Texas 2009 - 81st Regular

Texas House Bill HB2878 Compare Versions

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1	1	81R23694 JD-D
2	2	By: Sheffield H.B. No. 2878
3	3	Substitute the following for H.B. No. 2878:
4	4	By: Oliveira C.S.H.B. No. 2878
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment for purposes of ad valorem taxation
10	10	of an initial limit on the appraised value of the residence
11	11	homestead of a disabled or elderly person that was rehabilitated or
12	12	constructed as a replacement residence under the federal community
13	13	development block grant program or a housing rehabilitation program
14	14	of the Texas Department of Housing and Community Affairs.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Subchapter B, Chapter 23, Tax Code, is amended by
17	17	adding Section 23.26 to read as follows:
18	18	Sec. 23.26. APPRAISAL OF CERTAIN REHABILITATED OR
19	19	REPLACEMENT RESIDENCE HOMESTEADS. (a) In this section, "disabled"
20	20	and "residence homestead" have the meanings assigned by Section
21	21	11.13.
22	22	(b) This section applies only to the residence homestead of
23	23	a disabled person or a person who is 65 years of age or older that
24	24	the person previously qualified for an exemption under Section
25	25	11.13 and that was rehabilitated or constructed as a replacement
26	26	residence under the federal community development block grant
27	27	program or under a housing rehabilitation program of the Texas
28	28	Department of Housing and Community Affairs or a successor program.
29	29	(c) For the first tax year following the year in which the
30	30	residence homestead was rehabilitated or constructed, the
31	31	appraised value of the property is equal to the lesser of:
32	32	(1) the market value of the property; or
33	33	(2) the sum of:
34	34	(A) 10 percent of the appraised value of the
35	35	property for the preceding tax year; and
36	36	(B) the appraised value of the property for the
37	37	preceding tax year.
38	38	(d) When appraising the property for the first tax year
39	39	following the year in which the residence homestead was
40	40	rehabilitated or constructed, the chief appraiser shall:
41	41	(1) appraise the property at its market value; and
42	42	(2) include in the appraisal records both the market
43	43	value of the property and the amount under Subsection (c)(2).
44	44	(e) If the owner of the property immediately before the
45	45	residence homestead was rehabilitated or constructed, or that
46	46	owner's spouse or surviving spouse, ceases to qualify the property
47	47	for an exemption under Section 11.13(b), for the following tax year
48	48	the chief appraiser shall appraise the property at its market value
49	49	as of January 1 of that year.
50	50	SECTION 2. Section 1.12(d), Tax Code, is amended to read as
51	51	follows:
52	52	(d) For purposes of this section, the appraisal ratio of a
53	53	homestead to which Section 23.23 or 23.26 applies is the ratio of
54	54	the property's market value as determined by the appraisal district
55	55	or appraisal review board, as applicable, to the market value of the
56	56	property according to law. The appraisal ratio is not calculated
57	57	according to the appraised value of the property as limited by
58	58	Section 23.23 or 23.26.
59	59	SECTION 3. Section 42.26(d), Tax Code, is amended to read as
60	60	follows:
61	61	(d) For purposes of this section, the value of the property
62	62	subject to the suit and the value of a comparable property or sample
63	63	property that is used for comparison must be the market value
64	64	determined by the appraisal district when the property is a
65	65	residence homestead subject to the limitation on appraised value
66	66	imposed by Section 23.23 or 23.26.
67	67	SECTION 4. Section 44.004(c), Education Code, is amended to
68	68	read as follows:
69	69	(c) The notice of public meeting to discuss and adopt the
70	70	budget and the proposed tax rate may not be smaller than one-quarter
71	71	page of a standard-size or a tabloid-size newspaper, and the
72	72	headline on the notice must be in 18-point or larger type. Subject
73	73	to Subsection (d), the notice must:
74	74	(1) contain a statement in the following form:
75	75	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
76	76	"The (name of school district) will hold a public meeting at
77	77	(time, date, year) in (name of room, building, physical location,
78	78	city, state). The purpose of this meeting is to discuss the school
79	79	district's budget that will determine the tax rate that will be
80	80	adopted. Public participation in the discussion is invited." The
81	81	statement of the purpose of the meeting must be in bold type. In
82	82	reduced type, the notice must state: "The tax rate that is
83	83	ultimately adopted at this meeting or at a separate meeting at a
84	84	later date may not exceed the proposed rate shown below unless the
85	85	district publishes a revised notice containing the same information
86	86	and comparisons set out below and holds another public meeting to
87	87	discuss the revised notice.";
88	88	(2) contain a section entitled "Comparison of Proposed
89	89	Budget with Last Year's Budget," which must show the difference,
90	90	expressed as a percent increase or decrease, as applicable, in the
91	91	amounts budgeted for the preceding fiscal year and the amount
92	92	budgeted for the fiscal year that begins in the current tax year for
93	93	each of the following:
94	94	(A) maintenance and operations;
95	95	(B) debt service; and
96	96	(C) total expenditures;
97	97	(3) contain a section entitled "Total Appraised Value
98	98	and Total Taxable Value," which must show the total appraised value
99	99	and the total taxable value of all property and the total appraised
100	100	value and the total taxable value of new property taxable by the
101	101	district in the preceding tax year and the current tax year as
102	102	calculated under Section 26.04, Tax Code;
103	103	(4) contain a statement of the total amount of the
104	104	outstanding and unpaid bonded indebtedness of the school district;
105	105	(5) contain a section entitled "Comparison of Proposed
106	106	Rates with Last Year's Rates," which must:
107	107	(A) show in rows the tax rates described by
108	108	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
109	109	property, for columns entitled "Maintenance & Operations,"
110	110	"Interest & Sinking Fund," and "Total," which is the sum of
111	111	"Maintenance & Operations" and "Interest & Sinking Fund":
112	112	(i) the school district's "Last Year's
113	113	Rate";
114	114	(ii) the "Rate to Maintain Same Level of
115	115	Maintenance & Operations Revenue & Pay Debt Service," which:
116	116	(a) in the case of "Maintenance &
117	117	Operations," is the tax rate that, when applied to the current
118	118	taxable value for the district, as certified by the chief appraiser
119	119	under Section 26.01, Tax Code, and as adjusted to reflect changes
120	120	made by the chief appraiser as of the time the notice is prepared,
121	121	would impose taxes in an amount that, when added to state funds to
122	122	be distributed to the district under Chapter 42, would provide the
123	123	same amount of maintenance and operations taxes and state funds
124	124	distributed under Chapter 42 per student in average daily
125	125	attendance for the applicable school year that was available to the
126	126	district in the preceding school year; and
127	127	(b) in the case of "Interest & Sinking
128	128	Fund," is the tax rate that, when applied to the current taxable
129	129	value for the district, as certified by the chief appraiser under
130	130	Section 26.01, Tax Code, and as adjusted to reflect changes made by
131	131	the chief appraiser as of the time the notice is prepared, and when
132	132	multiplied by the district's anticipated collection rate, would
133	133	impose taxes in an amount that, when added to state funds to be
134	134	distributed to the district under Chapter 46 and any excess taxes
135	135	collected to service the district's debt during the preceding tax
136	136	year but not used for that purpose during that year, would provide
137	137	the amount required to service the district's debt; and
138	138	(iii) the "Proposed Rate";
139	139	(B) contain fourth and fifth columns aligned with
140	140	the columns required by Paragraph (A) that show, for each row
141	141	required by Paragraph (A):
142	142	(i) the "Local Revenue per Student," which
143	143	is computed by multiplying the district's total taxable value of
144	144	property, as certified by the chief appraiser for the applicable
145	145	school year under Section 26.01, Tax Code, and as adjusted to
146	146	reflect changes made by the chief appraiser as of the time the
147	147	notice is prepared, by the total tax rate, and dividing the product
148	148	by the number of students in average daily attendance in the
149	149	district for the applicable school year; and
150	150	(ii) the "State Revenue per Student," which
151	151	is computed by determining the amount of state aid received or to be
152	152	received by the district under Chapters 42, 43, and 46 and dividing
153	153	that amount by the number of students in average daily attendance in
154	154	the district for the applicable school year; and
155	155	(C) contain an asterisk after each calculation
156	156	for "Interest & Sinking Fund" and a footnote to the section that, in
157	157	reduced type, states "The Interest & Sinking Fund tax revenue is
158	158	used to pay for bonded indebtedness on construction, equipment, or
159	159	both. The bonds, and the tax rate necessary to pay those bonds,
160	160	were approved by the voters of this district.";
161	161	(6) contain a section entitled "Comparison of Proposed
162	162	Levy with Last Year's Levy on Average Residence," which must:
163	163	(A) show in rows the information described by
164	164	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
165	165	entitled "Last Year" and "This Year":
166	166	(i) "Average Market Value of Residences,"
167	167	determined using the same group of residences for each year;
168	168	(ii) "Average Taxable Value of Residences,"
169	169	determined after taking into account the limitation on the
170	170	appraised value of residences under Section 23.23 or 23.26, Tax
171	171	Code, and after subtracting all homestead exemptions applicable in
172	172	each year, other than exemptions available only to disabled persons
173	173	or persons 65 years of age or older or their surviving spouses, and
174	174	using the same group of residences for each year;
175	175	(iii) "Last Year's Rate Versus Proposed
176	176	Rate per $100 Value"; and
177	177	(iv) "Taxes Due on Average Residence,"
178	178	determined using the same group of residences for each year; and
179	179	(B) contain the following
180	180	information: "Increase (Decrease) in Taxes" expressed in dollars
181	181	and cents, which is computed by subtracting the "Taxes Due on
182	182	Average Residence" for the preceding tax year from the "Taxes Due on
183	183	Average Residence" for the current tax year;
184	184	(7) contain the following statement in bold
185	185	print: "Under state law, the dollar amount of school taxes imposed
186	186	on the residence of a person 65 years of age or older or of the
187	187	surviving spouse of such a person, if the surviving spouse was 55
188	188	years of age or older when the person died, may not be increased
189	189	above the amount paid in the first year after the person turned 65,
190	190	regardless of changes in tax rate or property value.";
191	191	(8) contain the following statement in bold
192	192	print: "Notice of Rollback Rate: The highest tax rate the
193	193	district can adopt before requiring voter approval at an election
194	194	is (the school district rollback rate determined under Section
195	195	26.08, Tax Code). This election will be automatically held if the
196	196	district adopts a rate in excess of the rollback rate of (the school
197	197	district rollback rate)."; and
198	198	(9) contain a section entitled "Fund Balances," which
199	199	must include the estimated amount of interest and sinking fund
200	200	balances and the estimated amount of maintenance and operation or
201	201	general fund balances remaining at the end of the current fiscal
202	202	year that are not encumbered with or by corresponding debt
203	203	obligation, less estimated funds necessary for the operation of the
204	204	district before the receipt of the first payment under Chapter 42 in
205	205	the succeeding school year.
206	206	SECTION 5. Sections 403.302(d) and (i), Government Code,
207	207	are amended to read as follows:
208	208	(d) For the purposes of this section, "taxable value" means
209	209	the market value of all taxable property less:
210	210	(1) the total dollar amount of any residence homestead
211	211	exemptions lawfully granted under Section 11.13(b) or (c), Tax
212	212	Code, in the year that is the subject of the study for each school
213	213	district;
214	214	(2) one-half of the total dollar amount of any
215	215	residence homestead exemptions granted under Section 11.13(n), Tax
216	216	Code, in the year that is the subject of the study for each school
217	217	district;
218	218	(3) the total dollar amount of any exemptions granted
219	219	before May 31, 1993, within a reinvestment zone under agreements
220	220	authorized by Chapter 312, Tax Code;
221	221	(4) subject to Subsection (e), the total dollar amount
222	222	of any captured appraised value of property that:
223	223	(A) is within a reinvestment zone created on or
224	224	before May 31, 1999, or is proposed to be included within the
225	225	boundaries of a reinvestment zone as the boundaries of the zone and
226	226	the proposed portion of tax increment paid into the tax increment
227	227	fund by a school district are described in a written notification
228	228	provided by the municipality or the board of directors of the zone
229	229	to the governing bodies of the other taxing units in the manner
230	230	provided by Section 311.003(e), Tax Code, before May 31, 1999, and
231	231	within the boundaries of the zone as those boundaries existed on
232	232	September 1, 1999, including subsequent improvements to the
233	233	property regardless of when made;
234	234	(B) generates taxes paid into a tax increment
235	235	fund created under Chapter 311, Tax Code, under a reinvestment zone
236	236	financing plan approved under Section 311.011(d), Tax Code, on or
237	237	before September 1, 1999; and
238	238	(C) is eligible for tax increment financing under
239	239	Chapter 311, Tax Code;
240	240	(5) for a school district for which a deduction from
241	241	taxable value is made under Subdivision (4), an amount equal to the
242	242	taxable value required to generate revenue when taxed at the school
243	243	district's current tax rate in an amount that, when added to the
244	244	taxes of the district paid into a tax increment fund as described by
245	245	Subdivision (4)(B), is equal to the total amount of taxes the
246	246	district would have paid into the tax increment fund if the district
247	247	levied taxes at the rate the district levied in 2005;
248	248	(6) the total dollar amount of any captured appraised
249	249	value of property that:
250	250	(A) is within a reinvestment zone:
251	251	(i) created on or before December 31, 2008,
252	252	by a municipality with a population of less than 18,000; and
253	253	(ii) the project plan for which includes
254	254	the alteration, remodeling, repair, or reconstruction of a
255	255	structure that is included on the National Register of Historic
256	256	Places and requires that a portion of the tax increment of the zone
257	257	be used for the improvement or construction of related facilities
258	258	or for affordable housing;
259	259	(B) generates school district taxes that are paid
260	260	into a tax increment fund created under Chapter 311, Tax Code; and
261	261	(C) is eligible for tax increment financing under
262	262	Chapter 311, Tax Code;
263	263	(7) the total dollar amount of any exemptions granted
264	264	under Section 11.251 or 11.253, Tax Code;
265	265	(8) the difference between the comptroller's estimate
266	266	of the market value and the productivity value of land that
267	267	qualifies for appraisal on the basis of its productive capacity,
268	268	except that the productivity value estimated by the comptroller may
269	269	not exceed the fair market value of the land;
270	270	(9) the portion of the appraised value of residence
271	271	homesteads of individuals who receive a tax limitation under
272	272	Section 11.26, Tax Code, on which school district taxes are not
273	273	imposed in the year that is the subject of the study, calculated as
274	274	if the residence homesteads were appraised at the full value
275	275	required by law;
276	276	(10) a portion of the market value of property not
277	277	otherwise fully taxable by the district at market value because of:
278	278	(A) action required by statute or the
279	279	constitution of this state that, if the tax rate adopted by the
280	280	district is applied to it, produces an amount equal to the
281	281	difference between the tax that the district would have imposed on
282	282	the property if the property were fully taxable at market value and
283	283	the tax that the district is actually authorized to impose on the
284	284	property, if this subsection does not otherwise require that
285	285	portion to be deducted; or
286	286	(B) action taken by the district under Subchapter
287	287	B or C, Chapter 313, Tax Code;
288	288	(11) the market value of all tangible personal
289	289	property, other than manufactured homes, owned by a family or
290	290	individual and not held or used for the production of income;
291	291	(12) the appraised value of property the collection of
292	292	delinquent taxes on which is deferred under Section 33.06, Tax
293	293	Code;
294	294	(13) the portion of the appraised value of property
295	295	the collection of delinquent taxes on which is deferred under
296	296	Section 33.065, Tax Code; and
297	297	(14) the amount by which the market value of a
298	298	residence homestead to which Section 23.23 or 23.26, Tax Code,
299	299	applies exceeds the appraised value of that property as calculated
300	300	under that section.
301	301	(i) If the comptroller determines in the annual study that
302	302	the market value of property in a school district as determined by
303	303	the appraisal district that appraises property for the school
304	304	district, less the total of the amounts and values listed in
305	305	Subsection (d) as determined by that appraisal district, is valid,
306	306	the comptroller, in determining the taxable value of property in
307	307	the school district under Subsection (d), shall for purposes of
308	308	Subsection (d)(14) subtract from the market value as determined by
309	309	the appraisal district of residence homesteads to which Section
310	310	23.23 or 23.26, Tax Code, applies the amount by which that amount
311	311	exceeds the appraised value of those properties as calculated by
312	312	the appraisal district under Section 23.23 or 23.26, Tax Code. If
313	313	the comptroller determines in the annual study that the market
314	314	value of property in a school district as determined by the
315	315	appraisal district that appraises property for the school district,
316	316	less the total of the amounts and values listed in Subsection (d) as
317	317	determined by that appraisal district, is not valid, the
318	318	comptroller, in determining the taxable value of property in the
319	319	school district under Subsection (d), shall for purposes of
320	320	Subsection (d)(14) subtract from the market value as estimated by
321	321	the comptroller of residence homesteads to which Section 23.23 or
322	322	23.26, Tax Code, applies the amount by which that amount exceeds the
323	323	appraised value of those properties as calculated by the appraisal
324	324	district under Section 23.23 or 23.26, Tax Code.
325	325	SECTION 6. This Act applies only to ad valorem taxes imposed
326	326	for a tax year beginning on or after the effective date of this Act.
327	327	SECTION 7. This Act takes effect January 1, 2010, but only
328	328	if the constitutional amendment authorizing the legislature to
329	329	establish for purposes of ad valorem taxation an initial limit on
330	330	the appraised value of the residence homestead of a disabled or
331	331	elderly person that was rehabilitated or constructed as a
332	332	replacement residence under the federal community development
333	333	block grant program or a housing rehabilitation program of the
334	334	Texas Department of Housing and Community Affairs is approved by
335	335	the voters. If that amendment is not approved by the voters, this
336	336	Act has no effect.