By: Moody H.B. No. 2886
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation of the residence
homesteads of certain life tenants.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13(j), Tax Code, is amended to read as
follows:
(j) For purposes of this section:
(1) "Residence homestead" means a structure
(including a mobile home) or a separately secured and occupied
portion of a structure (together with the land, not to exceed 20
acres, and improvements used in the residential occupancy of the
structure, if the structure and the land and improvements have
identical ownership) that:
(A) is owned by one or more individuals, either
directly or through a beneficial interest in a qualifying trust;
(B) is designed or adapted for human residence;
(C) is used as a residence; and
(D) is occupied as his principal residence by an
owner, a surviving spouse who is a life tenant, or, for property
owned through a beneficial interest in a qualifying trust, by a
trustor of the trust who qualifies for the exemption.
(2) "Trustor" means a person who transfers an interest
in residential property to a qualifying trust, whether by deed or by
will, or the person's spouse.
(3) "Qualifying trust" means a trust:
(A) in which the agreement, will, or court order
creating the trust provides that the trustor of the trust or the
beneficiary of the trust if created by court order has the right to
use and occupy as the trustor's or beneficiary's principal
residence residential property rent free and without charge except
for taxes and other costs and expenses specified in the instrument
or court order:
(i) for life;
(ii) for the lesser of life or a term of
years; or
(iii) until the date the trust is revoked or
terminated by an instrument or court order that describes the
property with sufficient certainty to identify it and is recorded
in the real property records of the county in which the property is
located; and
(B) that acquires the property in an instrument
of title or under a court order that:
(i) describes the property with sufficient
certainty to identify it and the interest acquired;
(ii) is recorded in the real property
records of the county in which the property is located; and
(iii) in the case of a trust that is not
created by court order, is executed by the trustor or the personal
representative of the trustor.
(4) "Surviving spouse" has the meaning assigned by
Section 11.131.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2014.