Texas 2017 - 85th Regular

Texas House Bill HB1473 Compare Versions

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Old	New	Differences
1	1	85R4242 SMH/CAE-D
2	2	By: Bohac H.B. No. 1473
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 of the total
8	8	appraised value of the residence homesteads of certain elderly
9	9	persons and their surviving spouses.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 11.13, Tax Code, is amended by amending
12	12	Subsection (i) and adding Subsections (s) and (t) to read as
13	13	follows:
14	14	(i) The assessor and collector for a taxing unit may
15	15	disregard the exemptions authorized by Subsection (b), (c), (d),
16	16	[or] (n), (s), or (t) [of this section] and assess and collect a tax
17	17	pledged for payment of debt without deducting the amount of the
18	18	exemption if:
19	19	(1) prior to adoption of the exemption, the unit
20	20	pledged the taxes for the payment of a debt; and
21	21	(2) granting the exemption would impair the obligation
22	22	of the contract creating the debt.
23	23	(s) In addition to any other exemptions provided by this
24	24	section, an individual is entitled to an exemption from taxation of
25	25	the total appraised value of the individual's residence homestead
26	26	if:
27	27	(1) the individual is 80 years of age or older; and
28	28	(2) the individual has received an exemption under
29	29	this section for the residence homestead for at least the preceding
30	30	10 years.
31	31	(t) The surviving spouse of an individual who qualified for
32	32	an exemption under Subsection (s) is entitled to an exemption from
33	33	taxation of the total appraised value of the same property to which
34	34	the deceased spouse's exemption applied if:
35	35	(1) the deceased spouse died in a year in which the
36	36	deceased spouse qualified for the exemption;
37	37	(2) the surviving spouse was 55 years of age or older
38	38	when the deceased spouse died; and
39	39	(3) the property was the residence homestead of the
40	40	surviving spouse when the deceased spouse died and remains the
41	41	residence homestead of the surviving spouse.
42	42	SECTION 2. Section 11.42(c), Tax Code, is amended to read as
43	43	follows:
44	44	(c) An exemption authorized by Section 11.13(c), [or] (d),
45	45	or (s), 11.132, or 11.133 is effective as of January 1 of the tax
46	46	year in which the person qualifies for the exemption and applies to
47	47	the entire tax year.
48	48	SECTION 3. Sections 11.43(k), (l), (m), (o), and (q), Tax
49	49	Code, are amended to read as follows:
50	50	(k) A person who qualifies for an exemption authorized by
51	51	Section 11.13(c), [or] (d), or (s) or 11.132 must apply for the
52	52	exemption no later than the first anniversary of the date the person
53	53	qualified for the exemption.
54	54	(l) The form for an application under Section 11.13 must
55	55	include a space for the applicant to state the applicant's date of
56	56	birth. Failure to provide the date of birth does not affect the
57	57	applicant's eligibility for an exemption under that section, other
58	58	than an exemption under Section 11.13(c) or (d) for an individual 65
59	59	years of age or older or an exemption under Section 11.13(s) for an
60	60	individual 80 years of age or older.
61	61	(m) Notwithstanding Subsections (a) and (k), a person who
62	62	receives an exemption under Section 11.13, other than an exemption
63	63	under Section 11.13(c) or (d) for an individual 65 years of age or
64	64	older or an exemption under Section 11.13(s) for an individual 80
65	65	years of age or older, in a tax year is entitled to receive an
66	66	exemption under Section 11.13(c) or (d) for an individual 65 years
67	67	of age or older or an exemption under Section 11.13(s) for an
68	68	individual 80 years of age or older in the next tax year on the same
69	69	property without applying for the exemption if the person becomes
70	70	65 or 80 years of age, as applicable, in that next year as shown by:
71	71	(1) information in the records of the appraisal
72	72	district that was provided to the appraisal district by the
73	73	individual in an application for an exemption under Section 11.13
74	74	on the property or in correspondence relating to the property; or
75	75	(2) the information provided by the Texas Department
76	76	of Public Safety to the appraisal district under Section 521.049,
77	77	Transportation Code.
78	78	(o) The application form for an exemption authorized by
79	79	Section 11.13 must require an applicant for an exemption under
80	80	Subsection (c), [or] (d), or (s) of that section who is not
81	81	specifically identified on a deed or other appropriate instrument
82	82	recorded in the applicable real property records as an owner of the
83	83	residence homestead to provide an affidavit or other compelling
84	84	evidence establishing the applicant's ownership of an interest in
85	85	the homestead.
86	86	(q) A chief appraiser may not cancel an exemption under
87	87	Section 11.13 that is received by an individual who is 65 years of
88	88	age or older without first providing written notice of the
89	89	cancellation to the individual receiving the exemption. The
90	90	notice must include a form on which the individual may indicate
91	91	whether the individual is qualified to receive the exemption and a
92	92	self-addressed postage prepaid envelope with instructions for
93	93	returning the form to the chief appraiser. The chief appraiser
94	94	shall consider the individual's response on the form in determining
95	95	whether to continue to allow the exemption. If the chief appraiser
96	96	does not receive a response on or before the 60th day after the date
97	97	the notice is mailed, the chief appraiser may cancel the exemption
98	98	on or after the 30th day after the expiration of the 60-day period,
99	99	but only after making a reasonable effort to locate the individual
100	100	and determine whether the individual is qualified to receive the
101	101	exemption. For purposes of this subsection, sending an additional
102	102	notice of cancellation that includes, in bold font equal to or
103	103	greater in size than the surrounding text, the date on which the
104	104	chief appraiser is authorized to cancel the exemption to the
105	105	individual receiving the exemption immediately after the
106	106	expiration of the 60-day period by first class mail in an envelope
107	107	on which is written, in all capital letters, "RETURN SERVICE
108	108	REQUESTED," or another appropriate statement directing the United
109	109	States Postal Service to return the notice if it is not deliverable
110	110	as addressed, or providing the additional notice in another manner
111	111	that the chief appraiser determines is appropriate, constitutes a
112	112	reasonable effort on the part of the chief appraiser. This
113	113	subsection does not apply to an exemption under Section 11.13(c) or
114	114	(d) for an individual 65 years of age or older or an exemption under
115	115	Section 11.13(s) for an individual 80 years of age or older that is
116	116	canceled because the chief appraiser determines that the individual
117	117	receiving the exemption no longer owns the property subject to the
118	118	exemption.
119	119	SECTION 4. Section 26.10(b), Tax Code, is amended to read as
120	120	follows:
121	121	(b) If the appraisal roll shows that a residence homestead
122	122	exemption under Section 11.13(c), [or] (d), or (s), 11.132, or
123	123	11.133 applicable to a property on January 1 of a year terminated
124	124	during the year and if the owner of the property qualifies a
125	125	different property for one of those residence homestead exemptions
126	126	during the same year, the tax due against the former residence
127	127	homestead is calculated by:
128	128	(1) subtracting:
129	129	(A) the amount of the taxes that otherwise would
130	130	be imposed on the former residence homestead for the entire year had
131	131	the owner qualified for the residence homestead exemption for the
132	132	entire year; from
133	133	(B) the amount of the taxes that otherwise would
134	134	be imposed on the former residence homestead for the entire year had
135	135	the owner not qualified for the residence homestead exemption
136	136	during the year;
137	137	(2) multiplying the remainder determined under
138	138	Subdivision (1) by a fraction, the denominator of which is 365 and
139	139	the numerator of which is the number of days that elapsed after the
140	140	date the exemption terminated; and
141	141	(3) adding the product determined under Subdivision
142	142	(2) and the amount described by Subdivision (1)(A).
143	143	SECTION 5. Section 26.112, Tax Code, is amended to read as
144	144	follows:
145	145	Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
146	146	CERTAIN PERSONS. (a) Except as provided by Section 26.10(b), if
147	147	at any time during a tax year property is owned by an individual who
148	148	qualifies for an exemption under Section 11.13(c), [or] (d), or (s)
149	149	or 11.133, the amount of the tax due on the property for the tax year
150	150	is calculated as if the individual qualified for the exemption on
151	151	January 1 and continued to qualify for the exemption for the
152	152	remainder of the tax year.
153	153	(b) If an individual qualifies for an exemption under
154	154	Section 11.13(c), [or] (d), or (s) or 11.133 with respect to the
155	155	property after the amount of the tax due on the property is
156	156	calculated and the effect of the qualification is to reduce the
157	157	amount of the tax due on the property, the assessor for each taxing
158	158	unit shall recalculate the amount of the tax due on the property and
159	159	correct the tax roll. If the tax bill has been mailed and the tax
160	160	on the property has not been paid, the assessor shall mail a
161	161	corrected tax bill to the person in whose name the property is
162	162	listed on the tax roll or to the person's authorized agent. If the
163	163	tax on the property has been paid, the tax collector for the taxing
164	164	unit shall refund to the person who paid the tax the amount by which
165	165	the payment exceeded the tax due.
166	166	SECTION 6. Section 33.01(d), Tax Code, is amended to read as
167	167	follows:
168	168	(d) In lieu of the penalty imposed under Subsection (a), a
169	169	delinquent tax incurs a penalty of 50 percent of the amount of the
170	170	tax without regard to the number of months the tax has been
171	171	delinquent if the tax is delinquent because the property owner
172	172	received an exemption under:
173	173	(1) Section 11.13 and the chief appraiser subsequently
174	174	cancels the exemption because the residence was not the principal
175	175	residence of the property owner and the property owner received an
176	176	exemption for two or more additional residence homesteads for the
177	177	tax year in which the tax was imposed;
178	178	(2) Section 11.13(c) or (d) for a person who is 65
179	179	years of age or older and the chief appraiser subsequently cancels
180	180	the exemption because the property owner was younger than 65 years
181	181	of age; [or]
182	182	(3) Section 11.13(s) for a person who is 80 years of
183	183	age or older and the chief appraiser subsequently cancels the
184	184	exemption because the property owner was younger than 80 years of
185	185	age; or
186	186	(4) Section 11.13(q) or (t) and the chief appraiser
187	187	subsequently cancels the exemption because the property owner was
188	188	younger than 55 years of age when the property owner's spouse died.
189	189	SECTION 7. Subchapter A, Chapter 41, Education Code, is
190	190	amended by adding Section 41.0012 to read as follows:
191	191	Sec. 41.0012. COMPUTATION OF WEALTH PER STUDENT FOR
192	192	2018-2019 SCHOOL YEAR. Notwithstanding any other provision of this
193	193	chapter, in computing a school district's wealth per student for
194	194	the 2018-2019 school year, a school district's taxable value of
195	195	property under Subchapter M, Chapter 403, Government Code, is
196	196	determined as if the residence homestead exemption for a person 80
197	197	years of age or older or the person's surviving spouse under Section
198	198	1-b(n), Article VIII, Texas Constitution, as proposed by the 85th
199	199	Legislature, Regular Session, 2017, had been in effect for the 2017
200	200	tax year. This section expires September 1, 2019.
201	201	SECTION 8. Section 42.2518, Education Code, as effective
202	202	September 1, 2017, is amended by adding Subsection (a-2) and
203	203	amending Subsection (b) to read as follows:
204	204	(a-2) Beginning with the 2018-2019 school year, in addition
205	205	to state aid a school district is entitled to under Subsection (a),
206	206	a school district is also entitled to additional state aid to the
207	207	extent that state and local revenue under this chapter and Chapter
208	208	41 is less than the state and local revenue that would have been
209	209	available to the district under Chapter 41 and this chapter as those
210	210	chapters existed on September 1, 2017, if the residence homestead
211	211	exemption for a person 80 years of age or older or the person's
212	212	surviving spouse under Section 1-b(n), Article VIII, Texas
213	213	Constitution, as proposed by the joint resolution to add that
214	214	subsection adopted by the 85th Legislature, Regular Session, 2017,
215	215	had not been adopted.
216	216	(b) The lesser of the school district's currently adopted
217	217	maintenance and operations tax rate or the adopted maintenance and
218	218	operations tax rate for:
219	219	(1) the 2014 tax year is used for the purpose of
220	220	determining additional state aid under Subsection (a); and
221	221	(2) the 2017 tax year is used for the purpose of
222	222	determining additional state aid under Subsection (a-2) [this
223	223	section].
224	224	SECTION 9. Section 42.252, Education Code, is amended by
225	225	adding Subsection (f) to read as follows:
226	226	(f) Notwithstanding any other provision of this chapter, in
227	227	computing each school district's local share of program cost under
228	228	this section for the 2018-2019 school year, a school district's
229	229	taxable value of property under Subchapter M, Chapter 403,
230	230	Government Code, is determined as if the residence homestead
231	231	exemption for a person 80 years of age or older or the person's
232	232	surviving spouse under Section 1-b(n), Article VIII, Texas
233	233	Constitution, as proposed by the 85th Legislature, Regular Session,
234	234	2017, had been in effect for the 2017 tax year. This subsection
235	235	expires September 1, 2019.
236	236	SECTION 10. Section 42.302, Education Code, is amended by
237	237	adding Subsection (h) to read as follows:
238	238	(h) Notwithstanding any other provision of this chapter, in
239	239	computing a school district's enrichment tax rate ("DTR") and local
240	240	revenue ("LR") for the 2018-2019 school year, a school district's
241	241	taxable value of property under Subchapter M, Chapter 403,
242	242	Government Code, is determined as if the residence homestead
243	243	exemption for a person 80 years of age or older or the person's
244	244	surviving spouse under Section 1-b(n), Article VIII, Texas
245	245	Constitution, as proposed by the 85th Legislature, Regular Session,
246	246	2017, had been in effect for the 2017 tax year. This subsection
247	247	expires September 1, 2019.
248	248	SECTION 11. Section 44.004(c), Education Code, is amended
249	249	to read as follows:
250	250	(c) The notice of public meeting to discuss and adopt the
251	251	budget and the proposed tax rate may not be smaller than one-quarter
252	252	page of a standard-size or a tabloid-size newspaper, and the
253	253	headline on the notice must be in 18-point or larger type. Subject
254	254	to Subsection (d), the notice must:
255	255	(1) contain a statement in the following form:
256	256	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
257	257	"The (name of school district) will hold a public meeting at
258	258	(time, date, year) in (name of room, building, physical location,
259	259	city, state). The purpose of this meeting is to discuss the school
260	260	district's budget that will determine the tax rate that will be
261	261	adopted. Public participation in the discussion is invited." The
262	262	statement of the purpose of the meeting must be in bold type. In
263	263	reduced type, the notice must state: "The tax rate that is
264	264	ultimately adopted at this meeting or at a separate meeting at a
265	265	later date may not exceed the proposed rate shown below unless the
266	266	district publishes a revised notice containing the same information
267	267	and comparisons set out below and holds another public meeting to
268	268	discuss the revised notice.";
269	269	(2) contain a section entitled "Comparison of Proposed
270	270	Budget with Last Year's Budget," which must show the difference,
271	271	expressed as a percent increase or decrease, as applicable, in the
272	272	amounts budgeted for the preceding fiscal year and the amount
273	273	budgeted for the fiscal year that begins in the current tax year for
274	274	each of the following:
275	275	(A) maintenance and operations;
276	276	(B) debt service; and
277	277	(C) total expenditures;
278	278	(3) contain a section entitled "Total Appraised Value
279	279	and Total Taxable Value," which must show the total appraised value
280	280	and the total taxable value of all property and the total appraised
281	281	value and the total taxable value of new property taxable by the
282	282	district in the preceding tax year and the current tax year as
283	283	calculated under Section 26.04, Tax Code;
284	284	(4) contain a statement of the total amount of the
285	285	outstanding and unpaid bonded indebtedness of the school district;
286	286	(5) contain a section entitled "Comparison of Proposed
287	287	Rates with Last Year's Rates," which must:
288	288	(A) show in rows the tax rates described by
289	289	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
290	290	property, for columns entitled "Maintenance & Operations,"
291	291	"Interest & Sinking Fund," and "Total," which is the sum of
292	292	"Maintenance & Operations" and "Interest & Sinking Fund":
293	293	(i) the school district's "Last Year's
294	294	Rate";
295	295	(ii) the "Rate to Maintain Same Level of
296	296	Maintenance & Operations Revenue & Pay Debt Service," which:
297	297	(a) in the case of "Maintenance &
298	298	Operations," is the tax rate that, when applied to the current
299	299	taxable value for the district, as certified by the chief appraiser
300	300	under Section 26.01, Tax Code, and as adjusted to reflect changes
301	301	made by the chief appraiser as of the time the notice is prepared,
302	302	would impose taxes in an amount that, when added to state funds to
303	303	be distributed to the district under Chapter 42, would provide the
304	304	same amount of maintenance and operations taxes and state funds
305	305	distributed under Chapter 42 per student in average daily
306	306	attendance for the applicable school year that was available to the
307	307	district in the preceding school year; and
308	308	(b) in the case of "Interest & Sinking
309	309	Fund," is the tax rate that, when applied to the current taxable
310	310	value for the district, as certified by the chief appraiser under
311	311	Section 26.01, Tax Code, and as adjusted to reflect changes made by
312	312	the chief appraiser as of the time the notice is prepared, and when
313	313	multiplied by the district's anticipated collection rate, would
314	314	impose taxes in an amount that, when added to state funds to be
315	315	distributed to the district under Chapter 46 and any excess taxes
316	316	collected to service the district's debt during the preceding tax
317	317	year but not used for that purpose during that year, would provide
318	318	the amount required to service the district's debt; and
319	319	(iii) the "Proposed Rate";
320	320	(B) contain fourth and fifth columns aligned with
321	321	the columns required by Paragraph (A) that show, for each row
322	322	required by Paragraph (A):
323	323	(i) the "Local Revenue per Student," which
324	324	is computed by multiplying the district's total taxable value of
325	325	property, as certified by the chief appraiser for the applicable
326	326	school year under Section 26.01, Tax Code, and as adjusted to
327	327	reflect changes made by the chief appraiser as of the time the
328	328	notice is prepared, by the total tax rate, and dividing the product
329	329	by the number of students in average daily attendance in the
330	330	district for the applicable school year; and
331	331	(ii) the "State Revenue per Student," which
332	332	is computed by determining the amount of state aid received or to be
333	333	received by the district under Chapters 42, 43, and 46 and dividing
334	334	that amount by the number of students in average daily attendance in
335	335	the district for the applicable school year; and
336	336	(C) contain an asterisk after each calculation
337	337	for "Interest & Sinking Fund" and a footnote to the section that, in
338	338	reduced type, states "The Interest & Sinking Fund tax revenue is
339	339	used to pay for bonded indebtedness on construction, equipment, or
340	340	both. The bonds, and the tax rate necessary to pay those bonds, were
341	341	approved by the voters of this district.";
342	342	(6) contain a section entitled "Comparison of Proposed
343	343	Levy with Last Year's Levy on Average Residence," which must:
344	344	(A) show in rows the information described by
345	345	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
346	346	entitled "Last Year" and "This Year":
347	347	(i) "Average Market Value of Residences,"
348	348	determined using the same group of residences for each year;
349	349	(ii) "Average Taxable Value of Residences,"
350	350	determined after taking into account the limitation on the
351	351	appraised value of residences under Section 23.23, Tax Code, and
352	352	after subtracting all homestead exemptions applicable in each year,
353	353	other than exemptions available only to disabled persons, [or]
354	354	persons 65 years of age or older or their surviving spouses, or
355	355	persons 80 years of age or older or their surviving spouses, and
356	356	using the same group of residences for each year;
357	357	(iii) "Last Year's Rate Versus Proposed
358	358	Rate per $100 Value"; and
359	359	(iv) "Taxes Due on Average Residence,"
360	360	determined using the same group of residences for each year; and
361	361	(B) contain the following
362	362	information: "Increase (Decrease) in Taxes" expressed in dollars
363	363	and cents, which is computed by subtracting the "Taxes Due on
364	364	Average Residence" for the preceding tax year from the "Taxes Due on
365	365	Average Residence" for the current tax year;
366	366	(7) contain the following statement in bold
367	367	print: "Under state law, the dollar amount of school taxes imposed
368	368	on the residence of a person 65 years of age or older or of the
369	369	surviving spouse of such a person, if the surviving spouse was 55
370	370	years of age or older when the person died, may not be increased
371	371	above the amount paid in the first year after the person turned 65,
372	372	regardless of changes in tax rate or property value.";
373	373	(8) contain the following statement in bold
374	374	print: "Notice of Rollback Rate: The highest tax rate the
375	375	district can adopt before requiring voter approval at an election
376	376	is (the school district rollback rate determined under Section
377	377	26.08, Tax Code). This election will be automatically held if the
378	378	district adopts a rate in excess of the rollback rate of (the school
379	379	district rollback rate)."; [and]
380	380	(9) contain a section entitled "Fund Balances," which
381	381	must include the estimated amount of interest and sinking fund
382	382	balances and the estimated amount of maintenance and operation or
383	383	general fund balances remaining at the end of the current fiscal
384	384	year that are not encumbered with or by corresponding debt
385	385	obligation, less estimated funds necessary for the operation of the
386	386	district before the receipt of the first payment under Chapter 42 in
387	387	the succeeding school year; and
388	388	(10) contain the following statement in bold
389	389	print: "Under state law, the residence of a person 80 years of age
390	390	or older or of the surviving spouse of such a person, if the
391	391	surviving spouse was 55 years of age or older when the person died,
392	392	is exempt from taxes."
393	393	SECTION 12. Section 46.003, Education Code, is amended by
394	394	adding Subsection (j) to read as follows:
395	395	(j) Notwithstanding any other provision of this chapter, in
396	396	computing a district's bond tax rate ("BTR") and taxable value of
397	397	property ("DPV") for the 2018-2019 school year, a school district's
398	398	taxable value of property under Subchapter M, Chapter 403,
399	399	Government Code, is determined as if the residence homestead
400	400	exemption for a person 80 years of age or older or the person's
401	401	surviving spouse under Section 1-b(n), Article VIII, Texas
402	402	Constitution, as proposed by the 85th Legislature, Regular Session,
403	403	2017, had been in effect for the 2017 tax year. This subsection
404	404	expires September 1, 2019.
405	405	SECTION 13. Section 46.032, Education Code, is amended by
406	406	adding Subsection (e) to read as follows:
407	407	(e) Notwithstanding any other provision of this chapter, in
408	408	computing a district's existing debt tax rate ("EDTR") and taxable
409	409	value of property ("DPV") for the 2018-2019 school year, a school
410	410	district's taxable value of property under Subchapter M, Chapter
411	411	403, Government Code, is determined as if the residence homestead
412	412	exemption for a person 80 years of age or older or the person's
413	413	surviving spouse under Section 1-b(n), Article VIII, Texas
414	414	Constitution, as proposed by the 85th Legislature, Regular Session,
415	415	2017, had been in effect for the 2017 tax year. This subsection
416	416	expires September 1, 2019.
417	417	SECTION 14. Section 46.071, Education Code, is amended by
418	418	adding Subsection (a-2) and amending Subsections (b) and (c) to
419	419	read as follows:
420	420	(a-2) Beginning with the 2018-2019 school year, in addition
421	421	to state aid a school district is entitled to under Subsection (a),
422	422	a school district is also entitled to additional state aid under
423	423	this subchapter to the extent that state and local revenue used to
424	424	service debt eligible under this chapter is less than the state and
425	425	local revenue that would have been available to the district under
426	426	this chapter as it existed on September 1, 2017, if the residence
427	427	homestead exemption for a person 80 years of age or older or the
428	428	person's surviving spouse under Section 1-b(n), Article VIII, Texas
429	429	Constitution, as proposed by the 85th Legislature, Regular Session,
430	430	2017, had not been adopted.
431	431	(b) Subject to Subsections (c)-(e), additional state aid
432	432	under this section is equal to the amount by which the loss of local
433	433	interest and sinking revenue for debt service attributable to the
434	434	increase in the residence homestead exemption under Section 1-b(c),
435	435	Article VIII, Texas Constitution, and the additional limitation on
436	436	tax increases under Section 1-b(d) of that article as proposed by
437	437	S.J.R. 1, 84th Legislature, Regular Session, 2015, and the
438	438	residence homestead exemption under Section 1-b(n), Article VIII,
439	439	Texas Constitution, as proposed by the 85th Legislature, Regular
440	440	Session, 2017, is not offset by a gain in state aid under this
441	441	chapter.
442	442	(c) For the purpose of determining state aid under
443	443	Subsection (a) or (a-2) [this section], local interest and sinking
444	444	revenue for debt service is limited to revenue required to service
445	445	debt eligible under this chapter as of September 1, 2015, or as of
446	446	September 1, 2017, respectively, including refunding of the
447	447	applicable [that] debt, subject to Section 46.061. The limitation
448	448	imposed by Section 46.034(a) does not apply for the purpose of
449	449	determining state aid under Subsection (a) or (a-2) [this section].
450	450	SECTION 15. Section 403.302(d-1), Government Code, is
451	451	amended to read as follows:
452	452	(d-1) For purposes of Subsection (d), a residence homestead
453	453	that receives an exemption under Section 11.13(s) or (t), 11.131,
454	454	or 11.133, Tax Code, in the year that is the subject of the study is
455	455	not considered to be taxable property.
456	456	SECTION 16. The exemptions from ad valorem taxation of a
457	457	residence homestead authorized by Sections 11.13(s) and (t), Tax
458	458	Code, as added by this Act, apply only to taxes imposed beginning
459	459	with the 2018 tax year.
460	460	SECTION 17. This Act takes effect January 1, 2018, but only
461	461	if the constitutional amendment proposed by the 85th Legislature,
462	462	Regular Session, 2017, to exempt from ad valorem taxation the total
463	463	market value of the residence homesteads of certain elderly persons
464	464	and their surviving spouses is approved by the voters. If that
465	465	constitutional amendment is not approved by the voters, this Act
466	466	has no effect.