Texas 2017 - 85th 1st C.S.

Texas House Bill HB288 Compare Versions

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1	1	85S10598 SMH/CAE-D
2	2	By: White H.B. No. 288
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an exemption from ad valorem taxation by a school
8	8	district of a portion of the appraised value of a residence
9	9	homestead based on the median market value of all residence
10	10	homesteads in this state, a reduction of the limitation on the total
11	11	amount of ad valorem taxes that may be imposed by a school district
12	12	on the homestead of an elderly or disabled person to reflect any
13	13	increase in the exemption amount, and the protection of school
14	14	districts against any resulting loss in local revenue.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
17	17	follows:
18	18	(b) An adult is entitled to exemption from taxation by a
19	19	school district of a portion [$25,000] of the appraised value of the
20	20	adult's residence homestead equal to 25 percent of the highest
21	21	median market value for any tax year beginning with the 2017 tax
22	22	year of all residence homesteads in the state, except that only
23	23	$5,000 of the exemption applies to an entity operating under former
24	24	Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters
25	25	existed on May 1, 1995, as permitted by Section 11.301, Education
26	26	Code. For purposes of this subsection, not later than March 1 of
27	27	each year the Legislative Budget Board shall determine the median
28	28	market value of all residence homesteads in the state as of the
29	29	preceding tax year and publish in the Texas Register the highest
30	30	median market value for any preceding tax year beginning with the
31	31	2017 tax year of all residence homesteads in the state. The
32	32	Legislative Budget Board shall make the determination based on
33	33	information provided to the board by each appraisal district. Each
34	34	appraisal district shall provide to the Legislative Budget Board
35	35	the information requested by the board that the board determines to
36	36	be necessary to make the determination.
37	37	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
38	38	follows:
39	39	(a) The tax officials shall appraise the property to which
40	40	this section applies and calculate taxes as on other property, but
41	41	if the tax so calculated exceeds the limitation imposed by this
42	42	section, the tax imposed is the amount of the tax as limited by this
43	43	section, except as otherwise provided by this section. A school
44	44	district may not increase the total annual amount of ad valorem tax
45	45	it imposes on the residence homestead of an individual 65 years of
46	46	age or older or on the residence homestead of an individual who is
47	47	disabled, as defined by Section 11.13, above the amount of the tax
48	48	it imposed in the first tax year in which the individual qualified
49	49	that residence homestead for the applicable exemption provided by
50	50	Section 11.13(c) for an individual who is 65 years of age or older
51	51	or is disabled. If the individual qualified that residence
52	52	homestead for the exemption after the beginning of that first year
53	53	and the residence homestead remains eligible for the same exemption
54	54	for the next year, and if the school district taxes imposed on the
55	55	residence homestead in the next year are less than the amount of
56	56	taxes imposed in that first year, a school district may not
57	57	subsequently increase the total annual amount of ad valorem taxes
58	58	it imposes on the residence homestead above the amount it imposed in
59	59	the year immediately following the first year for which the
60	60	individual qualified that residence homestead for the same
61	61	exemption, except as provided by Subsection (b). If the first tax
62	62	year the individual qualified the residence homestead for the
63	63	exemption provided by Section 11.13(c) for individuals 65 years of
64	64	age or older or disabled was a tax year before the 2018 [2015] tax
65	65	year, the amount of the limitation provided by this section is the
66	66	amount of tax the school district imposed for the 2017 [2014] tax
67	67	year less an amount equal to the amount determined by subtracting
68	68	$25,000 from the amount of the exemption under Section 11.13(b) for
69	69	the 2018 tax year and multiplying that amount by [$10,000 times] the
70	70	tax rate of the school district for the 2018 [2015] tax year, plus
71	71	any 2018 [2015] tax attributable to improvements made in 2017
72	72	[2014], other than improvements made to comply with governmental
73	73	regulations or repairs.
74	74	SECTION 3. Subchapter A, Chapter 41, Education Code, is
75	75	amended by adding Section 41.0011 to read as follows:
76	76	Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR
77	77	2018-2019 SCHOOL YEAR. Notwithstanding any other provision of
78	78	this chapter, in computing a school district's wealth per student
79	79	for the 2018-2019 school year, a school district's taxable value of
80	80	property under Subchapter M, Chapter 403, Government Code, is
81	81	determined as if any change in the amount of the residence homestead
82	82	exemption under Section 1-b(c), Article VIII, Texas Constitution,
83	83	and any additional limitation on tax increases under Section 1-b(d)
84	84	of that article in effect for the 2018 tax year as proposed by the
85	85	85th Legislature, 1st Called Session, 2017, had been in effect for
86	86	the 2017 tax year. This section expires September 1, 2019.
87	87	SECTION 4. Section 42.2518, Education Code, as effective
88	88	September 1, 2017, is amended by amending Subsections (a) and (b)
89	89	and adding Subsection (a-1) to read as follows:
90	90	(a) For [Beginning with] the 2017-2018 school year, a school
91	91	district is entitled to additional state aid to the extent that
92	92	state and local revenue under this chapter and Chapter 41 is less
93	93	than the state and local revenue that would have been available to
94	94	the district under Chapter 41 and this chapter as those chapters
95	95	existed on September 1, 2015, excluding any state aid that would
96	96	have been provided under former Section 42.2516, if the increase in
97	97	the residence homestead exemption under Section 1-b(c), Article
98	98	VIII, Texas Constitution, and the additional limitation on tax
99	99	increases under Section 1-b(d) of that article as proposed by
100	100	S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
101	101	occurred.
102	102	(a-1) Beginning with the 2018-2019 school year, a school
103	103	district is entitled to additional state aid to the extent that
104	104	state and local revenue under this chapter and Chapter 41 is less
105	105	than the state and local revenue that would have been available to
106	106	the district under Chapter 41 and this chapter as those chapters
107	107	existed on September 1, 2017, if any change in the amount of the
108	108	residence homestead exemption under Section 1-b(c), Article VIII,
109	109	Texas Constitution, as proposed by the joint resolution to amend
110	110	that subsection adopted by the 85th Legislature, 1st Called
111	111	Session, 2017, and any additional limitation on tax increases under
112	112	Section 1-b(d) of that article as proposed by the joint resolution
113	113	to amend that subsection adopted by the 85th Legislature, 1st
114	114	Called Session, 2017, had not occurred.
115	115	(b) The lesser of the school district's currently adopted
116	116	maintenance and operations tax rate or the adopted maintenance and
117	117	operations tax rate for:
118	118	(1) the 2014 tax year is used for the purpose of
119	119	determining additional state aid under Subsection (a); and
120	120	(2) the 2017 tax year is used for the purpose of
121	121	determining additional state aid under Subsection (a-1) [this
122	122	section].
123	123	SECTION 5. Section 42.252, Education Code, is amended by
124	124	adding Subsection (e) to read as follows:
125	125	(e) Notwithstanding any other provision of this chapter, in
126	126	computing each school district's local share of program cost under
127	127	this section for the 2018-2019 school year, a school district's
128	128	taxable value of property under Subchapter M, Chapter 403,
129	129	Government Code, is determined as if any change in the amount of the
130	130	residence homestead exemption under Section 1-b(c), Article VIII,
131	131	Texas Constitution, and any additional limitation on tax increases
132	132	under Section 1-b(d) of that article in effect for the 2018 tax year
133	133	as proposed by the 85th Legislature, 1st Called Session, 2017, had
134	134	been in effect for the 2017 tax year. This subsection expires
135	135	September 1, 2019.
136	136	SECTION 6. Section 42.302, Education Code, is amended by
137	137	adding Subsection (g) to read as follows:
138	138	(g) Notwithstanding any other provision of this chapter, in
139	139	computing a school district's enrichment tax rate ("DTR") and local
140	140	revenue ("LR") for the 2018-2019 school year, a school district's
141	141	taxable value of property under Subchapter M, Chapter 403,
142	142	Government Code, is determined as if any change in the amount of the
143	143	residence homestead exemption under Section 1-b(c), Article VIII,
144	144	Texas Constitution, and any additional limitation on tax increases
145	145	under Section 1-b(d) of that article in effect for the 2018 tax year
146	146	as proposed by the 85th Legislature, 1st Called Session, 2017, had
147	147	been in effect for the 2017 tax year. This subsection expires
148	148	September 1, 2019.
149	149	SECTION 7. Section 46.003, Education Code, is amended by
150	150	adding Subsection (i) to read as follows:
151	151	(i) Notwithstanding any other provision of this chapter, in
152	152	computing a district's bond tax rate ("BTR") and taxable value of
153	153	property ("DPV") for the 2018-2019 school year, a school district's
154	154	taxable value of property under Subchapter M, Chapter 403,
155	155	Government Code, is determined as if any change in the amount of
156	156	the residence homestead exemption under Section 1-b(c), Article
157	157	VIII, Texas Constitution, and any additional limitation on tax
158	158	increases under Section 1-b(d) of that article in effect for the
159	159	2018 tax year as proposed by the 85th Legislature, 1st Called
160	160	Session, 2017, had been in effect for the 2017 tax year. This
161	161	subsection expires September 1, 2019.
162	162	SECTION 8. Section 46.032, Education Code, is amended by
163	163	adding Subsection (d) to read as follows:
164	164	(d) Notwithstanding any other provision of this chapter, in
165	165	computing a district's existing debt tax rate ("EDTR") and taxable
166	166	value of property ("DPV") for the 2018-2019 school year, a school
167	167	district's taxable value of property under Subchapter M, Chapter
168	168	403, Government Code, is determined as if any change in the amount
169	169	of the residence homestead exemption under Section 1-b(c), Article
170	170	VIII, Texas Constitution, and any additional limitation on tax
171	171	increases under Section 1-b(d) of that article in effect for the
172	172	2018 tax year as proposed by the 85th Legislature, 1st Called
173	173	Session, 2017, had been in effect for the 2017 tax year. This
174	174	subsection expires September 1, 2019.
175	175	SECTION 9. Section 46.071, Education Code, is amended by
176	176	amending Subsections (a), (b), and (c) and adding Subsections
177	177	(a-1), (b-1), and (c-1) to read as follows:
178	178	(a) Beginning with the 2015-2016 school year and continuing
179	179	through the 2017-2018 school year, a school district is entitled to
180	180	additional state aid under this subchapter to the extent that state
181	181	and local revenue used to service debt eligible under this chapter
182	182	is less than the state and local revenue that would have been
183	183	available to the district under this chapter as it existed on
184	184	September 1, 2015, if the increase in the residence homestead
185	185	exemption under Section 1-b(c), Article VIII, Texas Constitution,
186	186	and the additional limitation on tax increases under Section 1-b(d)
187	187	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
188	188	Session, 2015, had not occurred.
189	189	(a-1) Beginning with the 2018-2019 school year, a school
190	190	district is entitled to additional state aid under this subchapter
191	191	to the extent that state and local revenue used to service debt
192	192	eligible under this chapter is less than the state and local revenue
193	193	that would have been available to the district under this chapter as
194	194	it existed on September 1, 2017, if any change in the amount of the
195	195	residence homestead exemption under Section 1-b(c), Article VIII,
196	196	Texas Constitution, and any additional limitation on tax increases
197	197	under Section 1-b(d) of that article as proposed by the 85th
198	198	Legislature, 1st Called Session, 2017, had not occurred.
199	199	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
200	200	additional state aid under this section through the 2017-2018
201	201	school year is equal to the amount by which the loss of local
202	202	interest and sinking revenue for debt service attributable to the
203	203	increase in the residence homestead exemption under Section 1-b(c),
204	204	Article VIII, Texas Constitution, and the additional limitation on
205	205	tax increases under Section 1-b(d) of that article as proposed by
206	206	S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
207	207	a gain in state aid under this chapter.
208	208	(b-1) Subject to Subsections (c-1), (d), and (e),
209	209	additional state aid under this section beginning with the
210	210	2018-2019 school year is equal to the amount by which the loss of
211	211	local interest and sinking revenue for debt service attributable to
212	212	any change in the amount of the residence homestead exemption under
213	213	Section 1-b(c), Article VIII, Texas Constitution, and any
214	214	additional limitation on tax increases under Section 1-b(d) of that
215	215	article as proposed by the 85th Legislature, 1st Called Session,
216	216	2017, is not offset by a gain in state aid under this chapter.
217	217	(c) For the purpose of determining state aid under
218	218	Subsections (a) and (b) [this section], local interest and sinking
219	219	revenue for debt service is limited to revenue required to service
220	220	debt eligible under this chapter as of September 1, 2015, including
221	221	refunding of that debt, subject to Section 46.061. The limitation
222	222	imposed by Section 46.034(a) does not apply for the purpose of
223	223	determining state aid under this section.
224	224	(c-1) For the purpose of determining state aid under
225	225	Subsections (a-1) and (b-1), local interest and sinking revenue for
226	226	debt service is limited to revenue required to service debt
227	227	eligible under this chapter as of September 1, 2017, including
228	228	refunding of that debt, subject to Section 46.061. The limitation
229	229	imposed by Section 46.034(a) does not apply for the purpose of
230	230	determining state aid under this section.
231	231	SECTION 10. The changes in law made by this Act to Sections
232	232	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
233	233	begins on or after January 1, 2018.
234	234	SECTION 11. This Act takes effect January 1, 2018, but only
235	235	if the constitutional amendment proposed by the 85th Legislature,
236	236	1st Called Session, 2017, providing for an exemption from ad
237	237	valorem taxation for public school purposes of a portion of the
238	238	market value of a residence homestead based on the median market
239	239	value of all residence homesteads in the state and providing for a
240	240	reduction of the limitation on the total amount of ad valorem taxes
241	241	that may be imposed for those purposes on the homestead of an
242	242	elderly or disabled person to reflect the increased exemption
243	243	amount is approved by the voters. If that constitutional amendment
244	244	is not approved by the voters, this Act has no effect.