HBA-KMH S.B. 1461 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1461 By: Cain Ways & Means 5/11/1999 Engrossed BACKGROUND AND PURPOSE In 1997, the legislature approved legislation to allow senior citizens to qualify immediately for a homestead exemption by directing appraisal districts to prorate the exemption from the date the person turns 65 years old. Previous to this legislation, senior citizens had to wait until the next tax year to get their extra $10,000 homestead exemption. S.B. 1461 requires a senior citizen to receive a homestead exemption upon turning 65 years old and makes other changes to the formula for figuring homestead exemptions. 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 11.13(h), Tax Code, to prohibit successive, as well as joint and community, owners from each receiving the same exemption provided by or pursuant to this section for the same residence homestead in the same year. Makes nonsubstantive changes. SECTION 2. Amends Sections 11.26(a) and (j), Tax Code, to provide that the surviving spouse's school district taxes are determined, rather than calculated under Section 26.112, as if the individual qualifying for the exemption had lived for the entire year. Deletes text regarding an exemption on residence homestead after the first year. SECTION 3. Amends Section 11.42, Tax Code, to provide that an exemption authorized by Section 11.13(c) or (d) for an individual 65 years of age or older is effective as of January 1 of the tax year in which the person qualifies for the exemption and applies for the entire tax year. Redesignates existing Subsection (c) as Subsection (d). Makes conforming changes. SECTION 4. Amends Section 11.43(d), Tax Code, as amended by Chapters 1039, 1059, and 1155, Acts of the 75th Legislature, Regular Session, 1997, to make a conforming change. SECTION 5. Amends Section 11.43(k), Tax Code, to make a conforming change. SECTION 6. Amends Section 26.112, Tax Code, as follows: Sec. 26.112. New Title: CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF ELDERLY PERSON. Clarifies that the amount of the tax due on the property for the tax year is calculated as if the person qualifies for the exemption on January 1 and continued to qualify for the exemption for the remainder of the tax year, if at any time during a tax year property is owned by an individual who qualifies for an exemption under Section 11.13(c) or (d) for an individual 65 years of age or older. Provides that the amount of the tax due on the property for the tax year is calculated as if that individual owned the property for the entire tax year, if property is the residence homestead of more than one individual during a tax year and any of those individuals qualify for an exemption under Section 11.13(c) or (d) for an individual 65 years of age or older with respect to the property. Requires the assessor for each taxing unit to recalculate the amount of tax due on the property and correct the tax roll, if a person qualifies for an exemption under Section 11.13(c) or (d) for an individual 65 years of age or older with respect to the property after the amount of the tax due on the property is calculated and the effect of the qualification is to reduce the amount of the tax due on the property. Requires the assessor to mail a corrected tax bill to the person in whose name the property is listed on the tax roll or to the person's authorized agent, if the tax bill has been mailed and the tax on the property has not been paid. Requires the tax collector for the taxing unit to refund to the person who paid the tax the amount by which the payment exceeded the tax due, if the tax on the property has been paid. Deletes text regarding a residence homestead of an individual and the amount of taxes that would be imposed on the residence homestead. Makes conforming and nonsubstantive changes. SECTION 7. Amends Section 26.113(a), Tax Code, to make a conforming change. SECTION 8.Effective date: January 1, 2000. Makes application of this Act prospective. SECTION 9.Emergency clause.