Texas 2015 - 84th Regular

Texas Senate Bill SB1694 Compare Versions

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

Old	New	Differences
1	1	84R8904 SMH-D
2	2	By: Bettencourt S.B. No. 1694
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain exemptions from ad valorem taxation.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
10	10	follows:
11	11	(b) An adult is entitled to exemption from taxation by a
12	12	school district of $30,000 [$15,000] of the appraised value of the
13	13	adult's residence homestead, except that only $5,000 [$10,000] of
14	14	the exemption applies [does not apply] to an entity operating under
15	15	former Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those
16	16	chapters existed on May 1, 1995, as permitted by Section 11.301,
17	17	Education Code.
18	18	SECTION 2. Sections 11.251(e), (g), and (k), Tax Code, are
19	19	amended to read as follows:
20	20	(e) In determining the market value of freeport goods that
21	21	in the preceding year were assembled, manufactured, repaired,
22	22	maintained, processed, or fabricated in this state or used by the
23	23	person who acquired or imported the property in the repair or
24	24	maintenance of aircraft operated by a certificated air carrier, the
25	25	chief appraiser shall exclude the cost of equipment, machinery, or
26	26	materials that entered into and became component parts of the
27	27	freeport goods but were not themselves freeport goods or that were
28	28	not transported outside the state before the expiration of 365
29	29	[175] days, or, if applicable, the greater number of days adopted by
30	30	the taxing unit as authorized by Subsection (l), after they were
31	31	brought into this state by the property owner or acquired by the
32	32	property owner in this state. For component parts held in bulk, the
33	33	chief appraiser may use the average length of time a component part
34	34	was held in this state by the property owner during the preceding
35	35	year in determining whether the component parts were transported
36	36	out of this state before the expiration of 365 [175] days or, if
37	37	applicable, the greater number of days adopted by the taxing unit as
38	38	authorized by Subsection (l).
39	39	(g) If the property owner or the chief appraiser
40	40	demonstrates that the method provided by Subsection (d)
41	41	significantly understates or overstates the market value of the
42	42	property qualified for an exemption under Subsection (b) in the
43	43	current year, the chief appraiser shall determine the market value
44	44	of the freeport goods to be exempt by determining, according to the
45	45	property owner's records and any other available information, the
46	46	market value of those freeport goods owned by the property owner on
47	47	January 1 of the current year, excluding the cost of equipment,
48	48	machinery, or materials that entered into and became component
49	49	parts of the freeport goods but were not themselves freeport goods
50	50	or that were not transported outside the state before the
51	51	expiration of 365 [175] days, or, if applicable, the greater number
52	52	of days adopted by the taxing unit as authorized by Subsection (l),
53	53	after they were brought into this state by the property owner or
54	54	acquired by the property owner in this state.
55	55	(k) Property that meets the requirements of Article VIII,
56	56	Sections 1-j(a)(1) and (2), of the Texas Constitution and that is
57	57	transported outside of this state not later than 365 [175] days, or,
58	58	if applicable, the greater number of days adopted by the taxing unit
59	59	as authorized by Subsection (l), after the date the person who owns
60	60	it on January 1 acquired it or imported it into this state is
61	61	freeport goods regardless of whether the person who owns it on
62	62	January 1 is the person who transports it outside of this state.
63	63	SECTION 3. Section 11.26(a), Tax Code, is amended to read as
64	64	follows:
65	65	(a) The tax officials shall appraise the property to which
66	66	this section applies and calculate taxes as on other property, but
67	67	if the tax so calculated exceeds the limitation imposed by this
68	68	section, the tax imposed is the amount of the tax as limited by this
69	69	section, except as otherwise provided by this section. A school
70	70	district may not increase the total annual amount of ad valorem tax
71	71	it imposes on the residence homestead of an individual 65 years of
72	72	age or older or on the residence homestead of an individual who is
73	73	disabled, as defined by Section 11.13, above the amount of the tax
74	74	it imposed in the first tax year in which the individual qualified
75	75	that residence homestead for the applicable exemption provided by
76	76	Section 11.13(c) for an individual who is 65 years of age or older
77	77	or is disabled. If the individual qualified that residence
78	78	homestead for the exemption after the beginning of that first year
79	79	and the residence homestead remains eligible for the same exemption
80	80	for the next year, and if the school district taxes imposed on the
81	81	residence homestead in the next year are less than the amount of
82	82	taxes imposed in that first year, a school district may not
83	83	subsequently increase the total annual amount of ad valorem taxes
84	84	it imposes on the residence homestead above the amount it imposed in
85	85	the year immediately following the first year for which the
86	86	individual qualified that residence homestead for the same
87	87	exemption, except as provided by Subsection (b). If the first tax
88	88	year the individual qualified the residence homestead for the
89	89	exemption provided by Section 11.13(c) for individuals 65 years of
90	90	age or older or disabled was a tax year before the 2016 [1997] tax
91	91	year, the amount of the limitation provided by this section is the
92	92	amount of tax the school district imposed for the 2015 [1996] tax
93	93	year less an amount equal to the amount determined by multiplying
94	94	$15,000 [$10,000] times the tax rate of the school district for the
95	95	2016 [1997] tax year, plus any 2016 [1997] tax attributable to
96	96	improvements made in 2015 [1996], other than improvements made to
97	97	comply with governmental regulations or repairs.
98	98	SECTION 4. Subchapter E, Chapter 42, Education Code, is
99	99	amended by adding Section 42.2512 to read as follows:
100	100	Sec. 42.2512. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
101	101	(a) Notwithstanding Section 42.2516 or any other provision of this
102	102	chapter, a school district is entitled to additional state aid to
103	103	the extent that state aid under this chapter based on the
104	104	determination of the school district's taxable value of property as
105	105	provided under Subchapter M, Chapter 403, Government Code, does not
106	106	fully compensate the district for ad valorem tax revenue lost due to
107	107	the increase in the homestead exemption under Section 1-b(c),
108	108	Article VIII, Texas Constitution, as proposed by the joint
109	109	resolution to amend that section adopted by the 84th Legislature,
110	110	Regular Session, 2015, and the additional limitation on tax
111	111	increases under Section 1-b(d), Article VIII, Texas Constitution,
112	112	as proposed by the joint resolution to amend that section adopted by
113	113	the 84th Legislature, Regular Session, 2015.
114	114	(b) The commissioner, using information provided by the
115	115	comptroller, shall compute the amount of additional state aid to
116	116	which a district is entitled under Subsection (a). A determination
117	117	by the commissioner under this section is final and may not be
118	118	appealed.
119	119	(c) Notwithstanding any other provision of this chapter, in
120	120	computing state aid for the 2016-2017 school year, a school
121	121	district's taxable value of property under Subchapter M, Chapter
122	122	403, Government Code, is determined as if the increase in the
123	123	homestead exemption under Section 1-b(c), Article VIII, Texas
124	124	Constitution, as proposed by the joint resolution to amend that
125	125	section adopted by the 84th Legislature, Regular Session, 2015, and
126	126	the additional limitation on tax increases under Section 1-b(d),
127	127	Article VIII, Texas Constitution, as proposed by the joint
128	128	resolution to amend that section adopted by the 84th Legislature,
129	129	Regular Session, 2015, had been in effect for the 2015 tax year.
130	130	This subsection expires September 1, 2018.
131	131	SECTION 5. Section 403.302(j), Government Code, is amended
132	132	to read as follows:
133	133	(j) For purposes of Chapter 42, Education Code, the
134	134	comptroller shall certify to the commissioner of education:
135	135	(1) a final value for each school district computed on
136	136	a residence homestead exemption under Section 1-b(c), Article VIII,
137	137	Texas Constitution, of $5,000;
138	138	(2) a final value for each school district computed
139	139	on:
140	140	(A) a residence homestead exemption under
141	141	Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
142	142	(B) the effect of the additional limitation on
143	143	tax increases under Section 1-b(d), Article VIII, Texas
144	144	Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
145	145	Regular Session, 1997; [and]
146	146	(3) a final value for each school district computed on
147	147	the effect of the reduction of the limitation on tax increases to
148	148	reflect any reduction in the school district tax rate as provided by
149	149	Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable; and
150	150	(4) a final value for each school district computed
151	151	on:
152	152	(A) a residence homestead exemption under
153	153	Section 1-b(c), Article VIII, Texas Constitution, of $30,000; and
154	154	(B) the effect of the additional limitation on
155	155	tax increases under Section 1-b(d), Article VIII, Texas
156	156	Constitution, as proposed by the joint resolution to amend that
157	157	section adopted by the 84th Legislature, Regular Session, 2015.
158	158	SECTION 6. The changes in law made by this Act to Sections
159	159	11.13, 11.251, and 11.26, Tax Code, apply only to an ad valorem tax
160	160	year that begins on or after January 1, 2016.
161	161	SECTION 7. This Act takes effect January 1, 2016, but only
162	162	if the constitutional amendment proposed by the 84th Legislature,
163	163	Regular Session, 2015, increasing the amount of the residence
164	164	homestead exemption from ad valorem taxation for public school
165	165	purposes from $15,000 to $30,000, providing for a reduction of the
166	166	limitation on the total amount of ad valorem taxes that may be
167	167	imposed for those purposes on the homestead of an elderly or
168	168	disabled person to reflect the increased exemption amount, and
169	169	extending the number of days that certain tangible personal
170	170	property that is exempt from ad valorem taxation due to its
171	171	temporary location in this state may remain located in this state
172	172	before forfeiting the right to the exemption is approved by the
173	173	voters. If that constitutional amendment is not approved by the
174	174	voters, this Act has no effect.