85R12155 CJC/MEW-D
By: Raymond H.B. No. 2268
A BILL TO BE ENTITLED
AN ACT
relating to a temporary increase in the amount of the exemption of
residence homesteads from ad valorem taxation by a school district,
a temporary reduction in the amount of the limitation on school
district ad valorem taxes imposed on the residence homesteads of
the elderly or disabled to reflect the increased exemption amount,
and a temporary protection of school districts against the
resulting temporary loss in local revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13(b), Tax Code, is amended to read as
follows:
(b) An adult is entitled to exemption from taxation by a
school district of $71,000 [$25,000] of the appraised value of the
adult's residence homestead, except that only $5,000 of the
exemption applies to an entity operating under former Chapter 17,
18, 25, 26, 27, or 28, Education Code, as those chapters existed on
May 1, 1995, as permitted by Section 11.301, Education Code.
SECTION 2. Effective January 1, 2019, Section 11.13(b), Tax
Code, is amended to read as follows:
(b) An adult is entitled to exemption from taxation by a
school district of $25,000 of the appraised value of the adult's
residence homestead, except that only $5,000 of the exemption
applies to an entity operating under former Chapter 17, 18, 25, 26,
27, or 28, Education Code, as those chapters existed on May 1, 1995,
as permitted by Section 11.301, Education Code.
SECTION 3. Section 11.26(a), Tax Code, is amended to read as
follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older or disabled was a tax year before the 2018 [2015] tax
year, the amount of the limitation provided by this section for the
2018 tax year is the amount of tax the school district imposed for
the 2017 [2014] tax year less an amount equal to the amount
determined by multiplying $46,000 [$10,000] times the tax rate of
the school district for the 2018 [2015] tax year, plus any 2018
[2015] tax attributable to improvements made in 2017 [2014], other
than improvements made to comply with governmental regulations or
repairs. If the first tax year the individual qualified the
residence homestead for the exemption provided by Section 11.13(c)
for individuals 65 years of age or older or disabled was the 2018
tax year or an earlier tax year, the amount of the limitation
provided by this section for the 2019 and subsequent tax years is
the amount of tax the school district imposed for the 2018 tax year
plus an amount equal to the amount determined by multiplying
$46,000 times the tax rate of the school district for the 2018 tax
year, plus any 2019 tax attributable to improvements made in 2018,
other than improvements made to comply with governmental
regulations or repairs.
SECTION 4. Subchapter A, Chapter 41, Education Code, is
amended by adding Section 41.0011 to read as follows:
Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR
2018-2019 SCHOOL YEAR. Notwithstanding any other provision of
this chapter, in computing a school district's wealth per student
for the 2018-2019 school year, a school district's taxable value of
property under Subchapter M, Chapter 403, Government Code, is
determined as if the increase in the residence homestead exemption
under Section 1-b(c), Article VIII, Texas Constitution, and the
additional limitation on tax increases under Section 1-b(d) of that
article in effect for the 2018 tax year as proposed by the 85th
Legislature, Regular Session, 2017, had been in effect for the 2017
tax year. This section expires September 1, 2019.
SECTION 5. Section 42.2518, Education Code, as effective
September 1, 2017, is amended by adding Subsections (a-1) and (b-1)
to read as follows:
(a-1) Notwithstanding Subsection (a), for the 2018-2019
school year, a school district is entitled to additional state aid
to the extent that state and local revenue under this chapter and
Chapter 41 is less than the state and local revenue that would have
been available to the district under Chapter 41 and this chapter as
those chapters existed on September 1, 2017, if the increase in the
residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, as proposed by the joint resolution to amend
that subsection adopted by the 85th Legislature, Regular Session,
2017, and the additional limitation on tax increases under Section
1-b(d) of that article as proposed by the joint resolution to amend
that subsection adopted by the 85th Legislature, Regular Session,
2017, had not occurred. This subsection expires September 1, 2019.
(b-1) Notwithstanding Subsection (b), for the 2018-2019
school year, the lesser of the school district's currently adopted
maintenance and operations tax rate or the adopted maintenance and
operations tax rate for the 2017 tax year is used for the purpose of
determining additional state aid under Subsection (a-1). This
subsection expires September 1, 2019.
SECTION 6. Section 42.252, Education Code, is amended by
adding Subsection (e) to read as follows:
(e) Notwithstanding any other provision of this chapter, in
computing each school district's local share of program cost under
this section for the 2018-2019 school year, a school district's
taxable value of property under Subchapter M, Chapter 403,
Government Code, is determined as if the increase in the residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, and the additional limitation on tax increases under
Section 1-b(d) of that article in effect for the 2018 tax year as
proposed by the 85th Legislature, Regular Session, 2017, had been
in effect for the 2017 tax year. This subsection expires September
1, 2019.
SECTION 7. Section 42.302, Education Code, is amended by
adding Subsection (g) to read as follows:
(g) Notwithstanding any other provision of this chapter, in
computing a school district's enrichment tax rate ("DTR") and local
revenue ("LR") for the 2018-2019 school year, a school district's
taxable value of property under Subchapter M, Chapter 403,
Government Code, is determined as if the increase in the residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, and the additional limitation on tax increases under
Section 1-b(d) of that article in effect for the 2018 tax year as
proposed by the 85th Legislature, Regular Session, 2017, had been
in effect for the 2017 tax year. This subsection expires September
1, 2019.
SECTION 8. Section 46.003, Education Code, is amended by
adding Subsection (i) to read as follows:
(i) Notwithstanding any other provision of this chapter, in
computing a district's bond tax rate ("BTR") and taxable value of
property ("DPV") for the 2018-2019 school year, a school district's
taxable value of property under Subchapter M, Chapter 403,
Government Code, is determined as if the increase in the residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, and the additional limitation on tax increases under
Section 1-b(d) of that article in effect for the 2018 tax year as
proposed by the 85th Legislature, Regular Session, 2017, had been
in effect for the 2017 tax year. This subsection expires September
1, 2019.
SECTION 9. Section 46.032, Education Code, is amended by
adding Subsection (d) to read as follows:
(d) Notwithstanding any other provision of this chapter, in
computing a district's existing debt tax rate ("EDTR") and taxable
value of property ("DPV") for the 2018-2019 school year, a school
district's taxable value of property under Subchapter M, Chapter
403, Government Code, is determined as if the increase in the
residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, and the additional limitation on tax increases
under Section 1-b(d) of that article in effect for the 2018 tax year
as proposed by the 85th Legislature, Regular Session, 2017, had
been in effect for the 2017 tax year. This subsection expires
September 1, 2019.
SECTION 10. Section 46.071, Education Code, is amended by
adding Subsections (a-1), (b-1), and (c-1) to read as follows:
(a-1) Notwithstanding Subsection (a), for the 2018-2019
school year, a school district is entitled to additional state aid
under this subchapter to the extent that state and local revenue
used to service debt eligible under this chapter is less than the
state and local revenue that would have been available to the
district under this chapter as it existed on September 1, 2017, if
the increase in the residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, and the additional
limitation on tax increases under Section 1-b(d) of that article as
proposed by the 85th Legislature, Regular Session, 2017, had not
occurred. This subsection expires September 1, 2019.
(b-1) Notwithstanding Subsection (b), subject to
Subsections (c-1), (d), and (e), additional state aid under this
section for the 2018-2019 school year is equal to the amount by
which the loss of local interest and sinking revenue for debt
service attributable to the increase in the residence homestead
exemption under Section 1-b(c), Article VIII, Texas Constitution,
and the additional limitation on tax increases under Section 1-b(d)
of that article as proposed by the 85th Legislature, Regular
Session, 2017, is not offset by a gain in state aid under this
chapter. This subsection expires September 1, 2019.
(c-1) Notwithstanding Subsection (c), for the purpose of
determining state aid under Subsections (a-1) and (b-1), local
interest and sinking revenue for debt service is limited to revenue
required to service debt eligible under this chapter as of
September 1, 2017, including refunding of that debt, subject to
Section 46.061. The limitation imposed by Section 46.034(a) does
not apply for the purpose of determining state aid under this
section. This subsection expires September 1, 2019.
SECTION 11. The changes in law made by this Act to Sections
11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
begins on or after January 1, 2018.
SECTION 12. This Act takes effect January 1, 2018, but only
if the constitutional amendment proposed by the 85th Legislature,
Regular Session, 2017, to appropriate money from the economic
stabilization fund to the foundation school fund and use the money
to finance a temporary increase in the amount of the exemption of
residence homesteads from ad valorem taxation by a school district
and a temporary reduction in the amount of the limitation on school
district ad valorem taxes imposed on the residence homesteads of
the elderly or disabled to reflect the increased exemption amount
is approved by the voters. If that constitutional amendment is not
approved by the voters, this Act has no effect.