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.