Texas 2017 - 85th 1st C.S.

Texas House Bill HB261 Compare Versions

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1	1	85S10111 TJB-D
2	2	By: Neave H.B. No. 261
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a temporary limitation on the total amount of ad valorem
8	8	taxes that may be imposed by a taxing unit on a residence homestead
9	9	rendered uninhabitable or unusable as a result of a natural
10	10	disaster.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
13	13	adding Section 11.262 to read as follows:
14	14	Sec. 11.262. LIMITATION OF TAX ON HOMESTEADS DAMAGED IN
15	15	DISASTER AREA. (a) In this section, "residence homestead" has the
16	16	meaning assigned by Section 11.13.
17	17	(b) This section applies only to a residence homestead that
18	18	is:
19	19	(1) located in an area declared by the governor to be a
20	20	disaster area following a natural disaster; and
21	21	(2) rendered uninhabitable or unusable as a result of
22	22	the disaster.
23	23	(c) A taxing unit may not increase during the period
24	24	prescribed by Subsection (d) the total annual amount of ad valorem
25	25	taxes the taxing unit imposes on a residence homestead above the
26	26	amount of the taxes the taxing unit imposed on the residence
27	27	homestead for the tax year in which the residence homestead was
28	28	rendered uninhabitable or unusable as a result of a natural
29	29	disaster if:
30	30	(1) the owner of the residence homestead submits an
31	31	application for the limitation to the chief appraiser of the
32	32	appraisal district in which the residence homestead is located not
33	33	later than the first anniversary of the date the residence
34	34	homestead is rendered uninhabitable or unusable; and
35	35	(2) the chief appraiser determines that the residence
36	36	homestead was rendered uninhabitable or unusable as a result of the
37	37	natural disaster.
38	38	(d) The limitation provided by this section:
39	39	(1) takes effect on January 1 of the first tax year
40	40	following the tax year in which the natural disaster that renders
41	41	the residence homestead uninhabitable or unusable occurs; and
42	42	(2) expires on January 1 of the earlier of:
43	43	(A) the first tax year following the tax year in
44	44	which the fifth anniversary of the natural disaster occurs; or
45	45	(B) the first tax year in which the property no
46	46	longer qualifies as the residence homestead of:
47	47	(i) the property owner claiming the
48	48	limitation under this section; or
49	49	(ii) the surviving spouse of the property
50	50	owner if the surviving spouse is entitled to the limitation under
51	51	this section.
52	52	(e) If a property owner who qualifies for a limitation under
53	53	this section dies, the surviving spouse of the owner is entitled to
54	54	the limitation for the residence homestead of the owner for the
55	55	period prescribed by Subsection (d) if the residence homestead:
56	56	(1) is the residence homestead of the surviving spouse
57	57	on the date that the owner dies; and
58	58	(2) remains the residence homestead of the surviving
59	59	spouse.
60	60	(f) This subsection applies only if a property owner submits
61	61	an application under this section to the chief appraiser after the
62	62	tax year in which the natural disaster occurs that renders the
63	63	owner's residence homestead uninhabitable or unusable, the chief
64	64	appraiser approves the application, and the taxes imposed by a
65	65	taxing unit on the residence homestead for that tax year are greater
66	66	than the taxes imposed by the taxing unit for the preceding tax
67	67	year. If the tax bill for the current tax year has been mailed and
68	68	the tax on the residence homestead has not been paid, the assessor
69	69	shall mail a corrected tax bill to the person in whose name the
70	70	residence homestead is listed on the tax roll or to the person's
71	71	authorized agent. If the tax on the residence homestead for the
72	72	current tax year has been paid, the tax collector for the taxing
73	73	unit shall refund to the person who paid the tax the amount by which
74	74	the payment exceeded the tax due.
75	75	(g) For each school district in an appraisal district, the
76	76	chief appraiser shall determine the portion of the appraised value
77	77	of residence homesteads of individuals on which school district
78	78	taxes are not imposed in a tax year because of the limitation on tax
79	79	increases under this section. That portion is calculated by
80	80	determining the taxable value that, if multiplied by the tax rate
81	81	adopted by the school district for the tax year, would produce an
82	82	amount equal to the amount of tax that would have been imposed by
83	83	the school district on those homesteads if the limitation on tax
84	84	increases under this section were not in effect, but that was not
85	85	imposed because of that limitation. The chief appraiser shall
86	86	determine that taxable value and certify it to the comptroller as
87	87	soon as practicable for each tax year.
88	88	SECTION 2. Sections 23.19(b) and (g), Tax Code, are amended
89	89	to read as follows:
90	90	(b) If an appraisal district receives a written request for
91	91	the appraisal of real property and improvements of a cooperative
92	92	housing corporation according to the separate interests of the
93	93	corporation's stockholders, the chief appraiser shall separately
94	94	appraise the interests described by Subsection (d) if the
95	95	conditions required by Subsections (e) and (f) have been met.
96	96	Separate appraisal under this section is for the purposes of
97	97	administration of tax exemptions, determination of applicable
98	98	limitations of taxes under Section 11.26, [or] 11.261, or 11.262,
99	99	and apportionment by a cooperative housing corporation of property
100	100	taxes among its stockholders but is not the basis for determining
101	101	value on which a tax is imposed under this title. A stockholder
102	102	whose interest is separately appraised under this section may
103	103	protest and appeal the appraised value in the manner provided by
104	104	this title for protest and appeal of the appraised value of other
105	105	property.
106	106	(g) A tax bill or a separate statement accompanying the tax
107	107	bill to a cooperative housing corporation for which interests of
108	108	stockholders are separately appraised under this section must
109	109	state, in addition to the information required by Section 31.01,
110	110	the appraised value and taxable value of each interest separately
111	111	appraised. Each exemption claimed as provided by this title by a
112	112	person entitled to the exemption shall also be deducted from the
113	113	total appraised value of the property of the corporation. The total
114	114	tax imposed by a taxing unit [school district, county,
115	115	municipality, or junior college district] shall be reduced by any
116	116	amount that represents an increase in taxes attributable to
117	117	separately appraised interests of the real property and
118	118	improvements that are subject to the limitation of taxes prescribed
119	119	by Section 11.26, [or] 11.261, or 11.262. The corporation shall
120	120	apportion among its stockholders liability for reimbursing the
121	121	corporation for property taxes according to the relative taxable
122	122	values of their interests.
123	123	SECTION 3. Sections 26.012(6), (13), and (14), Tax Code,
124	124	are amended to read as follows:
125	125	(6) "Current total value" means the total taxable
126	126	value of property listed on the appraisal roll for the current year,
127	127	including all appraisal roll supplements and corrections as of the
128	128	date of the calculation, less the taxable value of property
129	129	exempted for the current tax year for the first time under Section
130	130	11.31 or 11.315, except that:
131	131	(A) the current total value for a school district
132	132	excludes:
133	133	(i) the total value of homesteads that
134	134	qualify for a tax limitation as provided by Section 11.26; and
135	135	(ii) new property value of property that is
136	136	subject to an agreement entered into under Chapter 313; [and]
137	137	(B) the current total value for a county,
138	138	municipality, or junior college district excludes the total value
139	139	of homesteads that qualify for a tax limitation provided by Section
140	140	11.261 applicable to the taxing unit; and
141	141	(C) the current total value for a taxing unit
142	142	excludes the total value of homesteads that qualify for a tax
143	143	limitation provided by Section 11.262 applicable to the taxing
144	144	unit.
145	145	(13) "Last year's levy" means the total of:
146	146	(A) the amount of taxes that would be generated
147	147	by multiplying the total tax rate adopted by the governing body in
148	148	the preceding year by the total taxable value of property on the
149	149	appraisal roll for the preceding year, including:
150	150	(i) taxable value that was reduced in an
151	151	appeal under Chapter 42; and
152	152	(ii) all appraisal roll supplements and
153	153	corrections other than corrections made pursuant to Section
154	154	25.25(d), as of the date of the calculation, except that last year's
155	155	taxable value for a school district excludes the total value of
156	156	homesteads that qualified for a tax limitation as provided by
157	157	Section 11.26, [and] last year's taxable value for a county,
158	158	municipality, or junior college district excludes the total value
159	159	of homesteads that qualified for a tax limitation as provided by
160	160	Section 11.261 applicable to the taxing unit, and last year's
161	161	taxable value for a taxing unit excludes the total value of
162	162	homesteads that qualified for a tax limitation as provided by
163	163	Section 11.262 applicable to the taxing unit; and
164	164	(B) the amount of taxes refunded by the taxing
165	165	unit in the preceding year for tax years before that year.
166	166	(14) "Last year's total value" means the total taxable
167	167	value of property listed on the appraisal roll for the preceding
168	168	year, including all appraisal roll supplements and corrections,
169	169	other than corrections made pursuant to Section 25.25(d), as of the
170	170	date of the calculation, except that:
171	171	(A) last year's taxable value for a school
172	172	district excludes the total value of homesteads that qualified for
173	173	a tax limitation as provided by Section 11.26; [and]
174	174	(B) last year's taxable value for a county,
175	175	municipality, or junior college district excludes the total value
176	176	of homesteads that qualified for a tax limitation as provided by
177	177	Section 11.261 applicable to the taxing unit; and
178	178	(C) last year's taxable value for a taxing unit
179	179	excludes the total value of homesteads that qualified for a tax
180	180	limitation as provided by Section 11.262 applicable to the taxing
181	181	unit.
182	182	SECTION 4. Section 31.01, Tax Code, is amended by adding
183	183	Subsection (c-3) to read as follows:
184	184	(c-3) This subsection applies only to taxes imposed on a
185	185	residence homestead subject to the limitation authorized by Section
186	186	11.262 for the tax year preceding the tax year in which the
187	187	limitation expires under Section 11.262(d)(2)(A). The tax bill or
188	188	separate statement described by Subsection (c) must include
189	189	notification that the limitation will expire and that the amount of
190	190	taxes imposed on the property may increase in the following tax
191	191	year.
192	192	SECTION 5. Section 44.004(c), Education Code, is amended to
193	193	read as follows:
194	194	(c) The notice of public meeting to discuss and adopt the
195	195	budget and the proposed tax rate may not be smaller than one-quarter
196	196	page of a standard-size or a tabloid-size newspaper, and the
197	197	headline on the notice must be in 18-point or larger type. Subject
198	198	to Subsection (d), the notice must:
199	199	(1) contain a statement in the following form:
200	200	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
201	201	"The (name of school district) will hold a public meeting at
202	202	(time, date, year) in (name of room, building, physical location,
203	203	city, state). The purpose of this meeting is to discuss the school
204	204	district's budget that will determine the tax rate that will be
205	205	adopted. Public participation in the discussion is invited." The
206	206	statement of the purpose of the meeting must be in bold type. In
207	207	reduced type, the notice must state: "The tax rate that is
208	208	ultimately adopted at this meeting or at a separate meeting at a
209	209	later date may not exceed the proposed rate shown below unless the
210	210	district publishes a revised notice containing the same information
211	211	and comparisons set out below and holds another public meeting to
212	212	discuss the revised notice.";
213	213	(2) contain a section entitled "Comparison of Proposed
214	214	Budget with Last Year's Budget," which must show the difference,
215	215	expressed as a percent increase or decrease, as applicable, in the
216	216	amounts budgeted for the preceding fiscal year and the amount
217	217	budgeted for the fiscal year that begins in the current tax year for
218	218	each of the following:
219	219	(A) maintenance and operations;
220	220	(B) debt service; and
221	221	(C) total expenditures;
222	222	(3) contain a section entitled "Total Appraised Value
223	223	and Total Taxable Value," which must show the total appraised value
224	224	and the total taxable value of all property and the total appraised
225	225	value and the total taxable value of new property taxable by the
226	226	district in the preceding tax year and the current tax year as
227	227	calculated under Section 26.04, Tax Code;
228	228	(4) contain a statement of the total amount of the
229	229	outstanding and unpaid bonded indebtedness of the school district;
230	230	(5) contain a section entitled "Comparison of Proposed
231	231	Rates with Last Year's Rates," which must:
232	232	(A) show in rows the tax rates described by
233	233	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
234	234	property, for columns entitled "Maintenance & Operations,"
235	235	"Interest & Sinking Fund," and "Total," which is the sum of
236	236	"Maintenance & Operations" and "Interest & Sinking Fund":
237	237	(i) the school district's "Last Year's
238	238	Rate";
239	239	(ii) the "Rate to Maintain Same Level of
240	240	Maintenance & Operations Revenue & Pay Debt Service," which:
241	241	(a) in the case of "Maintenance &
242	242	Operations," is the tax rate that, when applied to the current
243	243	taxable value for the district, as certified by the chief appraiser
244	244	under Section 26.01, Tax Code, and as adjusted to reflect changes
245	245	made by the chief appraiser as of the time the notice is prepared,
246	246	would impose taxes in an amount that, when added to state funds to
247	247	be distributed to the district under Chapter 42, would provide the
248	248	same amount of maintenance and operations taxes and state funds
249	249	distributed under Chapter 42 per student in average daily
250	250	attendance for the applicable school year that was available to the
251	251	district in the preceding school year; and
252	252	(b) in the case of "Interest & Sinking
253	253	Fund," is the tax rate that, when applied to the current taxable
254	254	value for the district, as certified by the chief appraiser under
255	255	Section 26.01, Tax Code, and as adjusted to reflect changes made by
256	256	the chief appraiser as of the time the notice is prepared, and when
257	257	multiplied by the district's anticipated collection rate, would
258	258	impose taxes in an amount that, when added to state funds to be
259	259	distributed to the district under Chapter 46 and any excess taxes
260	260	collected to service the district's debt during the preceding tax
261	261	year but not used for that purpose during that year, would provide
262	262	the amount required to service the district's debt; and
263	263	(iii) the "Proposed Rate";
264	264	(B) contain fourth and fifth columns aligned with
265	265	the columns required by Paragraph (A) that show, for each row
266	266	required by Paragraph (A):
267	267	(i) the "Local Revenue per Student," which
268	268	is computed by multiplying the district's total taxable value of
269	269	property, as certified by the chief appraiser for the applicable
270	270	school year under Section 26.01, Tax Code, and as adjusted to
271	271	reflect changes made by the chief appraiser as of the time the
272	272	notice is prepared, by the total tax rate, and dividing the product
273	273	by the number of students in average daily attendance in the
274	274	district for the applicable school year; and
275	275	(ii) the "State Revenue per Student," which
276	276	is computed by determining the amount of state aid received or to be
277	277	received by the district under Chapters 42, 43, and 46 and dividing
278	278	that amount by the number of students in average daily attendance in
279	279	the district for the applicable school year; and
280	280	(C) contain an asterisk after each calculation
281	281	for "Interest & Sinking Fund" and a footnote to the section that, in
282	282	reduced type, states "The Interest & Sinking Fund tax revenue is
283	283	used to pay for bonded indebtedness on construction, equipment, or
284	284	both. The bonds, and the tax rate necessary to pay those bonds,
285	285	were approved by the voters of this district.";
286	286	(6) contain a section entitled "Comparison of Proposed
287	287	Levy with Last Year's Levy on Average Residence," which must:
288	288	(A) show in rows the information described by
289	289	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
290	290	entitled "Last Year" and "This Year":
291	291	(i) "Average Market Value of Residences,"
292	292	determined using the same group of residences for each year;
293	293	(ii) "Average Taxable Value of Residences,"
294	294	determined after taking into account the limitation on the
295	295	appraised value of residences under Section 23.23, Tax Code, and
296	296	after subtracting all homestead exemptions applicable in each year,
297	297	other than exemptions available only to disabled persons or persons
298	298	65 years of age or older or their surviving spouses, and using the
299	299	same group of residences for each year;
300	300	(iii) "Last Year's Rate Versus Proposed
301	301	Rate per $100 Value"; and
302	302	(iv) "Taxes Due on Average Residence,"
303	303	determined using the same group of residences for each year; and
304	304	(B) contain the following information:
305	305	"Increase (Decrease) in Taxes" expressed in dollars and cents,
306	306	which is computed by subtracting the "Taxes Due on Average
307	307	Residence" for the preceding tax year from the "Taxes Due on Average
308	308	Residence" for the current tax year;
309	309	(7) contain the following statement in bold print:
310	310	"Under state law, the dollar amount of school taxes imposed on the
311	311	residence of a person 65 years of age or older or of the surviving
312	312	spouse of such a person, if the surviving spouse was 55 years of age
313	313	or older when the person died, may not be increased above the amount
314	314	paid in the first year after the person turned 65, regardless of
315	315	changes in tax rate or property value.";
316	316	(8) contain the following statement in bold print:
317	317	"Notice of Rollback Rate: The highest tax rate the district can
318	318	adopt before requiring voter approval at an election is (the school
319	319	district rollback rate determined under Section 26.08, Tax Code).
320	320	This election will be automatically held if the district adopts a
321	321	rate in excess of the rollback rate of (the school district rollback
322	322	rate)."; [and]
323	323	(9) contain a section entitled "Fund Balances," which
324	324	must include the estimated amount of interest and sinking fund
325	325	balances and the estimated amount of maintenance and operation or
326	326	general fund balances remaining at the end of the current fiscal
327	327	year that are not encumbered with or by corresponding debt
328	328	obligation, less estimated funds necessary for the operation of the
329	329	district before the receipt of the first payment under Chapter 42 in
330	330	the succeeding school year; and
331	331	(10) contain the following statement in bold print:
332	332	"Under state law, the dollar amount of school taxes imposed on a
333	333	residence homestead rendered uninhabitable or unusable as a result
334	334	of a natural disaster may not for a temporary period be increased
335	335	above the amount of school taxes imposed on the property in the year
336	336	in which the natural disaster rendered the residence homestead
337	337	uninhabitable or unusable, regardless of changes in tax rate or
338	338	property value.".
339	339	SECTION 6. Section 403.302(d), Government Code, is amended
340	340	to read as follows:
341	341	(d) For the purposes of this section, "taxable value" means
342	342	the market value of all taxable property less:
343	343	(1) the total dollar amount of any residence homestead
344	344	exemptions lawfully granted under Section 11.13(b) or (c), Tax
345	345	Code, in the year that is the subject of the study for each school
346	346	district;
347	347	(2) one-half of the total dollar amount of any
348	348	residence homestead exemptions granted under Section 11.13(n), Tax
349	349	Code, in the year that is the subject of the study for each school
350	350	district;
351	351	(3) the total dollar amount of any exemptions granted
352	352	before May 31, 1993, within a reinvestment zone under agreements
353	353	authorized by Chapter 312, Tax Code;
354	354	(4) subject to Subsection (e), the total dollar amount
355	355	of any captured appraised value of property that:
356	356	(A) is within a reinvestment zone created on or
357	357	before May 31, 1999, or is proposed to be included within the
358	358	boundaries of a reinvestment zone as the boundaries of the zone and
359	359	the proposed portion of tax increment paid into the tax increment
360	360	fund by a school district are described in a written notification
361	361	provided by the municipality or the board of directors of the zone
362	362	to the governing bodies of the other taxing units in the manner
363	363	provided by former Section 311.003(e), Tax Code, before May 31,
364	364	1999, and within the boundaries of the zone as those boundaries
365	365	existed on September 1, 1999, including subsequent improvements to
366	366	the property regardless of when made;
367	367	(B) generates taxes paid into a tax increment
368	368	fund created under Chapter 311, Tax Code, under a reinvestment zone
369	369	financing plan approved under Section 311.011(d), Tax Code, on or
370	370	before September 1, 1999; and
371	371	(C) is eligible for tax increment financing under
372	372	Chapter 311, Tax Code;
373	373	(5) the total dollar amount of any captured appraised
374	374	value of property that:
375	375	(A) is within a reinvestment zone:
376	376	(i) created on or before December 31, 2008,
377	377	by a municipality with a population of less than 18,000; and
378	378	(ii) the project plan for which includes
379	379	the alteration, remodeling, repair, or reconstruction of a
380	380	structure that is included on the National Register of Historic
381	381	Places and requires that a portion of the tax increment of the zone
382	382	be used for the improvement or construction of related facilities
383	383	or for affordable housing;
384	384	(B) generates school district taxes that are paid
385	385	into a tax increment fund created under Chapter 311, Tax Code; and
386	386	(C) is eligible for tax increment financing under
387	387	Chapter 311, Tax Code;
388	388	(6) the total dollar amount of any exemptions granted
389	389	under Section 11.251 or 11.253, Tax Code;
390	390	(7) the difference between the comptroller's estimate
391	391	of the market value and the productivity value of land that
392	392	qualifies for appraisal on the basis of its productive capacity,
393	393	except that the productivity value estimated by the comptroller may
394	394	not exceed the fair market value of the land;
395	395	(8) the portion of the appraised value of residence
396	396	homesteads of individuals who receive a tax limitation under
397	397	Section 11.26 or 11.262, Tax Code, on which school district taxes
398	398	are not imposed in the year that is the subject of the study,
399	399	calculated as if the residence homesteads were appraised at the
400	400	full value required by law;
401	401	(9) a portion of the market value of property not
402	402	otherwise fully taxable by the district at market value because of:
403	403	(A) action required by statute or the
404	404	constitution of this state, other than Section 11.311, Tax Code,
405	405	that, if the tax rate adopted by the district is applied to it,
406	406	produces an amount equal to the difference between the tax that the
407	407	district would have imposed on the property if the property were
408	408	fully taxable at market value and the tax that the district is
409	409	actually authorized to impose on the property, if this subsection
410	410	does not otherwise require that portion to be deducted; or
411	411	(B) action taken by the district under Subchapter
412	412	B or C, Chapter 313, Tax Code, before the expiration of the
413	413	subchapter;
414	414	(10) the market value of all tangible personal
415	415	property, other than manufactured homes, owned by a family or
416	416	individual and not held or used for the production of income;
417	417	(11) the appraised value of property the collection of
418	418	delinquent taxes on which is deferred under Section 33.06, Tax
419	419	Code;
420	420	(12) the portion of the appraised value of property
421	421	the collection of delinquent taxes on which is deferred under
422	422	Section 33.065, Tax Code; and
423	423	(13) the amount by which the market value of a
424	424	residence homestead to which Section 23.23, Tax Code, applies
425	425	exceeds the appraised value of that property as calculated under
426	426	that section.
427	427	SECTION 7. The changes in law made by this Act apply only to
428	428	a residence homestead rendered uninhabitable or unusable by a
429	429	natural disaster that occurs on or after the effective date of this
430	430	Act.
431	431	SECTION 8. This Act takes effect January 1, 2018, but only
432	432	if the constitutional amendment proposed by the 85th Legislature,
433	433	1st Called Session, 2017, authorizing the legislature to limit for
434	434	a temporary period the total amount of ad valorem taxes that may be
435	435	imposed by a political subdivision on a residence homestead
436	436	rendered uninhabitable or unusable as a result of a natural
437	437	disaster is approved by the voters. If that amendment is not
438	438	approved by the voters, this Act has no effect.