LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 4, 2023 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HJR153 by Wilson (proposing a constitutional amendment to authorize a limitation on the total amount of ad valorem taxes that a political subdivision other than a school district, county, municipality, or junior college district may impose on the residence homesteads of certain low-income persons who are disabled or elderly and their surviving spouses.), Committee Report 1st House, Substituted 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 $204,406. The resolution would propose an amendment to Article VIII (Taxation and Revenue) of the Texas Constitution and add Subsection 1-b(h-1), to enable the governing body of a political subdivision; other than school district, county, city or town, or junior college district; to limit the property taxes on the residence homestead of individuals who are of limited financial means and who are disabled or 65 years of age or older, and their surviving spouses, if they meet certain qualifications. The resolution would allow exception to such limitation for certain subsequent property improvements. The governing body of a political subdivision could not repeal or rescind such a tax limitation once established.Alternatively, the resolution would require the governing body of a political subdivision affected by the proposed amendment to call an election upon receipt of a certain petition to determine by majority vote whether to enact such a property tax limitation.The resolution would allow the Legislature, by general law, to provide for the transfer of all or a proportionate amount of a tax limitation provided by this subsection for a person who qualifies for the limitation and establishes a different residence homestead located in the same political subdivision. The Legislature would, by general law, prescribe the method for determining whether a person is of limited financial means.The proposed amendment would be submitted to voters at an election to be held November 7, 2023. Local Government ImpactTo the extent that taxing units other than school districts, cities, counties, and junior colleges adopt the property tax limitation on the residence homestead of an individual who is of limited financial means and disabled or at least 65 years of age and their surviving spouse, there would be a cost to those taxing units. No information is available about the number of taxing units that would provide the limitation either by an official action of the governing body or by a petition and election process. Consequently, the cost of the resolution to these units of local government cannot be estimated. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 4, 2023
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HJR153 by Wilson (proposing a constitutional amendment to authorize a limitation on the total amount of ad valorem taxes that a political subdivision other than a school district, county, municipality, or junior college district may impose on the residence homesteads of certain low-income persons who are disabled or elderly and their surviving spouses.), Committee Report 1st House, Substituted
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HJR153 by Wilson (proposing a constitutional amendment to authorize a limitation on the total amount of ad valorem taxes that a political subdivision other than a school district, county, municipality, or junior college district may impose on the residence homesteads of certain low-income persons who are disabled or elderly and their surviving spouses.), Committee Report 1st House, Substituted
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
HJR153 by Wilson (proposing a constitutional amendment to authorize a limitation on the total amount of ad valorem taxes that a political subdivision other than a school district, county, municipality, or junior college district may impose on the residence homesteads of certain low-income persons who are disabled or elderly and their surviving spouses.), Committee Report 1st House, Substituted
HJR153 by Wilson (proposing a constitutional amendment to authorize a limitation on the total amount of ad valorem taxes that a political subdivision other than a school district, county, municipality, or junior college district may impose on the residence homesteads of certain low-income persons who are disabled or elderly and their surviving spouses.), Committee Report 1st House, Substituted
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 $204,406.
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 $204,406.
The resolution would propose an amendment to Article VIII (Taxation and Revenue) of the Texas Constitution and add Subsection 1-b(h-1), to enable the governing body of a political subdivision; other than school district, county, city or town, or junior college district; to limit the property taxes on the residence homestead of individuals who are of limited financial means and who are disabled or 65 years of age or older, and their surviving spouses, if they meet certain qualifications. The resolution would allow exception to such limitation for certain subsequent property improvements. The governing body of a political subdivision could not repeal or rescind such a tax limitation once established.Alternatively, the resolution would require the governing body of a political subdivision affected by the proposed amendment to call an election upon receipt of a certain petition to determine by majority vote whether to enact such a property tax limitation.The resolution would allow the Legislature, by general law, to provide for the transfer of all or a proportionate amount of a tax limitation provided by this subsection for a person who qualifies for the limitation and establishes a different residence homestead located in the same political subdivision. The Legislature would, by general law, prescribe the method for determining whether a person is of limited financial means.The proposed amendment would be submitted to voters at an election to be held November 7, 2023.
Local Government Impact
To the extent that taxing units other than school districts, cities, counties, and junior colleges adopt the property tax limitation on the residence homestead of an individual who is of limited financial means and disabled or at least 65 years of age and their surviving spouse, there would be a cost to those taxing units. No information is available about the number of taxing units that would provide the limitation either by an official action of the governing body or by a petition and election process. Consequently, the cost of the resolution to these units of local government cannot be estimated.
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