Texas 2015 - 84th Regular

Texas Senate Bill SB278 Compare Versions

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

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1	1	84R1648 SMH-D
2	2	By: Watson S.B. No. 278
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, a reduction of the limitation on the total amount of ad
11	11	valorem taxes that may be imposed by a school district on the
12	12	homestead of a disabled or elderly person to reflect the increased
13	13	exemption amounts, and the protection of school districts against
14	14	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 $25,000.
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	inflation rate and adding that amount to the amount of that
30	30	exemption for the preceding tax year. Each year, not later than
31	31	March 15, the comptroller shall calculate the amount of the
32	32	exemption for the current tax year and publish that amount in the
33	33	Texas Register.
34	34	(b-1) In this section:
35	35	(1) "Consumer price index" means the average over a
36	36	calendar year of the index that the comptroller considers to most
37	37	accurately report changes in the purchasing power of the dollar for
38	38	consumers in this state.
39	39	(2) "Inflation rate" means the positive amount, if
40	40	any, expressed in decimal form rounded to the nearest thousandth,
41	41	computed by determining the percentage change in the consumer price
42	42	index for the preceding calendar year as compared to the consumer
43	43	price index for the calendar year preceding that calendar year.
44	44	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
45	45	follows:
46	46	(a) The tax officials shall appraise the property to which
47	47	this section applies and calculate taxes as on other property, but
48	48	if the tax so calculated exceeds the limitation imposed by this
49	49	section, the tax imposed is the amount of the tax as limited by this
50	50	section, except as otherwise provided by this section. A school
51	51	district may not increase the total annual amount of ad valorem tax
52	52	it imposes on the residence homestead of an individual 65 years of
53	53	age or older or on the residence homestead of an individual who is
54	54	disabled, as defined by Section 11.13, above the amount of the tax
55	55	it imposed in the first tax year in which the individual qualified
56	56	that residence homestead for the applicable exemption provided by
57	57	Section 11.13(c) for an individual who is 65 years of age or older
58	58	or is disabled. If the individual qualified that residence
59	59	homestead for the exemption after the beginning of that first year
60	60	and the residence homestead remains eligible for the same exemption
61	61	for the next year, and if the school district taxes imposed on the
62	62	residence homestead in the next year are less than the amount of
63	63	taxes imposed in that first year, a school district may not
64	64	subsequently increase the total annual amount of ad valorem taxes
65	65	it imposes on the residence homestead above the amount it imposed in
66	66	the year immediately following the first year for which the
67	67	individual qualified that residence homestead for the same
68	68	exemption, except as provided by Subsection (b). If the first tax
69	69	year the individual qualified the residence homestead for the
70	70	exemption provided by Section 11.13(c) for individuals 65 years of
71	71	age or older or disabled was a tax year before the 2016 [1997] tax
72	72	year, the amount of the limitation provided by this section is the
73	73	amount of tax the school district imposed for the 2015 [1996] tax
74	74	year less an amount equal to the amount determined by multiplying
75	75	$10,000 times the tax rate of the school district for the 2016
76	76	[1997] tax year, plus any 2016 [1997] tax attributable to
77	77	improvements made in 2015 [1996], other than improvements made to
78	78	comply with governmental regulations or repairs. If the first tax
79	79	year the individual qualified the residence homestead for the
80	80	exemption provided by Section 11.13(c) for individuals 65 years of
81	81	age or older or disabled was a tax year before a tax year in which
82	82	the amount of the exemption provided by Section 11.13(b) is
83	83	increased to reflect inflation, the amount of the limitation
84	84	provided by this section is the amount of tax the school district
85	85	imposed for the tax year preceding the tax year in which the amount
86	86	of the exemption is increased less an amount equal to the amount
87	87	determined by multiplying the amount of the increase times the tax
88	88	rate of the school district for the year in which the amount of the
89	89	exemption is increased, plus any tax for the tax year in which the
90	90	amount of the exemption is increased attributable to improvements
91	91	made in the preceding tax year, other than improvements made to
92	92	comply with governmental regulations or repairs. Except as provided
93	93	by Subsection (b), a limitation on tax increases provided by this
94	94	section on a residence homestead computed under this subsection
95	95	continues to apply to the homestead in subsequent tax years until
96	96	the limitation expires.
97	97	SECTION 3. Subchapter A, Chapter 41, Education Code, is
98	98	amended by adding Section 41.0011 to read as follows:
99	99	Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR SCHOOL
100	100	YEAR IN WHICH HOMESTEAD EXEMPTION INCREASED. Notwithstanding any
101	101	other provision of this chapter, in computing a school district's
102	102	wealth per student for a school year that begins in a tax year in
103	103	which the amount of the residence homestead exemption under Section
104	104	1-b(c), Article VIII, Texas Constitution, is increased and the
105	105	amount of the limitation on tax increases under Section 1-b(d),
106	106	Article VIII, Texas Constitution, is reduced to reflect the
107	107	increased exemption amount, a school district's taxable value of
108	108	property under Subchapter M, Chapter 403, Government Code, is
109	109	determined as if the increase in the homestead exemption under
110	110	Section 1-b(c), Article VIII, Texas Constitution, and the
111	111	additional limitation on tax increases under Section 1-b(d),
112	112	Article VIII, Texas Constitution, had been in effect for the
113	113	preceding tax year.
114	114	SECTION 4. Subchapter E, Chapter 42, Education Code, is
115	115	amended by adding Section 42.2512 to read as follows:
116	116	Sec. 42.2512. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
117	117	(a) This section applies only to a school year that begins in a tax
118	118	year in which the amount of the residence homestead exemption under
119	119	Section 1-b(c), Article VIII, Texas Constitution, is increased and
120	120	the amount of the limitation on tax increases under Section 1-b(d),
121	121	Article VIII, Texas Constitution, is reduced to reflect the
122	122	increased exemption amount.
123	123	(b) Notwithstanding any other provision of this chapter, in
124	124	computing state aid to a school district for a school year to which
125	125	this section applies, the district's taxable value of property
126	126	under Subchapter M, Chapter 403, Government Code, is determined as
127	127	if the increase in the residence homestead exemption and the
128	128	additional limitation on tax increases described by Subsection (a)
129	129	had been in effect for the preceding tax year.
130	130	(c) A school district is entitled to additional state aid
131	131	for a school year to which this section applies to the extent that
132	132	state aid under this chapter based on the determination of the
133	133	district's taxable value of property as provided by Subsection (b)
134	134	does not fully compensate the district for ad valorem tax revenue
135	135	lost due to the increase in the residence homestead exemption and
136	136	the additional limitation on tax increases described by Subsection
137	137	(a). The commissioner, using information provided by the
138	138	comptroller, shall compute the amount of additional state aid to
139	139	which a district is entitled under this subsection. A determination
140	140	by the commissioner under this subsection is final and may not be
141	141	appealed.
142	142	SECTION 5. Chapter 46, Education Code, is amended by adding
143	143	Subchapter D to read as follows:
144	144	SUBCHAPTER D. ADDITIONAL STATE ASSISTANCE
145	145	Sec. 46.101. ADDITIONAL STATE ASSISTANCE FOR HOMESTEAD
146	146	EXEMPTION. (a) A school district that does not receive state
147	147	assistance under Subchapter B for the district's tax effort to pay
148	148	the principal of and interest on eligible bonds, as defined by
149	149	Section 46.033, is entitled to state assistance to fully compensate
150	150	the district for ad valorem tax revenue for that tax effort lost due
151	151	to an increase in the residence homestead exemption under Section
152	152	1-b(c), Article VIII, Texas Constitution, and a reduction of the
153	153	amount of the limitation on tax increases under Section 1-b(d),
154	154	Article VIII, Texas Constitution, to reflect the increased
155	155	exemption amount.
156	156	(b) The commissioner shall compute the amount of assistance
157	157	to which a school district is entitled under Subsection (a). A
158	158	determination by the commissioner under this section is final and
159	159	may not be appealed.
160	160	SECTION 6. Section 403.302(j), Government Code, is amended
161	161	to read as follows:
162	162	(j) For purposes of Chapter 42, Education Code, the
163	163	comptroller shall certify to the commissioner of education:
164	164	(1) [a final value for each school district computed
165	165	on a residence homestead exemption under Section 1-b(c), Article
166	166	VIII, Texas Constitution, of $5,000;
167	167	[(2)] a final value for each school district computed
168	168	on:
169	169	(A) a residence homestead exemption under
170	170	Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
171	171	(B) the effect of the additional limitation on
172	172	tax increases under Section 1-b(d), Article VIII, Texas
173	173	Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
174	174	Regular Session, 1997; [and]
175	175	(2) [(3)] a final value for each school district
176	176	computed on the effect of the reduction of the limitation on tax
177	177	increases to reflect any reduction in the school district tax rate
178	178	as provided by Section 11.26(a-1), (a-2), or (a-3), Tax Code, as
179	179	applicable;
180	180	(3) for the 2016 tax year, a final value for each
181	181	school district computed on:
182	182	(A) a residence homestead exemption under
183	183	Section 1-b(c), Article VIII, Texas Constitution, of $25,000; and
184	184	(B) the effect of the additional limitation on ad
185	185	valorem tax increases under Section 1-b(d), Article VIII, Texas
186	186	Constitution, as proposed by the joint resolution to amend that
187	187	section adopted by the 84th Legislature, Regular Session, 2015; and
188	188	(4) for each tax year after the 2016 tax year, a final
189	189	value for each school district computed on:
190	190	(A) the amount of the residence homestead
191	191	exemption under Section 1-b(c), Article VIII, Texas Constitution,
192	192	in effect for that tax year; and
193	193	(B) the effect of any reduction of the limitation
194	194	on ad valorem tax increases under Section 1-b(d), Article VIII,
195	195	Texas Constitution, to reflect any increase in the amount of the
196	196	exemption from the amount in effect for the 2016 tax year.
197	197	SECTION 7. The changes in law made by this Act to Sections
198	198	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
199	199	begins on or after January 1, 2016.
200	200	SECTION 8. This Act takes effect January 1, 2016, but only
201	201	if the constitutional amendment proposed by the 84th Legislature,
202	202	Regular Session, 2015, increasing the amount of the residence
203	203	homestead exemption from ad valorem taxation for public school
204	204	purposes from $15,000 to $25,000, providing for the increase of the
205	205	exemption amount in subsequent years to reflect inflation, and
206	206	providing for a reduction of the limitation on the total amount of
207	207	ad valorem taxes that may be imposed for those purposes on the
208	208	homestead of a disabled or elderly person to reflect the increased
209	209	exemption amounts is approved by the voters. If that constitutional
210	210	amendment is not approved by the voters, this Act has no effect.