HBA-SEP H.J.R. 67 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 67
By: Chisum
Financial Institutions
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

Current law does not extend residence homestead ad valorem tax exemptions
to a homestead owned by a family-owned business or protect these businesses
from forced sale.  Exempting principal residences that are converted to
family-owned businesses from this tax and protecting them from forced sale
may encourage family business entrepreneurship.  As proposed House Joint
Resolution 67 requires the submission to the voters of a constitutional
amendment to provide that the residence of a person that is owned by a
family-owned business in which the person owns an interest is considered
the person's residence homestead for the purposes of a residence homestead
tax exemption, a limitation of school tax on homesteads of elderly, or a
limitation on appraised value of a residence homestead.  

RULEMAKING AUTHORITY

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

ANALYSIS

House Joint Resolution 67 amends the Texas Constitution to provide that the
residence of a person that is owned by a family-owned business in which the
person owns an interest is considered the person's residence homestead for
the purposes of a residence homestead tax exemption, a limitation of school
tax on homesteads of elderly, or a limitation on appraised value of a
residence homestead.  The eligibility of the residence homestead of a
person or the person's spouse or surviving spouse is not effected by a
conveyance of the residence by the owner to a family-owned business in
which the owner owns an interest. For the purposes of an extension of
credit secured by a lien, protection from forced sale, mortgages, trust
deeds, and liens and uses and amount of a homestead, the homestead of a
person may consist of property that is owned by a family-owned business in
which a member of the family owns an interest.  The resolution also
provides that such a conveyance does not change the homestead's character
if the claimant has not acquired another homestead.   

FOR ELECTION

This proposed constitutional amendment shall be submitted to the voters at
an election to be held November 6, 2001.