Texas 2017 - 85th 1st C.S.

Texas House Bill HB55 Compare Versions

Only one version of the bill is available at this time.

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1	1	85S10037 SMH-D
2	2	By: Schofield H.B. No. 55
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 dollar amount or a percentage, whichever is greater,
9	9	of the appraised value of a residence homestead and a reduction of
10	10	the limitation on the total amount of ad valorem taxes that may be
11	11	imposed by a school district on the homestead of an elderly or
12	12	disabled person to reflect any increase in the exemption amount.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
15	15	follows:
16	16	(b) An adult is entitled to exemption from taxation by a
17	17	school district of $25,000 of the appraised value of the adult's
18	18	residence homestead or 13 percent of the appraised value of the
19	19	adult's residence homestead, whichever is greater, except that only
20	20	$5,000 of the exemption applies to an entity operating under former
21	21	Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters
22	22	existed on May 1, 1995, as permitted by Section 11.301, Education
23	23	Code.
24	24	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
25	25	follows:
26	26	(a) The tax officials shall appraise the property to which
27	27	this section applies and calculate taxes as on other property, but
28	28	if the tax so calculated exceeds the limitation imposed by this
29	29	section, the tax imposed is the amount of the tax as limited by this
30	30	section, except as otherwise provided by this section. A school
31	31	district may not increase the total annual amount of ad valorem tax
32	32	it imposes on the residence homestead of an individual 65 years of
33	33	age or older or on the residence homestead of an individual who is
34	34	disabled, as defined by Section 11.13, above the amount of the tax
35	35	it imposed in the first tax year in which the individual qualified
36	36	that residence homestead for the applicable exemption provided by
37	37	Section 11.13(c) for an individual who is 65 years of age or older
38	38	or is disabled. If the individual qualified that residence
39	39	homestead for the exemption after the beginning of that first year
40	40	and the residence homestead remains eligible for the same exemption
41	41	for the next year, and if the school district taxes imposed on the
42	42	residence homestead in the next year are less than the amount of
43	43	taxes imposed in that first year, a school district may not
44	44	subsequently increase the total annual amount of ad valorem taxes
45	45	it imposes on the residence homestead above the amount it imposed in
46	46	the year immediately following the first year for which the
47	47	individual qualified that residence homestead for the same
48	48	exemption, except as provided by Subsection (b). If the first tax
49	49	year the individual qualified the residence homestead for the
50	50	exemption provided by Section 11.13(c) for individuals 65 years of
51	51	age or older or disabled was a tax year before the 2015 tax year, the
52	52	amount of the limitation provided by this section is the amount of
53	53	tax the school district imposed for the 2014 tax year less an amount
54	54	equal to the amount determined by multiplying $10,000 times the tax
55	55	rate of the school district for the 2015 tax year, plus any 2015 tax
56	56	attributable to improvements made in 2014, other than improvements
57	57	made to comply with governmental regulations or repairs. If the
58	58	first tax year the individual qualified the residence homestead for
59	59	the exemption provided by Section 11.13(c) for individuals 65 years
60	60	of age or older or disabled was a tax year before the 2018 tax year
61	61	and the appraised value of the homestead for the 2018 tax year is
62	62	more than $192,308, the amount of the limitation provided by this
63	63	section is the amount of tax the school district imposed for the
64	64	2017 tax year, less an amount equal to the amount computed by
65	65	subtracting $25,000 from an amount equal to 13 percent of the
66	66	appraised value of the homestead for the 2018 tax year and
67	67	multiplying that amount by the tax rate of the school district for
68	68	the 2018 tax year, plus any 2018 tax attributable to improvements
69	69	made in 2017, other than improvements made to comply with
70	70	governmental regulations or repairs. Except as provided by
71	71	Subsection (b), a limitation on tax increases provided by this
72	72	section on a residence homestead computed under this subsection
73	73	continues to apply to the homestead in subsequent tax years until
74	74	the limitation expires.
75	75	SECTION 3. Section 403.302(d), Government Code, is amended
76	76	to read as follows:
77	77	(d) For the purposes of this section, "taxable value" means
78	78	the market value of all taxable property less:
79	79	(1) the total dollar amount of any residence homestead
80	80	exemptions lawfully granted under Section 11.13(b) [or (c)], Tax
81	81	Code, in the year that is the subject of the study for each school
82	82	district, computed on the basis of an exemption of $25,000 of the
83	83	appraised value of each residence homestead;
84	84	(1-a) the total dollar amount of any residence
85	85	homestead exemptions lawfully granted under Section 11.13(c), Tax
86	86	Code, in the year that is the subject of the study for each school
87	87	district;
88	88	(2) one-half of the total dollar amount of any
89	89	residence homestead exemptions granted under Section 11.13(n), Tax
90	90	Code, in the year that is the subject of the study for each school
91	91	district;
92	92	(3) the total dollar amount of any exemptions granted
93	93	before May 31, 1993, within a reinvestment zone under agreements
94	94	authorized by Chapter 312, Tax Code;
95	95	(4) subject to Subsection (e), the total dollar amount
96	96	of any captured appraised value of property that:
97	97	(A) is within a reinvestment zone created on or
98	98	before May 31, 1999, or is proposed to be included within the
99	99	boundaries of a reinvestment zone as the boundaries of the zone and
100	100	the proposed portion of tax increment paid into the tax increment
101	101	fund by a school district are described in a written notification
102	102	provided by the municipality or the board of directors of the zone
103	103	to the governing bodies of the other taxing units in the manner
104	104	provided by former Section 311.003(e), Tax Code, before May 31,
105	105	1999, and within the boundaries of the zone as those boundaries
106	106	existed on September 1, 1999, including subsequent improvements to
107	107	the property regardless of when made;
108	108	(B) generates taxes paid into a tax increment
109	109	fund created under Chapter 311, Tax Code, under a reinvestment zone
110	110	financing plan approved under Section 311.011(d), Tax Code, on or
111	111	before September 1, 1999; and
112	112	(C) is eligible for tax increment financing under
113	113	Chapter 311, Tax Code;
114	114	(5) the total dollar amount of any captured appraised
115	115	value of property that:
116	116	(A) is within a reinvestment zone:
117	117	(i) created on or before December 31, 2008,
118	118	by a municipality with a population of less than 18,000; and
119	119	(ii) the project plan for which includes
120	120	the alteration, remodeling, repair, or reconstruction of a
121	121	structure that is included on the National Register of Historic
122	122	Places and requires that a portion of the tax increment of the zone
123	123	be used for the improvement or construction of related facilities
124	124	or for affordable housing;
125	125	(B) generates school district taxes that are paid
126	126	into a tax increment fund created under Chapter 311, Tax Code; and
127	127	(C) is eligible for tax increment financing under
128	128	Chapter 311, Tax Code;
129	129	(6) the total dollar amount of any exemptions granted
130	130	under Section 11.251 or 11.253, Tax Code;
131	131	(7) the difference between the comptroller's estimate
132	132	of the market value and the productivity value of land that
133	133	qualifies for appraisal on the basis of its productive capacity,
134	134	except that the productivity value estimated by the comptroller may
135	135	not exceed the fair market value of the land;
136	136	(8) the portion of the appraised value of residence
137	137	homesteads of individuals who receive a tax limitation under
138	138	Section 11.26, Tax Code, on which school district taxes are not
139	139	imposed in the year that is the subject of the study, calculated as
140	140	if the residence homesteads were appraised at the full value
141	141	required by law;
142	142	(9) a portion of the market value of property not
143	143	otherwise fully taxable by the district at market value because of:
144	144	(A) action required by statute or the
145	145	constitution of this state, other than Section 11.311, Tax Code,
146	146	that, if the tax rate adopted by the district is applied to it,
147	147	produces an amount equal to the difference between the tax that the
148	148	district would have imposed on the property if the property were
149	149	fully taxable at market value and the tax that the district is
150	150	actually authorized to impose on the property, if this subsection
151	151	does not otherwise require that portion to be deducted; or
152	152	(B) action taken by the district under Subchapter
153	153	B or C, Chapter 313, Tax Code, before the expiration of the
154	154	subchapter;
155	155	(10) the market value of all tangible personal
156	156	property, other than manufactured homes, owned by a family or
157	157	individual and not held or used for the production of income;
158	158	(11) the appraised value of property the collection of
159	159	delinquent taxes on which is deferred under Section 33.06, Tax
160	160	Code;
161	161	(12) the portion of the appraised value of property
162	162	the collection of delinquent taxes on which is deferred under
163	163	Section 33.065, Tax Code; and
164	164	(13) the amount by which the market value of a
165	165	residence homestead to which Section 23.23, Tax Code, applies
166	166	exceeds the appraised value of that property as calculated under
167	167	that section.
168	168	SECTION 4. The changes in law made by this Act to Sections
169	169	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
170	170	begins on or after January 1, 2018.
171	171	SECTION 5. This Act takes effect January 1, 2018, but only
172	172	if the constitutional amendment proposed by the 85th Legislature,
173	173	1st Called Session, 2017, providing for an exemption from ad
174	174	valorem taxation for public school purposes of $25,000 or 13
175	175	percent, whichever is greater, of the market value of a residence
176	176	homestead and providing for a reduction of the limitation on the
177	177	total amount of ad valorem taxes that may be imposed for those
178	178	purposes on the homestead of an elderly or disabled person to
179	179	reflect any increase in the exemption amount is approved by the
180	180	voters. If that constitutional amendment is not approved by the
181	181	voters, this Act has no effect.