83R5347 TJB-D
By: Paxton S.B. No. 520
A BILL TO BE ENTITLED
AN ACT
relating to allowing persons acquiring a new residence homestead to
receive an ad valorem tax exemption on the homestead in the year in
which the property is acquired.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.42, Tax Code, is amended by amending
Subsection (c) and adding Subsection (c-1) to read as follows:
(c) An exemption authorized by Section 11.13(c) or (d) is
effective as of January 1 of the tax year in which the individual
[person] qualifies for the exemption and applies to the entire tax
year. If the individual acquired the property in that tax year,
each other exemption authorized by Section 11.13 for which the
individual qualifies the property in that tax year is also
effective as of January 1 of the tax year and applies to the entire
tax year.
(c-1) If an individual acquires a property after January 1
of a tax year and qualifies the property during that tax year for
one or more exemptions under Section 11.13, but the individual does
not qualify for an exemption under Section 11.13(c) or (d) for any
portion of that tax year and the property did not previously qualify
for any exemption under Section 11.13 for any portion of that tax
year, the individual may receive the exemptions for which the
individual qualifies for the portion of that tax year for which the
individual qualifies for the exemptions immediately on
qualification for the exemptions.
SECTION 2. 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 one of those residence
homestead 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 the property for each [the] residence
homestead exemption the individual received on that property 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 any [the] residence homestead
exemption on the property 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 3. Chapter 26, Tax Code, is amended by adding
Section 26.1115 to read as follows:
Sec. 26.1115. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD
GENERALLY. (a) If an individual receives one or more exemptions
under Section 11.13 for a portion of a tax year as provided by
Section 11.42(c-1), except as provided by Subsection (b), the
amount of tax due on the property for that year is calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
qualified for the exemptions for the entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
not qualified for the exemptions 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 in that year that
elapsed before the date the individual first qualified the property
for the exemptions; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
(b) If an individual receives one or more exemptions to
which Subsection (a) applies for a portion of a tax year as provided
by Section 11.42(c-1) and the exemptions terminate during the year
in which the individual acquired the property, the amount of tax due
on the property for that year is calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
qualified for the exemptions for the entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
not qualified for the exemptions 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 sum of:
(A) the number of days in that year that elapsed
before the date the individual first qualified the property for the
exemptions; and
(B) the number of days in that year that elapsed
after the date the exemptions terminated; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
(c) If an individual qualifies to receive an exemption as
described by Subsection (a) with respect to a property after the
amount of tax due on the property is calculated and if the effect of
the qualification is to reduce the amount of tax due on the
property, the assessor for each taxing unit shall recalculate the
amount of the tax due on the property and correct the tax roll. If
the tax bill has been mailed and the tax on the property has not been
paid, the assessor shall mail a corrected tax bill to the individual
in whose name the property is listed on the tax roll or to the
individual's authorized agent. If the tax on the property has been
paid, the collector for the taxing unit shall refund to the
individual who paid the tax the amount by which the payment exceeded
the tax due.
SECTION 4. Section 26.112(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Section 26.10(b), if at any time
during a tax year property is owned by an individual who qualifies
for an exemption under Section 11.13(c) or (d), the amount of the
tax due on the property for the tax year is calculated as if the
individual [person] qualified for the exemption on January 1 and
continued to qualify for the exemption for the remainder of the tax
year. If the individual acquired the property in that tax year, the
amount of the tax due on the property is calculated as if the
individual qualified on January 1 for each exemption for which the
individual qualifies the property in that tax year under Section
11.13 and continued to qualify for each exemption for the remainder
of the tax year.
SECTION 5. This Act applies only to a residence homestead
acquired on or after the effective date of this Act.
SECTION 6. This Act takes effect January 1, 2014.