Texas 2015 - 84th Regular

Texas Senate Bill SB1328 Compare Versions

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

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1	1	84R7208 SMH-D
2	2	By: Menéndez S.B. No. 1328
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an increase in the amount of the residence homestead
8	8	exemption from ad valorem taxation by a school district and the
9	9	increase of the exemption amount in subsequent years to reflect
10	10	inflation in homestead values, a reduction of the limitation on the
11	11	total amount of ad valorem taxes that may be imposed by a school
12	12	district on the homestead of a disabled or elderly person to reflect
13	13	the increased exemption amounts, and the protection of school
14	14	districts against the resulting loss in local revenue.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Section 11.13, Tax Code, is amended by amending
17	17	Subsection (b) and adding Subsection (b-1) to read as follows:
18	18	(b) An adult is entitled to exemption from taxation by a
19	19	school district of a portion [$15,000] of the appraised value of the
20	20	adult's residence homestead in the amount provided by this
21	21	subsection, except that only $5,000 [$10,000] of the exemption
22	22	applies [does not apply] to an entity operating under former
23	23	Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters
24	24	existed on May 1, 1995, as permitted by Section 11.301, Education
25	25	Code. For the 2016 tax year, the amount of the exemption is $35,000.
26	26	For each subsequent tax year, the amount of the exemption shall be
27	27	calculated by the comptroller by multiplying the amount of the
28	28	exemption under this subsection for the preceding tax year by the
29	29	residence homestead inflation rate and adding that amount to the
30	30	amount of that exemption for the preceding tax year. Each year, not
31	31	later than March 15, the comptroller shall calculate the amount of
32	32	the exemption for the current tax year and publish that amount in
33	33	the Texas Register.
34	34	(b-1) In this section, "residence homestead inflation rate"
35	35	means the positive amount, if any, expressed in decimal form
36	36	rounded to the nearest thousandth, computed by determining the
37	37	percentage change in the median market value of residence
38	38	homesteads in this state for the preceding calendar year as
39	39	compared to the calendar year preceding that calendar year.
40	40	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
41	41	follows:
42	42	(a) The tax officials shall appraise the property to which
43	43	this section applies and calculate taxes as on other property, but
44	44	if the tax so calculated exceeds the limitation imposed by this
45	45	section, the tax imposed is the amount of the tax as limited by this
46	46	section, except as otherwise provided by this section. A school
47	47	district may not increase the total annual amount of ad valorem tax
48	48	it imposes on the residence homestead of an individual 65 years of
49	49	age or older or on the residence homestead of an individual who is
50	50	disabled, as defined by Section 11.13, above the amount of the tax
51	51	it imposed in the first tax year in which the individual qualified
52	52	that residence homestead for the applicable exemption provided by
53	53	Section 11.13(c) for an individual who is 65 years of age or older
54	54	or is disabled. If the individual qualified that residence
55	55	homestead for the exemption after the beginning of that first year
56	56	and the residence homestead remains eligible for the same exemption
57	57	for the next year, and if the school district taxes imposed on the
58	58	residence homestead in the next year are less than the amount of
59	59	taxes imposed in that first year, a school district may not
60	60	subsequently increase the total annual amount of ad valorem taxes
61	61	it imposes on the residence homestead above the amount it imposed in
62	62	the year immediately following the first year for which the
63	63	individual qualified that residence homestead for the same
64	64	exemption, except as provided by Subsection (b). If the first tax
65	65	year the individual qualified the residence homestead for the
66	66	exemption provided by Section 11.13(c) for individuals 65 years of
67	67	age or older or disabled was a tax year before the 2016 [1997] tax
68	68	year, the amount of the limitation provided by this section is the
69	69	amount of tax the school district imposed for the 2015 [1996] tax
70	70	year less an amount equal to the amount determined by multiplying
71	71	$20,000 [$10,000] times the tax rate of the school district for the
72	72	2016 [1997] tax year, plus any 2016 [1997] tax attributable to
73	73	improvements made in 2015 [1996], other than improvements made to
74	74	comply with governmental regulations or repairs. If the first tax
75	75	year the individual qualified the residence homestead for the
76	76	exemption provided by Section 11.13(c) for individuals 65 years of
77	77	age or older or disabled was a tax year before a tax year in which
78	78	the amount of the exemption provided by Section 11.13(b) is
79	79	increased to reflect inflation in residence homestead values, the
80	80	amount of the limitation provided by this section is the amount of
81	81	tax the school district imposed for the tax year preceding the tax
82	82	year in which the amount of the exemption is increased less an
83	83	amount equal to the amount determined by multiplying the amount of
84	84	the increase times the tax rate of the school district for the year
85	85	in which the amount of the exemption is increased, plus any tax for
86	86	the tax year in which the amount of the exemption is increased
87	87	attributable to improvements made in the preceding tax year, other
88	88	than improvements made to comply with governmental regulations or
89	89	repairs. Except as provided by Subsection (b), a limitation on tax
90	90	increases provided by this section on a residence homestead
91	91	computed under this subsection continues to apply to the homestead
92	92	in subsequent tax years until the limitation expires.
93	93	SECTION 3. Subchapter A, Chapter 41, Education Code, is
94	94	amended by adding Section 41.0011 to read as follows:
95	95	Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR SCHOOL
96	96	YEAR IN WHICH HOMESTEAD EXEMPTION INCREASED. Notwithstanding any
97	97	other provision of this chapter, in computing a school district's
98	98	wealth per student for a school year that begins in a tax year in
99	99	which the amount of the residence homestead exemption under Section
100	100	1-b(c), Article VIII, Texas Constitution, is increased and the
101	101	amount of the limitation on tax increases under Section 1-b(d),
102	102	Article VIII, Texas Constitution, is reduced to reflect the
103	103	increased exemption amount, a school district's taxable value of
104	104	property under Subchapter M, Chapter 403, Government Code, is
105	105	determined as if the increase in the homestead exemption under
106	106	Section 1-b(c), Article VIII, Texas Constitution, and the
107	107	additional limitation on tax increases under Section 1-b(d),
108	108	Article VIII, Texas Constitution, had been in effect for the
109	109	preceding tax year.
110	110	SECTION 4. Subchapter E, Chapter 42, Education Code, is
111	111	amended by adding Section 42.2512 to read as follows:
112	112	Sec. 42.2512. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
113	113	(a) This section applies only to a school year that begins in a tax
114	114	year in which the amount of the residence homestead exemption under
115	115	Section 1-b(c), Article VIII, Texas Constitution, is increased and
116	116	the amount of the limitation on tax increases under Section 1-b(d),
117	117	Article VIII, Texas Constitution, is reduced to reflect the
118	118	increased exemption amount.
119	119	(b) Notwithstanding any other provision of this chapter, in
120	120	computing state aid to a school district for a school year to which
121	121	this section applies, the district's taxable value of property
122	122	under Subchapter M, Chapter 403, Government Code, is determined as
123	123	if the increase in the residence homestead exemption and the
124	124	additional limitation on tax increases described by Subsection (a)
125	125	had been in effect for the preceding tax year.
126	126	(c) A school district is entitled to additional state aid
127	127	for a school year to which this section applies to the extent that
128	128	state aid under this chapter based on the determination of the
129	129	district's taxable value of property as provided by Subsection (b)
130	130	does not fully compensate the district for ad valorem tax revenue
131	131	lost due to the increase in the residence homestead exemption and
132	132	the additional limitation on tax increases described by Subsection
133	133	(a). The commissioner, using information provided by the
134	134	comptroller, shall compute the amount of additional state aid to
135	135	which a district is entitled under this subsection. A determination
136	136	by the commissioner under this subsection is final and may not be
137	137	appealed.
138	138	SECTION 5. Chapter 46, Education Code, is amended by adding
139	139	Subchapter D to read as follows:
140	140	SUBCHAPTER D. ADDITIONAL STATE ASSISTANCE
141	141	Sec. 46.101. ADDITIONAL STATE ASSISTANCE FOR HOMESTEAD
142	142	EXEMPTION. (a) A school district that does not receive state
143	143	assistance under Subchapter B for the district's tax effort to pay
144	144	the principal of and interest on eligible bonds, as defined by
145	145	Section 46.033, is entitled to state assistance to fully compensate
146	146	the district for ad valorem tax revenue for that tax effort lost due
147	147	to an increase in the residence homestead exemption under Section
148	148	1-b(c), Article VIII, Texas Constitution, and a reduction of the
149	149	amount of the limitation on tax increases under Section 1-b(d),
150	150	Article VIII, Texas Constitution, to reflect the increased
151	151	exemption amount.
152	152	(b) The commissioner shall compute the amount of assistance
153	153	to which a school district is entitled under Subsection (a). A
154	154	determination by the commissioner under this section is final and
155	155	may not be appealed.
156	156	SECTION 6. Section 403.302(j), Government Code, is amended
157	157	to read as follows:
158	158	(j) For purposes of Chapter 42, Education Code, the
159	159	comptroller shall certify to the commissioner of education:
160	160	(1) [a final value for each school district computed
161	161	on a residence homestead exemption under Section 1-b(c), Article
162	162	VIII, Texas Constitution, of $5,000;
163	163	[(2)] a final value for each school district computed
164	164	on:
165	165	(A) a residence homestead exemption under
166	166	Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
167	167	(B) the effect of the additional limitation on
168	168	tax increases under Section 1-b(d), Article VIII, Texas
169	169	Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
170	170	Regular Session, 1997; [and]
171	171	(2) [(3)] a final value for each school district
172	172	computed on the effect of the reduction of the limitation on tax
173	173	increases to reflect any reduction in the school district tax rate
174	174	as provided by Section 11.26(a-1), (a-2), or (a-3), Tax Code, as
175	175	applicable;
176	176	(3) for the 2016 tax year, a final value for each
177	177	school district computed on:
178	178	(A) a residence homestead exemption under
179	179	Section 1-b(c), Article VIII, Texas Constitution, of $35,000; and
180	180	(B) the effect of the additional limitation on ad
181	181	valorem tax increases under Section 1-b(d), Article VIII, Texas
182	182	Constitution, as proposed by the joint resolution to amend that
183	183	section adopted by the 84th Legislature, Regular Session, 2015; and
184	184	(4) for each tax year after the 2016 tax year, a final
185	185	value for each school district computed on:
186	186	(A) the amount of the residence homestead
187	187	exemption under Section 1-b(c), Article VIII, Texas Constitution,
188	188	in effect for that tax year; and
189	189	(B) the effect of any reduction of the limitation
190	190	on ad valorem tax increases under Section 1-b(d), Article VIII,
191	191	Texas Constitution, to reflect any increase in the amount of the
192	192	exemption from the amount in effect for the 2016 tax year.
193	193	SECTION 7. The changes in law made by this Act to Sections
194	194	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
195	195	begins on or after January 1, 2016.
196	196	SECTION 8. This Act takes effect January 1, 2016, but only
197	197	if the constitutional amendment proposed by the 84th Legislature,
198	198	Regular Session, 2015, increasing the amount of the residence
199	199	homestead exemption from ad valorem taxation for public school
200	200	purposes from $15,000 to $35,000, providing for the increase of the
201	201	exemption amount in subsequent years to reflect inflation in
202	202	homestead values, and providing for a reduction of the limitation
203	203	on the total amount of ad valorem taxes that may be imposed for
204	204	those purposes on the homestead of a disabled or elderly person to
205	205	reflect the increased exemption amounts is approved by the voters.
206	206	If that constitutional amendment is not approved by the voters,
207	207	this Act has no effect.