82R668 SMH-D
By: Riddle H.B. No. 23
A BILL TO BE ENTITLED
AN ACT
relating to a local option election in a county to set a limit on the
maximum appraised value of a residence homestead for ad valorem tax
purposes of less than 110 percent but not less than 103 percent of
the appraised value of the property for the preceding tax year.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.23, Tax Code, is amended by amending
Subsection (a) and adding Subsection (g) to read as follows:
(a) Except as provided by Subsection (g), notwithstanding
[Notwithstanding] the requirements of Section 25.18, and
regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an appraisal office may increase the appraised value of a
residence homestead for a tax year to an amount not to exceed the
lesser of:
(1) the market value of the property for the most
recent tax year that the market value was determined by the
appraisal office; or
(2) the sum of:
(A) 10 percent of the appraised value of the
property for the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
(g) The commissioners court of a county may call an election
in the county to permit the voters of the county to determine by
majority vote whether a lower percentage limitation on maximum
appraised value determined in the manner provided by Subsection
(a)(2) using a percentage of less than 10 percent but not less than
three percent in place of 10 percent in Subsection (a)(2)(A) will
apply to the taxation of residence homesteads in the county by each
taxing unit having territory in the county. The election must be
held on or before the date of the next general election for state
and county officers. The ballot proposition shall specify the
proposed percentage limitation on maximum appraised value. If a
majority of the votes cast at the election favor the establishment
of the proposed limitation, the limitation applies beginning with
the tax year following the year in which the election is held and
remains in effect until amended or repealed by the voters of the
county at a subsequent election called by the commissioners court
of the county. An election called to amend or repeal a limitation
must be held on or before the date of the next general election for
state and county officers following the date the election is
called. If the voters of a county amend or repeal a limitation, the
amendment or repeal applies beginning with the tax year after the
year in which the election is held. A limitation adopted under this
subsection applies to the taxation of residence homesteads in the
county by each taxing unit having territory in the county, except
that if a taxing unit has territory in more than one county, the
highest percentage limitation on maximum appraised value under
Subsection (a)(2) or this subsection otherwise applicable in any
portion of the territory of the taxing unit applies to the taxation
of residence homesteads by the taxing unit throughout that taxing
unit's territory.
SECTION 2. Section 42.26(d), Tax Code, is amended to read as
follows:
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is a
residence homestead subject to a [the] limitation on appraised
value imposed by or authorized under Section 23.23.
SECTION 3. Sections 42.2516(f-1) and (f-2), Education Code,
are amended to read as follows:
(f-1) The commissioner shall, in accordance with rules
adopted by the commissioner, adjust the amount of a school
district's local revenue derived from maintenance and operations
tax collections, as calculated for purposes of determining the
amount of state revenue to which the district is entitled under this
section, if:
(1) the district, for the 2010 tax year or a subsequent
tax year:
(A) [(1)] adopts an exemption under Section
11.13(n), Tax Code, that was not in effect for the 2009 tax year, or
eliminates an exemption under Section 11.13(n), Tax Code, that was
in effect for the 2009 tax year;
(B) [(2)] adopts an exemption under Section
11.13(n), Tax Code, at a greater or lesser percentage than the
percentage in effect for the district for the 2009 tax year;
(C) [(3)] grants an exemption under an agreement
authorized by Chapter 312, Tax Code, that was not in effect for the
2009 tax year, or ceases to grant an exemption authorized by that
chapter that was in effect for the 2009 tax year; or
(D) [(4)] agrees to deposit taxes into a tax
increment fund created under Chapter 311, Tax Code, under a
reinvestment zone financing plan that was not in effect for the 2009
tax year, or ceases depositing taxes into a tax increment fund
created under that chapter under a reinvestment zone financing plan
that was in effect for the 2009 tax year; or
(2) for the 2012 tax year or a subsequent tax year, a
limitation adopted under Section 23.23(g), Tax Code, applies to the
taxation of residence homesteads by the district.
(f-2) The rules adopted by the commissioner under
Subsection (f-1) must:
(1) require the commissioner to determine, as if this
section did not exist, the effect under Chapter 41 and this chapter
of a school district's action described by Subsection (f-1)(1)(A),
(B), (C), or (D) or of a limitation described by Subsection (f-1)(2)
[(f-1)(1), (2), (3), or (4)] on the total state revenue to which the
district would be entitled or the cost to the district of purchasing
sufficient attendance credits to reduce the district's wealth per
student to the equalized wealth level; and
(2) require an increase or reduction in the amount of
state revenue to which a school district is entitled under
Subsection (b) that is substantially equivalent to any change in
total state revenue or the cost of purchasing attendance credits
that would apply to the district if this section did not exist.
SECTION 4. 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), 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 but without regard to any action taken under
Subsection (g) of that section.
SECTION 5. Section 403.302(i), Government Code, is amended
to read as follows:
(i) If the comptroller determines in the study that the
market value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is valid, the comptroller,
in determining the taxable value of property in the school district
under Subsection (d), shall for purposes of Subsection (d)(13)
subtract from the market value as determined by the appraisal
district of residence homesteads to which Section 23.23, Tax Code,
applies the amount by which that amount exceeds the appraised value
of those properties as calculated by the appraisal district under
Section 23.23, Tax Code, but without regard to any action taken
under Section 23.23(g) of that code. If the comptroller determines
in the study that the market value of property in a school district
as determined by the appraisal district that appraises property for
the school district, less the total of the amounts and values listed
in Subsection (d) as determined by that appraisal district, is not
valid, the comptroller, in determining the taxable value of
property in the school district under Subsection (d), shall for
purposes of Subsection (d)(13) subtract from the market value as
estimated by the comptroller of residence homesteads to which
Section 23.23, Tax Code, applies the amount by which that amount
exceeds the appraised value of those properties as calculated by
the appraisal district under Section 23.23, Tax Code, but without
regard to any action taken under Section 23.23(g) of that code.
SECTION 6. The change in law made by this Act to Section
23.23, Tax Code, applies only to the appraisal of a residence
homestead for ad valorem tax purposes for a tax year that begins on
or after January 1, 2012.
SECTION 7. This Act takes effect January 1, 2012, but only
if the constitutional amendment proposed by the 82nd Legislature,
Regular Session, 2011, authorizing the legislature to provide for a
local option election in a county to set a limit on the maximum
appraised value of a residence homestead for ad valorem tax
purposes of less than 110 percent but not less than 103 percent of
the appraised value of the property for the preceding tax year is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.