Texas 2017 - 85th Regular

Texas House Bill HB2268 Compare Versions

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

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1	1	85R12155 CJC/MEW-D
2	2	By: Raymond H.B. No. 2268
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a temporary increase in the amount of the exemption of
8	8	residence homesteads from ad valorem taxation by a school district,
9	9	a temporary reduction in the amount of the limitation on school
10	10	district ad valorem taxes imposed on the residence homesteads of
11	11	the elderly or disabled to reflect the increased exemption amount,
12	12	and a temporary protection of school districts against the
13	13	resulting temporary loss in local revenue.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
16	16	follows:
17	17	(b) An adult is entitled to exemption from taxation by a
18	18	school district of $71,000 [$25,000] of the appraised value of the
19	19	adult's residence homestead, except that only $5,000 of the
20	20	exemption applies to an entity operating under former Chapter 17,
21	21	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
22	22	May 1, 1995, as permitted by Section 11.301, Education Code.
23	23	SECTION 2. Effective January 1, 2019, Section 11.13(b), Tax
24	24	Code, is amended to read as follows:
25	25	(b) An adult is entitled to exemption from taxation by a
26	26	school district of $25,000 of the appraised value of the adult's
27	27	residence homestead, except that only $5,000 of the exemption
28	28	applies to an entity operating under former Chapter 17, 18, 25, 26,
29	29	27, or 28, Education Code, as those chapters existed on May 1, 1995,
30	30	as permitted by Section 11.301, Education Code.
31	31	SECTION 3. Section 11.26(a), Tax Code, is amended to read as
32	32	follows:
33	33	(a) The tax officials shall appraise the property to which
34	34	this section applies and calculate taxes as on other property, but
35	35	if the tax so calculated exceeds the limitation imposed by this
36	36	section, the tax imposed is the amount of the tax as limited by this
37	37	section, except as otherwise provided by this section. A school
38	38	district may not increase the total annual amount of ad valorem tax
39	39	it imposes on the residence homestead of an individual 65 years of
40	40	age or older or on the residence homestead of an individual who is
41	41	disabled, as defined by Section 11.13, above the amount of the tax
42	42	it imposed in the first tax year in which the individual qualified
43	43	that residence homestead for the applicable exemption provided by
44	44	Section 11.13(c) for an individual who is 65 years of age or older
45	45	or is disabled. If the individual qualified that residence
46	46	homestead for the exemption after the beginning of that first year
47	47	and the residence homestead remains eligible for the same exemption
48	48	for the next year, and if the school district taxes imposed on the
49	49	residence homestead in the next year are less than the amount of
50	50	taxes imposed in that first year, a school district may not
51	51	subsequently increase the total annual amount of ad valorem taxes
52	52	it imposes on the residence homestead above the amount it imposed in
53	53	the year immediately following the first year for which the
54	54	individual qualified that residence homestead for the same
55	55	exemption, except as provided by Subsection (b). If the first tax
56	56	year the individual qualified the residence homestead for the
57	57	exemption provided by Section 11.13(c) for individuals 65 years of
58	58	age or older or disabled was a tax year before the 2018 [2015] tax
59	59	year, the amount of the limitation provided by this section for the
60	60	2018 tax year is the amount of tax the school district imposed for
61	61	the 2017 [2014] tax year less an amount equal to the amount
62	62	determined by multiplying $46,000 [$10,000] times the tax rate of
63	63	the school district for the 2018 [2015] tax year, plus any 2018
64	64	[2015] tax attributable to improvements made in 2017 [2014], other
65	65	than improvements made to comply with governmental regulations or
66	66	repairs. If the first tax year the individual qualified the
67	67	residence homestead for the exemption provided by Section 11.13(c)
68	68	for individuals 65 years of age or older or disabled was the 2018
69	69	tax year or an earlier tax year, the amount of the limitation
70	70	provided by this section for the 2019 and subsequent tax years is
71	71	the amount of tax the school district imposed for the 2018 tax year
72	72	plus an amount equal to the amount determined by multiplying
73	73	$46,000 times the tax rate of the school district for the 2018 tax
74	74	year, plus any 2019 tax attributable to improvements made in 2018,
75	75	other than improvements made to comply with governmental
76	76	regulations or repairs.
77	77	SECTION 4. 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 the increase in the residence homestead exemption
85	85	under Section 1-b(c), Article VIII, Texas Constitution, and the
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 5. Section 42.2518, Education Code, as effective
91	91	September 1, 2017, is amended by adding Subsections (a-1) and (b-1)
92	92	to read as follows:
93	93	(a-1) Notwithstanding Subsection (a), for the 2018-2019
94	94	school year, a school district is entitled to additional state aid
95	95	to the extent that state and local revenue under this chapter and
96	96	Chapter 41 is less than the state and local revenue that would have
97	97	been available to the district under Chapter 41 and this chapter as
98	98	those chapters existed on September 1, 2017, if the increase in the
99	99	residence homestead exemption under Section 1-b(c), Article VIII,
100	100	Texas Constitution, as proposed by the joint resolution to amend
101	101	that subsection adopted by the 85th Legislature, Regular Session,
102	102	2017, and the additional limitation on tax increases under Section
103	103	1-b(d) of that article as proposed by the joint resolution to amend
104	104	that subsection adopted by the 85th Legislature, Regular Session,
105	105	2017, had not occurred. This subsection expires September 1, 2019.
106	106	(b-1) Notwithstanding Subsection (b), for the 2018-2019
107	107	school year, the lesser of the school district's currently adopted
108	108	maintenance and operations tax rate or the adopted maintenance and
109	109	operations tax rate for the 2017 tax year is used for the purpose of
110	110	determining additional state aid under Subsection (a-1). This
111	111	subsection expires September 1, 2019.
112	112	SECTION 6. Section 42.252, Education Code, is amended by
113	113	adding Subsection (e) to read as follows:
114	114	(e) Notwithstanding any other provision of this chapter, in
115	115	computing each school district's local share of program cost under
116	116	this section for the 2018-2019 school year, a school district's
117	117	taxable value of property under Subchapter M, Chapter 403,
118	118	Government Code, is determined as if the increase in the residence
119	119	homestead exemption under Section 1-b(c), Article VIII, Texas
120	120	Constitution, and the additional limitation on tax increases under
121	121	Section 1-b(d) of that article in effect for the 2018 tax year as
122	122	proposed by the 85th Legislature, Regular Session, 2017, had been
123	123	in effect for the 2017 tax year. This subsection expires September
124	124	1, 2019.
125	125	SECTION 7. Section 42.302, Education Code, is amended by
126	126	adding Subsection (g) to read as follows:
127	127	(g) Notwithstanding any other provision of this chapter, in
128	128	computing a school district's enrichment tax rate ("DTR") and local
129	129	revenue ("LR") for the 2018-2019 school year, a school district's
130	130	taxable value of property under Subchapter M, Chapter 403,
131	131	Government Code, is determined as if the increase in the residence
132	132	homestead exemption under Section 1-b(c), Article VIII, Texas
133	133	Constitution, and the additional limitation on tax increases under
134	134	Section 1-b(d) of that article in effect for the 2018 tax year as
135	135	proposed by the 85th Legislature, Regular Session, 2017, had been
136	136	in effect for the 2017 tax year. This subsection expires September
137	137	1, 2019.
138	138	SECTION 8. Section 46.003, Education Code, is amended by
139	139	adding Subsection (i) to read as follows:
140	140	(i) Notwithstanding any other provision of this chapter, in
141	141	computing a district's bond tax rate ("BTR") and taxable value of
142	142	property ("DPV") for the 2018-2019 school year, a school district's
143	143	taxable value of property under Subchapter M, Chapter 403,
144	144	Government Code, is determined as if the increase in the residence
145	145	homestead exemption under Section 1-b(c), Article VIII, Texas
146	146	Constitution, and the additional limitation on tax increases under
147	147	Section 1-b(d) of that article in effect for the 2018 tax year as
148	148	proposed by the 85th Legislature, Regular Session, 2017, had been
149	149	in effect for the 2017 tax year. This subsection expires September
150	150	1, 2019.
151	151	SECTION 9. Section 46.032, Education Code, is amended by
152	152	adding Subsection (d) to read as follows:
153	153	(d) Notwithstanding any other provision of this chapter, in
154	154	computing a district's existing debt tax rate ("EDTR") and taxable
155	155	value of property ("DPV") for the 2018-2019 school year, a school
156	156	district's taxable value of property under Subchapter M, Chapter
157	157	403, Government Code, is determined as if the increase in the
158	158	residence homestead exemption under Section 1-b(c), Article VIII,
159	159	Texas Constitution, and the additional limitation on tax increases
160	160	under Section 1-b(d) of that article in effect for the 2018 tax year
161	161	as proposed by the 85th Legislature, Regular Session, 2017, had
162	162	been in effect for the 2017 tax year. This subsection expires
163	163	September 1, 2019.
164	164	SECTION 10. Section 46.071, Education Code, is amended by
165	165	adding Subsections (a-1), (b-1), and (c-1) to read as follows:
166	166	(a-1) Notwithstanding Subsection (a), for the 2018-2019
167	167	school year, a school district is entitled to additional state aid
168	168	under this subchapter to the extent that state and local revenue
169	169	used to service debt eligible under this chapter is less than the
170	170	state and local revenue that would have been available to the
171	171	district under this chapter as it existed on September 1, 2017, if
172	172	the increase in the residence homestead exemption under Section
173	173	1-b(c), Article VIII, Texas Constitution, and the additional
174	174	limitation on tax increases under Section 1-b(d) of that article as
175	175	proposed by the 85th Legislature, Regular Session, 2017, had not
176	176	occurred. This subsection expires September 1, 2019.
177	177	(b-1) Notwithstanding Subsection (b), subject to
178	178	Subsections (c-1), (d), and (e), additional state aid under this
179	179	section for the 2018-2019 school year is equal to the amount by
180	180	which the loss of local interest and sinking revenue for debt
181	181	service attributable to the increase in the residence homestead
182	182	exemption under Section 1-b(c), Article VIII, Texas Constitution,
183	183	and the additional limitation on tax increases under Section 1-b(d)
184	184	of that article as proposed by the 85th Legislature, Regular
185	185	Session, 2017, is not offset by a gain in state aid under this
186	186	chapter. This subsection expires September 1, 2019.
187	187	(c-1) Notwithstanding Subsection (c), for the purpose of
188	188	determining state aid under Subsections (a-1) and (b-1), local
189	189	interest and sinking revenue for debt service is limited to revenue
190	190	required to service debt eligible under this chapter as of
191	191	September 1, 2017, including refunding of that debt, subject to
192	192	Section 46.061. The limitation imposed by Section 46.034(a) does
193	193	not apply for the purpose of determining state aid under this
194	194	section. This subsection expires September 1, 2019.
195	195	SECTION 11. The changes in law made by this Act to Sections
196	196	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
197	197	begins on or after January 1, 2018.
198	198	SECTION 12. This Act takes effect January 1, 2018, but only
199	199	if the constitutional amendment proposed by the 85th Legislature,
200	200	Regular Session, 2017, to appropriate money from the economic
201	201	stabilization fund to the foundation school fund and use the money
202	202	to finance a temporary increase in the amount of the exemption of
203	203	residence homesteads from ad valorem taxation by a school district
204	204	and a temporary reduction in the amount of the limitation on school
205	205	district ad valorem taxes imposed on the residence homesteads of
206	206	the elderly or disabled to reflect the increased exemption amount
207	207	is approved by the voters. If that constitutional amendment is not
208	208	approved by the voters, this Act has no effect.