HBA-EDN H.B. 3438 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3438 By: Gallego Ways & Means 4/20/2001 Introduced BACKGROUND AND PURPOSE Volunteer firefighters and volunteer emergency medical technicians perform a necessary service in many counties across the state. These volunteers often risk their own safety to provide for the safety of others and yet receive no monetary compensation for their services. Allowing counties to provide incentives to these volunteers, such as a tax credit, may help to ensure the continuation of and demonstrate appreciation for these services. House Bill 3438 authorizes a county to provide a volunteer firefighter or emergency technician a tax credit against ad valorem property taxes imposed by the county. 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 3438 amends the Tax Code to authorize the governing body of a county to provide a volunteer firefighter or volunteer emergency medical technician with a credit against the taxes imposed by the county on real property owned by the person (credit). The bill requires the governing body of a county to establish the amount of the credit, but prohibits a credit from exceeding the amount of ad valorem taxes imposed by the county on an eligible person's real property in the tax year. H.B. 3438 authorizes a county to provide additional qualifications and limitations for a credit. The bill prohibits a credit, used in payment of other taxes or amounts due by any person, from being transferred or used to pay interest or penalties on delinquent taxes. H.B. 3438 provides that compensation does not include worker's compensation or other insurance coverage provided by a political subdivision to provide medical care for injuries sustained while performing volunteer service. These provisions apply only to a volunteer firefighter or volunteer emergency medical technician who is a resident of a county and whose voluntary service is for the benefit of an area that is located in whole or in part in that county and apply only to a county whose land area is equal to or greater than 1,280 miles. EFFECTIVE DATE This Act takes effect January 1, 2002, but only if the constitutional amendment proposed by the 77th Legislature authorizing a county to grant a credit against county ad valorem taxes imposed on real property of volunteer firefighters and volunteer emergency medical technicians is approved by the voters. If that amendment is not approved, the Act has no effect.