Texas 2009 - 81st Regular

Texas House Bill HB701 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R4854 JD/CBH/SMH-D
2	2	By: Zerwas H.B. No. 701
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the provision of ad valorem tax relief.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	ARTICLE 1. SHORT TITLE
10	10	SECTION 1.01. This Act may be cited as the 2009 Continued
11	11	Commitment to Property Tax Relief Act.
12	12	ARTICLE 2. RESIDENCE HOMESTEAD QUALIFICATION DATE
13	13	SECTION 2.01. Section 11.42, Tax Code, is amended by
14	14	amending Subsection (a) and adding Subsection (e) to read as
15	15	follows:
16	16	(a) Except as otherwise provided by this section
17	17	[Subsections (b) and (c)] and by Sections 11.421, 11.422, 11.434,
18	18	11.435, and 11.436, eligibility for and amount of an exemption
19	19	authorized by this chapter for any tax year are determined by a
20	20	claimant's qualifications on January 1. A person who does not
21	21	qualify for an exemption on January 1 of any year may not receive
22	22	the exemption that year.
23	23	(e) A person who acquires property after January 1 of a tax
24	24	year is entitled to receive an exemption authorized by Section
25	25	11.13, other than an exemption authorized by Section 11.13(c) or
26	26	(d) for an individual 65 years of age or older, for that entire tax
27	27	year if the person qualifies the property for that exemption during
28	28	that tax year.
29	29	SECTION 2.02. Section 11.43(d), Tax Code, is amended to
30	30	read as follows:
31	31	(d) To receive an exemption the eligibility for which is
32	32	determined by the claimant's qualifications on January 1 of the tax
33	33	year, a person required to claim an exemption must file a completed
34	34	exemption application form before May 1 and must furnish the
35	35	information required by the form. A person who after January 1 of a
36	36	tax year acquires property that qualifies for an exemption covered
37	37	by Section 11.42(d) must apply for the exemption for the applicable
38	38	portion of that tax year before the first anniversary of the date
39	39	the person acquires the property. A person who after January 1 of a
40	40	tax year acquires property that qualifies for an exemption covered
41	41	by Section 11.42(e) must apply for the exemption for that tax year
42	42	before the first anniversary of the date the person acquires the
43	43	property. For good cause shown the chief appraiser may extend the
44	44	deadline for filing an exemption application by written order for a
45	45	single period not to exceed 60 days.
46	46	SECTION 2.03. Section 26.10(b), Tax Code, is amended to
47	47	read as follows:
48	48	(b) If the appraisal roll shows that a residence homestead
49	49	exemption [for an individual 65 years of age or older or a residence
50	50	homestead exemption for a disabled individual] applicable to a
51	51	property on January 1 of a year terminated during the year and if
52	52	the owner qualifies a different property for a [one of those]
53	53	residence homestead exemption [exemptions] during the same year,
54	54	the tax due against the former residence homestead is calculated
55	55	by:
56	56	(1) subtracting:
57	57	(A) the amount of the taxes that otherwise would
58	58	be imposed on the former residence homestead for the entire year had
59	59	the individual qualified for the residence homestead exemption for
60	60	the entire year; from
61	61	(B) the amount of the taxes that otherwise would
62	62	be imposed on the former residence homestead for the entire year had
63	63	the individual not qualified for the residence homestead exemption
64	64	during the year;
65	65	(2) multiplying the remainder determined under
66	66	Subdivision (1) by a fraction, the denominator of which is 365 and
67	67	the numerator of which is the number of days of that year that
68	68	elapsed after the date the exemption terminated; and
69	69	(3) adding the product determined under Subdivision
70	70	(2) and the amount described by Subdivision (1)(A).
71	71	SECTION 2.04. Section 26.112, Tax Code, is amended to read
72	72	as follows:
73	73	Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD
74	74	[OF ELDERLY OR DISABLED PERSON]. (a) Except as provided by Section
75	75	26.10(b), if at any time during a tax year property is owned by an
76	76	individual who qualifies for an exemption under Section 11.13 with
77	77	respect to the property [11.13(c) or (d)], the amount of the tax due
78	78	on the property for the tax year is calculated as if the person
79	79	qualified for the exemption on January 1 and continued to qualify
80	80	for the exemption for the remainder of the tax year.
81	81	(b) If a person qualifies for an exemption under Section
82	82	11.13 [11.13(c) or (d)] with respect to the property after the
83	83	amount of the tax due on the property is calculated and the effect
84	84	of the qualification is to reduce the amount of the tax due on the
85	85	property, the assessor for each taxing unit shall recalculate the
86	86	amount of the tax due on the property and correct the tax roll. If
87	87	the tax bill has been mailed and the tax on the property has not been
88	88	paid, the assessor shall mail a corrected tax bill to the person in
89	89	whose name the property is listed on the tax roll or to the person's
90	90	authorized agent. If the tax on the property has been paid, the tax
91	91	collector for the taxing unit shall refund to the person who paid
92	92	the tax the amount by which the payment exceeded the tax due.
93	93	SECTION 2.05. This article applies only to ad valorem taxes
94	94	imposed for a tax year that begins on or after the effective date of
95	95	this Act.
96	96	ARTICLE 3. LIMITATIONS ON PROPERTY TAX APPRAISAL INCREASES
97	97	SECTION 3.01. Section 1.12(d), Tax Code, is amended to read
98	98	as follows:
99	99	(d) For purposes of this section, the appraisal ratio of
100	100	real property [a homestead] to which Section 23.23 applies is the
101	101	ratio of the property's market value as determined by the appraisal
102	102	district or appraisal review board, as applicable, to the market
103	103	value of the property according to law. The appraisal ratio is not
104	104	calculated according to the appraised value of the property as
105	105	limited by Section 23.23.
106	106	SECTION 3.02. The heading to Section 23.23, Tax Code, is
107	107	amended to read as follows:
108	108	Sec. 23.23. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY
109	109	[RESIDENCE HOMESTEAD].
110	110	SECTION 3.03. Section 23.23, Tax Code, is amended by
111	111	amending Subsections (a), (b), (c), (e), and (f) and adding
112	112	Subsections (c-1), (c-2), and (c-3) to read as follows:
113	113	(a) Notwithstanding the requirements of Section 25.18 and
114	114	regardless of whether the appraisal office has appraised the
115	115	property and determined the market value of the property for the tax
116	116	year, an appraisal office may increase the appraised value of real
117	117	property [a residence homestead] for a tax year to an amount not to
118	118	exceed the lesser of:
119	119	(1) the market value of the property for the most
120	120	recent tax year that the market value was determined by the
121	121	appraisal office; or
122	122	(2) the sum of:
123	123	(A) 10 percent of the appraised value of the
124	124	property for the preceding tax year;
125	125	(B) the appraised value of the property for the
126	126	preceding tax year; and
127	127	(C) the market value of all new improvements to
128	128	the property.
129	129	(b) When appraising real property [a residence homestead],
130	130	the chief appraiser shall:
131	131	(1) appraise the property at its market value; and
132	132	(2) include in the appraisal records both the market
133	133	value of the property and the amount computed under Subsection
134	134	(a)(2).
135	135	(c) The limitation provided by Subsection (a) takes effect
136	136	on January 1 of the tax year following the first tax year in which
137	137	the owner owns the property on January 1, or, if the property
138	138	qualifies as the [to a] residence homestead of the owner under
139	139	Section 11.13 in the tax year in which the owner acquires the
140	140	property, the limitation takes effect on January 1 of the tax year
141	141	following that [the first] tax year [the owner qualifies the
142	142	property for an exemption under Section 11.13]. Except as provided
143	143	by Subsection (c-1) or (c-2), the [The] limitation expires on
144	144	January 1 of the first tax year following the year in which [that
145	145	neither] the owner of the property ceases to own the property.
146	146	(c-1) If property subject to a limitation under this section
147	147	qualifies for an exemption under Section 11.13 when the ownership
148	148	of the property is transferred to the owner's spouse or surviving
149	149	spouse, the limitation expires on January 1 of the first tax year
150	150	following the year in which [when the limitation took effect nor]
151	151	the owner's spouse or surviving spouse ceases to own the property,
152	152	unless the limitation is further continued under this subsection on
153	153	the subsequent transfer to a spouse or surviving spouse [qualifies
154	154	for an exemption under Section 11.13].
155	155	(c-2) If property subject to a limitation under Subsection
156	156	(a), other than a residence homestead, is owned by two or more
157	157	persons, the limitation expires on January 1 of the first tax year
158	158	following the year in which the ownership of at least a 50 percent
159	159	interest in the property is sold or otherwise transferred.
160	160	(c-3) For purposes of applying the limitation provided by
161	161	this section in the first tax year after the 2009 tax year in which
162	162	the property is appraised for taxation:
163	163	(1) the property is considered to have been appraised
164	164	for taxation in the 2009 tax year at a market value equal to the
165	165	appraised value of the property for that tax year;
166	166	(2) a person who acquired real property in a tax year
167	167	before the 2009 tax year is considered to have acquired the property
168	168	on January 1, 2009; and
169	169	(3) a person who qualified the property for an
170	170	exemption under Section 11.13 as the person's residence homestead
171	171	for any portion of the 2009 tax year is considered to have acquired
172	172	the property in the 2009 tax year.
173	173	(e) In this section, "new improvement" means an improvement
174	174	to real property [a residence homestead] made after the most recent
175	175	appraisal of the property that increases the market value of the
176	176	property and the value of which is not included in the appraised
177	177	value of the property for the preceding tax year. The term does not
178	178	include repairs to or ordinary maintenance of an existing structure
179	179	or the grounds or another feature of the property.
180	180	(f) Notwithstanding Subsections (a) and (e) and except as
181	181	provided by Subdivision (2), an improvement to property that would
182	182	otherwise constitute a new improvement is not treated as a new
183	183	improvement if the improvement is a replacement structure for a
184	184	structure that was rendered uninhabitable or unusable by a casualty
185	185	or by mold or water damage. For purposes of appraising the property
186	186	in the tax year in which the structure would have constituted a new
187	187	improvement:
188	188	(1) the appraised value of the property for the last
189	189	year in which the property was appraised for taxation before the
190	190	casualty or damage occurred is considered to be the appraised value
191	191	of the property for the preceding tax [last] year [in which the
192	192	property was appraised for taxation] for purposes of Subsection
193	193	(a)(2) [(a)(2)(A)]; and
194	194	(2) the replacement structure is considered to be a
195	195	new improvement only to the extent it is a significant improvement
196	196	over the replaced structure as that structure existed before the
197	197	casualty or damage occurred.
198	198	SECTION 3.04. Section 42.26(d), Tax Code, is amended to
199	199	read as follows:
200	200	(d) For purposes of this section, the value of the property
201	201	subject to the suit and the value of a comparable property or sample
202	202	property that is used for comparison must be the market value
203	203	determined by the appraisal district when the property is [a
204	204	residence homestead] subject to the limitation on appraised value
205	205	imposed by Section 23.23.
206	206	SECTION 3.05. 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 real
298	298	property [a residence homestead] to which Section 23.23, 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 properties [residence homesteads] to
310	310	which Section 23.23, Tax Code, applies the amount by which that
311	311	amount exceeds the appraised value of those properties as
312	312	calculated by the appraisal district under Section 23.23, Tax Code.
313	313	If 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 properties [residence homesteads] to which
322	322	Section 23.23, Tax Code, applies the amount by which that amount
323	323	exceeds the appraised value of those properties as calculated by
324	324	the appraisal district under Section 23.23, Tax Code.
325	325	SECTION 3.06. This article applies only to the appraisal
326	326	for ad valorem tax purposes of real property for a tax year that
327	327	begins on or after the effective date of this Act.
328	328	SECTION 3.07. This article takes effect January 1, 2010,
329	329	but only if the constitutional amendment proposed by the 81st
330	330	Legislature, Regular Session, 2009, to authorize the legislature to
331	331	limit the maximum appraised value of real property for ad valorem
332	332	tax purposes to 110 percent or more of the appraised value of the
333	333	property for the preceding tax year is approved by the voters. If
334	334	that amendment is not approved by the voters, this article has no
335	335	effect.
336	336	ARTICLE 4. MUNICIPAL OR COUNTY OPTIONAL SALES AND USE TAX FOR
337	337	PROPERTY TAX RELIEF
338	338	SECTION 4.01. Subtitle C, Title 3, Tax Code, is amended by
339	339	adding Chapter 326 to read as follows:
340	340	CHAPTER 326. MUNICIPAL AND COUNTY SALES AND USE TAX FOR PROPERTY
341	341	TAX RELIEF
342	342	SUBCHAPTER A. GENERAL PROVISIONS
343	343	Sec. 326.001. APPLICABLE LAW. Except as otherwise provided
344	344	by this chapter:
345	345	(1) Chapter 321 applies to the municipal tax
346	346	authorized by this chapter in the same manner as that chapter
347	347	applies to the tax authorized by that chapter; and
348	348	(2) Chapter 323 applies to the county tax authorized
349	349	by this chapter in the same manner as that chapter applies to the
350	350	tax authorized by that chapter.
351	351	Sec. 326.002. EFFECT ON COMBINED LOCAL TAX RATE. (a)
352	352	Sections 321.101 and 323.101 do not apply to the municipal or county
353	353	tax authorized by this chapter.
354	354	(b) The rate of a municipal or county sales and use tax
355	355	imposed under this chapter may not be considered in determining the
356	356	combined or overlapping rate of local sales and use taxes in any
357	357	area under this subtitle or another law, including:
358	358	(1) the Health and Safety Code;
359	359	(2) the Local Government Code;
360	360	(3) the Special District Local Laws Code; or
361	361	(4) the Transportation Code.
362	362	[Sections 326.003-326.050 reserved for expansion]
363	363	SUBCHAPTER B. IMPOSITION OF TAX
364	364	Sec. 326.051. TAX AUTHORIZED. (a) A municipality or a
365	365	county may adopt or abolish the sales and use tax authorized by this
366	366	chapter at an election held in the municipality or county.
367	367	(b) The adoption of the tax authorized by this chapter by
368	368	one political subdivision does not affect the authority of another
369	369	political subdivision that has overlapping boundaries to also adopt
370	370	the tax authorized by this chapter.
371	371	Sec. 326.052. TAX RATE. The rate of the tax authorized by
372	372	this chapter is one-half of one percent.
373	373	Sec. 326.053. SALES AND USE TAX EFFECTIVE DATE. (a) The
374	374	adoption or abolition of the tax takes effect on the first day of
375	375	the first calendar quarter occurring after the expiration of the
376	376	first complete calendar quarter occurring after the date on which
377	377	the comptroller receives a notice of the results of the election
378	378	from the municipality or county.
379	379	(b) If the comptroller determines that an effective date
380	380	provided by Subsection (a) will occur before the comptroller can
381	381	reasonably take the action required to begin collecting the tax or
382	382	to implement the abolition of the tax, the effective date may be
383	383	extended by the comptroller until the first day of the next
384	384	succeeding calendar quarter.
385	385	[Sections 326.054-326.100 reserved for expansion]
386	386	SUBCHAPTER C. TAX ELECTION PROCEDURES
387	387	Sec. 326.101. CALLING ELECTION. (a) An election
388	388	authorized by this chapter in a municipality is called by the
389	389	adoption of an ordinance by the governing body of the municipality.
390	390	(b) An election authorized by this chapter in a county is
391	391	called by the adoption of an order by the commissioners court of the
392	392	county.
393	393	(c) The governing body of a municipality or the
394	394	commissioners court may call an election on its own motion or shall
395	395	call an election if a number of qualified voters of the municipality
396	396	or county equal to at least five percent of the number of registered
397	397	voters in the municipality or county petition the governing body or
398	398	commissioners court to call the election.
399	399	Sec. 326.102. ELECTION DATE. An election under this
400	400	chapter must be held on the next uniform election date that occurs
401	401	after the date of the election order and that allows sufficient time
402	402	to comply with the requirements of other law.
403	403	Sec. 326.103. BALLOT. (a) At an election to adopt the tax,
404	404	the ballot shall be prepared to permit voting for or against the
405	405	proposition: "The adoption of a local sales and use tax in (name of
406	406	municipality or county) at the rate of one-half of one percent to
407	407	reduce the (municipal or county) property tax rate."
408	408	(b) At an election to abolish the tax, the ballot shall be
409	409	prepared to permit voting for or against the proposition: "The
410	410	abolition of the one-half of one percent sales and use tax in (name
411	411	of municipality or county) used to reduce the (municipal or county)
412	412	property tax rate."
413	413	[Sections 326.104-326.150 reserved for expansion]
414	414	SUBCHAPTER D. USE OF TAX REVENUE
415	415	Sec. 326.151. USE OF REVENUE. Any amount derived by a
416	416	municipality or county from the sales and use tax under this chapter
417	417	is additional sales and use tax revenue for purposes of Section
418	418	26.041.
419	419	SECTION 4.02. Section 26.012(1), Tax Code, is amended to
420	420	read as follows:
421	421	(1) "Additional sales and use tax" means an additional
422	422	sales and use tax imposed by:
423	423	(A) a municipality [city] under Section
424	424	321.101(b) or Chapter 326;
425	425	(B) a county under Chapter 323 or 326; or
426	426	(C) a hospital district, other than a hospital
427	427	district created on or after September 1, 2001, that:
428	428	(i) imposes the sales and use tax under
429	429	Subchapter I, Chapter 286, Health and Safety Code; or
430	430	(ii) imposes the sales and use tax under
431	431	Subchapter L, Chapter 285, Health and Safety Code.
432	432	SECTION 4.03. Section 31.01(i), Tax Code, is amended to
433	433	read as follows:
434	434	(i) For a municipality [city or town] that imposes an
435	435	additional sales and use tax under Section 321.101(b) or Chapter
436	436	326 [of this code], or a county that imposes a sales and use tax
437	437	under Chapter 323 or 326 [of this code], the tax bill shall indicate
438	438	the amount of additional ad valorem taxes, if any, that would have
439	439	been imposed on the property if additional ad valorem taxes had been
440	440	imposed in an amount equal to the amount of revenue estimated to be
441	441	collected from the additional municipal [city] sales and use tax or
442	442	from the county sales and use tax, as applicable, for the year
443	443	determined as provided by Section 26.041 [of this code].
444	444	SECTION 4.04. Sections 4.02 and 4.03 of this article apply
445	445	only to ad valorem taxes that are imposed for an ad valorem tax year
446	446	that begins on or after January 1, 2010.
447	447	SECTION 4.05. (a) Except as provided by Subsection (b) of
448	448	this section, this article takes effect September 1, 2009.
449	449	(b) Sections 4.02 and 4.03 of this article take effect
450	450	January 1, 2010.
451	451	ARTICLE 5. DEPOSIT OF CERTAIN TAXES IMPOSED IN CONNECTION WITH SALE
452	452	OR CONSUMPTION OF SCHOOL SUPPLIES TO FOUNDATION SCHOOL FUND
453	453	SECTION 5.01. Section 151.801, Tax Code, is amended by
454	454	amending Subsection (a) and adding Subsections (f) and (g) to read
455	455	as follows:
456	456	(a) Except for the amounts allocated under Subsections (b),
457	457	[and] (c), and (f), all proceeds from the collection of the taxes
458	458	imposed by this chapter shall be deposited to the credit of the
459	459	general revenue fund.
460	460	(f) The amount of the proceeds from the collection of the
461	461	taxes imposed by this chapter on the sale, storage, use, or other
462	462	consumption of a school supply shall be deposited to the credit of
463	463	the foundation school fund.
464	464	(g) The comptroller shall determine the amount to be
465	465	deposited to the foundation school fund under Subsection (f)
466	466	according to available statistical data indicating the estimated
467	467	average or actual consumption or sales of school supplies. If
468	468	satisfactory data are not available, the comptroller may require
469	469	taxpayers who make taxable sales or uses of those school supplies to
470	470	report to the comptroller as necessary to make the allocation
471	471	required by Subsection (f).
472	472	SECTION 5.02. Section 151.801(e), Tax Code, is amended by
473	473	adding Subdivision (1-a) to read as follows:
474	474	(1-a) "School supply" means:
475	475	(A) crayons;
476	476	(B) scissors;
477	477	(C) glue, paste, and glue sticks;
478	478	(D) pencils;
479	479	(E) pens;
480	480	(F) erasers;
481	481	(G) rulers;
482	482	(H) markers;
483	483	(I) highlighters;
484	484	(J) paper, including loose-leaf ruled notebook
485	485	paper, copy paper, graph paper, tracing paper, manila paper,
486	486	colored paper, poster board, and construction paper;
487	487	(K) writing tablets;
488	488	(L) spiral notebooks;
489	489	(M) bound composition notebooks;
490	490	(N) pocket folders;
491	491	(O) plastic folders;
492	492	(P) expandable portfolios;
493	493	(Q) manila folders;
494	494	(R) three-ring binders that are three inches or
495	495	less in capacity;
496	496	(S) zipper pencil bags;
497	497	(T) school supply boxes;
498	498	(U) clipboards;
499	499	(V) index cards;
500	500	(W) index card boxes;
501	501	(X) calculators;
502	502	(Y) protractors;
503	503	(Z) compasses;
504	504	(AA) music notebooks;
505	505	(BB) sketch or drawing pads;
506	506	(CC) paintbrushes;
507	507	(DD) watercolors;
508	508	(EE) acrylic, tempera, or oil paints;
509	509	(FF) tape, including masking tape and Scotch
510	510	tape;
511	511	(GG) clay and glazes;
512	512	(HH) pencil sharpeners;
513	513	(II) thesauruses; and
514	514	(JJ) dictionaries.
515	515	SECTION 5.03. The change in law made by this article does
516	516	not affect taxes collected before the effective date of this Act,
517	517	and the law in effect before the effective date of this Act is
518	518	continued in effect for purposes of the disposition of those taxes.
519	519	ARTICLE 6. EFFECTIVE DATE
520	520	SECTION 6.01. Except as otherwise provided by this Act,
521	521	this Act takes effect September 1, 2009.