83R4112 SMH-D
By: Laubenberg H.B. No. 2675
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of the former spouse of a person who is
elderly or disabled to receive a limitation on the amount of ad
valorem taxes imposed on the spouse's residence homestead by
certain taxing units.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.26, Tax Code, is amended by amending
Subsections (g), (h), (j), and (k) and adding Subsection (i-1) to
read as follows:
(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 a former spouse who receives a limitation under
Subsection (i-1), 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) or a former spouse who receives a
limitation under Subsection (i-1), 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-1) If the marriage of an individual who qualifies for the
exemption provided by Section 11.13(c) for an individual 65 years
of age or older is dissolved by divorce or annulment, the former
spouse of the individual is entitled to the limitation applicable
to the residence homestead of the individual if:
(1) the former spouse is 55 years of age or older when
the decree of divorce or annulment is signed or becomes final after
appeal; and
(2) the residence homestead of the individual:
(A) is the residence homestead of the former
spouse on the date the decree of divorce or annulment is signed or
becomes final after appeal; and
(B) remains the residence homestead of the former
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
or the marriage of such an individual is dissolved by divorce or
annulment 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, except as provided by Subsection
(k), the amount to which the surviving spouse's or former spouse's
school district taxes are limited under Subsection (i) or (i-1),
respectively, 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 or remained married for the
entire year.
(k) If in the first tax year after the year in which an
individual dies or the marriage of an individual is dissolved by
divorce or annulment in the circumstances described by Subsection
(j) the amount of school district taxes imposed on the residence
homestead of the surviving spouse or former spouse is less than the
amount of school district taxes imposed in the preceding year as
limited by Subsection (j), in a subsequent tax year the surviving
spouse's or former spouse's school district taxes on that residence
homestead are limited to the amount of taxes imposed by the district
in that first tax year after the year in which the individual dies
or the marriage of the individual is dissolved by divorce or
annulment.
SECTION 2. Section 11.261, Tax Code, is amended by adding
Subsection (i-1) and amending Subsections (j) and (k) to read as
follows:
(i-1) If the marriage of an individual who qualifies for a
limitation on county, municipal, or junior college district tax
increases under this section is dissolved by divorce or annulment,
the former spouse of the individual is entitled to the limitation on
taxes imposed by the county, municipality, or junior college
district on the residence homestead of the individual if:
(1) the former spouse is disabled or is 55 years of age
or older when the decree of divorce or annulment is signed or
becomes final after appeal; and
(2) the residence homestead of the individual:
(A) is the residence homestead of the former
spouse on the date the decree of divorce or annulment is signed or
becomes final after appeal; and
(B) remains the residence homestead of the former
spouse.
(j) If an individual who 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 or
the marriage of such an individual is dissolved by divorce or
annulment in the first year in which the individual qualified for
the limitation and the individual first qualified for the
limitation after the beginning of that year, except as provided by
Subsection (k), the amount to which the surviving spouse's or
former spouse's county, municipal, or junior college district taxes
are limited under Subsection (i) or (i-1), respectively, 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 or remained married for the entire year.
(k) If in the first tax year after the year in which an
individual who is 65 years of age or older dies or the marriage of
such an individual is dissolved by divorce or annulment under the
circumstances described by Subsection (j) the amount of taxes
imposed by a county, municipality, or junior college district on
the residence homestead of the surviving spouse or former spouse is
less than the amount of taxes imposed by the county, municipality,
or junior college district in the preceding year as limited by
Subsection (j), in a subsequent tax year the surviving spouse's or
former spouse's taxes imposed by the county, municipality, or
junior college district on that residence homestead are limited to
the amount of taxes imposed by the county, municipality, or junior
college district in that first tax year after the year in which the
individual dies or the marriage of the individual is dissolved by
divorce or annulment.
SECTION 3. 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 who are
disabled 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 person 65 years of age or older or of the
surviving spouse or former spouse of such a person, if the surviving
spouse or former spouse was 55 years of age or older when the person
died or the marriage of the person was dissolved by divorce or
annulment, 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 4. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 5. This Act takes effect January 1, 2014, but only
if the constitutional amendment relating to the eligibility of the
former spouse of a person who is elderly or disabled to receive a
limitation on the amount of ad valorem taxes imposed on the spouse's
residence homestead by certain political subdivisions is approved
by the voters. If that amendment is not approved by the voters,
this Act has no effect.