82R5865 ALL-F
By: Schwertner H.B. No. 3315
A BILL TO BE ENTITLED
AN ACT
relating to an adjustment of the limitations on school district,
county, municipal, and junior college district ad valorem taxes on
residential homesteads of elderly and disabled persons and their
surviving spouses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 11.26(a), (a-1), (a-2), (c), (g), (h),
(i), and (j), 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 and for an exemption provided by Section 11.13(b) or
(n). [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 and the individual
qualified the residence homestead for a limitation provided by this
section as the limitation existed at that time, 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.
(a-1) Notwithstanding the other provisions of this section,
if in the 2007 tax year an individual qualifies for a limitation on
tax increases provided by this section, as the limitation existed
at that time, on the individual's residence homestead and the first
tax year the individual or the individual's spouse qualified for an
exemption under Section 11.13(c) for the same homestead was the
2006 tax year, the amount of the limitation provided by this section
on the homestead in the 2007 tax year is equal to the amount
computed by:
(1) multiplying the amount of tax the school district
imposed on the homestead in the 2006 tax year by a fraction the
numerator of which is the tax rate of the district for the 2007 tax
year and the denominator of which is the tax rate of the district
for the 2006 tax year; and
(2) adding any tax imposed in the 2007 tax year
attributable to improvements made in the 2006 tax year as provided
by Subsection (b) to the lesser of the amount computed under
Subdivision (1) or the amount of tax the district imposed on the
homestead in the 2006 tax year.
(a-2) Notwithstanding the other provisions of this section,
if in the 2007 tax year an individual qualifies for a limitation on
tax increases provided by this section, as the limitation existed
at that time, on the individual's residence homestead and the first
tax year the individual or the individual's spouse qualified for an
exemption under Section 11.13(c) for the same homestead was a tax
year before the 2006 tax year, the amount of the limitation provided
by this section on the homestead in the 2007 tax year is equal to the
amount computed by:
(1) multiplying the amount of tax the school district
imposed on the homestead in the 2005 tax year by a fraction the
numerator of which is the tax rate of the district for the 2006 tax
year and the denominator of which is the tax rate of the district
for the 2005 tax year;
(2) adding any tax imposed in the 2006 tax year
attributable to improvements made in the 2005 tax year as provided
by Subsection (b) to the lesser of the amount computed under
Subdivision (1) or the amount of tax the district imposed on the
homestead in the 2005 tax year;
(3) multiplying the amount computed under Subdivision
(2) by a fraction the numerator of which is the tax rate of the
district for the 2007 tax year and the denominator of which is the
tax rate of the district for the 2006 tax year; and
(4) adding to the lesser of the amount computed under
Subdivision (2) or (3) any tax imposed in the 2007 tax year
attributable to improvements made in the 2006 tax year, as provided
by Subsection (b).
(c) The limitation on tax increases required by this section
expires if on January 1:
(1) none of the owners of the structure who qualify for
the exemptions necessary to receive a limitation provided by this
section [exemption] and who owned the structure when the limitation
first took effect is using the structure as a residence homestead;
or
(2) none of the owners of the structure qualifies for
the exemptions necessary to receive a limitation provided by this
section [exemption].
(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) or (j), subsequently qualifies a different residence
homestead for the same exemption under Section 11.13(c) and an
exemption provided by Section 11.13(b) or (n) [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 under Section 11.13(c) and an
exemption provided by Section 11.13(b) or (n) 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 under Section 11.13(c) and
an exemption provided by Section 11.13(b) or (n) 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 under Section 11.13(c) and an exemption provided by
Section 11.13(b) or (n) 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) or (j), 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.
(i) If an individual who qualifies for the exemption
provided by Section 11.13(c) for an individual 65 years of age or
older and who qualifies for an exemption provided by Section
11.13(b) or (n) dies, the surviving spouse of the individual is
entitled to the limitation applicable to the residence homestead of
the individual if:
(1) the surviving spouse is 55 years of age or older
when the individual dies; and
(2) the residence homestead of the individual:
(A) is the residence homestead of the surviving
spouse on the date that the individual dies; and
(B) remains the residence homestead of the
surviving spouse.
(j) If an individual who qualifies for an exemption provided
by Section 11.13(c) for an individual 65 years of age or older dies
in the first year in which the individual qualified for the
exemption and the individual first qualified for the exemption
after the beginning of that year, the surviving spouse of the
individual is entitled to a limitation under this section on the
residence homestead as if the individual had lived for the entire
subsequent tax year and had qualified for a limitation provided by
this section in that subsequent tax year, if the surviving spouse
otherwise satisfies the conditions provided by Subsection (i)
[except as provided by Subsection (k), the amount to which the
surviving spouse's school district taxes are limited under
Subsection (i) is the amount of school district taxes imposed on the
residence homestead in that year determined as if the individual
qualifying for the exemption had lived for the entire year].
SECTION 2. Sections 11.261(b), (d), (g), and (j), Tax Code,
are amended to read as follows:
(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
both qualified that residence homestead for an [the] exemption
provided by Section 11.13(c) or (d) for a disabled individual or an
individual 65 years of age or older and qualified that residence
homestead for an exemption provided by Section 11.13(a) or (n). [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
an [the] exemption provided by Section 11.13(c) or (d) for a
disabled individual or an individual 65 years of age or older, who
qualify for an exemption provided by Section 11.13(a) or (n), 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
both an [the] exemption provided by Section 11.13(c) or (d) for a
disabled individual or an individual 65 years of age or older and
for an exemption provided by Section 11.13(a) or (n).
(g) Except as provided by Subsection (c), if an individual
who receives a limitation on county, municipal, or junior college
district tax increases provided by this section subsequently
qualifies a different residence homestead in the same county,
municipality, or junior college district for both an exemption
provided by Section 11.13(c) or (d) and an exemption provided by
Section 11.13(a) or (n) [an exemption under Section 11.13], the
county, municipality, or junior college 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 county,
municipality, or junior college district would have imposed on the
subsequently qualified homestead in the first year in which the
individual receives both an exemption provided by Section 11.13(c)
or (d) and an exemption provided by Section 11.13(a) or (n) [that
exemption] for the subsequently qualified homestead had the
limitation on tax increases provided by this section not been in
effect, multiplied by a fraction the numerator of which is the total
amount of taxes the county, municipality, or junior college
district imposed on the former homestead in the last year in which
the individual received both an exemption provided by Section
11.13(c) or (d) and an exemption provided by Section 11.13(a) or (n)
[that exemption] for the former homestead and the denominator of
which is the total amount of taxes the county, municipality, or
junior college district would have imposed on the former homestead
in the last year in which the individual received both an exemption
provided by Section 11.13(c) or (d) and an exemption provided by
Section 11.13(a) or (n) [that exemption] for the former homestead
had the limitation on tax increases provided by this section not
been in effect.
(j) If an individual who qualifies for an exemption provided
by Section 11.13(c) or (d) [is 65 years of age or older and
qualifies for a limitation on county, municipal, or junior college
district tax increases for the elderly under this section] dies in
the first year in which the individual qualified for the exemption
[limitation] and the individual first qualified for the exemption
[limitation] after the beginning of that year, the surviving spouse
of the individual is entitled to a limitation under this section on
the residence homestead as if the individual had lived for the
entire subsequent tax year and had qualified for a limitation
provided by this section in that subsequent tax year, if the
surviving spouse otherwise satisfies the conditions provided by
Subsection (i) [except as provided by Subsection (k), the amount to
which the surviving spouse's county, municipal, or junior college
district taxes are limited under Subsection (i) is the amount of
taxes imposed by the county, municipality, or junior college
district, as applicable, on the residence homestead in that year
determined as if the individual qualifying for the exemption had
lived for the entire year].
SECTION 3. Sections 11.26(k) and 11.261(k), Tax Code, are
repealed.
SECTION 4. This Act applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 5. Except as otherwise provided by this Act, this
Act takes effect January 1, 2012, but only if the constitutional
amendment proposed by the 82nd Legislature, Regular Session, 2011,
to revise the ad valorem tax limitations on residence homesteads of
elderly and disabled persons and their surviving spouses to take
into account certain residence homestead exemptions is approved by
the voters. If that constitutional amendment is not approved by the
voters, this Act has no effect.