82R936 SMH-D
By: Paxton H.B. No. 1104
A BILL TO BE ENTITLED
AN ACT
relating to the phasing out of ad valorem taxes on the residence
homesteads of elderly persons by 2021.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PROVISIONS APPLICABLE BEGINNING WITH 2017 TAX YEAR
SECTION 1.01. Section 11.13, Tax Code, is amended by
amending Subsection (i) and adding Subsections (s), (t), and (u) to
read as follows:
(i) The assessor and collector for a taxing unit may
disregard the exemptions authorized by Subsection (b), (c), (d),
[or] (n), or (s) [of this section] and assess and collect a tax
pledged for payment of debt without deducting the amount of the
exemption if:
(1) prior to adoption of the exemption, the unit
pledged the taxes for the payment of a debt; and
(2) granting the exemption would impair the obligation
of the contract creating the debt.
(s) This subsection expires January 1, 2021. In addition to
any other exemptions provided by this section, an individual who is
65 years of age or older is entitled to an exemption from taxation
of the following percentage of the appraised value of the
individual's residence homestead:
(1) for the 2017 tax year, 20 percent of the appraised
value of the homestead;
(2) for the 2018 tax year, 40 percent of the appraised
value of the homestead;
(3) for the 2019 tax year, 60 percent of the appraised
value of the homestead; and
(4) for the 2020 tax year, 80 percent of the appraised
value of the homestead.
(t) This subsection expires January 1, 2021. The surviving
spouse of an individual who qualified for an exemption under
Subsection (s) is entitled to an exemption for the same property in
an amount equal to the amount of the exemption for which the
deceased spouse would have qualified had the deceased spouse
continued to qualify for the exemption if:
(1) the deceased spouse died in a year in which the
deceased spouse qualified for the exemption;
(2) the surviving spouse was 55 years of age or older
when the deceased spouse died;
(3) the property was the residence homestead of the
surviving spouse when the deceased spouse died and remains the
residence homestead of the surviving spouse; and
(4) the surviving spouse has not remarried since the
death of the deceased spouse.
(u) An individual who receives an exemption under
Subsection (s) is not entitled to an exemption under Subsection
(t). This subsection expires January 1, 2021.
SECTION 1.02. Section 11.42(c), Tax Code, is amended to
read as follows:
(c) An exemption authorized by Section 11.13(c), [or] (d),
or (s) is effective as of January 1 of the tax year in which the
person qualifies for the exemption and applies to the entire tax
year.
SECTION 1.03. Sections 11.43(k), (l), and (m), Tax Code,
are amended to read as follows:
(k) A person who qualifies for an exemption authorized by
Section 11.13(c), [or] (d), or (s) must apply for the exemption no
later than the first anniversary of the date the person qualified
for the exemption.
(l) The form for an application under Section 11.13 must
include a space for the applicant to state the applicant's date of
birth. Failure to provide the date of birth does not affect the
applicant's eligibility for an exemption under that section, other
than an exemption under Section 11.13(c), [or] (d), or (s) for an
individual 65 years of age or older.
(m) Notwithstanding Subsections (a) and (k), a person who
receives an exemption under Section 11.13, other than an exemption
under Section 11.13(c), [or] (d), or (s) for an individual 65 years
of age or older, in a tax year is entitled to receive an exemption
under Section 11.13(c), [or] (d), or (s) for an individual 65 years
of age or older in the next tax year on the same property without
applying for the exemption if the person becomes 65 years of age in
that next year as shown by:
(1) information in the records of the appraisal
district that was provided to the appraisal district by the
individual in an application for an exemption under Section 11.13
on the property or in correspondence relating to the property; or
(2) the information provided by the Texas Department
of Public Safety to the appraisal district under Section 521.049,
Transportation Code.
SECTION 1.04. Section 33.01(d), Tax Code, is amended to
read as follows:
(d) In lieu of the penalty imposed under Subsection (a), a
delinquent tax incurs a penalty of 50 percent of the amount of the
tax without regard to the number of months the tax has been
delinquent if the tax is delinquent because the property owner
received an exemption under:
(1) Section 11.13 and the chief appraiser subsequently
cancels the exemption because the residence was not the principal
residence of the property owner and the property owner received an
exemption for two or more additional residence homesteads for the
tax year in which the tax was imposed;
(2) Section 11.13(c), [or] (d), or (s) for a person who
is 65 years of age or older and the chief appraiser subsequently
cancels the exemption because the property owner was younger than
65 years of age; or
(3) Section 11.13(q) or (t) and the chief appraiser
subsequently cancels the exemption because the property owner was
younger than 55 years of age when the property owner's spouse died.
SECTION 1.05. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2511 to read as follows:
Sec. 42.2511. ADDITIONAL STATE AID FOR ELDERLY RESIDENCE
HOMESTEAD EXEMPTION. (a) Notwithstanding any other provision of
this chapter, in computing state aid for the 2017-2018, 2018-2019,
2019-2020, and 2020-2021 school years, a school district's taxable
value of property under Subchapter M, Chapter 403, Government Code,
is determined as if the residence homestead exemption under Section
1-b(j-1), Article VIII, Texas Constitution, for the applicable tax
year had been in effect for the tax year preceding that tax year.
(b) Notwithstanding Section 42.2516 or any other provision
of this chapter, a school district is entitled to additional state
aid to the extent that state aid under this chapter based on the
determination of the school district's taxable value of property as
provided under Subchapter M, Chapter 403, Government Code, does not
fully compensate the district for ad valorem tax revenue lost due to
the residence homestead exemption under Section 1-b(j-1), Article
VIII, Texas Constitution, as proposed by the joint resolution to
add that subsection adopted by the 82nd Legislature, Regular
Session, 2011.
(c) The commissioner, using information provided by the
comptroller, shall compute the amount of additional state aid to
which a district is entitled under Subsection (b). A determination
by the commissioner under this section is final and may not be
appealed.
(d) This section expires September 1, 2021.
SECTION 1.06. Section 403.302(d), Government Code, as
amended by Chapters 1186 (H.B. 3676) and 1328 (H.B. 3646), Acts of
the 81st Legislature, Regular Session, 2009, is reenacted and
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), (s),
or (t), 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) 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;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(7) 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;
(8) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, 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;
(9) 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, before the expiration of the
subchapter;
(10) 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;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(13) 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 1.07. Section 403.302(j), Government Code, is
amended to read as follows:
(j) For purposes of Chapter 42, Education Code, the
comptroller shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000;
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
Regular Session, 1997; [and]
(3) a final value for each school district computed on
the effect of the reduction of the limitation on tax increases to
reflect any reduction in the school district tax rate as provided by
Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable; and
(4) a final value for each school district computed on
a residence homestead exemption under Section 1-b(j-1), Article
VIII, Texas Constitution, of 20, 40, 60, or 80 percent of the market
value of a homestead, as applicable.
SECTION 1.08. Section 403.302(m), Government Code, as added
by Chapter 1186 (H.B. 3676), Acts of the 81st Legislature, Regular
Session, 2009, is amended to conform to Section 80, Chapter 1328
(H.B. 3646), Acts of the 81st Legislature, Regular Session, 2009,
to read as follows:
(m) Subsection (d)(9) [(d)(10)] does not apply to property
that was the subject of an application under Subchapter B or C,
Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
recommended should be disapproved.
SECTION 1.09. The exemptions from ad valorem taxation of a
portion of the appraised value of a residence homestead authorized
by Sections 11.13(s) and (t), Tax Code, as added by this article,
apply only to taxes imposed for the 2017, 2018, 2019, and 2020 tax
years.
SECTION 1.10. This article takes effect January 1, 2017,
but only if the constitutional amendment proposed by the 82nd
Legislature, Regular Session, 2011, to phase out ad valorem taxes
on the residence homesteads of elderly persons by 2021 is approved
by the voters. If that amendment is not approved by the voters,
this article has no effect.
ARTICLE 2. PROVISIONS APPLICABLE BEGINNING WITH 2021 TAX YEAR
SECTION 2.01. Section 11.13, Tax Code, is amended by
amending Subsections (c), (d), and (h) and adding Subsections (s)
and (t) to read as follows:
(c) In addition to the exemption provided by Subsection (b)
[of this section], an adult who is disabled [or is 65 or older] is
entitled to an exemption from taxation by a school district of
$10,000 of the appraised value of the person's [his] residence
homestead.
(d) In addition to the exemptions provided by Subsections
(b) and (c) [of this section], an individual who is disabled [or is
65 or older] is entitled to an exemption from taxation by a taxing
unit of a portion (the amount of which is fixed as provided by
Subsection (e) [of this section]) of the appraised value of the
individual's [his] residence homestead if the exemption is adopted
either:
(1) by the governing body of the taxing unit; or
(2) by a favorable vote of a majority of the qualified
voters of the taxing unit at an election called by the governing
body of a taxing unit, and the governing body shall call the
election on the petition of at least 20 percent of the number of
qualified voters who voted in the preceding election of the taxing
unit.
(h) Joint, community, or successive owners may not each
receive the same exemption provided by or pursuant to this section
for the same residence homestead in the same year. [An eligible
disabled person who is 65 or older may not receive both a disabled
and an elderly residence homestead exemption but may choose
either.] A person may not receive an exemption under this section
for more than one residence homestead in the same year.
(s) In addition to any other exemptions provided by this
section, an individual who is 65 years of age or older is entitled
to an exemption from taxation of the total appraised value of the
individual's residence homestead.
(t) The surviving spouse of an individual who qualified for
an exemption under Subsection (s) is entitled to an exemption from
taxation of the total appraised value of the same property to which
the deceased spouse's exemption applied if:
(1) the deceased spouse died in a year in which the
deceased spouse qualified for the exemption;
(2) the surviving spouse was 55 years of age or older
when the deceased spouse died;
(3) the property was the residence homestead of the
surviving spouse when the deceased spouse died and remains the
residence homestead of the surviving spouse; and
(4) the surviving spouse has not remarried since the
death of the deceased spouse.
SECTION 2.02. The heading to Section 11.26, Tax Code, is
amended to read as follows:
Sec. 11.26. LIMITATION OF SCHOOL TAX ON HOMESTEADS OF
[ELDERLY OR] DISABLED.
SECTION 2.03. Sections 11.26(a), (d), (g), and (h), Tax
Code, are amended to read as follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual [65 years of
age or older or on the residence homestead of an individual] who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is [65 years of age or older
or is] disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). [If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older was a tax year before the 1997 tax year, the amount of
the limitation provided by this section is the amount of tax the
school district imposed for the 1996 tax year less an amount equal
to the amount determined by multiplying $10,000 times the tax rate
of the school district for the 1997 tax year, plus any 1997 tax
attributable to improvements made in 1996, other than improvements
made to comply with governmental regulations or repairs.]
(d) If the appraisal roll provides for taxation of appraised
value for a prior year because a residence homestead exemption for
[individuals 65 years of age or older or for] disabled individuals
was erroneously allowed, the tax assessor 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 the provisions of this section.
(g) Except as provided by Subsection (b), if an individual
who receives a limitation on tax increases imposed by this
section[, including a surviving spouse who receives a limitation
under Subsection (i),] subsequently qualifies a different
residence homestead for the same exemption under Section 11.13, a
school district may not impose ad valorem taxes on the subsequently
qualified homestead in a year in an amount that exceeds the amount
of taxes the school district would have imposed on the subsequently
qualified homestead in the first year in which the individual
receives that same exemption for the subsequently qualified
homestead had the limitation on tax increases imposed by this
section not been in effect, multiplied by a fraction the numerator
of which is the total amount of school district taxes imposed on the
former homestead in the last year in which the individual received
that same exemption for the former homestead and the denominator of
which is the total amount of school district taxes that would have
been imposed on the former homestead in the last year in which the
individual received that same exemption for the former homestead
had the limitation on tax increases imposed by this section not been
in effect.
(h) An individual who receives a limitation on tax increases
under this section[, including a surviving spouse who receives a
limitation under Subsection (i),] and who subsequently qualifies a
different residence homestead for an exemption under Section 11.13,
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 that
same limitation on the subsequently qualified homestead under
Subsection (g) and to calculate the amount of taxes the school
district may impose on the subsequently qualified homestead.
SECTION 2.04. The heading to Section 11.261, Tax Code, is
amended to read as follows:
Sec. 11.261. LIMITATION OF COUNTY, MUNICIPAL, OR JUNIOR
COLLEGE DISTRICT TAX ON HOMESTEADS OF DISABLED [AND ELDERLY].
SECTION 2.05. Sections 11.261(a), (b), (d), and (e), Tax
Code, are amended to read as follows:
(a) This section applies only to a county, municipality, or
junior college district that has established a limitation on the
total amount of taxes that may be imposed by the county,
municipality, or junior college district on the residence homestead
of a disabled individual [or an individual 65 years of age or older]
under Section 1-b(h), Article VIII, Texas Constitution.
(b) The tax officials shall appraise the property to which
the limitation applies 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. The county,
municipality, or junior college district may not increase the total
annual amount of ad valorem taxes the county, municipality, or
junior college district imposes on the residence homestead of a
disabled individual [or an individual 65 years of age or older]
above the amount of the taxes the county, municipality, or junior
college district imposed on the residence homestead in the first
tax year, other than a tax year preceding the tax year in which the
county, municipality, or junior college district established the
limitation described by Subsection (a), in which the individual
qualified that residence homestead for the exemption provided by
Section 11.13(c) for a disabled individual [or an individual 65
years of age or older]. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the exemption for
the next year, and if the county, municipal, or junior college
district taxes imposed on the residence homestead in the next year
are less than the amount of taxes imposed in that first year, a
county, municipality, or junior college district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed on
the residence homestead in the year immediately following the first
year, other than a tax year preceding the tax year in which the
county, municipality, or junior college district established the
limitation described by Subsection (a), for which the individual
qualified that residence homestead for the exemption.
(d) A limitation on county, municipal, or junior college
district tax increases provided by this section expires if on
January 1:
(1) none of the owners of the structure who qualify for
the exemption provided by Section 11.13(c) for a disabled
individual [or an individual 65 years of age or older] and who owned
the structure when the limitation provided by this section first
took effect is using the structure as a residence homestead; or
(2) none of the owners of the structure qualifies for
the exemption provided by Section 11.13(c) for a disabled
individual [or an individual 65 years of age or older].
(e) If the appraisal roll provides for taxation of appraised
value for a prior year because a residence homestead exemption for
disabled individuals [or individuals 65 years of age or older] was
erroneously allowed, the tax assessor for the applicable county,
municipality, or junior college district 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 the provisions of this section.
SECTION 2.06. Sections 11.43(l) and (m), Tax Code, are
amended to read as follows:
(l) The form for an application under Section 11.13 must
include a space for the applicant to state the applicant's date of
birth. Failure to provide the date of birth does not affect the
applicant's eligibility for an exemption under that section, other
than an exemption under Section 11.13(s) [11.13(c) or (d)] for an
individual 65 years of age or older.
(m) Notwithstanding Subsections (a) and (k), a person who
receives an exemption under Section 11.13, other than an exemption
under Section 11.13(s) [11.13(c) or (d)] for an individual 65 years
of age or older, in a tax year is entitled to receive an exemption
under Section 11.13(s) [11.13(c) or (d)] for an individual 65 years
of age or older in the next tax year on the same property without
applying for the exemption if the person becomes 65 years of age in
that next year as shown by:
(1) information in the records of the appraisal
district that was provided to the appraisal district by the
individual in an application for an exemption under Section 11.13
on the property or in correspondence relating to the property; or
(2) the information provided by the Texas Department
of Public Safety to the appraisal district under Section 521.049,
Transportation Code.
SECTION 2.07. Section 25.19(c), Tax Code, is amended to
read as follows:
(c) In the case of the residence homestead of a disabled
person [65 years of age or older or disabled] that is subject to the
limitation on a tax increase over the preceding year for school tax
purposes, the chief appraiser shall indicate on the notice that the
preceding year's taxes may not be increased.
SECTION 2.08. Section 26.10(b), Tax Code, is amended to
read as follows:
(b) If the appraisal roll shows that a residence homestead
exemption for [an individual 65 years of age or older or a residence
homestead exemption for] a disabled individual applicable to a
property on January 1 of a year terminated during the year and if
the owner qualifies a different property for a [one of those]
residence homestead exemption for a disabled individual
[exemptions] during the same year, the tax due against the former
residence homestead is calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the former residence homestead for the entire year had
the individual qualified for the residence homestead exemption for
the entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the former residence homestead for the entire year had
the individual not qualified for the residence homestead exemption
during the year;
(2) multiplying the remainder determined under
Subdivision (1) by a fraction, the denominator of which is 365 and
the numerator of which is the number of days that elapsed after the
date the exemption terminated; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
SECTION 2.09. The heading to Section 26.112, Tax Code, is
amended to read as follows:
Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
[ELDERLY OR] DISABLED PERSON.
SECTION 2.10. Section 31.031(a), Tax Code, is amended to
read as follows:
(a) If before the delinquency date an individual who is
disabled [or at least 65 years of age] and is qualified for an
exemption under Section 11.13(c) pays at least one-fourth of a
taxing unit's taxes imposed on property that the person owns and
occupies as a residence homestead, accompanied by notice to the
taxing unit that the person will pay the remaining taxes in
installments, the person may pay the remaining taxes without
penalty or interest in three equal installments. The first
installment must be paid before April 1, the second installment
before June 1, and the third installment before August 1.
SECTION 2.11. Section 33.01(d), Tax Code, is amended to
read as follows:
(d) In lieu of the penalty imposed under Subsection (a), a
delinquent tax incurs a penalty of 50 percent of the amount of the
tax without regard to the number of months the tax has been
delinquent if the tax is delinquent because the property owner
received an exemption under:
(1) Section 11.13 and the chief appraiser subsequently
cancels the exemption because the residence was not the principal
residence of the property owner and the property owner received an
exemption for two or more additional residence homesteads for the
tax year in which the tax was imposed;
(2) Section 11.13(s) [11.13(c) or (d)] for a person
who is 65 years of age or older and the chief appraiser subsequently
cancels the exemption because the property owner was younger than
65 years of age; or
(3) Section 11.13(t) [11.13(q)] and the chief
appraiser subsequently cancels the exemption because the property
owner was younger than 55 years of age when the property owner's
spouse died.
SECTION 2.12. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2511 to read as follows:
Sec. 42.2511. ADDITIONAL STATE AID FOR ELDERLY RESIDENCE
HOMESTEAD EXEMPTION. (a) Notwithstanding Section 42.2516 or any
other provision of this chapter, a school district is entitled to
additional state aid to the extent that state aid under this chapter
based on the determination of the school district's taxable value
of property as provided under Subchapter M, Chapter 403, Government
Code, does not fully compensate the district for ad valorem tax
revenue lost due to the residence homestead exemption under Section
1-b(j), Article VIII, Texas Constitution, as proposed by the joint
resolution to add that subsection adopted by the 82nd Legislature,
Regular Session, 2011.
(b) The commissioner, using information provided by the
comptroller, shall compute the amount of additional state aid to
which a district is entitled under Subsection (a). A determination
by the commissioner under this section is final and may not be
appealed.
(c) Notwithstanding any other provision of this chapter, in
computing state aid for the 2021-2022 school year, a school
district's taxable value of property under Subchapter M, Chapter
403, Government Code, is determined as if the residence homestead
exemption under Section 1-b(j), Article VIII, Texas Constitution,
had been in effect for the 2020 tax year. This subsection expires
September 1, 2023.
SECTION 2.13. Section 42.302(c), Education Code, is amended
to read as follows:
(c) For purposes of this section, school district taxes for
which credit is granted under Section [31.035,] 31.036[,] or
31.037, Tax Code, are considered taxes collected by the school
district as if the taxes were paid when the credit for the taxes was
granted.
SECTION 2.14. Section 44.004(c), Education Code, is amended
to read as follows:
(c) The notice of public meeting to discuss and adopt the
budget and the proposed tax rate may not be smaller than one-quarter
page of a standard-size or a tabloid-size newspaper, and the
headline on the notice must be in 18-point or larger type. Subject
to Subsection (d), the notice must:
(1) contain a statement in the following form:
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
"The (name of school district) will hold a public meeting at
(time, date, year) in (name of room, building, physical location,
city, state). The purpose of this meeting is to discuss the school
district's budget that will determine the tax rate that will be
adopted. Public participation in the discussion is invited." The
statement of the purpose of the meeting must be in bold type. In
reduced type, the notice must state: "The tax rate that is
ultimately adopted at this meeting or at a separate meeting at a
later date may not exceed the proposed rate shown below unless the
district publishes a revised notice containing the same information
and comparisons set out below and holds another public meeting to
discuss the revised notice.";
(2) contain a section entitled "Comparison of Proposed
Budget with Last Year's Budget," which must show the difference,
expressed as a percent increase or decrease, as applicable, in the
amounts budgeted for the preceding fiscal year and the amount
budgeted for the fiscal year that begins in the current tax year for
each of the following:
(A) maintenance and operations;
(B) debt service; and
(C) total expenditures;
(3) contain a section entitled "Total Appraised Value
and Total Taxable Value," which must show the total appraised value
and the total taxable value of all property and the total appraised
value and the total taxable value of new property taxable by the
district in the preceding tax year and the current tax year as
calculated under Section 26.04, Tax Code;
(4) contain a statement of the total amount of the
outstanding and unpaid bonded indebtedness of the school district;
(5) contain a section entitled "Comparison of Proposed
Rates with Last Year's Rates," which must:
(A) show in rows the tax rates described by
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
property, for columns entitled "Maintenance & Operations,"
"Interest & Sinking Fund," and "Total," which is the sum of
"Maintenance & Operations" and "Interest & Sinking Fund":
(i) the school district's "Last Year's
Rate";
(ii) the "Rate to Maintain Same Level of
Maintenance & Operations Revenue & Pay Debt Service," which:
(a) in the case of "Maintenance &
Operations," is the tax rate that, when applied to the current
taxable value for the district, as certified by the chief appraiser
under Section 26.01, Tax Code, and as adjusted to reflect changes
made by the chief appraiser as of the time the notice is prepared,
would impose taxes in an amount that, when added to state funds to
be distributed to the district under Chapter 42, would provide the
same amount of maintenance and operations taxes and state funds
distributed under Chapter 42 per student in average daily
attendance for the applicable school year that was available to the
district in the preceding school year; and
(b) in the case of "Interest & Sinking
Fund," is the tax rate that, when applied to the current taxable
value for the district, as certified by the chief appraiser under
Section 26.01, Tax Code, and as adjusted to reflect changes made by
the chief appraiser as of the time the notice is prepared, and when
multiplied by the district's anticipated collection rate, would
impose taxes in an amount that, when added to state funds to be
distributed to the district under Chapter 46 and any excess taxes
collected to service the district's debt during the preceding tax
year but not used for that purpose during that year, would provide
the amount required to service the district's debt; and
(iii) the "Proposed Rate";
(B) contain fourth and fifth columns aligned with
the columns required by Paragraph (A) that show, for each row
required by Paragraph (A):
(i) the "Local Revenue per Student," which
is computed by multiplying the district's total taxable value of
property, as certified by the chief appraiser for the applicable
school year under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, by the total tax rate, and dividing the product
by the number of students in average daily attendance in the
district for the applicable school year; and
(ii) the "State Revenue per Student," which
is computed by determining the amount of state aid received or to be
received by the district under Chapters 42, 43, and 46 and dividing
that amount by the number of students in average daily attendance in
the district for the applicable school year; and
(C) contain an asterisk after each calculation
for "Interest & Sinking Fund" and a footnote to the section that, in
reduced type, states "The Interest & Sinking Fund tax revenue is
used to pay for bonded indebtedness on construction, equipment, or
both. The bonds, and the tax rate necessary to pay those bonds,
were approved by the voters of this district.";
(6) contain a section entitled "Comparison of Proposed
Levy with Last Year's Levy on Average Residence," which must:
(A) show in rows the information described by
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
entitled "Last Year" and "This Year":
(i) "Average Market Value of Residences,"
determined using the same group of residences for each year;
(ii) "Average Taxable Value of Residences,"
determined after taking into account the limitation on the
appraised value of residences under Section 23.23, Tax Code, and
after subtracting all homestead exemptions applicable in each year,
other than exemptions available only to disabled persons or persons
65 years of age or older or their surviving spouses, and using the
same group of residences for each year;
(iii) "Last Year's Rate Versus Proposed
Rate per $100 Value"; and
(iv) "Taxes Due on Average Residence,"
determined using the same group of residences for each year; and
(B) contain the following
information: "Increase (Decrease) in Taxes" expressed in dollars
and cents, which is computed by subtracting the "Taxes Due on
Average Residence" for the preceding tax year from the "Taxes Due on
Average Residence" for the current tax year;
(7) contain the following statement in bold
print: "Under state law, the dollar amount of school taxes imposed
on the residence of a disabled person who receives a homestead
exemption because the person is disabled may not be increased above
the amount paid in the first tax year in which the person received
the exemption [65 years of age or older or of the surviving spouse
of such a person, if the surviving spouse was 55 years of age or
older when the person died, may not be increased above the amount
paid in the first year after the person turned 65], regardless of
changes in tax rate or property value.";
(8) contain the following statement in bold
print: "Notice of Rollback Rate: The highest tax rate the
district can adopt before requiring voter approval at an election
is (the school district rollback rate determined under Section
26.08, Tax Code). This election will be automatically held if the
district adopts a rate in excess of the rollback rate of (the school
district rollback rate)."; and
(9) contain a section entitled "Fund Balances," which
must include the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding debt
obligation, less estimated funds necessary for the operation of the
district before the receipt of the first payment under Chapter 42 in
the succeeding school year.
SECTION 2.15. Section 403.302(j), Government Code, is
amended to read as follows:
(j) For purposes of Chapter 42, Education Code, the
comptroller shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000;
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
Regular Session, 1997; [and]
(3) a final value for each school district computed on
the effect of the reduction of the limitation on tax increases to
reflect any reduction in the school district tax rate as provided by
Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable; and
(4) a final value for each school district computed on
a residence homestead exemption under Section 1-b(j), Article VIII,
Texas Constitution, of 100 percent of the market value of a
homestead.
SECTION 2.16. The following laws are repealed:
(1) Sections 11.13(q) and (r), Tax Code;
(2) Sections 11.26(i), (j), and (k), Tax Code;
(3) Sections 11.261(j) and (k), Tax Code; and
(4) Section 31.035, Tax Code.
SECTION 2.17. The exemptions from ad valorem taxation of a
residence homestead authorized by Sections 11.13(s) and (t), Tax
Code, as added by this article, apply only to taxes imposed
beginning with the 2021 tax year.
SECTION 2.18. (a) This article takes effect only if the
constitutional amendment proposed by the 82nd Legislature, Regular
Session, 2011, to phase out ad valorem taxes on the residence
homesteads of elderly persons by 2021 is approved by the voters. If
that amendment is not approved by the voters, this article has no
effect.
(b) If this article takes effect as provided by Subsection
(a) of this section:
(1) Section 2.12 of this Act takes effect September 1,
2021; and
(2) the other provisions of this article take effect
January 1, 2021.