81R3369 JE-D
By: Paxton H.B. No. 1037
A BILL TO BE ENTITLED
AN ACT
relating to allowing persons acquiring a new residence homestead to
receive an ad valorem tax exemption on the homestead in the year in
which the property is acquired.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.42, Tax Code, is amended by amending
Subsection (c) and adding Subsection (c-1) to read as follows:
(c) An exemption authorized by Section 11.13(c) or (d) is
effective as of January 1 of the tax year in which the person
qualifies for the exemption and applies to the entire tax year. If
the individual acquired the property in that tax year, each other
exemption authorized by Section 11.13 for which the individual
qualifies the property in that tax year is also effective as of
January 1 of the tax year and applies to the entire tax year.
(c-1) Except as provided by Subsection (c), if an individual
acquires a property after January 1 of a tax year and qualifies the
property during that tax year for one or more exemptions under
Section 11.13, but the individual does not qualify for an exemption
under Section 11.13(c) or (d) for an individual 65 years of age or
older, and the property did not previously qualify for any
exemption under Section 11.13 for any portion of the tax year in
which the property was acquired, the individual may receive the
exemptions for which the individual qualifies for the portion of
that tax year for which the individual qualifies for the exemptions
immediately on qualification for the exemptions.
SECTION 2. Section 26.10, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) This section does not affect a residence homestead
exemption other than an exemption under Section 11.13(c) or (d) for
an individual 65 years of age or older, and for purposes of
Subsection (b)(1)(B) the taxes shall be calculated taking into
account any residence homestead exemption applicable to the
property other than an exemption under Section 11.13(c) or (d) for
an individual 65 years of age or older.
SECTION 3. Chapter 26, Tax Code, is amended by adding
Section 26.1115 to read as follows:
Sec. 26.1115. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD
GENERALLY. (a) If an individual receives one or more exemptions
under Section 11.13, other than an exemption under Section 11.13(c)
or (d) for an individual 65 years of age or older, for a portion of a
tax year as provided by Section 11.42(c-1), except as provided by
Subsection (b) the amount of tax due on the property for that year
is calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
qualified for the exemptions for the entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
not qualified for the exemptions during the year;
(2) multiplying the remainder determined under
Subdivision (1) by a fraction, the denominator of which is 365 and
the numerator of which is the number of days in that year that
elapsed before the date the individual first qualified the property
for the exemptions; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
(b) If an individual receives one or more exemptions to
which Subsection (a) applies for a portion of a tax year as provided
by Section 11.42(c-1) and the exemptions terminate during the year
in which the individual acquired the property, the amount of tax due
on the property for that year is calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
qualified for the exemptions for the entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
not qualified for the exemptions during the year;
(2) multiplying the remainder determined under
Subdivision (1) by a fraction, the denominator of which is 365 and
the numerator of which is the sum of:
(A) the number of days in that year that elapsed
before the date the individual first qualified the property for the
exemptions; and
(B) the number of days in that year that elapsed
after the date the exemptions terminated; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
(c) If an individual qualifies to receive an exemption as
described by Subsection (a) with respect to a property after the
amount of tax due on the property is calculated and if the effect of
the qualification is to reduce the amount of tax due on the
property, the assessor for each taxing unit shall recalculate the
amount of the tax due on the property and correct the tax roll. If
the tax bill has been mailed and the tax on the property has not been
paid, the assessor shall mail a corrected tax bill to the person in
whose name the property is listed on the tax roll or to the person's
authorized agent. If the tax on the property has been paid, the
collector for the taxing unit shall refund to the person who paid
the tax the amount by which the payment exceeded the tax due.
SECTION 4. Section 26.112(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Section 26.10(b), if at any time
during a tax year property is owned by an individual who qualifies
for an exemption under Section 11.13(c) or (d), the amount of the
tax due on the property for the tax year is calculated as if the
person qualified for the exemption on January 1 and continued to
qualify for the exemption for the remainder of the tax year. If the
individual acquired the property in that tax year, the amount of the
tax due on the property is calculated as if the person qualified on
January 1 for each exemption for which the individual qualifies the
property in that tax year under Section 11.13 and continued to
qualify for each exemption for the remainder of the tax year.
SECTION 5. This Act takes effect January 1, 2010, and
applies only to a residence homestead acquired on or after that
date.