H.B. No. 3240
AN ACT
relating to the exemption from ad valorem taxation of a residence
homestead held in a court-ordered trust.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13(j)(3), Tax Code, is amended to
read as follows:
(3) “Qualifying trust” means a trust:
(A) in which the agreement, [or] will, or court
order creating the trust provides that the trustor of the trust or
the beneficiary of the trust if created by court order has the right
to use and occupy as the trustor’s or beneficiary’s principal
residence residential property rent free and without charge except
for taxes and other costs and expenses specified in the instrument
or court order:
(i) for life;
(ii) for the lesser of life or a term of
years; or
(iii) until the date the trust is revoked or
terminated by an instrument or court order that describes the
property with sufficient certainty to identify it and is recorded
in the real property records of the county in which the property is
located; and
(B) that acquires the property in an instrument
of title or under a court order that:
(i) describes the property with sufficient
certainty to identify it and the interest acquired;
(ii) is recorded in the real property
records of the county in which the property is located; and
(iii) in the case of a trust that is not
created by court order, is executed by the trustor or the personal
representative of the trustor.
SECTION 2. This Act takes effect January 1, 2006, and
applies only to a tax year that begins on or after that date.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3240 was passed by the House on April
14, 2005, by a non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3240 was passed by the Senate on May
12, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor