Texas 2017 - 85th Regular

Texas House Bill HB2081 Compare Versions

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1	1	85R3145 SMH-D
2	2	By: Phelan H.B. No. 2081
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a local option exemption from ad valorem taxation by a
8	8	school district of the total appraised value of the residence
9	9	homesteads of certain elderly or disabled persons.
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 who is disabled or is 70 years of age or
25	25	older is entitled to an exemption from taxation by a school district
26	26	of the total appraised value of the individual's residence
27	27	homestead if the exemption is adopted by the governing body of the
28	28	school district before July 1 in the manner provided by law for
29	29	official action by the body.
30	30	(t) The surviving spouse of an individual who qualified for
31	31	an exemption under Subsection (s) is entitled to an exemption from
32	32	taxation by the same school district of the total appraised value of
33	33	the same property to which the deceased spouse's exemption applied
34	34	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 70 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 70
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 70 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 70 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 notice
90	90	must include a form on which the individual may indicate whether the
91	91	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 70 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 at
147	147	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 on
160	160	the property has not been paid, the assessor shall mail a corrected
161	161	tax bill to the person in whose name the property is listed on the
162	162	tax roll or to the person's authorized agent. If the tax on the
163	163	property has been paid, the tax collector for the taxing unit shall
164	164	refund to the person who paid the tax the amount by which the
165	165	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 70 years of
183	183	age or older and the chief appraiser subsequently cancels the
184	184	exemption because the property owner was younger than 70 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. Section 44.004(c), Education Code, is amended to
190	190	read as follows:
191	191	(c) The notice of public meeting to discuss and adopt the
192	192	budget and the proposed tax rate may not be smaller than one-quarter
193	193	page of a standard-size or a tabloid-size newspaper, and the
194	194	headline on the notice must be in 18-point or larger type. Subject
195	195	to Subsection (d), the notice must:
196	196	(1) contain a statement in the following form:
197	197	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
198	198	"The (name of school district) will hold a public meeting at
199	199	(time, date, year) in (name of room, building, physical location,
200	200	city, state). The purpose of this meeting is to discuss the school
201	201	district's budget that will determine the tax rate that will be
202	202	adopted. Public participation in the discussion is invited." The
203	203	statement of the purpose of the meeting must be in bold type. In
204	204	reduced type, the notice must state: "The tax rate that is
205	205	ultimately adopted at this meeting or at a separate meeting at a
206	206	later date may not exceed the proposed rate shown below unless the
207	207	district publishes a revised notice containing the same information
208	208	and comparisons set out below and holds another public meeting to
209	209	discuss the revised notice.";
210	210	(2) contain a section entitled "Comparison of Proposed
211	211	Budget with Last Year's Budget," which must show the difference,
212	212	expressed as a percent increase or decrease, as applicable, in the
213	213	amounts budgeted for the preceding fiscal year and the amount
214	214	budgeted for the fiscal year that begins in the current tax year for
215	215	each of the following:
216	216	(A) maintenance and operations;
217	217	(B) debt service; and
218	218	(C) total expenditures;
219	219	(3) contain a section entitled "Total Appraised Value
220	220	and Total Taxable Value," which must show the total appraised value
221	221	and the total taxable value of all property and the total appraised
222	222	value and the total taxable value of new property taxable by the
223	223	district in the preceding tax year and the current tax year as
224	224	calculated under Section 26.04, Tax Code;
225	225	(4) contain a statement of the total amount of the
226	226	outstanding and unpaid bonded indebtedness of the school district;
227	227	(5) contain a section entitled "Comparison of Proposed
228	228	Rates with Last Year's Rates," which must:
229	229	(A) show in rows the tax rates described by
230	230	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
231	231	property, for columns entitled "Maintenance & Operations,"
232	232	"Interest & Sinking Fund," and "Total," which is the sum of
233	233	"Maintenance & Operations" and "Interest & Sinking Fund":
234	234	(i) the school district's "Last Year's
235	235	Rate";
236	236	(ii) the "Rate to Maintain Same Level of
237	237	Maintenance & Operations Revenue & Pay Debt Service," which:
238	238	(a) in the case of "Maintenance &
239	239	Operations," is the tax rate that, when applied to the current
240	240	taxable value for the district, as certified by the chief appraiser
241	241	under Section 26.01, Tax Code, and as adjusted to reflect changes
242	242	made by the chief appraiser as of the time the notice is prepared,
243	243	would impose taxes in an amount that, when added to state funds to
244	244	be distributed to the district under Chapter 42, would provide the
245	245	same amount of maintenance and operations taxes and state funds
246	246	distributed under Chapter 42 per student in average daily
247	247	attendance for the applicable school year that was available to the
248	248	district in the preceding school year; and
249	249	(b) in the case of "Interest & Sinking
250	250	Fund," is the tax rate that, when applied to the current taxable
251	251	value for the district, as certified by the chief appraiser under
252	252	Section 26.01, Tax Code, and as adjusted to reflect changes made by
253	253	the chief appraiser as of the time the notice is prepared, and when
254	254	multiplied by the district's anticipated collection rate, would
255	255	impose taxes in an amount that, when added to state funds to be
256	256	distributed to the district under Chapter 46 and any excess taxes
257	257	collected to service the district's debt during the preceding tax
258	258	year but not used for that purpose during that year, would provide
259	259	the amount required to service the district's debt; and
260	260	(iii) the "Proposed Rate";
261	261	(B) contain fourth and fifth columns aligned with
262	262	the columns required by Paragraph (A) that show, for each row
263	263	required by Paragraph (A):
264	264	(i) the "Local Revenue per Student," which
265	265	is computed by multiplying the district's total taxable value of
266	266	property, as certified by the chief appraiser for the applicable
267	267	school year under Section 26.01, Tax Code, and as adjusted to
268	268	reflect changes made by the chief appraiser as of the time the
269	269	notice is prepared, by the total tax rate, and dividing the product
270	270	by the number of students in average daily attendance in the
271	271	district for the applicable school year; and
272	272	(ii) the "State Revenue per Student," which
273	273	is computed by determining the amount of state aid received or to be
274	274	received by the district under Chapters 42, 43, and 46 and dividing
275	275	that amount by the number of students in average daily attendance in
276	276	the district for the applicable school year; and
277	277	(C) contain an asterisk after each calculation
278	278	for "Interest & Sinking Fund" and a footnote to the section that, in
279	279	reduced type, states "The Interest & Sinking Fund tax revenue is
280	280	used to pay for bonded indebtedness on construction, equipment, or
281	281	both. The bonds, and the tax rate necessary to pay those bonds,
282	282	were approved by the voters of this district.";
283	283	(6) contain a section entitled "Comparison of Proposed
284	284	Levy with Last Year's Levy on Average Residence," which must:
285	285	(A) show in rows the information described by
286	286	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
287	287	entitled "Last Year" and "This Year":
288	288	(i) "Average Market Value of Residences,"
289	289	determined using the same group of residences for each year;
290	290	(ii) "Average Taxable Value of Residences,"
291	291	determined after taking into account the limitation on the
292	292	appraised value of residences under Section 23.23, Tax Code, and
293	293	after subtracting all homestead exemptions applicable in each year,
294	294	other than exemptions available only to disabled persons, [or]
295	295	persons 65 years of age or older, or, if applicable, persons 70
296	296	years of age or older or their surviving spouses, and using the same
297	297	group of residences for each year;
298	298	(iii) "Last Year's Rate Versus Proposed
299	299	Rate per $100 Value"; and
300	300	(iv) "Taxes Due on Average Residence,"
301	301	determined using the same group of residences for each year; and
302	302	(B) contain the following information:
303	303	"Increase (Decrease) in Taxes" expressed in dollars and cents,
304	304	which is computed by subtracting the "Taxes Due on Average
305	305	Residence" for the preceding tax year from the "Taxes Due on Average
306	306	Residence" for the current tax year;
307	307	(7) contain the following statement in bold print:
308	308	"Under state law, the dollar amount of school taxes imposed on the
309	309	residence of a person 65 years of age or older or of the surviving
310	310	spouse of such a person, if the surviving spouse was 55 years of age
311	311	or older when the person died, may not be increased above the amount
312	312	paid in the first year after the person turned 65, regardless of
313	313	changes in tax rate or property value.";
314	314	(8) contain the following statement in bold print:
315	315	"Notice of Rollback Rate: The highest tax rate the district can
316	316	adopt before requiring voter approval at an election is (the school
317	317	district rollback rate determined under Section 26.08, Tax Code).
318	318	This election will be automatically held if the district adopts a
319	319	rate in excess of the rollback rate of (the school district rollback
320	320	rate)."; [and]
321	321	(9) contain a section entitled "Fund Balances," which
322	322	must include the estimated amount of interest and sinking fund
323	323	balances and the estimated amount of maintenance and operation or
324	324	general fund balances remaining at the end of the current fiscal
325	325	year that are not encumbered with or by corresponding debt
326	326	obligation, less estimated funds necessary for the operation of the
327	327	district before the receipt of the first payment under Chapter 42 in
328	328	the succeeding school year; and
329	329	(10) if applicable, contain the following statement in
330	330	bold print: "The residence of a person who is disabled or is 70
331	331	years of age or older or of the surviving spouse of such a person, if
332	332	the surviving spouse was 55 years of age or older when the person
333	333	died, is exempt from taxation by the district."
334	334	SECTION 8. Section 403.302, Government Code, is amended by
335	335	adding Subsection (d-2) to read as follows:
336	336	(d-2) For purposes of Subsection (d), a residence homestead
337	337	that receives an exemption under Section 11.13(s) or (t), Tax Code,
338	338	in the year that is the subject of the study is considered to be
339	339	taxable property.
340	340	SECTION 9. This Act applies only to ad valorem taxes imposed
341	341	for a tax year beginning on or after the effective date of this Act.
342	342	SECTION 10. This Act takes effect January 1, 2018, but only
343	343	if the constitutional amendment proposed by the 85th Legislature,
344	344	Regular Session, 2017, to authorize a local option exemption from
345	345	ad valorem taxation by a school district of the total market value
346	346	of the residence homesteads of certain elderly or disabled persons
347	347	is approved by the voters. If that constitutional amendment is not
348	348	approved by the voters, this Act has no effect.