85R12254 SMT-D
By: González of El Paso H.B. No. 2865
A BILL TO BE ENTITLED
AN ACT
relating to the provision of funding under the foundation school
program on the basis of property values that do not take into
account optional homestead exemptions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 7.062(c), Education Code, is amended to
read as follows:
(c) Except as otherwise provided by this subsection, if the
commissioner certifies that the amount appropriated for a state
fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
the amount to which school districts are entitled under those
subchapters for that year, the commissioner shall use the excess
funds, in an amount not to exceed $20 million in any state fiscal
year, for the purpose of making grants under this section. The use
of excess funds under this subsection has priority over any
provision of Chapter 42 that permits or directs the use of excess
foundation school program funds, including Sections 42.2517,
42.2521, [42.2522,] and 42.2531. The commissioner is required to
use excess funds as provided by this subsection only if the
commissioner is not required to reduce the total amount of state
funds allocated to school districts under Section 42.253(h).
SECTION 2. Sections 403.302(d), (e), (e-1), (i), and (m),
Government Code, are amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) [one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
[(3)] the total dollar amount of any exemptions
granted before May 31, 1993, within a reinvestment zone under
agreements authorized by Chapter 312, Tax Code;
(3) [(4)] subject to Subsection (e), the total dollar
amount of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by former Section 311.003(e), Tax Code, before May 31,
1999, and within the boundaries of the zone as those boundaries
existed on September 1, 1999, including subsequent improvements to
the property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(4) [(5)] the total dollar amount of any captured
appraised value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) [(6)] the total dollar amount of any exemptions
granted under Section 11.251 or 11.253, Tax Code;
(6) [(7)] the difference between the comptroller's
estimate of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(7) [(8)] the portion of the appraised value of
residence homesteads of individuals who receive a tax limitation
under Section 11.26, Tax Code, on which school district taxes are
not imposed in the year that is the subject of the study, calculated
as if the residence homesteads were appraised at the full value
required by law;
(8) [(9)] a portion of the market value of property
not otherwise fully taxable by the district at market value because
of:
(A) action required by statute or the
constitution of this state, other than Section 11.311, Tax Code,
that, if the tax rate adopted by the district is applied to it,
produces an amount equal to the difference between the tax that the
district would have imposed on the property if the property were
fully taxable at market value and the tax that the district is
actually authorized to impose on the property, if this subsection
does not otherwise require that portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code, before the expiration of the
subchapter;
(9) [(10)] the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(10) [(11)] the appraised value of property the
collection of delinquent taxes on which is deferred under Section
33.06, Tax Code;
(11) [(12)] the portion of the appraised value of
property the collection of delinquent taxes on which is deferred
under Section 33.065, Tax Code; and
(12) [(13)] the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
(e) The total dollar amount deducted in each year as
required by Subsection (d)(3) [(d)(4)] in a reinvestment zone
created after January 1, 1999, may not exceed the captured
appraised value estimated for that year as required by Section
311.011(c)(8), Tax Code, in the reinvestment zone financing plan
approved under Section 311.011(d), Tax Code, before September 1,
1999. The number of years for which the total dollar amount may be
deducted under Subsection (d)(3) [(d)(4)] shall for any zone,
including those created on or before January 1, 1999, be limited to
the duration of the zone as specified as required by Section
311.011(c)(9), Tax Code, in the reinvestment zone financing plan
approved under Section 311.011(d), Tax Code, before September 1,
1999. The total dollar amount deducted under Subsection (d)(3)
[(d)(4)] for any zone, including those created on or before January
1, 1999, may not be increased by any reinvestment zone financing
plan amendments that occur after August 31, 1999. The total dollar
amount deducted under Subsection (d)(3) [(d)(4)] for any zone,
including those created on or before January 1, 1999, may not be
increased by a change made after August 31, 1999, in the portion of
the tax increment retained by the school district.
(e-1) This subsection applies only to a reinvestment zone
created by a municipality that has a population of 70,000 or less
and is located in a county in which all or part of a military
installation is located. Notwithstanding Subsection (e), if on or
after January 1, 2017, the municipality adopts an ordinance
designating a termination date for the zone that is later than the
termination date designated in the ordinance creating the zone, the
number of years for which the total dollar amount may be deducted
under Subsection (d)(3) [(d)(4)] is limited to the duration of the
zone as determined under Section 311.017, Tax Code.
(i) If the comptroller determines in the study that the
market value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is valid, the comptroller,
in determining the taxable value of property in the school district
under Subsection (d), shall for purposes of Subsection (d)(12)
[(d)(13)] subtract from the market value as determined by the
appraisal district of residence homesteads to which Section 23.23,
Tax Code, applies the amount by which that amount exceeds the
appraised value of those properties as calculated by the appraisal
district under Section 23.23, Tax Code. If the comptroller
determines in the study that the market value of property in a
school district as determined by the appraisal district that
appraises property for the school district, less the total of the
amounts and values listed in Subsection (d) as determined by that
appraisal district, is not valid, the comptroller, in determining
the taxable value of property in the school district under
Subsection (d), shall for purposes of Subsection (d)(12) [(d)(13)]
subtract from the market value as estimated by the comptroller of
residence homesteads to which Section 23.23, Tax Code, applies the
amount by which that amount exceeds the appraised value of those
properties as calculated by the appraisal district under Section
23.23, Tax Code.
(m) Subsection (d)(8) [(d)(9)] does not apply to property
that was the subject of an application under Subchapter B or C,
Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
recommended should be disapproved.
SECTION 3. Section 311.011(h), Tax Code, is amended to read
as follows:
(h) Unless specifically provided otherwise in the plan, all
amounts contained in the project plan or reinvestment zone
financing plan, including amounts of expenditures relating to
project costs and amounts relating to participation by taxing
units, are considered estimates and do not act as a limitation on
the described items, but the amounts contained in the project plan
or reinvestment zone financing plan may not vary materially from
the estimates. This subsection may not be construed to increase the
amount of any reduction under Section 403.302(d)(3)
[403.302(d)(4)], Government Code, in the total taxable value of the
property in a school district that participates in the zone as
computed under Section 403.302(d) of that code.
SECTION 4. Section 42.2522, Education Code, is repealed.
SECTION 5. Section 403.302, Government Code, as amended by
this Act, applies only to an annual school district property value
study conducted for a tax year that begins on or after January 1,
2018.
SECTION 6. This Act takes effect September 1, 2017.