85S10050 SMT-D
By: Bohac, Guillen H.B. No. 72
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation of the residence
homestead of a Purple Heart recipient or the surviving spouse of a
Purple Heart recipient.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Purple Heart
Homestead Act.
SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.137 to read as follows:
Sec. 11.137. RESIDENCE HOMESTEAD OF PURPLE HEART RECIPIENT.
(a) In this section:
(1) "Purple Heart recipient" means a person who has
been awarded the federal or Texas Purple Heart Medal.
(2) "Residence homestead" has the meaning assigned by
Section 11.13.
(3) "Surviving spouse" means the individual who was
married to a Purple Heart recipient at the time of the Purple Heart
recipient's death.
(b) A Purple Heart recipient is entitled to an exemption
from taxation of the total appraised value of the Purple Heart
recipient's residence homestead.
(c) The surviving spouse of a Purple Heart recipient who
qualified for an exemption under Subsection (b) when the Purple
Heart recipient died is entitled to an exemption from taxation of
the total appraised value of the same property to which the Purple
Heart recipient's exemption applied if:
(1) the surviving spouse has not remarried since the
death of the Purple Heart recipient; and
(2) the property:
(A) was the residence homestead of the surviving
spouse when the Purple Heart recipient died; and
(B) remains the residence homestead of the
surviving spouse.
(d) If a surviving spouse who qualifies for an exemption
under Subsection (c) subsequently qualifies a different property as
the surviving spouse's residence homestead, the surviving spouse is
entitled to an exemption from taxation of the subsequently
qualified homestead in an amount equal to the dollar amount of the
exemption from taxation of the former homestead under Subsection
(c) in the last year in which the surviving spouse received an
exemption under that subsection for that homestead if the surviving
spouse has not remarried since the death of the Purple Heart
recipient. The surviving spouse is entitled to receive from the
chief appraiser of the appraisal district in which the former
residence homestead was located a written certificate providing the
information necessary to determine the amount of the exemption to
which the surviving spouse is entitled on the subsequently
qualified homestead.
SECTION 3. Section 11.42(e), Tax Code, is amended to read as
follows:
(e) A person who qualifies for an exemption under Section
11.131 or 11.137 after January 1 of a tax year may receive the
exemption for the applicable portion of that tax year immediately
on qualification for the exemption.
SECTION 4. (a) This section takes effect only if the
constitutional amendment proposed by S.J.R. 1, 85th Legislature,
Regular Session, 2017, is approved by the voters.
(b) Section 11.43(c), Tax Code, as amended by H.B. 1101,
Acts of the 85th Legislature, Regular Session, 2017, effective
January 1, 2018, and S.B. 15, Acts of the 85th Legislature, Regular
Session, 2017, effective January 1, 2018, is amended to read as
follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.134, 11.137, 11.17, 11.18, 11.182, 11.1827, 11.183,
11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),
11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once
allowed, need not be claimed in subsequent years, and except as
otherwise provided by Subsection (e), the exemption applies to the
property until it changes ownership or the person's qualification
for the exemption changes. However, except as provided by
Subsection (r), the chief appraiser may require a person allowed
one of the exemptions in a prior year to file a new application to
confirm the person's current qualification for the exemption by
delivering a written notice that a new application is required,
accompanied by an appropriate application form, to the person
previously allowed the exemption. If the person previously allowed
the exemption is 65 years of age or older, the chief appraiser may
not cancel the exemption due to the person's failure to file the new
application unless the chief appraiser complies with the
requirements of Subsection (q), if applicable.
(c) Section 11.431(a), Tax Code, as amended by H.B. 626,
Acts of the 85th Legislature, Regular Session, 2017, effective
September 1, 2017, and S.B. 15, Acts of the 85th Legislature,
Regular Session, 2017, effective January 1, 2018, is amended to
read as follows:
(a) The chief appraiser shall accept and approve or deny an
application for a residence homestead exemption, including an
exemption under Section 11.131 or 11.132 for the residence
homestead of a disabled veteran or the surviving spouse of a
disabled veteran, an exemption under Section 11.133 for the
residence homestead of the surviving spouse of a member of the armed
services of the United States who is killed in action, [or] an
exemption under Section 11.134 for the residence homestead of the
surviving spouse of a first responder who is killed or fatally
injured in the line of duty, or an exemption under Section 11.137
for the residence homestead of a Purple Heart recipient or the
surviving spouse of a Purple Heart recipient, after the deadline
for filing it has passed if it is filed not later than two years
after the delinquency date for the taxes on the homestead.
(d) Section 403.302(d-1), Government Code, as amended by
S.B. 15, Acts of the 85th Legislature, Regular Session, 2017,
effective January 1, 2018, is amended to read as follows:
(d-1) For purposes of Subsection (d), a residence homestead
that receives an exemption under Section 11.131, 11.133, [or]
11.134, or 11.137, Tax Code, in the year that is the subject of the
study is not considered to be taxable property.
SECTION 5. (a) This section takes effect only if the
constitutional amendment proposed by S.J.R. 1, 85th Legislature,
Regular Session, 2017, is not approved by the voters.
(b) Section 11.43(c), Tax Code, as amended by H.B. 1101,
Acts of the 85th Legislature, Regular Session, 2017, effective
January 1, 2018, is amended to read as follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.137, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once
allowed, need not be claimed in subsequent years, and except as
otherwise provided by Subsection (e), the exemption applies to the
property until it changes ownership or the person's qualification
for the exemption changes. However, except as provided by
Subsection (r), the chief appraiser may require a person allowed
one of the exemptions in a prior year to file a new application to
confirm the person's current qualification for the exemption by
delivering a written notice that a new application is required,
accompanied by an appropriate application form, to the person
previously allowed the exemption. If the person previously allowed
the exemption is 65 years of age or older, the chief appraiser may
not cancel the exemption due to the person's failure to file the new
application unless the chief appraiser complies with the
requirements of Subsection (q), if applicable.
(c) Section 11.431(a), Tax Code, as amended by H.B. 626,
Acts of the 85th Legislature, Regular Session, 2017, effective
September 1, 2017, is amended to read as follows:
(a) The chief appraiser shall accept and approve or deny an
application for a residence homestead exemption, including an
exemption under Section 11.131 or 11.132 for the residence
homestead of a disabled veteran or the surviving spouse of a
disabled veteran, [or] an exemption under Section 11.133 for the
residence homestead of the surviving spouse of a member of the armed
services of the United States who is killed in action, or an
exemption under Section 11.137 for the residence homestead of a
Purple Heart recipient or the surviving spouse of a Purple Heart
recipient, after the deadline for filing it has passed if it is
filed not later than two years after the delinquency date for the
taxes on the homestead.
(d) Section 403.302(d-1), Government Code, is amended to
read as follows:
(d-1) For purposes of Subsection (d), a residence homestead
that receives an exemption under Section 11.131, [or] 11.133, or
11.137, Tax Code, in the year that is the subject of the study is not
considered to be taxable property.
SECTION 6. Section 26.10(c), Tax Code, is amended to read as
follows:
(c) If the appraisal roll shows that a residence homestead
exemption under Section 11.131 or 11.137 applicable to a property
on January 1 of a year terminated during the year, the tax due
against the residence homestead is calculated by multiplying the
amount of the taxes that otherwise would be imposed on the residence
homestead for the entire year had the individual not qualified for
the residence homestead exemption [under Section 11.131] during the
year by a fraction, the denominator of which is 365 and the
numerator of which is the number of days that elapsed after the date
the exemption terminated.
SECTION 7. Section 26.1125, Tax Code, is amended to read as
follows:
Sec. 26.1125. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD
OF 100 PERCENT OR TOTALLY DISABLED VETERAN OR PURPLE HEART
RECIPIENT. (a) If a person qualifies for an exemption under
Section 11.131 or 11.137 after the beginning of a tax year, the
amount of the taxes on the residence homestead of the person for the
tax year is calculated by multiplying the amount of the taxes that
otherwise would be imposed on the residence homestead for the
entire year had the person not qualified for the applicable
exemption [under Section 11.131] by a fraction, the denominator of
which is 365 and the numerator of which is the number of days that
elapsed before the date the person qualified for the applicable
exemption [under Section 11.131].
(b) If a person qualifies for an exemption under Section
11.131 or 11.137 with respect to the property after the amount of
the tax due on the property is calculated and the effect of the
qualification is to reduce the amount of the tax due on the
property, the assessor for each taxing unit shall recalculate the
amount of the tax due on the property and correct the tax roll. If
the tax bill has been mailed and the tax on the property has not been
paid, the assessor shall mail a corrected tax bill to the person in
whose name the property is listed on the tax roll or to the person's
authorized agent. If the tax on the property has been paid, the tax
collector for the taxing unit shall refund to the person who paid
the tax the amount by which the payment exceeded the tax due.
SECTION 8. The heading to Section 140.011, Local Government
Code, is amended to read as follows:
Sec. 140.011. LOCAL GOVERNMENTS DISPROPORTIONATELY
AFFECTED BY PROPERTY TAX RELIEF FOR CERTAIN MILITARY SERVICE
MEMBERS AND [DISABLED] VETERANS.
SECTION 9. Section 140.011(a)(3), Local Government Code, is
amended to read as follows:
(3) "Qualified local government" means a local
government entitled to a military exemption [disabled veteran]
assistance payment under this section.
SECTION 10. Sections 140.011(b), (c), (d), (e), (f), and
(g), Local Government Code, are amended to read as follows:
(b) To serve the state purpose of ensuring that the cost of
providing ad valorem tax relief to certain military service members
and [disabled] veterans is shared equitably among the residents of
this state, a local government is entitled to a military exemption
[disabled veteran] assistance payment from the state for each
fiscal year that the local government is a qualified local
government. A local government is a qualified local government for
a fiscal year if the amount of lost ad valorem tax revenue
calculated under Subsection (c) for that fiscal year is equal to or
greater than two percent of the local government's general fund
revenue for that fiscal year.
(c) For the purposes of this section, the amount of a local
government's lost ad valorem tax revenue for a fiscal year is
calculated by multiplying the ad valorem tax rate adopted by the
local government under Section 26.05, Tax Code, for the tax year in
which the fiscal year begins by the total appraised value of all
property located in the local government that is granted an
exemption from taxation under Section 11.131 or 11.137, Tax Code,
for that tax year.
(d) A military exemption [disabled veteran] assistance
payment made to a qualified local government for a fiscal year is
calculated by subtracting from the local government's lost ad
valorem tax revenue calculated under Subsection (c) for that fiscal
year an amount equal to one percent of the local government's
general fund revenue for that fiscal year.
(e) Not later than April 1 of the first year following the
end of a fiscal year for which a qualified local government is
entitled to a military exemption [disabled veteran] assistance
payment, a qualified local government may submit an application to
the comptroller to receive a military exemption [disabled veteran]
assistance payment for that fiscal year. The application must be
made on a form prescribed by the comptroller. The comptroller may
require the qualified local government to submit an independent
audit otherwise required by law to be prepared for the local
government for the fiscal year for which a qualified local
government is entitled to the payment.
(f) A qualified local government that does not submit an
application to the comptroller by the date prescribed by Subsection
(e) is not entitled to a military exemption [disabled veteran]
assistance payment for the fiscal year for which that deadline
applies.
(g) The comptroller shall review each application by a local
government to determine whether the local government is entitled to
a military exemption [disabled veteran] assistance payment. If
the comptroller determines that the local government is entitled to
the payment, the comptroller shall remit the payment from available
funds to the qualified local government not later than the 30th day
after the date the application for the payment is made.
SECTION 11. Section 11.137, Tax Code, as added by this Act,
applies only to ad valorem taxes imposed for a tax year beginning on
or after January 1, 2018.
SECTION 12. This Act takes effect January 1, 2018, but only
if the constitutional amendment proposed by the 85th Legislature,
1st Called Session, 2017, authorizing the legislature to provide
for an exemption from ad valorem taxation of all or part of the
market value of the residence homestead of a Purple Heart recipient
or the surviving spouse of a Purple Heart recipient is approved by
the voters. If that constitutional amendment is not approved by the
voters, this Act has no effect.