Texas 2017 - 85th Regular

Texas House Bill HB1679 Compare Versions

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

Old	New	Differences
1	1	85R8359 SMH/CAE-D
2	2	By: Schofield H.B. No. 1679
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 dollar amount or a percentage, whichever is greater,
9	9	of the 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 $25,000 of the appraised value of the adult's
20	20	residence homestead or 13 percent of the appraised value of the
21	21	adult's residence homestead, whichever is greater, except that only
22	22	$5,000 of the exemption applies 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.
26	26	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
27	27	follows:
28	28	(a) The tax officials shall appraise the property to which
29	29	this section applies and calculate taxes as on other property, but
30	30	if the tax so calculated exceeds the limitation imposed by this
31	31	section, the tax imposed is the amount of the tax as limited by this
32	32	section, except as otherwise provided by this section. A school
33	33	district may not increase the total annual amount of ad valorem tax
34	34	it imposes on the residence homestead of an individual 65 years of
35	35	age or older or on the residence homestead of an individual who is
36	36	disabled, as defined by Section 11.13, above the amount of the tax
37	37	it imposed in the first tax year in which the individual qualified
38	38	that residence homestead for the applicable exemption provided by
39	39	Section 11.13(c) for an individual who is 65 years of age or older
40	40	or is disabled. If the individual qualified that residence
41	41	homestead for the exemption after the beginning of that first year
42	42	and the residence homestead remains eligible for the same exemption
43	43	for the next year, and if the school district taxes imposed on the
44	44	residence homestead in the next year are less than the amount of
45	45	taxes imposed in that first year, a school district may not
46	46	subsequently increase the total annual amount of ad valorem taxes
47	47	it imposes on the residence homestead above the amount it imposed in
48	48	the year immediately following the first year for which the
49	49	individual qualified that residence homestead for the same
50	50	exemption, except as provided by Subsection (b). If the first tax
51	51	year the individual qualified the residence homestead for the
52	52	exemption provided by Section 11.13(c) for individuals 65 years of
53	53	age or older or disabled was a tax year before the 2015 tax year, the
54	54	amount of the limitation provided by this section is the amount of
55	55	tax the school district imposed for the 2014 tax year less an amount
56	56	equal to the amount determined by multiplying $10,000 times the tax
57	57	rate of the school district for the 2015 tax year, plus any 2015 tax
58	58	attributable to improvements made in 2014, other than improvements
59	59	made to comply with governmental regulations or repairs. If the
60	60	first tax year the individual qualified the residence homestead for
61	61	the exemption provided by Section 11.13(c) for individuals 65 years
62	62	of age or older or disabled was a tax year before the 2018 tax year
63	63	and the appraised value of the homestead for the 2018 tax year is
64	64	more than $192,308, the amount of the limitation provided by this
65	65	section is the amount of tax the school district imposed for the
66	66	2017 tax year, less an amount equal to the amount computed by
67	67	subtracting $25,000 from an amount equal to 13 percent of the
68	68	appraised value of the homestead for the 2018 tax year and
69	69	multiplying that amount by the tax rate of the school district for
70	70	the 2018 tax year, plus any 2018 tax attributable to improvements
71	71	made in 2017, other than improvements made to comply with
72	72	governmental regulations or repairs. Except as provided by
73	73	Subsection (b), a limitation on tax increases provided by this
74	74	section on a residence homestead computed under this subsection
75	75	continues to apply to the homestead in subsequent tax years until
76	76	the limitation expires.
77	77	SECTION 3. Subchapter A, Chapter 41, Education Code, is
78	78	amended by adding Section 41.0011 to read as follows:
79	79	Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR
80	80	2018-2019 SCHOOL YEAR. Notwithstanding any other provision of
81	81	this chapter, in computing a school district's wealth per student
82	82	for the 2018-2019 school year, a school district's taxable value of
83	83	property under Subchapter M, Chapter 403, Government Code, is
84	84	determined as if any increase in the residence homestead exemption
85	85	under Section 1-b(c), Article VIII, Texas Constitution, and any
86	86	additional limitation on tax increases under Section 1-b(d) of that
87	87	article in effect for the 2018 tax year as proposed by the 85th
88	88	Legislature, Regular Session, 2017, had been in effect for the 2017
89	89	tax year. This section expires September 1, 2019.
90	90	SECTION 4. Section 42.2518, Education Code, as effective
91	91	September 1, 2017, is amended by amending Subsections (a) and (b)
92	92	and adding Subsection (a-1) to read as follows:
93	93	(a) For [Beginning with] the 2017-2018 school year, a school
94	94	district is entitled to additional state aid to the extent that
95	95	state and local revenue under this chapter and Chapter 41 is less
96	96	than the state and local revenue that would have been available to
97	97	the district under Chapter 41 and this chapter as those chapters
98	98	existed on September 1, 2015, excluding any state aid that would
99	99	have been provided under former Section 42.2516, if the increase in
100	100	the residence homestead exemption under Section 1-b(c), Article
101	101	VIII, Texas Constitution, and the additional limitation on tax
102	102	increases under Section 1-b(d) of that article as proposed by
103	103	S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
104	104	occurred.
105	105	(a-1) Beginning with the 2018-2019 school year, a school
106	106	district is entitled to additional state aid to the extent that
107	107	state and local revenue under this chapter and Chapter 41 is less
108	108	than the state and local revenue that would have been available to
109	109	the district under Chapter 41 and this chapter as those chapters
110	110	existed on September 1, 2017, if any increase in the residence
111	111	homestead exemption under Section 1-b(c), Article VIII, Texas
112	112	Constitution, as proposed by the joint resolution to amend that
113	113	subsection adopted by the 85th Legislature, Regular Session, 2017,
114	114	and any additional limitation on tax increases under Section 1-b(d)
115	115	of that article as proposed by the joint resolution to amend that
116	116	subsection adopted by the 85th Legislature, Regular Session, 2017,
117	117	had not occurred.
118	118	(b) The lesser of the school district's currently adopted
119	119	maintenance and operations tax rate or the adopted maintenance and
120	120	operations tax rate for:
121	121	(1) the 2014 tax year is used for the purpose of
122	122	determining additional state aid under Subsection (a); and
123	123	(2) the 2017 tax year is used for the purpose of
124	124	determining additional state aid under Subsection (a-1) [this
125	125	section].
126	126	SECTION 5. Section 42.252, Education Code, is amended by
127	127	adding Subsection (e) to read as follows:
128	128	(e) Notwithstanding any other provision of this chapter, in
129	129	computing each school district's local share of program cost under
130	130	this section for the 2018-2019 school year, a school district's
131	131	taxable value of property under Subchapter M, Chapter 403,
132	132	Government Code, is determined as if any increase in the residence
133	133	homestead exemption under Section 1-b(c), Article VIII, Texas
134	134	Constitution, and any additional limitation on tax increases under
135	135	Section 1-b(d) of that article in effect for the 2018 tax year as
136	136	proposed by the 85th Legislature, Regular Session, 2017, had been
137	137	in effect for the 2017 tax year. This subsection expires September
138	138	1, 2019.
139	139	SECTION 6. Section 42.302, Education Code, is amended by
140	140	adding Subsection (g) to read as follows:
141	141	(g) Notwithstanding any other provision of this chapter, in
142	142	computing a school district's enrichment tax rate ("DTR") and local
143	143	revenue ("LR") for the 2018-2019 school year, a school district's
144	144	taxable value of property under Subchapter M, Chapter 403,
145	145	Government Code, is determined as if any increase in the residence
146	146	homestead exemption under Section 1-b(c), Article VIII, Texas
147	147	Constitution, and any additional limitation on tax increases under
148	148	Section 1-b(d) of that article in effect for the 2018 tax year as
149	149	proposed by the 85th Legislature, Regular Session, 2017, had been
150	150	in effect for the 2017 tax year. This subsection expires September
151	151	1, 2019.
152	152	SECTION 7. Section 46.003, Education Code, is amended by
153	153	adding Subsection (i) to read as follows:
154	154	(i) Notwithstanding any other provision of this chapter, in
155	155	computing a district's bond tax rate ("BTR") and taxable value of
156	156	property ("DPV") for the 2018-2019 school year, a school district's
157	157	taxable value of property under Subchapter M, Chapter 403,
158	158	Government Code, is determined as if any increase in the residence
159	159	homestead exemption under Section 1-b(c), Article VIII, Texas
160	160	Constitution, and any additional limitation on tax increases under
161	161	Section 1-b(d) of that article in effect for the 2018 tax year as
162	162	proposed by the 85th Legislature, Regular Session, 2017, had been
163	163	in effect for the 2017 tax year. This subsection expires September
164	164	1, 2019.
165	165	SECTION 8. Section 46.032, Education Code, is amended by
166	166	adding Subsection (d) to read as follows:
167	167	(d) Notwithstanding any other provision of this chapter, in
168	168	computing a district's existing debt tax rate ("EDTR") and taxable
169	169	value of property ("DPV") for the 2018-2019 school year, a school
170	170	district's taxable value of property under Subchapter M, Chapter
171	171	403, Government Code, is determined as if any increase in the
172	172	residence homestead exemption under Section 1-b(c), Article VIII,
173	173	Texas Constitution, and any additional limitation on tax increases
174	174	under Section 1-b(d) of that article in effect for the 2018 tax year
175	175	as proposed by the 85th Legislature, Regular Session, 2017, had
176	176	been in effect for the 2017 tax year. This subsection expires
177	177	September 1, 2019.
178	178	SECTION 9. Section 46.071, Education Code, is amended by
179	179	amending Subsections (a), (b), and (c) and adding Subsections
180	180	(a-1), (b-1), and (c-1) to read as follows:
181	181	(a) Beginning with the 2015-2016 school year and continuing
182	182	through the 2017-2018 school year, a school district is entitled to
183	183	additional state aid under this subchapter to the extent that state
184	184	and local revenue used to service debt eligible under this chapter
185	185	is less than the state and local revenue that would have been
186	186	available to the district under this chapter as it existed on
187	187	September 1, 2015, if the increase in the residence homestead
188	188	exemption under Section 1-b(c), Article VIII, Texas Constitution,
189	189	and the additional limitation on tax increases under Section 1-b(d)
190	190	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
191	191	Session, 2015, had not occurred.
192	192	(a-1) Beginning with the 2018-2019 school year, a school
193	193	district is entitled to additional state aid under this subchapter
194	194	to the extent that state and local revenue used to service debt
195	195	eligible under this chapter is less than the state and local revenue
196	196	that would have been available to the district under this chapter as
197	197	it existed on September 1, 2017, if any increase in the residence
198	198	homestead exemption under Section 1-b(c), Article VIII, Texas
199	199	Constitution, and any additional limitation on tax increases under
200	200	Section 1-b(d) of that article as proposed by the 85th Legislature,
201	201	Regular Session, 2017, had not occurred.
202	202	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
203	203	additional state aid under this section through the 2017-2018
204	204	school year is equal to the amount by which the loss of local
205	205	interest and sinking revenue for debt service attributable to the
206	206	increase in the residence homestead exemption under Section 1-b(c),
207	207	Article VIII, Texas Constitution, and the additional limitation on
208	208	tax increases under Section 1-b(d) of that article as proposed by
209	209	S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
210	210	a gain in state aid under this chapter.
211	211	(b-1) Subject to Subsections (c-1), (d), and (e),
212	212	additional state aid under this section beginning with the
213	213	2018-2019 school year is equal to the amount by which the loss of
214	214	local interest and sinking revenue for debt service attributable to
215	215	any increase in the residence homestead exemption under Section
216	216	1-b(c), Article VIII, Texas Constitution, and any additional
217	217	limitation on tax increases under Section 1-b(d) of that article as
218	218	proposed by the 85th Legislature, Regular Session, 2017, is not
219	219	offset by a gain in state aid under this chapter.
220	220	(c) For the purpose of determining state aid under
221	221	Subsections (a) and (b) [this section], local interest and sinking
222	222	revenue for debt service is limited to revenue required to service
223	223	debt eligible under this chapter as of September 1, 2015, including
224	224	refunding of that debt, subject to Section 46.061. The limitation
225	225	imposed by Section 46.034(a) does not apply for the purpose of
226	226	determining state aid under this section.
227	227	(c-1) For the purpose of determining state aid under
228	228	Subsections (a-1) and (b-1), local interest and sinking revenue for
229	229	debt service is limited to revenue required to service debt
230	230	eligible under this chapter as of September 1, 2017, including
231	231	refunding of that debt, subject to Section 46.061. The limitation
232	232	imposed by Section 46.034(a) does not apply for the purpose of
233	233	determining state aid under this section.
234	234	SECTION 10. The changes in law made by this Act to Sections
235	235	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
236	236	begins on or after January 1, 2018.
237	237	SECTION 11. This Act takes effect January 1, 2018, but only
238	238	if the constitutional amendment proposed by the 85th Legislature,
239	239	Regular Session, 2017, providing for an exemption from ad valorem
240	240	taxation for public school purposes of $25,000 or 13 percent,
241	241	whichever is greater, of the market value of a residence homestead
242	242	and providing for a reduction of the limitation on the total amount
243	243	of ad valorem taxes that may be imposed for those purposes on the
244	244	homestead of an elderly or disabled person to reflect any increased
245	245	exemption amount is approved by the voters. If that constitutional
246	246	amendment is not approved by the voters, this Act has no effect.