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: HJR84 by Schofield (Proposing a constitutional amendment establishing a limitation on the total amount of ad valorem taxes that political subdivisions 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, other than the cost of publication. The cost to the state for publication of the resolution is $178,333. The resolution would propose an amendment to Section 1-b(d) of Article VIII of the Texas Constitution, to modify the homestead tax ceiling for individuals who are over 65 years of age or who are disabled to apply to property taxes imposed by a political subdivision (rather than only a school district). The resolution also allows a surviving spouse of a person with a disabled exemption to receive the tax ceiling benefit. The surviving spouse would have to be either 55 years or older or disabled.The resolution would repeal Section 1-b(h), of Article VIII, regarding permitting counties, cities and junior colleges to grant a residence homestead tax ceiling.The proposed amendment's requirement that all taxing units grant the over-65 or disabled tax ceiling would create a cost to taxing units not currently granting the tax ceiling. All school districts currently grant the exemption, so neither school districts nor the state would be affected by the amendment. The cost to the state for publication of the resolution is $178,333.The proposed amendment would be submitted to voters at an election to be held November 2, 2021. Local Government ImpactThe proposed constitutional amendment, if approved by the voters, would create a cost to taxing units not currently granting the over-65 or disabled tax ceiling. Historical tax ceiling levy loss information from school districts was used to estimate the levy losses for special districts, cities and counties. Losses from taxing units that currently grant the optional tax ceiling were excluded. The cumulative losses were projected through the five-year period shown in the table below. Fiscal Year Possible Revenue Gain/(Loss) Counties Possible Revenue Gain/(Loss) from Cities Possible Revenue Gain/(Loss) from Special Districts 2022 $0 $0 $0 2023 (96,685,000) (99,429,000) (78,483,000) 2024 (206,283,000) (212,136,000) (167,448,000) 2025 (279,079,000) (286,997,000) (226,539,000) 2026 (355,142,000) (365,218,000) (288,282,000) 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: HJR84 by Schofield (Proposing a constitutional amendment establishing a limitation on the total amount of ad valorem taxes that political subdivisions 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: HJR84 by Schofield (Proposing a constitutional amendment establishing a limitation on the total amount of ad valorem taxes that political subdivisions 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
HJR84 by Schofield (Proposing a constitutional amendment establishing a limitation on the total amount of ad valorem taxes that political subdivisions may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.), As Introduced
HJR84 by Schofield (Proposing a constitutional amendment establishing a limitation on the total amount of ad valorem taxes that political subdivisions 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, other than the cost of publication. The cost to the state for publication of the resolution is $178,333.
No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $178,333.
The resolution would propose an amendment to Section 1-b(d) of Article VIII of the Texas Constitution, to modify the homestead tax ceiling for individuals who are over 65 years of age or who are disabled to apply to property taxes imposed by a political subdivision (rather than only a school district). The resolution also allows a surviving spouse of a person with a disabled exemption to receive the tax ceiling benefit. The surviving spouse would have to be either 55 years or older or disabled.The resolution would repeal Section 1-b(h), of Article VIII, regarding permitting counties, cities and junior colleges to grant a residence homestead tax ceiling.The proposed amendment's requirement that all taxing units grant the over-65 or disabled tax ceiling would create a cost to taxing units not currently granting the tax ceiling. All school districts currently grant the exemption, so neither school districts nor the state would be affected by the amendment. The cost to the state for publication of the resolution is $178,333.The proposed amendment would be submitted to voters at an election to be held November 2, 2021.
Local Government Impact
The proposed constitutional amendment, if approved by the voters, would create a cost to taxing units not currently granting the over-65 or disabled tax ceiling. Historical tax ceiling levy loss information from school districts was used to estimate the levy losses for special districts, cities and counties. Losses from taxing units that currently grant the optional tax ceiling were excluded. The cumulative losses were projected through the five-year period shown in the table below. Fiscal Year Possible Revenue Gain/(Loss) Counties Possible Revenue Gain/(Loss) from Cities Possible Revenue Gain/(Loss) from Special Districts 2022 $0 $0 $0 2023 (96,685,000) (99,429,000) (78,483,000) 2024 (206,283,000) (212,136,000) (167,448,000) 2025 (279,079,000) (286,997,000) (226,539,000) 2026 (355,142,000) (365,218,000) (288,282,000)
Fiscal Year Possible Revenue Gain/(Loss) Counties Possible Revenue Gain/(Loss) from Cities Possible Revenue Gain/(Loss) from Special Districts 2022 $0 $0 $0 2023 (96,685,000) (99,429,000) (78,483,000) 2024 (206,283,000) (212,136,000) (167,448,000) 2025 (279,079,000) (286,997,000) (226,539,000) 2026 (355,142,000) (365,218,000) (288,282,000)
Fiscal Year Possible Revenue Gain/(Loss) Counties Possible Revenue Gain/(Loss) from Cities Possible Revenue Gain/(Loss) from Special Districts
2022 $0 $0 $0
2023 (96,685,000) (99,429,000) (78,483,000)
2024 (206,283,000) (212,136,000) (167,448,000)
2025 (279,079,000) (286,997,000) (226,539,000)
2026 (355,142,000) (365,218,000) (288,282,000)
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