the same type, however the transfer would not apply to a taxing unit if the former homestead was not subject to taxation by a taxing unit of the same type in the last year in which the individual received the exemption for the former homestead.The bill would include surviving spouses who are disabled as individuals who are entitled to the tax ceiling applicable to their spouse at time of death.The bill would make conforming changes.Because the associated constitutional amendment (HJR 84) is self-implementing, the cost of the bill's proposed requirement that all taxing units grant the tax ceiling is shown in the fiscal note for that amendment.The bill would take effect January 1, 2022, contingent on the approval by voters of a constitutional amendment (HJR 84).
Local Government Impact
The bill would have no fiscal impact on units of local government. Any fiscal impact is shown in the fiscal note for the corresponding constitutional amendment.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD, BRI
JMc, KK, SD, BRI