81R1310 JD-D
By: Guillen H.B. No. 637
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the governing body of a taxing unit to
adopt a local option residence homestead exemption from ad valorem
taxation of not less than $5,000 or more than $30,000.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13(n), Tax Code, is amended to read as
follows:
(n) The [In addition to any other exemptions provided by
this section, an individual is entitled to an exemption from
taxation by a taxing unit of a percentage of the appraised value of
his residence homestead if the exemption is adopted by the]
governing body of a [the] taxing unit, [before July 1] in the manner
provided by law for official action by the body, may adopt an
exemption from taxation by the taxing unit of either a percentage of
the appraised value of an individual's residence homestead or a
portion of the appraised value of an individual's residence
homestead, but not both. The exemption must be adopted by the
governing body before July 1 of the tax year in which the exemption
applies. If the governing body adopts a percentage exemption and
the percentage set by the body [taxing unit] produces an exemption
in a tax year of less than $5,000 when applied to a particular
residence homestead, the individual is entitled to an exemption of
$5,000 of the appraised value. A [The] percentage exemption
adopted by the governing body [taxing unit] may not exceed 20
percent. If the governing body adopts an exemption of a portion of
the appraised value of a residence homestead, the amount of the
exemption in a tax year may not be less than $5,000 or more than
$30,000. An individual is entitled to an exemption adopted under
this subsection in addition to any other exemptions provided by
this section.
SECTION 2. Section 42.2516(f-1), Education Code, is amended
to read as follows:
(f-1) The commissioner shall, in accordance with rules
adopted by the commissioner, adjust the amount of a school
district's local revenue derived from maintenance and operations
tax collections, as calculated for purposes of determining the
amount of state revenue to which the district is entitled under this
section, if the district, for the 2007 tax year or a subsequent tax
year:
(1) adopts an exemption under Section 11.13(n), Tax
Code, that was not in effect for the 2005 or 2006 tax year, or
eliminates an exemption under Section 11.13(n), Tax Code, that was
in effect for the 2005 or 2006 tax year;
(2) adopts an exemption under Section 11.13(n), Tax
Code, at a greater or lesser percentage than the percentage in
effect for the district for the 2005 or 2006 tax year or in a dollar
amount that is greater or less than the dollar amount that would be
generated if the percentage exemption under that section in effect
for the district for the 2005 or 2006 tax year were applied to the
average appraised value of a residence homestead in the district;
(3) grants an exemption under an agreement authorized
by Chapter 312, Tax Code, that was not in effect for the 2005 or 2006
tax year, or ceases to grant an exemption authorized by that chapter
that was in effect for the 2005 or 2006 tax year; or
(4) agrees to deposit taxes into a tax increment fund
created under Chapter 311, Tax Code, under a reinvestment zone
financing plan that was not in effect for the 2005 or 2006 tax year,
or ceases depositing taxes into a tax increment fund created under
that chapter under a reinvestment zone financing plan that was in
effect for the 2005 or 2006 tax year.
SECTION 3. This Act applies only to ad valorem taxes imposed
for a tax year that begins on or after the effective date of this
Act.
SECTION 4. This Act takes effect January 1, 2010, but only
if the constitutional amendment proposed by the 81st Legislature,
Regular Session, 2009, authorizing the governing body of a
political subdivision to adopt a local option residence homestead
exemption from ad valorem taxation of not less than $5,000 or more
than $30,000 is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.