HBA-MPM S.B. 1210 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1210
By: Cain
Public Education
5/12/1999
Engrossed



BACKGROUND AND PURPOSE 

Current law authorizes senior citizens to transfer a freeze of school taxes
on a homestead from one homestead to another, however, there have been
abuses of this legislation with rapid turnovers of homesteads in order to
freeze taxes on lower value homesteads.  S.B. 1210 establishes a 12-month
period before the transfer of a freeze of tax increases on a homestead is
attached to the value of the homestead.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.26(g), Tax Code, to prohibit a school district
from imposing ad valorem taxes under certain conditions if an individual
receiving a limitation on tax increases imposed by this section on a
residence homestead the person owned and occupied as a homestead for at
least 12 consecutive months subsequently qualifies a different residence
homestead for an exemption under Section 11.13 (Residence Homestead), Tax
Code, with certain exceptions. Provides that the limitation provided by
this subsection applies to each subsequently qualified homestead of the
individual until the individual owns and occupies a subsequently qualified
homestead for at least 12 consecutive months. Prohibits the taxes imposed
on the former residence homestead of the individual from being used to
determine the limitation of taxes provided by this subsection for any later
residence homestead of the individual, after the individual owns and
occupies a subsequently qualified homestead for at least 12 consecutive
months.  Makes conforming and nonsubstantive changes.  

SECTION 2.   Amends Section 11.26, Tax Code, by adding Subsection (m), to
provide that the limitation provided by Subsection (g) does not apply to
the homestead after the first year, if school district taxes imposed on an
individual's residence homestead are limited as provided by that subsection
and the individual's residence homestead was under construction on January1
of the first year in which the individual qualified that homestead for an
exemption under Section 11.13. Prohibits the school district, in that
event, from imposing ad valorem taxes that exceed certain amounts for
certain years.  

SECTION 3.   Effective date: January 1, 2000. 
Makes application of this Act prospective.

SECTION 4.  Emergency clause.