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F I S C A L I M P A C T R E P O R T
SPONSOR Campos
DATE TYPED 03/11/05 HB 929/a HTRC
SHORT TITLE Increase Homestead Property Exemption
SB
ANALYST Padilla-Jackson
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
NFI
NFI
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of HTRC Amendments
The House Taxation and Revenue Committee amended House Bill 929. The first amendment
lowers the proposed amount allowed for a homestead exemption from $150 thousand proposed
in the original bill to $60 thousand. The second amendment lowers the proposed exemption
amount allowed for a homestead owned jointly from the $150 thousand proposed in the original
bill to $60 thousand.
Synopsis of Original Bill
Current law provides that each person have exempt a homestead in a dwelling house occupied by
that person. House Bill 929 increases the homestead exemption from $30,000 to $150,000. Cur-
rent law provides exemption from attachment, execution or foreclosure by a judgment creditor
and from any proceedings of receivers or trustees in insolvency proceedings and from executors
or administrators in probate. If the homestead is owned jointly by two persons, each joint owner
is entitled to an increase exemption of $150,000 from the current $30,000.
No effective date is provided for this bill.
pg_0002
House Bill 929/aHTRC -- Page 2
FISCAL IMPLICATIONS
TRD notes that the bill’s provisions apply primarily to bankruptcy proceedings and should not be
confused with the head of household exemption currently applicable to property tax owners. As
such, the bill’s provisions would have insignificant fiscal impacts on state or local tax revenues.
TRD notes that some minor impacts could result from cases where the department attempts to
collect taxes via bankruptcy proceedings.
House Bill 929 as amended by HTRC has no significant fiscal impact to state or local revenues.
OPJ/lg:yr