Texas 2009 - 81st Regular

Texas House Bill HB69 Compare Versions

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1	1	81R21585 SMH-D
2	2	By: Guillen, Berman, Pea H.B. No. 69
3	3	Substitute the following for H.B. No. 69:
4	4	By: Hartnett C.S.H.B. No. 69
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a limitation on the total amount of ad valorem taxes
10	10	that may be imposed by a taxing unit on the residence homestead of
11	11	an eligible person who is a member of a reserve component of the
12	12	United States armed forces and is ordered to active military duty.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
15	15	adding Section 11.262 to read as follows:
16	16	Sec. 11.262. LIMITATION OF TAX ON HOMESTEADS OF CERTAIN
17	17	ACTIVE-DUTY ARMED FORCES MEMBERS. (a) This section applies only to
18	18	a taxing unit that has established a limitation under Section
19	19	1-b(j), Article VIII, Texas Constitution, on the total amount of
20	20	taxes that may be imposed by the taxing unit on the residence
21	21	homestead of an eligible person who is a member of a reserve
22	22	component of the armed forces of the United States, including the
23	23	National Guard, and is ordered to active duty by a proper authority.
24	24	A tax limitation under that subsection applies to the imposition of
25	25	taxes by the political subdivision on residence homesteads
26	26	beginning with the first tax year after the year in which the
27	27	political subdivision establishes the limitation.
28	28	(b) To be eligible for a limitation on tax increases under
29	29	this section for a tax year, an individual must:
30	30	(1) be deployed or stationed on active duty for any
31	31	part of that tax year at a location that is at least 150 miles from
32	32	the individual's residence homestead; and
33	33	(2) have been continuously deployed or stationed on
34	34	active duty for at least the preceding six months, disregarding
35	35	temporary periods of leave or other absence, at one or more
36	36	locations each of which is at least 150 miles from the individual's
37	37	residence homestead.
38	38	(c) This section applies only to property that receives an
39	39	exemption under Section 11.13 and is the residence homestead of an
40	40	individual who is eligible for the limitation under Subsection (b).
41	41	(d) Except as provided by Subsection (e), a taxing unit may
42	42	not increase the total annual amount of ad valorem taxes it imposes
43	43	on the residence homestead of an individual who is eligible for a
44	44	limitation on tax increases under this section above the amount of
45	45	the taxes the unit imposed on the property in the preceding tax year
46	46	if the property qualified as the individual's residence homestead
47	47	in the preceding tax year. The tax officials shall appraise the
48	48	homestead and calculate taxes as on other property, but if the tax
49	49	so calculated exceeds the limitation provided by this section, the
50	50	tax imposed is the amount of the tax as limited by this section,
51	51	except as otherwise provided by this section.
52	52	(e) If improvements have been made to the individual's
53	53	residence homestead, other than repairs and other than improvements
54	54	made to comply with governmental requirements, since the most
55	55	recent appraisal of the property, the taxing unit may increase the
56	56	amount of taxes on the homestead in the first year the appraised
57	57	value of the homestead is increased on the appraisal roll because of
58	58	the enhancement of value by the improvements. The amount of the tax
59	59	increase is determined by applying the current tax rate to the
60	60	difference between the appraised value of the homestead with the
61	61	improvements and the appraised value the homestead would have had
62	62	without the improvements.
63	63	(f) An individual is eligible for a limitation on tax
64	64	increases under this section for a tax year if the individual
65	65	qualifies the residence homestead for an exemption under Section
66	66	11.13 for that tax year and meets the requirements of Subsections
67	67	(b) and (c) at any time during that tax year and if the individual
68	68	qualified the homestead for an exemption under Section 11.13 for
69	69	the preceding tax year. To receive a limitation on tax increases
70	70	under this section, an individual claiming the limitation must file
71	71	an application for the limitation with the chief appraiser of the
72	72	appraisal district. The chief appraiser shall accept and approve
73	73	or deny the application. For property appraised by more than one
74	74	appraisal district, a separate application must be filed in each
75	75	appraisal district to receive a limitation in that district. A
76	76	limitation under this section, once allowed, need not be claimed in
77	77	subsequent years and applies to the property until the limitation
78	78	expires as provided by this section or until the individual's
79	79	qualification for the limitation ends. However, the chief
80	80	appraiser may require an individual allowed a limitation in a prior
81	81	year to file a new application to confirm the individual's current
82	82	qualification for the limitation by delivering, not later than
83	83	April 1, a written notice that a new application is required,
84	84	accompanied by an appropriate application form, to the individual
85	85	previously allowed the limitation.
86	86	(g) In this subsection, "driver's license" and "personal
87	87	identification certificate" have the meanings assigned by Section
88	88	11.43(f). The comptroller, in prescribing the contents of the
89	89	application form for a limitation on tax increases under this
90	90	section, shall ensure that the form requires an applicant to
91	91	provide the information necessary to determine the validity of the
92	92	limitation claim. The form must require an applicant to provide the
93	93	applicant's name and driver's license number, personal
94	94	identification certificate number, or social security number. The
95	95	comptroller shall include on the form:
96	96	(1) a notice of the penalties prescribed by Section
97	97	37.10, Penal Code, for making or filing an application containing a
98	98	false statement; and
99	99	(2) a statement explaining that the application need
100	100	not be made annually and that if the limitation is allowed, the
101	101	applicant has a duty to notify the chief appraiser when the
102	102	applicant's qualification for the limitation ends.
103	103	(h) An individual who is required to apply for a limitation
104	104	on tax increases under this section to receive the limitation for a
105	105	tax year must apply for the limitation not later than May 1 or the
106	106	90th day after the date the individual has served on active duty at
107	107	a location and for the minimum period required by Subsection (b) to
108	108	qualify for the limitation, whichever is later. Except as provided
109	109	by Subsection (i), if the individual fails to timely file a
110	110	completed application, the individual may not receive the
111	111	limitation for that year.
112	112	(i) The chief appraiser shall accept and approve or deny an
113	113	application for a limitation on tax increases under this section
114	114	after the deadline for filing the application under Subsection (h)
115	115	has passed if the application is filed not later than one year after
116	116	the delinquency date for the taxes on the property for that tax
117	117	year. If a late application is approved after approval of the
118	118	appraisal records by the appraisal review board, the chief
119	119	appraiser shall notify the collector for each taxing unit in which
120	120	the property is located. If the tax has not been paid, the
121	121	collector shall deduct from the individual's tax bill the
122	122	difference between the taxes that would have been due had the
123	123	property not qualified for the limitation and the taxes due after
124	124	taking the limitation into account. If the tax has been paid, the
125	125	collector shall immediately refund the difference.
126	126	(j) An individual who receives a limitation on tax increases
127	127	under this section shall notify the appraisal office in writing
128	128	before May 1 after the individual's qualification for the
129	129	limitation ends.
130	130	(k) If the appraisal roll provides for taxation of appraised
131	131	value for a prior year because a limitation on tax increases under
132	132	this section was erroneously allowed, the tax assessor for each
133	133	taxing unit shall add, as back taxes due as provided by Section
134	134	26.09(d), the positive difference, if any, between the tax that
135	135	should have been imposed for that year and the tax that was imposed
136	136	because of this section.
137	137	(l) A limitation on tax increases under this section expires
138	138	on January 1 of the first tax year that:
139	139	(1) none of the owners of the property who qualify for
140	140	an exemption provided by Section 11.13 and who owned the property
141	141	when the limitation first took effect is using the property as a
142	142	residence homestead;
143	143	(2) none of the owners of the property qualifies for an
144	144	exemption provided by Section 11.13; or
145	145	(3) none of the owners of the property who met the
146	146	requirements of Subsections (b) and (c) when the limitation first
147	147	took effect meets the requirements of those subsections.
148	148	(m) For each school district in an appraisal district, the
149	149	chief appraiser shall determine the portion of the appraised value
150	150	of residence homesteads of individuals on which school district
151	151	taxes are not imposed in a tax year because of the limitation on tax
152	152	increases under this section. That portion is calculated by
153	153	determining the taxable value that, if multiplied by the tax rate
154	154	adopted by the school district for the tax year, would produce an
155	155	amount equal to the amount of tax that would have been imposed by
156	156	the school district on those homesteads if the limitation on tax
157	157	increases under this section were not in effect, but that was not
158	158	imposed because of that limitation. The chief appraiser shall
159	159	determine that taxable value and certify it to the comptroller as
160	160	soon as practicable for each tax year.
161	161	(n) A limitation on tax increases under this section does
162	162	not expire because the owner of an interest in the property conveys
163	163	the interest to a qualifying trust as defined by Section 11.13(j) if
164	164	the owner or the owner's spouse is a trustor of the trust and is
165	165	entitled to occupy the property.
166	166	(o) If an individual who receives a limitation on tax
167	167	increases by a taxing unit under this section on a residence
168	168	homestead in the last year in which the individual resided in the
169	169	property on January 1 qualifies a different residence homestead in
170	170	the same taxing unit for an exemption under Section 11.13 during the
171	171	same period of service on active duty, the taxing unit may not
172	172	impose ad valorem taxes on the subsequently qualified homestead in
173	173	the first year in which the individual qualified the new residence
174	174	homestead for the exemption in an amount that exceeds the amount of
175	175	taxes the taxing unit would have imposed on the subsequently
176	176	qualified homestead in that first year had the limitation provided
177	177	by this subsection not been in effect, multiplied by a fraction the
178	178	numerator of which is the total amount of ad valorem taxes imposed
179	179	by the taxing unit on the former homestead in the last year in which
180	180	the individual received the limitation provided by Subsection (d)
181	181	for the former homestead and the denominator of which is the total
182	182	amount of ad valorem taxes that would have been imposed by the
183	183	taxing unit on the former homestead in the last year in which the
184	184	individual received the limitation for the former homestead had the
185	185	limitation not been in effect.
186	186	(p) An individual who receives a limitation on tax increases
187	187	by a taxing unit under this section and who subsequently applies for
188	188	a limitation by the same taxing unit on a different residence
189	189	homestead, or an agent of the individual, is entitled to receive
190	190	from the chief appraiser of the appraisal district in which the
191	191	former homestead was located a written certificate providing the
192	192	information necessary to determine whether the individual may
193	193	qualify for a limitation by the taxing unit on the subsequently
194	194	qualified homestead under Subsection (o) and to calculate the
195	195	amount of taxes the taxing unit may impose on the subsequently
196	196	qualified homestead.
197	197	SECTION 2. Sections 23.19(b) and (g), Tax Code, are amended
198	198	to read as follows:
199	199	(b) If an appraisal district receives a written request for
200	200	the appraisal of real property and improvements of a cooperative
201	201	housing corporation according to the separate interests of the
202	202	corporation's stockholders, the chief appraiser shall separately
203	203	appraise the interests described by Subsection (d) if the
204	204	conditions required by Subsections (e) and (f) have been met.
205	205	Separate appraisal under this section is for the purposes of
206	206	administration of tax exemptions, determination of applicable
207	207	limitations of taxes under Section 11.26, [or] 11.261, or 11.262,
208	208	and apportionment by a cooperative housing corporation of property
209	209	taxes among its stockholders but is not the basis for determining
210	210	value on which a tax is imposed under this title. A stockholder
211	211	whose interest is separately appraised under this section may
212	212	protest and appeal the appraised value in the manner provided by
213	213	this title for protest and appeal of the appraised value of other
214	214	property.
215	215	(g) A tax bill or a separate statement accompanying the tax
216	216	bill to a cooperative housing corporation for which interests of
217	217	stockholders are separately appraised under this section must
218	218	state, in addition to the information required by Section 31.01,
219	219	the appraised value and taxable value of each interest separately
220	220	appraised. Each exemption claimed as provided by this title by a
221	221	person entitled to the exemption shall also be deducted from the
222	222	total appraised value of the property of the corporation. The total
223	223	tax imposed by a taxing unit [school district, county,
224	224	municipality, or junior college district] shall be reduced by any
225	225	amount that represents an increase in taxes attributable to
226	226	separately appraised interests of the real property and
227	227	improvements that are subject to the limitation of taxes prescribed
228	228	by Section 11.26, [or] 11.261, or 11.262. The corporation shall
229	229	apportion among its stockholders liability for reimbursing the
230	230	corporation for property taxes according to the relative taxable
231	231	values of their interests.
232	232	SECTION 3. Sections 26.012(6), (13), and (14), Tax Code,
233	233	are amended to read as follows:
234	234	(6) "Current total value" means the total taxable
235	235	value of property listed on the appraisal roll for the current year,
236	236	including all appraisal roll supplements and corrections as of the
237	237	date of the calculation, less the taxable value of property
238	238	exempted for the current tax year for the first time under Section
239	239	11.31, except that:
240	240	(A) the current total value for a school district
241	241	excludes:
242	242	(i) the total value of homesteads that
243	243	qualify for a tax limitation as provided by Section 11.26; and
244	244	(ii) new property value of property that is
245	245	subject to an agreement entered into under Chapter 313; [and]
246	246	(B) the current total value for a county,
247	247	municipality, or junior college district excludes the total value
248	248	of homesteads that qualify for a tax limitation provided by Section
249	249	11.261 applicable to the taxing unit; and
250	250	(C) the current total value for a taxing unit
251	251	excludes the total value of homesteads that qualify for a tax
252	252	limitation provided by Section 11.262 applicable to the taxing
253	253	unit.
254	254	(13) "Last year's levy" means the total of:
255	255	(A) the amount of taxes that would be generated
256	256	by multiplying the total tax rate adopted by the governing body in
257	257	the preceding year by the total taxable value of property on the
258	258	appraisal roll for the preceding year, including:
259	259	(i) taxable value that was reduced in an
260	260	appeal under Chapter 42; and
261	261	(ii) all appraisal roll supplements and
262	262	corrections other than corrections made pursuant to Section
263	263	25.25(d), as of the date of the calculation, except that last year's
264	264	taxable value for a school district excludes the total value of
265	265	homesteads that qualified for a tax limitation as provided by
266	266	Section 11.26, [and] last year's taxable value for a county,
267	267	municipality, or junior college district excludes the total value
268	268	of homesteads that qualified for a tax limitation as provided by
269	269	Section 11.261 applicable to the taxing unit, and last year's
270	270	taxable value for a taxing unit excludes the total value of
271	271	homesteads that qualified for a tax limitation as provided by
272	272	Section 11.262 applicable to the taxing unit; and
273	273	(B) the amount of taxes refunded by the taxing
274	274	unit in the preceding year for tax years before that year.
275	275	(14) "Last year's total value" means the total taxable
276	276	value of property listed on the appraisal roll for the preceding
277	277	year, including all appraisal roll supplements and corrections,
278	278	other than corrections made pursuant to Section 25.25(d), as of the
279	279	date of the calculation, except that:
280	280	(A) last year's taxable value for a school
281	281	district excludes the total value of homesteads that qualified for
282	282	a tax limitation as provided by Section 11.26; [and]
283	283	(B) last year's taxable value for a county,
284	284	municipality, or junior college district excludes the total value
285	285	of homesteads that qualified for a tax limitation as provided by
286	286	Section 11.261 applicable to the taxing unit; and
287	287	(C) last year's taxable value for a taxing unit
288	288	excludes the total value of homesteads that qualified for a tax
289	289	limitation as provided by Section 11.262 applicable to the taxing
290	290	unit.
291	291	SECTION 4. Section 44.004, Education Code, is amended by
292	292	adding Subsection (c-2) to read as follows:
293	293	(c-2) If the school district has established a limitation
294	294	under Section 1-b(j), Article VIII, Texas Constitution, on the
295	295	total amount of ad valorem taxes that may be imposed by the district
296	296	on the residence homestead of an eligible person who is a member of
297	297	a reserve component of the United States armed forces and is ordered
298	298	to active duty, the notice required by Subsection (c) must also
299	299	contain the following statement in bold print: "Under state law,
300	300	the dollar amount of school taxes imposed on the residence
301	301	homestead of an eligible person who is a member of a reserve
302	302	component of the United States armed forces and is ordered to active
303	303	duty may not be increased above the amount of school taxes imposed
304	304	on the property in the preceding year, regardless of changes in tax
305	305	rate or property value."
306	306	SECTION 5. Section 403.302(d), Government Code, is amended
307	307	to read as follows:
308	308	(d) For the purposes of this section, "taxable value" means
309	309	the market value of all taxable property less:
310	310	(1) the total dollar amount of any residence homestead
311	311	exemptions lawfully granted under Section 11.13(b) or (c), Tax
312	312	Code, in the year that is the subject of the study for each school
313	313	district;
314	314	(2) one-half of the total dollar amount of any
315	315	residence homestead exemptions granted under Section 11.13(n), Tax
316	316	Code, in the year that is the subject of the study for each school
317	317	district;
318	318	(3) the total dollar amount of any exemptions granted
319	319	before May 31, 1993, within a reinvestment zone under agreements
320	320	authorized by Chapter 312, Tax Code;
321	321	(4) subject to Subsection (e), the total dollar amount
322	322	of any captured appraised value of property that:
323	323	(A) is within a reinvestment zone created on or
324	324	before May 31, 1999, or is proposed to be included within the
325	325	boundaries of a reinvestment zone as the boundaries of the zone and
326	326	the proposed portion of tax increment paid into the tax increment
327	327	fund by a school district are described in a written notification
328	328	provided by the municipality or the board of directors of the zone
329	329	to the governing bodies of the other taxing units in the manner
330	330	provided by Section 311.003(e), Tax Code, before May 31, 1999, and
331	331	within the boundaries of the zone as those boundaries existed on
332	332	September 1, 1999, including subsequent improvements to the
333	333	property regardless of when made;
334	334	(B) generates taxes paid into a tax increment
335	335	fund created under Chapter 311, Tax Code, under a reinvestment zone
336	336	financing plan approved under Section 311.011(d), Tax Code, on or
337	337	before September 1, 1999; and
338	338	(C) is eligible for tax increment financing under
339	339	Chapter 311, Tax Code;
340	340	(5) for a school district for which a deduction from
341	341	taxable value is made under Subdivision (4), an amount equal to the
342	342	taxable value required to generate revenue when taxed at the school
343	343	district's current tax rate in an amount that, when added to the
344	344	taxes of the district paid into a tax increment fund as described by
345	345	Subdivision (4)(B), is equal to the total amount of taxes the
346	346	district would have paid into the tax increment fund if the district
347	347	levied taxes at the rate the district levied in 2005;
348	348	(6) the total dollar amount of any captured appraised
349	349	value of property that:
350	350	(A) is within a reinvestment zone:
351	351	(i) created on or before December 31, 2008,
352	352	by a municipality with a population of less than 18,000; and
353	353	(ii) the project plan for which includes
354	354	the alteration, remodeling, repair, or reconstruction of a
355	355	structure that is included on the National Register of Historic
356	356	Places and requires that a portion of the tax increment of the zone
357	357	be used for the improvement or construction of related facilities
358	358	or for affordable housing;
359	359	(B) generates school district taxes that are paid
360	360	into a tax increment fund created under Chapter 311, Tax Code; and
361	361	(C) is eligible for tax increment financing under
362	362	Chapter 311, Tax Code;
363	363	(7) the total dollar amount of any exemptions granted
364	364	under Section 11.251 or 11.253, Tax Code;
365	365	(8) the difference between the comptroller's estimate
366	366	of the market value and the productivity value of land that
367	367	qualifies for appraisal on the basis of its productive capacity,
368	368	except that the productivity value estimated by the comptroller may
369	369	not exceed the fair market value of the land;
370	370	(9) the portion of the appraised value of residence
371	371	homesteads of individuals who receive a tax limitation under
372	372	Section 11.26 or 11.262, Tax Code, on which school district taxes
373	373	are not imposed in the year that is the subject of the study,
374	374	calculated as if the residence homesteads were appraised at the
375	375	full value required by law;
376	376	(10) a portion of the market value of property not
377	377	otherwise fully taxable by the district at market value because of:
378	378	(A) action required by statute or the
379	379	constitution of this state that, if the tax rate adopted by the
380	380	district is applied to it, produces an amount equal to the
381	381	difference between the tax that the district would have imposed on
382	382	the property if the property were fully taxable at market value and
383	383	the tax that the district is actually authorized to impose on the
384	384	property, if this subsection does not otherwise require that
385	385	portion to be deducted; or
386	386	(B) action taken by the district under Subchapter
387	387	B or C, Chapter 313, Tax Code;
388	388	(11) the market value of all tangible personal
389	389	property, other than manufactured homes, owned by a family or
390	390	individual and not held or used for the production of income;
391	391	(12) the appraised value of property the collection of
392	392	delinquent taxes on which is deferred under Section 33.06, Tax
393	393	Code;
394	394	(13) the portion of the appraised value of property
395	395	the collection of delinquent taxes on which is deferred under
396	396	Section 33.065, Tax Code; and
397	397	(14) the amount by which the market value of a
398	398	residence homestead to which Section 23.23, Tax Code, applies
399	399	exceeds the appraised value of that property as calculated under
400	400	that section.
401	401	SECTION 6. This Act applies only to ad valorem taxes imposed
402	402	for a tax year beginning on or after the effective date of this Act.
403	403	SECTION 7. This Act takes effect January 1, 2010, but only
404	404	if the constitutional amendment to authorize a political
405	405	subdivision to establish a limitation on the total amount of ad
406	406	valorem taxes that may be imposed by the political subdivision on
407	407	the residence homestead of an eligible person who is a member of a
408	408	reserve component of the United States armed forces and is ordered
409	409	to active military duty is approved by the voters. If that
410	410	amendment is not approved by the voters, this Act has no effect.