85R9772 CJC-D
By: Anderson of Dallas H.B. No. 3264
A BILL TO BE ENTITLED
AN ACT
relating to ad valorem tax benefits for certain current and former
first responders and their families.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13, Tax Code, is amended by amending
Subsection (i) and adding Subsection (u) to read as follows:
(i) The assessor and collector for a taxing unit may
disregard the exemptions authorized by Subsection (b), (c), (d),
[or] (n), or (u) [of this section] and assess and collect a tax
pledged for payment of debt without deducting the amount of the
exemption if:
(1) prior to adoption of the exemption, the unit
pledged the taxes for the payment of a debt; and
(2) granting the exemption would impair the obligation
of the contract creating the debt.
(u) In addition to any other exemptions provided by this
section, a first responder is entitled to an exemption from
taxation of $10,000 of the appraised value of the responder's
residence homestead if the residence homestead is located in the
political subdivision that employs the first responder. If the
first responder is employed by the state, the first responder is
entitled to receive the exemption regardless of the location of the
residence homestead. For purposes of this subsection, "first
responder" means a person described by Section 615.003(1), (4),
(7), (10), or (11), Government Code.
SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.136 to read as follows:
Sec. 11.136. RESIDENCE HOMESTEAD OF DISABLED FIRST
RESPONDER. (a) In this section:
(1) "First responder" means a person described by
Section 615.003(1), (4), (7), (10), or (11), Government Code.
(2) "Surviving children" means the children,
including adopted children or stepchildren, of a first responder at
the time of the first responder's death.
(3) "Surviving spouse" means the individual who was
married to a first responder at the time of the first responder's
death.
(b) A first responder who sustains an injury in the
performance of that person's duties as a first responder and
presents evidence satisfactory to the chief appraiser that the
first responder's condition is a total disability resulting in
permanent incapacity for work and that the total disability has
persisted for more than 12 months is entitled to an exemption from
taxation of the total appraised value of the first responder's
residence homestead.
(c) The surviving spouse of a first responder who qualified
for an exemption under Subsection (b) is entitled to an exemption
from taxation of the total appraised value of the same property to
which the first responder's exemption applied if:
(1) the surviving spouse has not remarried; and
(2) the property:
(A) was the residence homestead of the surviving
spouse when the first responder died; and
(B) remains the residence homestead of the
surviving spouse.
(d) If a first responder who qualifies for an exemption
under Subsection (b) dies while unmarried, the first responder's
surviving children, if any, are entitled to an exemption from
taxation of the total appraised value of the same property to which
the first responder's exemption applied if:
(1) one or more of the surviving children are younger
than 18 years of age and unmarried; and
(2) the property:
(A) was the principal residence of one or more of
the surviving children described by Subdivision (1) when the first
responder died; and
(B) remains the principal residence of one or
more of those surviving children who are younger than 18 years of
age and unmarried.
SECTION 3. Section 11.42(e), Tax Code, is amended to read as
follows:
(e) A person who qualifies for an exemption under Section
11.131 or 11.136 after January 1 of a tax year may receive the
exemption for the applicable portion of that tax year immediately
on qualification for the exemption.
SECTION 4. Section 11.43(c), Tax Code, is amended to read as
follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once
allowed, need not be claimed in subsequent years, and except as
otherwise provided by Subsection (e), the exemption applies to the
property until it changes ownership or the person's qualification
for the exemption changes. However, the chief appraiser may
require a person allowed one of the exemptions in a prior year to
file a new application to confirm the person's current
qualification for the exemption by delivering a written notice that
a new application is required, accompanied by an appropriate
application form, to the person previously allowed the exemption.
If the person previously allowed the exemption is 65 years of age or
older, the chief appraiser may not cancel the exemption due to the
person's failure to file the new application unless the chief
appraiser complies with the requirements of Subsection (q), if
applicable.
SECTION 5. Section 11.431(a), Tax Code, is amended to read
as follows:
(a) The chief appraiser shall accept and approve or deny an
application for a residence homestead exemption, including an
exemption under Section 11.131 or 11.132 for the residence
homestead of a disabled veteran or the surviving spouse of a
disabled veteran, [or] an exemption under Section 11.133 for the
residence homestead of the surviving spouse of a member of the armed
services of the United States who is killed in action, or an
exemption under Section 11.136 for the residence homestead of a
disabled first responder or the surviving spouse or surviving child
of a disabled first responder, after the deadline for filing it has
passed if it is filed not later than one year after the delinquency
date for the taxes on the homestead.
SECTION 6. Section 26.10(c), Tax Code, is amended to read as
follows:
(c) If the appraisal roll shows that a residence homestead
exemption under Section 11.131 or 11.136 applicable to a property
on January 1 of a year terminated during the year, the tax due
against the residence homestead is calculated by multiplying the
amount of the taxes that otherwise would be imposed on the residence
homestead for the entire year had the individual not qualified for
the residence homestead exemption [under Section 11.131] during the
year by a fraction, the denominator of which is 365 and the
numerator of which is the number of days that elapsed after the date
the exemption terminated.
SECTION 7. Section 26.1125, Tax Code, is amended to read as
follows:
Sec. 26.1125. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD
OF [100 PERCENT OR] TOTALLY DISABLED VETERAN OR FIRST RESPONDER.
(a) If a person qualifies for an exemption under Section 11.131 or
11.136 after the beginning of a tax year, the amount of the taxes on
the residence homestead of the person for the tax year is calculated
by multiplying the amount of the taxes that otherwise would be
imposed on the residence homestead for the entire year had the
person not qualified for the applicable exemption [under Section
11.131] by a fraction, the denominator of which is 365 and the
numerator of which is the number of days that elapsed before the
date the person qualified for the applicable exemption [under
Section 11.131].
(b) If a person qualifies for an exemption under Section
11.131 or 11.136 with respect to the property after the amount of
the tax due on the property is calculated and the effect of the
qualification is to reduce the amount of the tax due on the
property, the assessor for each taxing unit shall recalculate the
amount of the tax due on the property and correct the tax roll. If
the tax bill has been mailed and the tax on the property has not been
paid, the assessor shall mail a corrected tax bill to the person in
whose name the property is listed on the tax roll or to the person's
authorized agent. If the tax on the property has been paid, the tax
collector for the taxing unit shall refund to the person who paid
the tax the amount by which the payment exceeded the tax due.
SECTION 8. Sections 403.302(d) and (d-1), 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), or
(u), 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;
(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;
(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;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(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;
(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;
(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;
(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;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(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
(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.
(d-1) For purposes of Subsection (d), a residence homestead
that receives an exemption under Section 11.131, [or] 11.133, or
11.136, Tax Code, in the year that is the subject of the study is not
considered to be taxable property.
SECTION 9. Sections 11.13(u) and 11.136, Tax Code, as added
by this Act, apply only to ad valorem taxes imposed for a tax year
beginning on or after January 1, 2018.
SECTION 10. This Act takes effect January 1, 2018, but only
if the constitutional amendment proposed by the 85th Legislature,
Regular Session, 2017, authorizing the legislature to provide ad
valorem tax benefits to certain current and former first responders
and their families is approved by the voters. If that
constitutional amendment is not approved by the voters, this Act
has no effect.