BILL ANALYSIS

H.B. 150

By: Bell

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Concerns have been raised regarding the inadequacy of the residence homestead property tax exemption afforded to a disabled veteran who has a disability rating of less than 100 percent for a residence homestead that was donated to the veteran by a charitable organization at some cost to the veteran. The goal of H.B. 150 is to address these concerns by entitling such a disabled veteran to an exemption from taxation of a percentage of the appraised value of the veteran's residence homestead equal to the veteran's disability rating under certain circumstances.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 150 amends the Tax Code to entitle a disabled veteran who has a disability rating of less than 100 percent to an exemption from taxation of a percentage of the appraised value of the veteran's residence homestead equal to the veteran's disability rating if the residence homestead was donated to the veteran by a charitable organization at some cost to the veteran in the form of a cash payment, a mortgage, or both in an aggregate amount that is not more than 50 percent of the good faith estimate of the residence homestead's market value made by the charitable organization as of the donation date.

EFFECTIVE DATE

January 1, 2018, if the constitutional amendment authorizing the legislature to provide for an exemption from property taxation of part of the market value of the residence homestead of a partially disabled veteran or the surviving spouse of a partially disabled veteran if the residence homestead was donated to the disabled veteran by a charitable organization for less than the market value of the residence homestead and harmonizing certain related provisions of the Texas Constitution is approved by the voters.