| 1 | 1 | | 81R3656 JE-D |
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| 2 | 2 | | By: McReynolds H.B. No. 1129 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of a hospital district to establish an ad |
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| 8 | 8 | | valorem tax freeze on the residence homesteads of disabled or |
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| 9 | 9 | | elderly persons and their surviving spouses. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. The heading to Section 11.261, Tax Code, is |
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| 12 | 12 | | amended to read as follows: |
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| 13 | 13 | | Sec. 11.261. LIMITATION OF COUNTY, MUNICIPAL, HOSPITAL |
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| 14 | 14 | | DISTRICT, OR JUNIOR COLLEGE DISTRICT TAX ON HOMESTEADS OF DISABLED |
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| 15 | 15 | | AND ELDERLY. |
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| 16 | 16 | | SECTION 2. Sections 11.261(a), (b), (c), (d), (e), (g), |
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| 17 | 17 | | (h), (i), (j), and (k), Tax Code, are amended to read as follows: |
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| 18 | 18 | | (a) This section applies only to a taxing unit that: |
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| 19 | 19 | | (1) is a county, municipality, hospital district, or |
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| 20 | 20 | | junior college district; and |
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| 21 | 21 | | (2) [that] has established a limitation on the total |
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| 22 | 22 | | amount of taxes that may be imposed by the county, municipality, |
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| 23 | 23 | | hospital district, or junior college district on the residence |
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| 24 | 24 | | homestead of a disabled individual or an individual 65 years of age |
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| 25 | 25 | | or older under Section 1-b(h), Article VIII, Texas Constitution. |
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| 26 | 26 | | (b) The tax officials shall appraise the property to which |
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| 27 | 27 | | the limitation applies and calculate taxes as on other property, |
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| 28 | 28 | | but if the tax so calculated exceeds the limitation provided by this |
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| 29 | 29 | | section, the tax imposed by a taxing unit is the amount of the tax as |
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| 30 | 30 | | limited by this section, except as otherwise provided by this |
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| 31 | 31 | | section. The taxing unit [county, municipality, or junior college |
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| 32 | 32 | | district] may not increase the total annual amount of ad valorem |
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| 33 | 33 | | taxes the taxing unit [county, municipality, or junior college |
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| 34 | 34 | | district] imposes on the residence homestead of a disabled |
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| 35 | 35 | | individual or an individual 65 years of age or older above the |
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| 36 | 36 | | amount of the taxes the taxing unit [county, municipality, or |
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| 37 | 37 | | junior college district] imposed on the residence homestead in the |
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| 38 | 38 | | first tax year, other than a tax year preceding the tax year in |
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| 39 | 39 | | which the taxing unit [county, municipality, or junior college |
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| 40 | 40 | | district] established the limitation described by Subsection (a), |
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| 41 | 41 | | in which the individual qualified that residence homestead for the |
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| 42 | 42 | | exemption provided by Section 11.13(c) for a disabled individual or |
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| 43 | 43 | | an individual 65 years of age or older. If the individual qualified |
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| 44 | 44 | | that residence homestead for the exemption after the beginning of |
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| 45 | 45 | | that first year and the residence homestead remains eligible for |
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| 46 | 46 | | the exemption for the next year, and if the [county, municipal, or |
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| 47 | 47 | | junior college district] taxes imposed by the taxing unit on the |
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| 48 | 48 | | residence homestead in the next year are less than the amount of |
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| 49 | 49 | | taxes imposed in that first year, the taxing unit [a county, |
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| 50 | 50 | | municipality, or junior college district] may not subsequently |
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| 51 | 51 | | increase the total annual amount of ad valorem taxes it imposes on |
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| 52 | 52 | | the residence homestead above the amount it imposed on the |
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| 53 | 53 | | residence homestead in the year immediately following the first |
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| 54 | 54 | | year, other than a tax year preceding the tax year in which the |
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| 55 | 55 | | taxing unit [county, municipality, or junior college district] |
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| 56 | 56 | | established the limitation described by Subsection (a), for which |
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| 57 | 57 | | the individual qualified that residence homestead for the |
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| 58 | 58 | | exemption. |
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| 59 | 59 | | (c) If an individual makes improvements to the individual's |
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| 60 | 60 | | residence homestead, other than repairs and other than improvements |
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| 61 | 61 | | required to comply with governmental requirements, the taxing unit |
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| 62 | 62 | | [county, municipality, or junior college district] may increase the |
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| 63 | 63 | | amount of taxes on the homestead in the first year the value of the |
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| 64 | 64 | | homestead is increased on the appraisal roll because of the |
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| 65 | 65 | | enhancement of value by the improvements. The amount of the tax |
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| 66 | 66 | | increase is determined by applying the current tax rate to the |
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| 67 | 67 | | difference between the appraised value of the homestead with the |
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| 68 | 68 | | improvements and the appraised value the homestead [it] would have |
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| 69 | 69 | | had without the improvements. A limitation provided by this |
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| 70 | 70 | | section then applies to the increased amount of [county, municipal, |
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| 71 | 71 | | or junior college district] taxes on the residence homestead until |
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| 72 | 72 | | more improvements, if any, are made. |
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| 73 | 73 | | (d) A limitation on [county, municipal, or junior college |
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| 74 | 74 | | district] tax increases by a taxing unit provided by this section |
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| 75 | 75 | | expires if on January 1: |
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| 76 | 76 | | (1) none of the owners of the structure who qualify for |
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| 77 | 77 | | the exemption provided by Section 11.13(c) for a disabled |
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| 78 | 78 | | individual or an individual 65 years of age or older and who owned |
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| 79 | 79 | | the structure when the limitation provided by this section first |
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| 80 | 80 | | took effect is using the structure as a residence homestead; or |
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| 81 | 81 | | (2) none of the owners of the structure qualifies for |
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| 82 | 82 | | the exemption provided by Section 11.13(c) for a disabled |
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| 83 | 83 | | individual or an individual 65 years of age or older. |
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| 84 | 84 | | (e) If the appraisal roll provides for taxation of appraised |
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| 85 | 85 | | value for a prior year because a residence homestead exemption for |
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| 86 | 86 | | disabled individuals or individuals 65 years of age or older was |
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| 87 | 87 | | erroneously allowed, the tax assessor for the applicable taxing |
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| 88 | 88 | | unit [county, municipality, or junior college district] shall add, |
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| 89 | 89 | | as back taxes due as provided by Section 26.09(d), the positive |
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| 90 | 90 | | difference, if any, between the tax that should have been imposed |
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| 91 | 91 | | for that year and the tax that was imposed because of the provisions |
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| 92 | 92 | | of this section. |
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| 93 | 93 | | (g) Except as provided by Subsection (c), if an individual |
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| 94 | 94 | | who receives a limitation on [county, municipal, or junior college |
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| 95 | 95 | | district] tax increases by a taxing unit provided by this section |
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| 96 | 96 | | subsequently qualifies a different residence homestead in the same |
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| 97 | 97 | | taxing unit [county, municipality, or junior college district] for |
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| 98 | 98 | | an exemption under Section 11.13, the taxing unit [county, |
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| 99 | 99 | | municipality, or junior college district] may not impose ad valorem |
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| 100 | 100 | | taxes on the subsequently qualified homestead in a year in an amount |
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| 101 | 101 | | that exceeds the amount of taxes the taxing unit [county, |
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| 102 | 102 | | municipality, or junior college district] would have imposed on the |
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| 103 | 103 | | subsequently qualified homestead in the first year in which the |
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| 104 | 104 | | individual receives that exemption for the subsequently qualified |
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| 105 | 105 | | homestead had the limitation on tax increases provided by this |
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| 106 | 106 | | section not been in effect, multiplied by a fraction the numerator |
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| 107 | 107 | | of which is the total amount of taxes the taxing unit [county, |
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| 108 | 108 | | municipality, or junior college district] imposed on the former |
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| 109 | 109 | | homestead in the last year in which the individual received that |
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| 110 | 110 | | exemption for the former homestead and the denominator of which is |
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| 111 | 111 | | the total amount of taxes the taxing unit [county, municipality, or |
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| 112 | 112 | | junior college district] would have imposed on the former homestead |
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| 113 | 113 | | in the last year in which the individual received that exemption for |
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| 114 | 114 | | the former homestead had the limitation on tax increases provided |
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| 115 | 115 | | by this section not been in effect. |
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| 116 | 116 | | (h) An individual who receives a limitation on [county, |
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| 117 | 117 | | municipal, or junior college district] tax increases by a taxing |
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| 118 | 118 | | unit under this section and who subsequently qualifies a different |
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| 119 | 119 | | residence homestead in the same taxing unit [county, municipality, |
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| 120 | 120 | | or junior college district] for an exemption under Section 11.13, |
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| 121 | 121 | | or an agent of the individual, is entitled to receive from the chief |
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| 122 | 122 | | appraiser of the appraisal district in which the former homestead |
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| 123 | 123 | | was located a written certificate providing the information |
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| 124 | 124 | | necessary to determine whether the individual may qualify for a |
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| 125 | 125 | | limitation on the subsequently qualified homestead under |
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| 126 | 126 | | Subsection (g) and to calculate the amount of taxes the taxing unit |
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| 127 | 127 | | [county, municipality, or junior college district] may impose on |
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| 128 | 128 | | the subsequently qualified homestead. |
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| 129 | 129 | | (i) If an individual who qualifies for a limitation on |
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| 130 | 130 | | [county, municipal, or junior college district] tax increases by a |
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| 131 | 131 | | taxing unit under this section dies, the surviving spouse of the |
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| 132 | 132 | | individual is entitled to the limitation on taxes imposed by the |
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| 133 | 133 | | taxing unit [county, municipality, or junior college district] on |
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| 134 | 134 | | the residence homestead of the individual if: |
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| 135 | 135 | | (1) the surviving spouse is disabled or is 55 years of |
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| 136 | 136 | | age or older when the individual dies; and |
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| 137 | 137 | | (2) the residence homestead of the individual: |
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| 138 | 138 | | (A) is the residence homestead of the surviving |
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| 139 | 139 | | spouse on the date that the individual dies; and |
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| 140 | 140 | | (B) remains the residence homestead of the |
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| 141 | 141 | | surviving spouse. |
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| 142 | 142 | | (j) If an individual who is 65 years of age or older and |
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| 143 | 143 | | qualifies for a limitation on [county, municipal, or junior college |
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| 144 | 144 | | district] tax increases for the elderly under this section dies in |
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| 145 | 145 | | the first year in which the individual qualified for the limitation |
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| 146 | 146 | | and the individual first qualified for the limitation after the |
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| 147 | 147 | | beginning of that year, except as provided by Subsection (k), the |
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| 148 | 148 | | amount to which the surviving spouse's [county, municipal, or |
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| 149 | 149 | | junior college district] taxes are limited under Subsection (i) is |
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| 150 | 150 | | the amount of taxes imposed by the taxing unit to which the |
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| 151 | 151 | | limitation applies [county, municipality, or junior college |
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| 152 | 152 | | district, as applicable,] on the residence homestead in that year |
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| 153 | 153 | | determined as if the individual qualifying for the exemption had |
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| 154 | 154 | | lived for the entire year. |
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| 155 | 155 | | (k) If in the first tax year after the year in which an |
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| 156 | 156 | | individual who is 65 years of age or older dies under the |
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| 157 | 157 | | circumstances described by Subsection (j) the amount of taxes |
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| 158 | 158 | | imposed by a taxing unit [county, municipality, or junior college |
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| 159 | 159 | | district] on the residence homestead of the surviving spouse is |
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| 160 | 160 | | less than the amount of taxes imposed by the taxing unit [county, |
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| 161 | 161 | | municipality, or junior college district] in the preceding year as |
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| 162 | 162 | | limited by Subsection (j), in a subsequent tax year the surviving |
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| 163 | 163 | | spouse's taxes imposed by the taxing unit [county, municipality, or |
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| 164 | 164 | | junior college district] on that residence homestead are limited to |
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| 165 | 165 | | the amount of taxes imposed by the taxing unit [county, |
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| 166 | 166 | | municipality, or junior college district] in that first tax year |
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| 167 | 167 | | after the year in which the individual dies. |
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| 168 | 168 | | SECTION 3. Section 23.19(g), Tax Code, is amended to read as |
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| 169 | 169 | | follows: |
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| 170 | 170 | | (g) A tax bill or a separate statement accompanying the tax |
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| 171 | 171 | | bill to a cooperative housing corporation for which interests of |
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| 172 | 172 | | stockholders are separately appraised under this section must |
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| 173 | 173 | | state, in addition to the information required by Section 31.01, |
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| 174 | 174 | | the appraised value and taxable value of each interest separately |
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| 175 | 175 | | appraised. Each exemption claimed as provided by this title by a |
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| 176 | 176 | | person entitled to the exemption shall also be deducted from the |
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| 177 | 177 | | total appraised value of the property of the corporation. The total |
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| 178 | 178 | | tax imposed by a school district, county, municipality, hospital |
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| 179 | 179 | | district, or junior college district shall be reduced by any amount |
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| 180 | 180 | | that represents an increase in taxes attributable to separately |
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| 181 | 181 | | appraised interests of the real property and improvements that are |
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| 182 | 182 | | subject to the limitation of taxes prescribed by Section 11.26 or |
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| 183 | 183 | | 11.261. The corporation shall apportion among its stockholders |
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| 184 | 184 | | liability for reimbursing the corporation for property taxes |
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| 185 | 185 | | according to the relative taxable values of their interests. |
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| 186 | 186 | | SECTION 4. Sections 26.012(6), (13), and (14), Tax Code, |
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| 187 | 187 | | are amended to read as follows: |
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| 188 | 188 | | (6) "Current total value" means the total taxable |
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| 189 | 189 | | value of property listed on the appraisal roll for the current year, |
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| 190 | 190 | | including all appraisal roll supplements and corrections as of the |
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| 191 | 191 | | date of the calculation, less the taxable value of property |
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| 192 | 192 | | exempted for the current tax year for the first time under Section |
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| 193 | 193 | | 11.31, except that: |
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| 194 | 194 | | (A) the current total value for a school district |
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| 195 | 195 | | excludes: |
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| 196 | 196 | | (i) the total value of homesteads that |
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| 197 | 197 | | qualify for a tax limitation as provided by Section 11.26; and |
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| 198 | 198 | | (ii) new property value of property that is |
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| 199 | 199 | | subject to an agreement entered into under Chapter 313; and |
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| 200 | 200 | | (B) the current total value for a county, |
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| 201 | 201 | | municipality, hospital district, or junior college district |
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| 202 | 202 | | excludes the total value of homesteads that qualify for a tax |
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| 203 | 203 | | limitation provided by Section 11.261. |
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| 204 | 204 | | (13) "Last year's levy" means the total of: |
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| 205 | 205 | | (A) the amount of taxes that would be generated |
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| 206 | 206 | | by multiplying the total tax rate adopted by the governing body in |
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| 207 | 207 | | the preceding year by the total taxable value of property on the |
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| 208 | 208 | | appraisal roll for the preceding year, including: |
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| 209 | 209 | | (i) taxable value that was reduced in an |
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| 210 | 210 | | appeal under Chapter 42; and |
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| 211 | 211 | | (ii) all appraisal roll supplements and |
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| 212 | 212 | | corrections other than corrections made pursuant to Section |
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| 213 | 213 | | 25.25(d), as of the date of the calculation, except that last year's |
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| 214 | 214 | | taxable value for a school district excludes the total value of |
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| 215 | 215 | | homesteads that qualified for a tax limitation as provided by |
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| 216 | 216 | | Section 11.26 and last year's taxable value for a county, |
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| 217 | 217 | | municipality, hospital district, or junior college district |
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| 218 | 218 | | excludes the total value of homesteads that qualified for a tax |
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| 219 | 219 | | limitation as provided by Section 11.261; and |
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| 220 | 220 | | (B) the amount of taxes refunded by the taxing |
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| 221 | 221 | | unit in the preceding year for tax years before that year. |
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| 222 | 222 | | (14) "Last year's total value" means the total taxable |
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| 223 | 223 | | value of property listed on the appraisal roll for the preceding |
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| 224 | 224 | | year, including all appraisal roll supplements and corrections, |
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| 225 | 225 | | other than corrections made pursuant to Section 25.25(d), as of the |
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| 226 | 226 | | date of the calculation, except that: |
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| 227 | 227 | | (A) last year's taxable value for a school |
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| 228 | 228 | | district excludes the total value of homesteads that qualified for |
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| 229 | 229 | | a tax limitation as provided by Section 11.26; and |
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| 230 | 230 | | (B) last year's taxable value for a county, |
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| 231 | 231 | | municipality, hospital district, or junior college district |
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| 232 | 232 | | excludes the total value of homesteads that qualified for a tax |
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| 233 | 233 | | limitation as provided by Section 11.261. |
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| 234 | 234 | | SECTION 5. This Act applies only to ad valorem taxes imposed |
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| 235 | 235 | | for a tax year beginning on or after the effective date of this Act. |
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| 236 | 236 | | SECTION 6. This Act takes effect January 1, 2010, but only |
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| 237 | 237 | | if the constitutional amendment to authorize a hospital district to |
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| 238 | 238 | | establish an ad valorem tax freeze on the residence homesteads of |
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| 239 | 239 | | disabled or elderly persons and their surviving spouses is approved |
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| 240 | 240 | | by the voters. If that amendment is not approved by the voters, |
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| 241 | 241 | | this Act has no effect. |
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