81R21585 SMH-D
By: Guillen, Berman, Pea H.B. No. 69
Substitute the following for H.B. No. 69:
By: Hartnett C.S.H.B. No. 69
A BILL TO BE ENTITLED
AN ACT
relating to a limitation on the total amount of ad valorem taxes
that may be imposed by a taxing unit on the residence homestead of
an eligible person who is a member of a reserve component of the
United States armed forces and is ordered to active military duty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.262 to read as follows:
Sec. 11.262. LIMITATION OF TAX ON HOMESTEADS OF CERTAIN
ACTIVE-DUTY ARMED FORCES MEMBERS. (a) This section applies only to
a taxing unit that has established a limitation under Section
1-b(j), Article VIII, Texas Constitution, on the total amount of
taxes that may be imposed by the taxing unit on the residence
homestead of an eligible person who is a member of a reserve
component of the armed forces of the United States, including the
National Guard, and is ordered to active duty by a proper authority.
A tax limitation under that subsection applies to the imposition of
taxes by the political subdivision on residence homesteads
beginning with the first tax year after the year in which the
political subdivision establishes the limitation.
(b) To be eligible for a limitation on tax increases under
this section for a tax year, an individual must:
(1) be deployed or stationed on active duty for any
part of that tax year at a location that is at least 150 miles from
the individual's residence homestead; and
(2) have been continuously deployed or stationed on
active duty for at least the preceding six months, disregarding
temporary periods of leave or other absence, at one or more
locations each of which is at least 150 miles from the individual's
residence homestead.
(c) This section applies only to property that receives an
exemption under Section 11.13 and is the residence homestead of an
individual who is eligible for the limitation under Subsection (b).
(d) Except as provided by Subsection (e), a taxing unit may
not increase the total annual amount of ad valorem taxes it imposes
on the residence homestead of an individual who is eligible for a
limitation on tax increases under this section above the amount of
the taxes the unit imposed on the property in the preceding tax year
if the property qualified as the individual's residence homestead
in the preceding tax year. The tax officials shall appraise the
homestead and calculate taxes as on other property, but if the tax
so calculated exceeds the limitation provided by this section, the
tax imposed is the amount of the tax as limited by this section,
except as otherwise provided by this section.
(e) If improvements have been made to the individual's
residence homestead, other than repairs and other than improvements
made to comply with governmental requirements, since the most
recent appraisal of the property, the taxing unit may increase the
amount of taxes on the homestead in the first year the appraised
value of the homestead is increased on the appraisal roll because of
the enhancement of value by the improvements. The amount of the tax
increase is determined by applying the current tax rate to the
difference between the appraised value of the homestead with the
improvements and the appraised value the homestead would have had
without the improvements.
(f) An individual is eligible for a limitation on tax
increases under this section for a tax year if the individual
qualifies the residence homestead for an exemption under Section
11.13 for that tax year and meets the requirements of Subsections
(b) and (c) at any time during that tax year and if the individual
qualified the homestead for an exemption under Section 11.13 for
the preceding tax year. To receive a limitation on tax increases
under this section, an individual claiming the limitation must file
an application for the limitation with the chief appraiser of the
appraisal district. The chief appraiser shall accept and approve
or deny the application. For property appraised by more than one
appraisal district, a separate application must be filed in each
appraisal district to receive a limitation in that district. A
limitation under this section, once allowed, need not be claimed in
subsequent years and applies to the property until the limitation
expires as provided by this section or until the individual's
qualification for the limitation ends. However, the chief
appraiser may require an individual allowed a limitation in a prior
year to file a new application to confirm the individual's current
qualification for the limitation by delivering, not later than
April 1, a written notice that a new application is required,
accompanied by an appropriate application form, to the individual
previously allowed the limitation.
(g) In this subsection, "driver's license" and "personal
identification certificate" have the meanings assigned by Section
11.43(f). The comptroller, in prescribing the contents of the
application form for a limitation on tax increases under this
section, shall ensure that the form requires an applicant to
provide the information necessary to determine the validity of the
limitation claim. The form must require an applicant to provide the
applicant's name and driver's license number, personal
identification certificate number, or social security number. The
comptroller shall include on the form:
(1) a notice of the penalties prescribed by Section
37.10, Penal Code, for making or filing an application containing a
false statement; and
(2) a statement explaining that the application need
not be made annually and that if the limitation is allowed, the
applicant has a duty to notify the chief appraiser when the
applicant's qualification for the limitation ends.
(h) An individual who is required to apply for a limitation
on tax increases under this section to receive the limitation for a
tax year must apply for the limitation not later than May 1 or the
90th day after the date the individual has served on active duty at
a location and for the minimum period required by Subsection (b) to
qualify for the limitation, whichever is later. Except as provided
by Subsection (i), if the individual fails to timely file a
completed application, the individual may not receive the
limitation for that year.
(i) The chief appraiser shall accept and approve or deny an
application for a limitation on tax increases under this section
after the deadline for filing the application under Subsection (h)
has passed if the application is filed not later than one year after
the delinquency date for the taxes on the property for that tax
year. If a late application is approved after approval of the
appraisal records by the appraisal review board, the chief
appraiser shall notify the collector for each taxing unit in which
the property is located. If the tax has not been paid, the
collector shall deduct from the individual's tax bill the
difference between the taxes that would have been due had the
property not qualified for the limitation and the taxes due after
taking the limitation into account. If the tax has been paid, the
collector shall immediately refund the difference.
(j) An individual who receives a limitation on tax increases
under this section shall notify the appraisal office in writing
before May 1 after the individual's qualification for the
limitation ends.
(k) If the appraisal roll provides for taxation of appraised
value for a prior year because a limitation on tax increases under
this section was erroneously allowed, the tax assessor for each
taxing unit shall add, as back taxes due as provided by Section
26.09(d), the positive difference, if any, between the tax that
should have been imposed for that year and the tax that was imposed
because of this section.
(l) A limitation on tax increases under this section expires
on January 1 of the first tax year that:
(1) none of the owners of the property who qualify for
an exemption provided by Section 11.13 and who owned the property
when the limitation first took effect is using the property as a
residence homestead;
(2) none of the owners of the property qualifies for an
exemption provided by Section 11.13; or
(3) none of the owners of the property who met the
requirements of Subsections (b) and (c) when the limitation first
took effect meets the requirements of those subsections.
(m) For each school district in an appraisal district, the
chief appraiser shall determine the portion of the appraised value
of residence homesteads of individuals on which school district
taxes are not imposed in a tax year because of the limitation on tax
increases under this section. That portion is calculated by
determining the taxable value that, if multiplied by the tax rate
adopted by the school district for the tax year, would produce an
amount equal to the amount of tax that would have been imposed by
the school district on those homesteads if the limitation on tax
increases under this section were not in effect, but that was not
imposed because of that limitation. The chief appraiser shall
determine that taxable value and certify it to the comptroller as
soon as practicable for each tax year.
(n) A limitation on tax increases under this section does
not expire because the owner of an interest in the property conveys
the interest to a qualifying trust as defined by Section 11.13(j) if
the owner or the owner's spouse is a trustor of the trust and is
entitled to occupy the property.
(o) If an individual who receives a limitation on tax
increases by a taxing unit under this section on a residence
homestead in the last year in which the individual resided in the
property on January 1 qualifies a different residence homestead in
the same taxing unit for an exemption under Section 11.13 during the
same period of service on active duty, the taxing unit may not
impose ad valorem taxes on the subsequently qualified homestead in
the first year in which the individual qualified the new residence
homestead for the exemption in an amount that exceeds the amount of
taxes the taxing unit would have imposed on the subsequently
qualified homestead in that first year had the limitation provided
by this subsection not been in effect, multiplied by a fraction the
numerator of which is the total amount of ad valorem taxes imposed
by the taxing unit on the former homestead in the last year in which
the individual received the limitation provided by Subsection (d)
for the former homestead and the denominator of which is the total
amount of ad valorem taxes that would have been imposed by the
taxing unit on the former homestead in the last year in which the
individual received the limitation for the former homestead had the
limitation not been in effect.
(p) An individual who receives a limitation on tax increases
by a taxing unit under this section and who subsequently applies for
a limitation by the same taxing unit on a different residence
homestead, or an agent of the individual, is entitled to receive
from the chief appraiser of the appraisal district in which the
former homestead was located a written certificate providing the
information necessary to determine whether the individual may
qualify for a limitation by the taxing unit on the subsequently
qualified homestead under Subsection (o) and to calculate the
amount of taxes the taxing unit may impose on the subsequently
qualified homestead.
SECTION 2. Sections 23.19(b) and (g), Tax Code, are amended
to read as follows:
(b) If an appraisal district receives a written request for
the appraisal of real property and improvements of a cooperative
housing corporation according to the separate interests of the
corporation's stockholders, the chief appraiser shall separately
appraise the interests described by Subsection (d) if the
conditions required by Subsections (e) and (f) have been met.
Separate appraisal under this section is for the purposes of
administration of tax exemptions, determination of applicable
limitations of taxes under Section 11.26, [or] 11.261, or 11.262,
and apportionment by a cooperative housing corporation of property
taxes among its stockholders but is not the basis for determining
value on which a tax is imposed under this title. A stockholder
whose interest is separately appraised under this section may
protest and appeal the appraised value in the manner provided by
this title for protest and appeal of the appraised value of other
property.
(g) A tax bill or a separate statement accompanying the tax
bill to a cooperative housing corporation for which interests of
stockholders are separately appraised under this section must
state, in addition to the information required by Section 31.01,
the appraised value and taxable value of each interest separately
appraised. Each exemption claimed as provided by this title by a
person entitled to the exemption shall also be deducted from the
total appraised value of the property of the corporation. The total
tax imposed by a taxing unit [school district, county,
municipality, or junior college district] shall be reduced by any
amount that represents an increase in taxes attributable to
separately appraised interests of the real property and
improvements that are subject to the limitation of taxes prescribed
by Section 11.26, [or] 11.261, or 11.262. The corporation shall
apportion among its stockholders liability for reimbursing the
corporation for property taxes according to the relative taxable
values of their interests.
SECTION 3. Sections 26.012(6), (13), and (14), Tax Code,
are amended to read as follows:
(6) "Current total value" means the total taxable
value of property listed on the appraisal roll for the current year,
including all appraisal roll supplements and corrections as of the
date of the calculation, less the taxable value of property
exempted for the current tax year for the first time under Section
11.31, except that:
(A) the current total value for a school district
excludes:
(i) the total value of homesteads that
qualify for a tax limitation as provided by Section 11.26; and
(ii) new property value of property that is
subject to an agreement entered into under Chapter 313; [and]
(B) the current total value for a county,
municipality, or junior college district excludes the total value
of homesteads that qualify for a tax limitation provided by Section
11.261 applicable to the taxing unit; and
(C) the current total value for a taxing unit
excludes the total value of homesteads that qualify for a tax
limitation provided by Section 11.262 applicable to the taxing
unit.
(13) "Last year's levy" means the total of:
(A) the amount of taxes that would be generated
by multiplying the total tax rate adopted by the governing body in
the preceding year by the total taxable value of property on the
appraisal roll for the preceding year, including:
(i) taxable value that was reduced in an
appeal under Chapter 42; and
(ii) all appraisal roll supplements and
corrections other than corrections made pursuant to Section
25.25(d), as of the date of the calculation, except that last year's
taxable value for a school district excludes the total value of
homesteads that qualified for a tax limitation as provided by
Section 11.26, [and] last year's taxable value for a county,
municipality, or junior college district excludes the total value
of homesteads that qualified for a tax limitation as provided by
Section 11.261 applicable to the taxing unit, and last year's
taxable value for a taxing unit excludes the total value of
homesteads that qualified for a tax limitation as provided by
Section 11.262 applicable to the taxing unit; and
(B) the amount of taxes refunded by the taxing
unit in the preceding year for tax years before that year.
(14) "Last year's total value" means the total taxable
value of property listed on the appraisal roll for the preceding
year, including all appraisal roll supplements and corrections,
other than corrections made pursuant to Section 25.25(d), as of the
date of the calculation, except that:
(A) last year's taxable value for a school
district excludes the total value of homesteads that qualified for
a tax limitation as provided by Section 11.26; [and]
(B) last year's taxable value for a county,
municipality, or junior college district excludes the total value
of homesteads that qualified for a tax limitation as provided by
Section 11.261 applicable to the taxing unit; and
(C) last year's taxable value for a taxing unit
excludes the total value of homesteads that qualified for a tax
limitation as provided by Section 11.262 applicable to the taxing
unit.
SECTION 4. Section 44.004, Education Code, is amended by
adding Subsection (c-2) to read as follows:
(c-2) If the school district has established a limitation
under Section 1-b(j), Article VIII, Texas Constitution, on the
total amount of ad valorem taxes that may be imposed by the district
on the residence homestead of an eligible person who is a member of
a reserve component of the United States armed forces and is ordered
to active duty, the notice required by Subsection (c) must also
contain the following statement in bold print: "Under state law,
the dollar amount of school taxes imposed on the residence
homestead of an eligible person who is a member of a reserve
component of the United States armed forces and is ordered to active
duty may not be increased above the amount of school taxes imposed
on the property in the preceding year, regardless of changes in tax
rate or property value."
SECTION 5. Section 403.302(d), Government Code, is amended
to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) for a school district for which a deduction from
taxable value is made under Subdivision (4), an amount equal to the
taxable value required to generate revenue when taxed at the school
district's current tax rate in an amount that, when added to the
taxes of the district paid into a tax increment fund as described by
Subdivision (4)(B), is equal to the total amount of taxes the
district would have paid into the tax increment fund if the district
levied taxes at the rate the district levied in 2005;
(6) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(7) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(8) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(9) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26 or 11.262, Tax Code, on which school district taxes
are not imposed in the year that is the subject of the study,
calculated as if the residence homesteads were appraised at the
full value required by law;
(10) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(11) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(12) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(13) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(14) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
SECTION 6. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 7. This Act takes effect January 1, 2010, but only
if the constitutional amendment to authorize a political
subdivision to establish a limitation on the total amount of ad
valorem taxes that may be imposed by the political subdivision on
the residence homestead of an eligible person who is a member of a
reserve component of the United States armed forces and is ordered
to active military duty is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.