Texas 2015 - 84th Regular

Texas House Bill HB3570 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R12713 SMH-D
2	2	By: Schofield H.B. No. 3570
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an exemption from ad valorem taxation by a school
8	8	district of a percentage, rather than a dollar amount, of the
9	9	appraised value of a residence homestead, a reduction of the
10	10	limitation on the total amount of ad valorem taxes that may be
11	11	imposed by a school district on the homestead of an elderly or
12	12	disabled person to reflect any increase in the exemption amount,
13	13	and the protection of school districts against the resulting loss
14	14	in local revenue.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
17	17	follows:
18	18	(b) An adult is entitled to exemption from taxation by a
19	19	school district of 7.5 percent [$15,000] of the appraised value of
20	20	the adult's residence homestead, except that only $5,000 [$10,000]
21	21	of the exemption applies [does not apply] to an entity operating
22	22	under former Chapter 17, 18, 25, 26, 27, or 28, Education Code, as
23	23	those chapters existed on May 1, 1995, as permitted by Section
24	24	11.301, Education Code.
25	25	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
26	26	follows:
27	27	(a) The tax officials shall appraise the property to which
28	28	this section applies and calculate taxes as on other property, but
29	29	if the tax so calculated exceeds the limitation imposed by this
30	30	section, the tax imposed is the amount of the tax as limited by this
31	31	section, except as otherwise provided by this section. A school
32	32	district may not increase the total annual amount of ad valorem tax
33	33	it imposes on the residence homestead of an individual 65 years of
34	34	age or older or on the residence homestead of an individual who is
35	35	disabled, as defined by Section 11.13, above the amount of the tax
36	36	it imposed in the first tax year in which the individual qualified
37	37	that residence homestead for the applicable exemption provided by
38	38	Section 11.13(c) for an individual who is 65 years of age or older
39	39	or is disabled. If the individual qualified that residence
40	40	homestead for the exemption after the beginning of that first year
41	41	and the residence homestead remains eligible for the same exemption
42	42	for the next year, and if the school district taxes imposed on the
43	43	residence homestead in the next year are less than the amount of
44	44	taxes imposed in that first year, a school district may not
45	45	subsequently increase the total annual amount of ad valorem taxes
46	46	it imposes on the residence homestead above the amount it imposed in
47	47	the year immediately following the first year for which the
48	48	individual qualified that residence homestead for the same
49	49	exemption, except as provided by Subsection (b). If the first tax
50	50	year the individual qualified the residence homestead for the
51	51	exemption provided by Section 11.13(c) for individuals 65 years of
52	52	age or older was a tax year before the 1997 tax year, the amount of
53	53	the limitation provided by this section is the amount of tax the
54	54	school district imposed for the 1996 tax year less an amount equal
55	55	to the amount determined by multiplying $10,000 times the tax rate
56	56	of the school district for the 1997 tax year, plus any 1997 tax
57	57	attributable to improvements made in 1996, other than improvements
58	58	made to comply with governmental regulations or repairs. If the
59	59	first tax year the individual qualified the residence homestead for
60	60	the exemption provided by Section 11.13(c) for individuals 65 years
61	61	of age or older or disabled was a tax year before the 2016 tax year
62	62	and the appraised value of the homestead for the 2016 tax year is
63	63	more than $200,000, the amount of the limitation provided by this
64	64	section is the amount of tax the school district imposed for the
65	65	2015 tax year, less an amount equal to the amount computed by
66	66	subtracting $15,000 from an amount equal to 7.5 percent of the
67	67	appraised value of the homestead for the 2016 tax year and
68	68	multiplying that amount by the tax rate of the school district for
69	69	the 2016 tax year, plus any 2016 tax attributable to improvements
70	70	made in 2015, other than improvements made to comply with
71	71	governmental regulations or repairs. Except as provided by
72	72	Subsection (b), a limitation on tax increases provided by this
73	73	section on a residence homestead computed under this subsection
74	74	continues to apply to the homestead in subsequent tax years until
75	75	the limitation expires.
76	76	SECTION 3. Subchapter E, Chapter 42, Education Code, is
77	77	amended by adding Section 42.2512 to read as follows:
78	78	Sec. 42.2512. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
79	79	(a) Notwithstanding Section 42.2516 or any other provision of this
80	80	chapter, a school district is entitled to additional state aid to
81	81	the extent that state aid under this chapter based on the
82	82	determination of the school district's taxable value of property as
83	83	provided under Subchapter M, Chapter 403, Government Code, does not
84	84	fully compensate the district for ad valorem tax revenue lost due to
85	85	any increase in the homestead exemption under Section 1-b(c),
86	86	Article VIII, Texas Constitution, as proposed by the joint
87	87	resolution to amend that section adopted by the 84th Legislature,
88	88	Regular Session, 2015, and any additional limitation on tax
89	89	increases under Section 1-b(d), Article VIII, Texas Constitution,
90	90	as proposed by the joint resolution to amend that section adopted by
91	91	the 84th Legislature, Regular Session, 2015.
92	92	(b) The commissioner, using information provided by the
93	93	comptroller, shall compute the amount of additional state aid to
94	94	which a district is entitled under Subsection (a). A determination
95	95	by the commissioner under this section is final and may not be
96	96	appealed.
97	97	(c) Notwithstanding any other provision of this chapter, in
98	98	computing state aid for the 2016-2017 school year, a school
99	99	district's taxable value of property under Subchapter M, Chapter
100	100	403, Government Code, is determined as if any increase in the
101	101	homestead exemption under Section 1-b(c), Article VIII, Texas
102	102	Constitution, as proposed by the joint resolution to amend that
103	103	section adopted by the 84th Legislature, Regular Session, 2015, and
104	104	any additional limitation on tax increases under Section 1-b(d),
105	105	Article VIII, Texas Constitution, as proposed by the joint
106	106	resolution to amend that section adopted by the 84th Legislature,
107	107	Regular Session, 2015, had been in effect for the 2015 tax year.
108	108	This subsection expires September 1, 2018.
109	109	SECTION 4. Section 403.302(j), Government Code, is amended
110	110	to read as follows:
111	111	(j) For purposes of Chapter 42, Education Code, the
112	112	comptroller shall certify to the commissioner of education:
113	113	(1) a final value for each school district computed on
114	114	a residence homestead exemption under Section 1-b(c), Article VIII,
115	115	Texas Constitution, of $5,000;
116	116	(2) a final value for each school district computed
117	117	on:
118	118	(A) a residence homestead exemption under
119	119	Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
120	120	(B) the effect of the additional limitation on
121	121	tax increases under Section 1-b(d), Article VIII, Texas
122	122	Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
123	123	Regular Session, 1997; [and]
124	124	(3) a final value for each school district computed on
125	125	the effect of the reduction of the limitation on tax increases to
126	126	reflect any reduction in the school district tax rate as provided by
127	127	Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable; and
128	128	(4) a final value for each school district computed
129	129	on:
130	130	(A) a residence homestead exemption under
131	131	Section 1-b(c), Article VIII, Texas Constitution, of 7.5 percent of
132	132	the market value of the homestead; and
133	133	(B) the effect of any additional limitation on
134	134	tax increases under Section 1-b(d), Article VIII, Texas
135	135	Constitution, as proposed by the joint resolution to amend that
136	136	section adopted by the 84th Legislature, Regular Session, 2015.
137	137	SECTION 5. The changes in law made by this Act to Sections
138	138	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
139	139	begins on or after January 1, 2016.
140	140	SECTION 6. This Act takes effect January 1, 2016, but only
141	141	if the constitutional amendment proposed by the 84th Legislature,
142	142	Regular Session, 2015, providing for an exemption from ad valorem
143	143	taxation for public school purposes of 7.5 percent, rather than
144	144	$15,000, of the market value of a residence homestead and providing
145	145	for a reduction of the limitation on the total amount of ad valorem
146	146	taxes that may be imposed for those purposes on the homestead of an
147	147	elderly or disabled person to reflect any increased exemption
148	148	amount is approved by the voters. If that constitutional amendment
149	149	is not approved by the voters, this Act has no effect.