HBA-JLV H.B. 2978 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2978 By: Dukes Ways & Means 4/19/2001 Introduced BACKGROUND AND PURPOSE Currently, properties in an area with a historical designation are eligible to apply for a property tax abatement. The designation of the historical area is based upon certain criteria, including properties with significant historical trends or events, properties with distinctive design or construction, or properties at least 50 years old with the original porch, siding, and windows intact. Many would like to see the continuance of historical preservation in areas of historical significance, particularly among families who expend time and financial resources for the preservation of such homes. House Bill 2978 includes as a criteria for designation as a historical site if the current property owner is related to the previous owner within the first degree of consanguinity. 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. ANALYSIS House Bill 2978 amends the Tax Code to provide that an ordinance or other law adopted by the governing body of a taxing unit may include, as a criterion for designating a residence homestead as a historically significant site in need of tax relief to encourage its preservation, that the preceding owner of the homestead was related to the current owner within the first degree by consanguinity. EFFECTIVE DATE January 1, 2002.