TX
Texas House Bill HB129

Texas 2017 - 85th 1st C.S.

Texas House Bill HB129 Compare Versions

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1-By: Leach, Button, et al. H.B. No. 129
1+85S10843 LHC-D
2+ By: Leach, Guillen, et al. H.B. No. 129
3+ Substitute the following for H.B. No. 129:
4+ By: Shine C.S.H.B. No. 129
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47 A BILL TO BE ENTITLED
58 AN ACT
6- relating to a study of property tax exemptions and other property
7- tax benefits for certain veterans and military service members and
8- their families.
9+ relating to the exemption from ad valorem taxation of part of the
10+ appraised value of the residence homestead of a partially disabled
11+ veteran or the surviving spouse of a partially disabled veteran
12+ based on the disability rating of the veteran.
913 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10- SECTION 1. INTERIM COMMITTEE. (a) An interim committee is
11- established to study property tax exemptions and other property tax
12- benefits for partially disabled veterans or the surviving spouse of
13- a partially disabled veteran. The study may also review property
14- tax exemptions and benefits for other veterans and military service
15- members and their families.
16- (b) The committee is composed of:
17- (1) three persons appointed by the lieutenant
18- governor, at least one of whom is a military service member or
19- veteran;
20- (2) three persons appointed by the speaker of the
21- house of representatives, at least one of whom is a military service
22- member or veteran; and
23- (3) three persons appointed by the governor, at least
24- one of whom is a military service member or veteran.
25- SECTION 2. STUDY AND RECOMMENDATIONS. (a) The committee
26- shall conduct a study and make recommendations regarding:
27- (1) the effect of property tax exemptions and other
28- property tax benefits for partially disabled veterans, the
29- surviving spouse of a partially disabled veteran, military service
30- members and veterans and their families that are currently
31- authorized by law; and
32- (2) the need for other property tax exemptions and
33- other property tax benefits for partially disabled veterans,
34- surviving spouses of partially disabled veterans, military service
35- members and veterans and their families.
36- (b) In conducting the study, the committee shall consider
37- the effect of property tax exemptions and other property tax
38- benefits for partially disabled veterans or the surviving spouse of
39- a partially disabled veteran, military service members, veterans
40- and their families on the ability of political subdivisions of this
41- state to raise sufficient revenue to provide essential services.
42- SECTION 3. REPORT. Not later than December 1, 2018, the
43- committee shall report the results of the study and any
44- recommendations to the legislature.
45- SECTION 4. EXPIRATION. This Act expires December 1, 2019.
46- SECTION 5. EFFECTIVE DATE. This Act takes effect
47- immediately if it receives a vote of two-thirds of all the members
48- elected to each house, as provided by Section 39, Article III, Texas
49- Constitution. If this Act does not receive the vote necessary for
50- immediate effect, this Act takes effect on the 91st day after the
51- last day of the legislative session.
14+ SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
15+ adding Section 11.136 to read as follows:
16+ Sec. 11.136. RESIDENCE HOMESTEAD OF CERTAIN PARTIALLY
17+ DISABLED VETERANS. (a) In this section:
18+ (1) "Disability rating" and "disabled veteran" have
19+ the meanings assigned by Section 11.22.
20+ (2) "Residence homestead" has the meaning assigned by
21+ Section 11.13.
22+ (3) "Surviving spouse" has the meaning assigned by
23+ Section 11.131.
24+ (b) A disabled veteran who has a disability rating of at
25+ least 80 percent but less than 100 percent is entitled to an
26+ exemption from taxation of a percentage of the appraised value of
27+ the disabled veteran's residence homestead equal to the disabled
28+ veteran's disability rating.
29+ (c) The surviving spouse of a disabled veteran who qualified
30+ for an exemption under Subsection (b) of a percentage of the
31+ appraised value of the disabled veteran's residence homestead when
32+ the disabled veteran died is entitled to an exemption from taxation
33+ of the same percentage of the appraised value of the same property
34+ to which the disabled veteran's exemption applied if:
35+ (1) the surviving spouse has not remarried since the
36+ death of the disabled veteran; and
37+ (2) the property:
38+ (A) was the residence homestead of the surviving
39+ spouse when the disabled veteran died; and
40+ (B) remains the residence homestead of the
41+ surviving spouse.
42+ (d) If a surviving spouse who qualifies for an exemption
43+ under Subsection (c) subsequently qualifies a different property as
44+ the surviving spouse's residence homestead, the surviving spouse is
45+ entitled to an exemption from taxation of the subsequently
46+ qualified residence homestead in an amount equal to the dollar
47+ amount of the exemption from taxation of the former residence
48+ homestead under Subsection (c) in the last year in which the
49+ surviving spouse received an exemption under that subsection for
50+ that residence homestead if the surviving spouse has not remarried
51+ since the death of the disabled veteran. The surviving spouse is
52+ entitled to receive from the chief appraiser of the appraisal
53+ district in which the former residence homestead was located a
54+ written certificate providing the information necessary to
55+ determine the amount of the exemption to which the surviving spouse
56+ is entitled on the subsequently qualified residence homestead.
57+ SECTION 2. (a) This section takes effect only if the
58+ constitutional amendment proposed by S.J.R. 1, 85th Legislature,
59+ Regular Session, 2017, is approved by the voters.
60+ (b) Section 11.42(c), Tax Code, as amended by S.B. 15, Acts
61+ of the 85th Legislature, Regular Session, 2017, effective January
62+ 1, 2018, is amended to read as follows:
63+ (c) An exemption authorized by Section 11.13(c) or (d),
64+ 11.132, 11.133, [or] 11.134, or 11.136 is effective as of January 1
65+ of the tax year in which the person qualifies for the exemption and
66+ applies to the entire tax year.
67+ (c) Section 11.43(c), Tax Code, as amended by H.B. 1101,
68+ Acts of the 85th Legislature, Regular Session, 2017, effective
69+ January 1, 2018, and S.B. 15, Acts of the 85th Legislature, Regular
70+ Session, 2017, effective January 1, 2018, is reenacted and amended
71+ to read as follows:
72+ (c) An exemption provided by Section 11.13, 11.131, 11.132,
73+ 11.133, 11.134, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183,
74+ 11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),
75+ 11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once
76+ allowed, need not be claimed in subsequent years, and except as
77+ otherwise provided by Subsection (e), the exemption applies to the
78+ property until it changes ownership or the person's qualification
79+ for the exemption changes. However, except as provided by
80+ Subsection (r), the chief appraiser may require a person allowed
81+ one of the exemptions in a prior year to file a new application to
82+ confirm the person's current qualification for the exemption by
83+ delivering a written notice that a new application is required,
84+ accompanied by an appropriate application form, to the person
85+ previously allowed the exemption. If the person previously allowed
86+ the exemption is 65 years of age or older, the chief appraiser may
87+ not cancel the exemption due to the person's failure to file the new
88+ application unless the chief appraiser complies with the
89+ requirements of Subsection (q), if applicable.
90+ (d) Section 11.431(a), Tax Code, as amended by H.B. 626,
91+ Acts of the 85th Legislature, Regular Session, 2017, effective
92+ September 1, 2017, and S.B. 15, Acts of the 85th Legislature,
93+ Regular Session, 2017, effective January 1, 2018, is reenacted and
94+ amended to read as follows:
95+ (a) The chief appraiser shall accept and approve or deny an
96+ application for a residence homestead exemption, including an
97+ exemption under Section 11.131, [or] 11.132, or 11.136 for the
98+ residence homestead of a disabled veteran or the surviving spouse
99+ of a disabled veteran, an exemption under Section 11.133 for the
100+ residence homestead of the surviving spouse of a member of the armed
101+ services of the United States who is killed in action, or an
102+ exemption under Section 11.134 for the residence homestead of the
103+ surviving spouse of a first responder who is killed or fatally
104+ injured in the line of duty, after the deadline for filing it has
105+ passed if it is filed not later than two years after the delinquency
106+ date for the taxes on the homestead.
107+ (e) Section 26.10(b), Tax Code, as amended by S.B. 15, Acts
108+ of the 85th Legislature, Regular Session, 2017, effective January
109+ 1, 2018, is amended to read as follows:
110+ (b) If the appraisal roll shows that a residence homestead
111+ exemption under Section 11.13(c) or (d), 11.132, 11.133, [or]
112+ 11.134, or 11.136 applicable to a property on January 1 of a year
113+ terminated during the year and if the owner of the property
114+ qualifies a different property for one of those residence homestead
115+ exemptions during the same year, the tax due against the former
116+ residence homestead is calculated by:
117+ (1) subtracting:
118+ (A) the amount of the taxes that otherwise would
119+ be imposed on the former residence homestead for the entire year had
120+ the owner qualified for the residence homestead exemption for the
121+ entire year; from
122+ (B) the amount of the taxes that otherwise would
123+ be imposed on the former residence homestead for the entire year had
124+ the owner not qualified for the residence homestead exemption
125+ during the year;
126+ (2) multiplying the remainder determined under
127+ Subdivision (1) by a fraction, the denominator of which is 365 and
128+ the numerator of which is the number of days that elapsed after the
129+ date the exemption terminated; and
130+ (3) adding the product determined under Subdivision
131+ (2) and the amount described by Subdivision (1)(A).
132+ SECTION 3. (a) This section takes effect only if the
133+ constitutional amendment proposed by S.J.R. 1, 85th Legislature,
134+ Regular Session, 2017, is not approved by the voters.
135+ (b) Section 11.42(c), Tax Code, is amended to read as
136+ follows:
137+ (c) An exemption authorized by Section 11.13(c) or (d),
138+ 11.132, [or] 11.133, or 11.136 is effective as of January 1 of the
139+ tax year in which the person qualifies for the exemption and applies
140+ to the entire tax year.
141+ (c) Section 11.43(c), Tax Code, as amended by H.B. 1101,
142+ Acts of the 85th Legislature, Regular Session, 2017, effective
143+ January 1, 2018, is amended to read as follows:
144+ (c) An exemption provided by Section 11.13, 11.131, 11.132,
145+ 11.133, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
146+ 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
147+ 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once
148+ allowed, need not be claimed in subsequent years, and except as
149+ otherwise provided by Subsection (e), the exemption applies to the
150+ property until it changes ownership or the person's qualification
151+ for the exemption changes. However, except as provided by
152+ Subsection (r), the chief appraiser may require a person allowed
153+ one of the exemptions in a prior year to file a new application to
154+ confirm the person's current qualification for the exemption by
155+ delivering a written notice that a new application is required,
156+ accompanied by an appropriate application form, to the person
157+ previously allowed the exemption. If the person previously allowed
158+ the exemption is 65 years of age or older, the chief appraiser may
159+ not cancel the exemption due to the person's failure to file the new
160+ application unless the chief appraiser complies with the
161+ requirements of Subsection (q), if applicable.
162+ (d) Section 11.431(a), Tax Code, as amended by H.B. 626,
163+ Acts of the 85th Legislature, Regular Session, 2017, effective
164+ September 1, 2017, is amended to read as follows:
165+ (a) The chief appraiser shall accept and approve or deny an
166+ application for a residence homestead exemption, including an
167+ exemption under Section 11.131, [or] 11.132, or 11.136 for the
168+ residence homestead of a disabled veteran or the surviving spouse
169+ of a disabled veteran or an exemption under Section 11.133 for the
170+ residence homestead of the surviving spouse of a member of the armed
171+ services of the United States who is killed in action, after the
172+ deadline for filing it has passed if it is filed not later than two
173+ years after the delinquency date for the taxes on the homestead.
174+ (e) Section 26.10(b), Tax Code, is amended to read as
175+ follows:
176+ (b) If the appraisal roll shows that a residence homestead
177+ exemption under Section 11.13(c) or (d), 11.132, [or] 11.133, or
178+ 11.136 applicable to a property on January 1 of a year terminated
179+ during the year and if the owner of the property qualifies a
180+ different property for one of those residence homestead exemptions
181+ during the same year, the tax due against the former residence
182+ homestead is calculated by:
183+ (1) subtracting:
184+ (A) the amount of the taxes that otherwise would
185+ be imposed on the former residence homestead for the entire year had
186+ the owner qualified for the residence homestead exemption for the
187+ entire year; from
188+ (B) the amount of the taxes that otherwise would
189+ be imposed on the former residence homestead for the entire year had
190+ the owner not qualified for the residence homestead exemption
191+ during the year;
192+ (2) multiplying the remainder determined under
193+ Subdivision (1) by a fraction, the denominator of which is 365 and
194+ the numerator of which is the number of days that elapsed after the
195+ date the exemption terminated; and
196+ (3) adding the product determined under Subdivision
197+ (2) and the amount described by Subdivision (1)(A).
198+ SECTION 4. Section 11.43(k), Tax Code, is amended to read as
199+ follows:
200+ (k) A person who qualifies for an exemption authorized by
201+ Section 11.13(c) or (d), [or] 11.132, or 11.136 must apply for the
202+ exemption no later than the first anniversary of the date the person
203+ qualified for the exemption.
204+ SECTION 5. Section 26.1127, Tax Code, is amended to read as
205+ follows:
206+ Sec. 26.1127. CALCULATION OF TAXES ON [DONATED] RESIDENCE
207+ HOMESTEAD OF CERTAIN DISABLED VETERANS [VETERAN] OR SURVIVING
208+ SPOUSE OF CERTAIN DISABLED VETERANS [VETERAN]. (a) Except as
209+ provided by Section 26.10(b), if at any time during a tax year
210+ property is owned by an individual who qualifies for an exemption
211+ under Section 11.132 or 11.136, the amount of the tax due on the
212+ property for the tax year is calculated as if the individual
213+ qualified for the exemption on January 1 and continued to qualify
214+ for the exemption for the remainder of the tax year.
215+ (b) If an individual qualifies for an exemption under
216+ Section 11.132 or 11.136 with respect to the property after the
217+ amount of the tax due on the property is calculated and the effect
218+ of the qualification is to reduce the amount of the tax due on the
219+ property, the assessor for each taxing unit shall recalculate the
220+ amount of the tax due on the property and correct the tax roll. If
221+ the tax bill has been mailed and the tax on the property has not been
222+ paid, the assessor shall mail a corrected tax bill to the individual
223+ in whose name the property is listed on the tax roll or to the
224+ individual's authorized agent. If the tax on the property has been
225+ paid, the tax collector for the taxing unit shall refund to the
226+ individual who paid the tax the amount by which the payment exceeded
227+ the tax due.
228+ SECTION 6. Section 31.031(a), Tax Code, as reenacted by
229+ S.B. 1047, Acts of the 85th Legislature, Regular Session, 2017,
230+ effective January 1, 2018, is amended to read as follows:
231+ (a) This section applies only to:
232+ (1) an individual who is:
233+ (A) disabled or at least 65 years of age; and
234+ (B) qualified for an exemption under Section
235+ 11.13(c); or
236+ (2) an individual who is:
237+ (A) a disabled veteran or the unmarried surviving
238+ spouse of a disabled veteran; and
239+ (B) qualified for an exemption under Section
240+ 11.132, 11.136, or 11.22.
241+ SECTION 7. Section 140.011(c), Local Government Code, is
242+ amended to read as follows:
243+ (c) For the purposes of this section, the amount of a local
244+ government's lost ad valorem tax revenue for a fiscal year is
245+ calculated by multiplying the ad valorem tax rate adopted by the
246+ local government under Section 26.05, Tax Code, for the tax year in
247+ which the fiscal year begins by the sum of:
248+ (1) the total appraised value of all property located
249+ in the local government that is exempt [granted an exemption] from
250+ taxation under Section 11.131, Tax Code, for that tax year; and
251+ (2) the total dollar amount of the portion of the
252+ appraised value of all property located in the local government
253+ that is exempt from taxation under Section 11.136, Tax Code, for
254+ that tax year.
255+ SECTION 8. This Act applies only to ad valorem taxes imposed
256+ for an ad valorem tax year that begins on or after the effective
257+ date of this Act.
258+ SECTION 9. This Act takes effect January 1, 2018, but only
259+ if the constitutional amendment proposed by the 85th Legislature,
260+ 1st Called Session, 2017, authorizing the legislature to provide
261+ for an exemption from ad valorem taxation of part of the market
262+ value of the residence homestead of a partially disabled veteran or
263+ the surviving spouse of a partially disabled veteran based on the
264+ disability rating of the veteran and harmonizing certain related
265+ provisions of the constitution is approved by the voters. If that
266+ amendment is not approved by the voters, this Act has no effect.