Texas 2017 - 85th 1st C.S.

Texas House Bill HB72 Compare Versions

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Version 2 (New)

Old	New		Differences
1	1		85S10050 SMT-D
2		-	By: Bohac~~, Guillen~~ H.B. No. 72
	2	+	By: Bohac H.B. No. 72
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 of the residence
8	8		homestead of a Purple Heart recipient or the surviving spouse of a
9	9		Purple Heart recipient.
10	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11		SECTION 1. This Act may be cited as the Purple Heart
12	12		Homestead Act.
13	13		SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by
14	14		adding Section 11.137 to read as follows:
15	15		Sec. 11.137. RESIDENCE HOMESTEAD OF PURPLE HEART RECIPIENT.
16	16		(a) In this section:
17	17		(1) "Purple Heart recipient" means a person who has
18	18		been awarded the federal or Texas Purple Heart Medal.
19	19		(2) "Residence homestead" has the meaning assigned by
20	20		Section 11.13.
21	21		(3) "Surviving spouse" means the individual who was
22	22		married to a Purple Heart recipient at the time of the Purple Heart
23	23		recipient's death.
24	24		(b) A Purple Heart recipient is entitled to an exemption
25	25		from taxation of the total appraised value of the Purple Heart
26	26		recipient's residence homestead.
27	27		(c) The surviving spouse of a Purple Heart recipient who
28	28		qualified for an exemption under Subsection (b) when the Purple
29	29		Heart recipient died is entitled to an exemption from taxation of
30	30		the total appraised value of the same property to which the Purple
31	31		Heart recipient's exemption applied if:
32	32		(1) the surviving spouse has not remarried since the
33	33		death of the Purple Heart recipient; and
34	34		(2) the property:
35	35		(A) was the residence homestead of the surviving
36	36		spouse when the Purple Heart recipient died; and
37	37		(B) remains the residence homestead of the
38	38		surviving spouse.
39	39		(d) If a surviving spouse who qualifies for an exemption
40	40		under Subsection (c) subsequently qualifies a different property as
41	41		the surviving spouse's residence homestead, the surviving spouse is
42	42		entitled to an exemption from taxation of the subsequently
43	43		qualified homestead in an amount equal to the dollar amount of the
44	44		exemption from taxation of the former homestead under Subsection
45	45		(c) in the last year in which the surviving spouse received an
46	46		exemption under that subsection for that homestead if the surviving
47	47		spouse has not remarried since the death of the Purple Heart
48	48		recipient. The surviving spouse is entitled to receive from the
49	49		chief appraiser of the appraisal district in which the former
50	50		residence homestead was located a written certificate providing the
51	51		information necessary to determine the amount of the exemption to
52	52		which the surviving spouse is entitled on the subsequently
53	53		qualified homestead.
54	54		SECTION 3. Section 11.42(e), Tax Code, is amended to read as
55	55		follows:
56	56		(e) A person who qualifies for an exemption under Section
57	57		11.131 or 11.137 after January 1 of a tax year may receive the
58	58		exemption for the applicable portion of that tax year immediately
59	59		on qualification for the exemption.
60	60		SECTION 4. (a) This section takes effect only if the
61	61		constitutional amendment proposed by S.J.R. 1, 85th Legislature,
62	62		Regular Session, 2017, is approved by the voters.
63	63		(b) Section 11.43(c), Tax Code, as amended by H.B. 1101,
64	64		Acts of the 85th Legislature, Regular Session, 2017, effective
65	65		January 1, 2018, and S.B. 15, Acts of the 85th Legislature, Regular
66	66		Session, 2017, effective January 1, 2018, is amended to read as
67	67		follows:
68	68		(c) An exemption provided by Section 11.13, 11.131, 11.132,
69	69		11.133, 11.134, 11.137, 11.17, 11.18, 11.182, 11.1827, 11.183,
70	70		11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),
71	71		11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once
72	72		allowed, need not be claimed in subsequent years, and except as
73	73		otherwise provided by Subsection (e), the exemption applies to the
74	74		property until it changes ownership or the person's qualification
75	75		for the exemption changes. However, except as provided by
76	76		Subsection (r), the chief appraiser may require a person allowed
77	77		one of the exemptions in a prior year to file a new application to
78	78		confirm the person's current qualification for the exemption by
79	79		delivering a written notice that a new application is required,
80	80		accompanied by an appropriate application form, to the person
81	81		previously allowed the exemption. If the person previously allowed
82	82		the exemption is 65 years of age or older, the chief appraiser may
83	83		not cancel the exemption due to the person's failure to file the new
84	84		application unless the chief appraiser complies with the
85	85		requirements of Subsection (q), if applicable.
86	86		(c) Section 11.431(a), Tax Code, as amended by H.B. 626,
87	87		Acts of the 85th Legislature, Regular Session, 2017, effective
88	88		September 1, 2017, and S.B. 15, Acts of the 85th Legislature,
89	89		Regular Session, 2017, effective January 1, 2018, is amended to
90	90		read as follows:
91	91		(a) The chief appraiser shall accept and approve or deny an
92	92		application for a residence homestead exemption, including an
93	93		exemption under Section 11.131 or 11.132 for the residence
94	94		homestead of a disabled veteran or the surviving spouse of a
95	95		disabled veteran, an exemption under Section 11.133 for the
96	96		residence homestead of the surviving spouse of a member of the armed
97	97		services of the United States who is killed in action, [or] an
98	98		exemption under Section 11.134 for the residence homestead of the
99	99		surviving spouse of a first responder who is killed or fatally
100	100		injured in the line of duty, or an exemption under Section 11.137
101	101		for the residence homestead of a Purple Heart recipient or the
102	102		surviving spouse of a Purple Heart recipient, after the deadline
103	103		for filing it has passed if it is filed not later than two years
104	104		after the delinquency date for the taxes on the homestead.
105	105		(d) Section 403.302(d-1), Government Code, as amended by
106	106		S.B. 15, Acts of the 85th Legislature, Regular Session, 2017,
107	107		effective January 1, 2018, is amended to read as follows:
108	108		(d-1) For purposes of Subsection (d), a residence homestead
109	109		that receives an exemption under Section 11.131, 11.133, [or]
110	110		11.134, or 11.137, Tax Code, in the year that is the subject of the
111	111		study is not considered to be taxable property.
112	112		SECTION 5. (a) This section takes effect only if the
113	113		constitutional amendment proposed by S.J.R. 1, 85th Legislature,
114	114		Regular Session, 2017, is not approved by the voters.
115	115		(b) Section 11.43(c), Tax Code, as amended by H.B. 1101,
116	116		Acts of the 85th Legislature, Regular Session, 2017, effective
117	117		January 1, 2018, is amended to read as follows:
118	118		(c) An exemption provided by Section 11.13, 11.131, 11.132,
119	119		11.133, 11.137, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
120	120		11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
121	121		11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once
122	122		allowed, need not be claimed in subsequent years, and except as
123	123		otherwise provided by Subsection (e), the exemption applies to the
124	124		property until it changes ownership or the person's qualification
125	125		for the exemption changes. However, except as provided by
126	126		Subsection (r), the chief appraiser may require a person allowed
127	127		one of the exemptions in a prior year to file a new application to
128	128		confirm the person's current qualification for the exemption by
129	129		delivering a written notice that a new application is required,
130	130		accompanied by an appropriate application form, to the person
131	131		previously allowed the exemption. If the person previously allowed
132	132		the exemption is 65 years of age or older, the chief appraiser may
133	133		not cancel the exemption due to the person's failure to file the new
134	134		application unless the chief appraiser complies with the
135	135		requirements of Subsection (q), if applicable.
136	136		(c) Section 11.431(a), Tax Code, as amended by H.B. 626,
137	137		Acts of the 85th Legislature, Regular Session, 2017, effective
138	138		September 1, 2017, is amended to read as follows:
139	139		(a) The chief appraiser shall accept and approve or deny an
140	140		application for a residence homestead exemption, including an
141	141		exemption under Section 11.131 or 11.132 for the residence
142	142		homestead of a disabled veteran or the surviving spouse of a
143	143		disabled veteran, [or] an exemption under Section 11.133 for the
144	144		residence homestead of the surviving spouse of a member of the armed
145	145		services of the United States who is killed in action, or an
146	146		exemption under Section 11.137 for the residence homestead of a
147	147		Purple Heart recipient or the surviving spouse of a Purple Heart
148	148		recipient, after the deadline for filing it has passed if it is
149	149		filed not later than two years after the delinquency date for the
150	150		taxes on the homestead.
151	151		(d) Section 403.302(d-1), Government Code, is amended to
152	152		read as follows:
153	153		(d-1) For purposes of Subsection (d), a residence homestead
154	154		that receives an exemption under Section 11.131, [or] 11.133, or
155	155		11.137, Tax Code, in the year that is the subject of the study is not
156	156		considered to be taxable property.
157	157		SECTION 6. Section 26.10(c), Tax Code, is amended to read as
158	158		follows:
159	159		(c) If the appraisal roll shows that a residence homestead
160	160		exemption under Section 11.131 or 11.137 applicable to a property
161	161		on January 1 of a year terminated during the year, the tax due
162	162		against the residence homestead is calculated by multiplying the
163	163		amount of the taxes that otherwise would be imposed on the residence
164	164		homestead for the entire year had the individual not qualified for
165	165		the residence homestead exemption [under Section 11.131] during the
166	166		year by a fraction, the denominator of which is 365 and the
167	167		numerator of which is the number of days that elapsed after the date
168	168		the exemption terminated.
169	169		SECTION 7. Section 26.1125, Tax Code, is amended to read as
170	170		follows:
171	171		Sec. 26.1125. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD
172	172		OF 100 PERCENT OR TOTALLY DISABLED VETERAN OR PURPLE HEART
173	173		RECIPIENT. (a) If a person qualifies for an exemption under
174	174		Section 11.131 or 11.137 after the beginning of a tax year, the
175	175		amount of the taxes on the residence homestead of the person for the
176	176		tax year is calculated by multiplying the amount of the taxes that
177	177		otherwise would be imposed on the residence homestead for the
178	178		entire year had the person not qualified for the applicable
179	179		exemption [under Section 11.131] by a fraction, the denominator of
180	180		which is 365 and the numerator of which is the number of days that
181	181		elapsed before the date the person qualified for the applicable
182	182		exemption [under Section 11.131].
183	183		(b) If a person qualifies for an exemption under Section
184	184		11.131 or 11.137 with respect to the property after the amount of
185	185		the tax due on the property is calculated and the effect of the
186	186		qualification is to reduce the amount of the tax due on the
187	187		property, the assessor for each taxing unit shall recalculate the
188	188		amount of the tax due on the property and correct the tax roll. If
189	189		the tax bill has been mailed and the tax on the property has not been
190	190		paid, the assessor shall mail a corrected tax bill to the person in
191	191		whose name the property is listed on the tax roll or to the person's
192	192		authorized agent. If the tax on the property has been paid, the tax
193	193		collector for the taxing unit shall refund to the person who paid
194	194		the tax the amount by which the payment exceeded the tax due.
195	195		SECTION 8. The heading to Section 140.011, Local Government
196	196		Code, is amended to read as follows:
197	197		Sec. 140.011. LOCAL GOVERNMENTS DISPROPORTIONATELY
198	198		AFFECTED BY PROPERTY TAX RELIEF FOR CERTAIN MILITARY SERVICE
199	199		MEMBERS AND [DISABLED] VETERANS.
200	200		SECTION 9. Section 140.011(a)(3), Local Government Code, is
201	201		amended to read as follows:
202	202		(3) "Qualified local government" means a local
203	203		government entitled to a military exemption [disabled veteran]
204	204		assistance payment under this section.
205	205		SECTION 10. Sections 140.011(b), (c), (d), (e), (f), and
206	206		(g), Local Government Code, are amended to read as follows:
207	207		(b) To serve the state purpose of ensuring that the cost of
208	208		providing ad valorem tax relief to certain military service members
209	209		and [disabled] veterans is shared equitably among the residents of
210	210		this state, a local government is entitled to a military exemption
211	211		[disabled veteran] assistance payment from the state for each
212	212		fiscal year that the local government is a qualified local
213	213		government. A local government is a qualified local government for
214	214		a fiscal year if the amount of lost ad valorem tax revenue
215	215		calculated under Subsection (c) for that fiscal year is equal to or
216	216		greater than two percent of the local government's general fund
217	217		revenue for that fiscal year.
218	218		(c) For the purposes of this section, the amount of a local
219	219		government's lost ad valorem tax revenue for a fiscal year is
220	220		calculated by multiplying the ad valorem tax rate adopted by the
221	221		local government under Section 26.05, Tax Code, for the tax year in
222	222		which the fiscal year begins by the total appraised value of all
223	223		property located in the local government that is granted an
224	224		exemption from taxation under Section 11.131 or 11.137, Tax Code,
225	225		for that tax year.
226	226		(d) A military exemption [disabled veteran] assistance
227	227		payment made to a qualified local government for a fiscal year is
228	228		calculated by subtracting from the local government's lost ad
229	229		valorem tax revenue calculated under Subsection (c) for that fiscal
230	230		year an amount equal to one percent of the local government's
231	231		general fund revenue for that fiscal year.
232	232		(e) Not later than April 1 of the first year following the
233	233		end of a fiscal year for which a qualified local government is
234	234		entitled to a military exemption [disabled veteran] assistance
235	235		payment, a qualified local government may submit an application to
236	236		the comptroller to receive a military exemption [disabled veteran]
237	237		assistance payment for that fiscal year. The application must be
238	238		made on a form prescribed by the comptroller. The comptroller may
239	239		require the qualified local government to submit an independent
240	240		audit otherwise required by law to be prepared for the local
241	241		government for the fiscal year for which a qualified local
242	242		government is entitled to the payment.
243	243		(f) A qualified local government that does not submit an
244	244		application to the comptroller by the date prescribed by Subsection
245	245		(e) is not entitled to a military exemption [disabled veteran]
246	246		assistance payment for the fiscal year for which that deadline
247	247		applies.
248	248		(g) The comptroller shall review each application by a local
249	249		government to determine whether the local government is entitled to
250	250		a military exemption [disabled veteran] assistance payment. If
251	251		the comptroller determines that the local government is entitled to
252	252		the payment, the comptroller shall remit the payment from available
253	253		funds to the qualified local government not later than the 30th day
254	254		after the date the application for the payment is made.
255	255		SECTION 11. Section 11.137, Tax Code, as added by this Act,
256	256		applies only to ad valorem taxes imposed for a tax year beginning on
257	257		or after January 1, 2018.
258	258		SECTION 12. This Act takes effect January 1, 2018, but only
259	259		if the constitutional amendment proposed by the 85th Legislature,
260	260		1st Called Session, 2017, authorizing the legislature to provide
261	261		for an exemption from ad valorem taxation of all or part of the
262	262		market value of the residence homestead of a Purple Heart recipient
263	263		or the surviving spouse of a Purple Heart recipient is approved by
264	264		the voters. If that constitutional amendment is not approved by the
265	265		voters, this Act has no effect.