Texas 2017 - 85th 1st C.S.

Texas House Bill HB95 Compare Versions

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1	1	85S10090 SMH-D
2	2	By: Swanson H.B. No. 95
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 total
8	8	appraised value of the residence homesteads of certain elderly
9	9	persons and their surviving spouses.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 11.13, Tax Code, is amended by amending
12	12	Subsection (i) and adding Subsections (s) and (t) to read as
13	13	follows:
14	14	(i) The assessor and collector for a taxing unit may
15	15	disregard the exemptions authorized by Subsection (b), (c), (d),
16	16	[or] (n), (s), or (t) [of this section] and assess and collect a tax
17	17	pledged for payment of debt without deducting the amount of the
18	18	exemption if:
19	19	(1) prior to adoption of the exemption, the unit
20	20	pledged the taxes for the payment of a debt; and
21	21	(2) granting the exemption would impair the obligation
22	22	of the contract creating the debt.
23	23	(s) In addition to any other exemptions provided by this
24	24	section, an individual is entitled to an exemption from taxation of
25	25	the total appraised value of the individual's residence homestead
26	26	if the individual is 75 years of age or older.
27	27	(t) The surviving spouse of an individual who qualified for
28	28	an exemption under Subsection (s) is entitled to an exemption from
29	29	taxation of the total appraised value of the same property to which
30	30	the deceased spouse's exemption applied if:
31	31	(1) the deceased spouse died in a year in which the
32	32	deceased spouse qualified for the exemption;
33	33	(2) the surviving spouse was 55 years of age or older
34	34	when the deceased spouse died; and
35	35	(3) the property was the residence homestead of the
36	36	surviving spouse when the deceased spouse died and remains the
37	37	residence homestead of the surviving spouse.
38	38	SECTION 2. (a) If S.B. 15, Acts of the 85th Legislature,
39	39	Regular Session, 2017, does not become law, Section 11.42(c), Tax
40	40	Code, is amended to read as follows:
41	41	(c) An exemption authorized by Section 11.13(c), [or] (d),
42	42	or (s), 11.132, or 11.133 is effective as of January 1 of the tax
43	43	year in which the person qualifies for the exemption and applies to
44	44	the entire tax year.
45	45	(b) If S.B. 15, Acts of the 85th Legislature, Regular
46	46	Session, 2017, becomes law, Section 11.42(c), Tax Code, as
47	47	effective January 1, 2018, is amended to read as follows:
48	48	(c) An exemption authorized by Section 11.13(c), [or] (d),
49	49	or (s), 11.132, 11.133, or 11.134 is effective as of January 1 of
50	50	the tax year in which the person qualifies for the exemption and
51	51	applies to the entire tax year.
52	52	SECTION 3. Sections 11.43(k), (l), (m), (o), and (q), Tax
53	53	Code, are amended to read as follows:
54	54	(k) A person who qualifies for an exemption authorized by
55	55	Section 11.13(c), [or] (d), or (s) or 11.132 must apply for the
56	56	exemption no later than the first anniversary of the date the person
57	57	qualified for the exemption.
58	58	(l) The form for an application under Section 11.13 must
59	59	include a space for the applicant to state the applicant's date of
60	60	birth. Failure to provide the date of birth does not affect the
61	61	applicant's eligibility for an exemption under that section, other
62	62	than an exemption under Section 11.13(c) or (d) for an individual 65
63	63	years of age or older or an exemption under Section 11.13(s) for an
64	64	individual 75 years of age or older.
65	65	(m) Notwithstanding Subsections (a) and (k), a person who
66	66	receives an exemption under Section 11.13, other than an exemption
67	67	under Section 11.13(c) or (d) for an individual 65 years of age or
68	68	older or an exemption under Section 11.13(s) for an individual 75
69	69	years of age or older, in a tax year is entitled to receive an
70	70	exemption under Section 11.13(c) or (d) for an individual 65 years
71	71	of age or older or an exemption under Section 11.13(s) for an
72	72	individual 75 years of age or older in the next tax year on the same
73	73	property without applying for the exemption if the person becomes
74	74	65 or 75 years of age, as applicable, in that next year as shown by:
75	75	(1) information in the records of the appraisal
76	76	district that was provided to the appraisal district by the
77	77	individual in an application for an exemption under Section 11.13
78	78	on the property or in correspondence relating to the property; or
79	79	(2) the information provided by the Texas Department
80	80	of Public Safety to the appraisal district under Section 521.049,
81	81	Transportation Code.
82	82	(o) The application form for an exemption authorized by
83	83	Section 11.13 must require an applicant for an exemption under
84	84	Subsection (c), [or] (d), or (s) of that section who is not
85	85	specifically identified on a deed or other appropriate instrument
86	86	recorded in the applicable real property records as an owner of the
87	87	residence homestead to provide an affidavit or other compelling
88	88	evidence establishing the applicant's ownership of an interest in
89	89	the homestead.
90	90	(q) A chief appraiser may not cancel an exemption under
91	91	Section 11.13 that is received by an individual who is 65 years of
92	92	age or older without first providing written notice of the
93	93	cancellation to the individual receiving the exemption. The
94	94	notice must include a form on which the individual may indicate
95	95	whether the individual is qualified to receive the exemption and a
96	96	self-addressed postage prepaid envelope with instructions for
97	97	returning the form to the chief appraiser. The chief appraiser
98	98	shall consider the individual's response on the form in determining
99	99	whether to continue to allow the exemption. If the chief appraiser
100	100	does not receive a response on or before the 60th day after the date
101	101	the notice is mailed, the chief appraiser may cancel the exemption
102	102	on or after the 30th day after the expiration of the 60-day period,
103	103	but only after making a reasonable effort to locate the individual
104	104	and determine whether the individual is qualified to receive the
105	105	exemption. For purposes of this subsection, sending an additional
106	106	notice of cancellation that includes, in bold font equal to or
107	107	greater in size than the surrounding text, the date on which the
108	108	chief appraiser is authorized to cancel the exemption to the
109	109	individual receiving the exemption immediately after the
110	110	expiration of the 60-day period by first class mail in an envelope
111	111	on which is written, in all capital letters, "RETURN SERVICE
112	112	REQUESTED," or another appropriate statement directing the United
113	113	States Postal Service to return the notice if it is not deliverable
114	114	as addressed, or providing the additional notice in another manner
115	115	that the chief appraiser determines is appropriate, constitutes a
116	116	reasonable effort on the part of the chief appraiser. This
117	117	subsection does not apply to an exemption under Section 11.13(c) or
118	118	(d) for an individual 65 years of age or older or an exemption under
119	119	Section 11.13(s) for an individual 75 years of age or older that is
120	120	canceled because the chief appraiser determines that the individual
121	121	receiving the exemption no longer owns the property subject to the
122	122	exemption.
123	123	SECTION 4. (a) If S.B. 15, Acts of the 85th Legislature,
124	124	Regular Session, 2017, does not become law, Section 26.10(b), Tax
125	125	Code, is amended to read as follows:
126	126	(b) If the appraisal roll shows that a residence homestead
127	127	exemption under Section 11.13(c), [or] (d), or (s), 11.132, or
128	128	11.133 applicable to a property on January 1 of a year terminated
129	129	during the year and if the owner of the property qualifies a
130	130	different property for one of those residence homestead exemptions
131	131	during the same year, the tax due against the former residence
132	132	homestead is calculated by:
133	133	(1) subtracting:
134	134	(A) the amount of the taxes that otherwise would
135	135	be imposed on the former residence homestead for the entire year had
136	136	the owner qualified for the residence homestead exemption for the
137	137	entire year; from
138	138	(B) the amount of the taxes that otherwise would
139	139	be imposed on the former residence homestead for the entire year had
140	140	the owner not qualified for the residence homestead exemption
141	141	during the year;
142	142	(2) multiplying the remainder determined under
143	143	Subdivision (1) by a fraction, the denominator of which is 365 and
144	144	the numerator of which is the number of days that elapsed after the
145	145	date the exemption terminated; and
146	146	(3) adding the product determined under Subdivision
147	147	(2) and the amount described by Subdivision (1)(A).
148	148	(b) If S.B. 15, Acts of the 85th Legislature, Regular
149	149	Session, 2017, becomes law, Section 26.10(b), Tax Code, as
150	150	effective January 1, 2018, is amended to read as follows:
151	151	(b) If the appraisal roll shows that a residence homestead
152	152	exemption under Section 11.13(c), [or] (d), or (s), 11.132, 11.133,
153	153	or 11.134 applicable to a property on January 1 of a year terminated
154	154	during the year and if the owner of the property qualifies a
155	155	different property for one of those residence homestead exemptions
156	156	during the same year, the tax due against the former residence
157	157	homestead is calculated by:
158	158	(1) subtracting:
159	159	(A) the amount of the taxes that otherwise would
160	160	be imposed on the former residence homestead for the entire year had
161	161	the owner qualified for the residence homestead exemption for the
162	162	entire year; from
163	163	(B) the amount of the taxes that otherwise would
164	164	be imposed on the former residence homestead for the entire year had
165	165	the owner not qualified for the residence homestead exemption
166	166	during the year;
167	167	(2) multiplying the remainder determined under
168	168	Subdivision (1) by a fraction, the denominator of which is 365 and
169	169	the numerator of which is the number of days that elapsed after the
170	170	date the exemption terminated; and
171	171	(3) adding the product determined under Subdivision
172	172	(2) and the amount described by Subdivision (1)(A).
173	173	SECTION 5. (a) If S.B. 15, Acts of the 85th Legislature,
174	174	Regular Session, 2017, does not become law, Section 26.112, Tax
175	175	Code, is amended to read as follows:
176	176	Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
177	177	CERTAIN PERSONS. (a) Except as provided by Section 26.10(b), if
178	178	at any time during a tax year property is owned by an individual who
179	179	qualifies for an exemption under Section 11.13(c), [or] (d), or (s)
180	180	or 11.133, the amount of the tax due on the property for the tax year
181	181	is calculated as if the individual qualified for the exemption on
182	182	January 1 and continued to qualify for the exemption for the
183	183	remainder of the tax year.
184	184	(b) If an individual qualifies for an exemption under
185	185	Section 11.13(c), [or] (d), or (s) or 11.133 with respect to the
186	186	property after the amount of the tax due on the property is
187	187	calculated and the effect of the qualification is to reduce the
188	188	amount of the tax due on the property, the assessor for each taxing
189	189	unit shall recalculate the amount of the tax due on the property and
190	190	correct the tax roll. If the tax bill has been mailed and the tax
191	191	on the property has not been paid, the assessor shall mail a
192	192	corrected tax bill to the person in whose name the property is
193	193	listed on the tax roll or to the person's authorized agent. If the
194	194	tax on the property has been paid, the tax collector for the taxing
195	195	unit shall refund to the person who paid the tax the amount by which
196	196	the payment exceeded the tax due.
197	197	(b) If S.B. 15, Acts of the 85th Legislature, Regular
198	198	Session, 2017, becomes law, Section 26.112, Tax Code, as effective
199	199	January 1, 2018, is amended to read as follows:
200	200	Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
201	201	CERTAIN PERSONS. (a) Except as provided by Section 26.10(b), if
202	202	at any time during a tax year property is owned by an individual who
203	203	qualifies for an exemption under Section 11.13(c), [or] (d), or
204	204	(s), 11.133, or 11.134, the amount of the tax due on the property
205	205	for the tax year is calculated as if the individual qualified for
206	206	the exemption on January 1 and continued to qualify for the
207	207	exemption for the remainder of the tax year.
208	208	(b) If an individual qualifies for an exemption under
209	209	Section 11.13(c), [or] (d), or (s), 11.133, or 11.134 with respect
210	210	to the property after the amount of the tax due on the property is
211	211	calculated and the effect of the qualification is to reduce the
212	212	amount of the tax due on the property, the assessor for each taxing
213	213	unit shall recalculate the amount of the tax due on the property and
214	214	correct the tax roll. If the tax bill has been mailed and the tax
215	215	on the property has not been paid, the assessor shall mail a
216	216	corrected tax bill to the person in whose name the property is
217	217	listed on the tax roll or to the person's authorized agent. If the
218	218	tax on the property has been paid, the tax collector for the taxing
219	219	unit shall refund to the person who paid the tax the amount by which
220	220	the payment exceeded the tax due.
221	221	SECTION 6. Section 33.01(d), Tax Code, is amended to read as
222	222	follows:
223	223	(d) In lieu of the penalty imposed under Subsection (a), a
224	224	delinquent tax incurs a penalty of 50 percent of the amount of the
225	225	tax without regard to the number of months the tax has been
226	226	delinquent if the tax is delinquent because the property owner
227	227	received an exemption under:
228	228	(1) Section 11.13 and the chief appraiser subsequently
229	229	cancels the exemption because the residence was not the principal
230	230	residence of the property owner and the property owner received an
231	231	exemption for two or more additional residence homesteads for the
232	232	tax year in which the tax was imposed;
233	233	(2) Section 11.13(c) or (d) for a person who is 65
234	234	years of age or older and the chief appraiser subsequently cancels
235	235	the exemption because the property owner was younger than 65 years
236	236	of age; [or]
237	237	(3) Section 11.13(s) for a person who is 75 years of
238	238	age or older and the chief appraiser subsequently cancels the
239	239	exemption because the property owner was younger than 75 years of
240	240	age; or
241	241	(4) Section 11.13(q) or (t) and the chief appraiser
242	242	subsequently cancels the exemption because the property owner was
243	243	younger than 55 years of age when the property owner's spouse died.
244	244	SECTION 7. Subchapter A, Chapter 41, Education Code, is
245	245	amended by adding Section 41.0012 to read as follows:
246	246	Sec. 41.0012. COMPUTATION OF WEALTH PER STUDENT FOR
247	247	2018-2019 SCHOOL YEAR. Notwithstanding any other provision of this
248	248	chapter, in computing a school district's wealth per student for
249	249	the 2018-2019 school year, a school district's taxable value of
250	250	property under Subchapter M, Chapter 403, Government Code, is
251	251	determined as if the residence homestead exemption for a person 75
252	252	years of age or older or the person's surviving spouse under Section
253	253	1-b(q), Article VIII, Texas Constitution, as proposed by the 85th
254	254	Legislature, 1st Called Session, 2017, had been in effect for the
255	255	2017 tax year. This section expires September 1, 2019.
256	256	SECTION 8. Section 42.2518, Education Code, as effective
257	257	September 1, 2017, is amended by adding Subsection (a-2) and
258	258	amending Subsection (b) to read as follows:
259	259	(a-2) Beginning with the 2018-2019 school year, in addition
260	260	to state aid a school district is entitled to under Subsection (a),
261	261	a school district is also entitled to additional state aid to the
262	262	extent that state and local revenue under this chapter and Chapter
263	263	41 is less than the state and local revenue that would have been
264	264	available to the district under Chapter 41 and this chapter as those
265	265	chapters existed on September 1, 2017, if the residence homestead
266	266	exemption for a person 75 years of age or older or the person's
267	267	surviving spouse under Section 1-b(q), Article VIII, Texas
268	268	Constitution, as proposed by the joint resolution to add that
269	269	subsection adopted by the 85th Legislature, 1st Called Session,
270	270	2017, had not been adopted.
271	271	(b) The lesser of the school district's currently adopted
272	272	maintenance and operations tax rate or the adopted maintenance and
273	273	operations tax rate for:
274	274	(1) the 2014 tax year is used for the purpose of
275	275	determining additional state aid under Subsection (a); and
276	276	(2) the 2017 tax year is used for the purpose of
277	277	determining additional state aid under Subsection (a-2) [this
278	278	section].
279	279	SECTION 9. Section 42.252, Education Code, is amended by
280	280	adding Subsection (f) to read as follows:
281	281	(f) Notwithstanding any other provision of this chapter, in
282	282	computing each school district's local share of program cost under
283	283	this section for the 2018-2019 school year, a school district's
284	284	taxable value of property under Subchapter M, Chapter 403,
285	285	Government Code, is determined as if the residence homestead
286	286	exemption for a person 75 years of age or older or the person's
287	287	surviving spouse under Section 1-b(q), Article VIII, Texas
288	288	Constitution, as proposed by the 85th Legislature, 1st Called
289	289	Session, 2017, had been in effect for the 2017 tax year. This
290	290	subsection expires September 1, 2019.
291	291	SECTION 10. Section 42.302, Education Code, is amended by
292	292	adding Subsection (h) to read as follows:
293	293	(h) Notwithstanding any other provision of this chapter, in
294	294	computing a school district's enrichment tax rate ("DTR") and local
295	295	revenue ("LR") for the 2018-2019 school year, a school district's
296	296	taxable value of property under Subchapter M, Chapter 403,
297	297	Government Code, is determined as if the residence homestead
298	298	exemption for a person 75 years of age or older or the person's
299	299	surviving spouse under Section 1-b(q), Article VIII, Texas
300	300	Constitution, as proposed by the 85th Legislature, 1st Called
301	301	Session, 2017, had been in effect for the 2017 tax year. This
302	302	subsection expires September 1, 2019.
303	303	SECTION 11. Section 44.004(c), Education Code, is amended
304	304	to read as follows:
305	305	(c) The notice of public meeting to discuss and adopt the
306	306	budget and the proposed tax rate may not be smaller than one-quarter
307	307	page of a standard-size or a tabloid-size newspaper, and the
308	308	headline on the notice must be in 18-point or larger type. Subject
309	309	to Subsection (d), the notice must:
310	310	(1) contain a statement in the following form:
311	311	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
312	312	"The (name of school district) will hold a public meeting at
313	313	(time, date, year) in (name of room, building, physical location,
314	314	city, state). The purpose of this meeting is to discuss the school
315	315	district's budget that will determine the tax rate that will be
316	316	adopted. Public participation in the discussion is invited." The
317	317	statement of the purpose of the meeting must be in bold type. In
318	318	reduced type, the notice must state: "The tax rate that is
319	319	ultimately adopted at this meeting or at a separate meeting at a
320	320	later date may not exceed the proposed rate shown below unless the
321	321	district publishes a revised notice containing the same information
322	322	and comparisons set out below and holds another public meeting to
323	323	discuss the revised notice.";
324	324	(2) contain a section entitled "Comparison of Proposed
325	325	Budget with Last Year's Budget," which must show the difference,
326	326	expressed as a percent increase or decrease, as applicable, in the
327	327	amounts budgeted for the preceding fiscal year and the amount
328	328	budgeted for the fiscal year that begins in the current tax year for
329	329	each of the following:
330	330	(A) maintenance and operations;
331	331	(B) debt service; and
332	332	(C) total expenditures;
333	333	(3) contain a section entitled "Total Appraised Value
334	334	and Total Taxable Value," which must show the total appraised value
335	335	and the total taxable value of all property and the total appraised
336	336	value and the total taxable value of new property taxable by the
337	337	district in the preceding tax year and the current tax year as
338	338	calculated under Section 26.04, Tax Code;
339	339	(4) contain a statement of the total amount of the
340	340	outstanding and unpaid bonded indebtedness of the school district;
341	341	(5) contain a section entitled "Comparison of Proposed
342	342	Rates with Last Year's Rates," which must:
343	343	(A) show in rows the tax rates described by
344	344	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
345	345	property, for columns entitled "Maintenance & Operations,"
346	346	"Interest & Sinking Fund," and "Total," which is the sum of
347	347	"Maintenance & Operations" and "Interest & Sinking Fund":
348	348	(i) the school district's "Last Year's
349	349	Rate";
350	350	(ii) the "Rate to Maintain Same Level of
351	351	Maintenance & Operations Revenue & Pay Debt Service," which:
352	352	(a) in the case of "Maintenance &
353	353	Operations," is the tax rate that, when applied to the current
354	354	taxable value for the district, as certified by the chief appraiser
355	355	under Section 26.01, Tax Code, and as adjusted to reflect changes
356	356	made by the chief appraiser as of the time the notice is prepared,
357	357	would impose taxes in an amount that, when added to state funds to
358	358	be distributed to the district under Chapter 42, would provide the
359	359	same amount of maintenance and operations taxes and state funds
360	360	distributed under Chapter 42 per student in average daily
361	361	attendance for the applicable school year that was available to the
362	362	district in the preceding school year; and
363	363	(b) in the case of "Interest & Sinking
364	364	Fund," is the tax rate that, when applied to the current taxable
365	365	value for the district, as certified by the chief appraiser under
366	366	Section 26.01, Tax Code, and as adjusted to reflect changes made by
367	367	the chief appraiser as of the time the notice is prepared, and when
368	368	multiplied by the district's anticipated collection rate, would
369	369	impose taxes in an amount that, when added to state funds to be
370	370	distributed to the district under Chapter 46 and any excess taxes
371	371	collected to service the district's debt during the preceding tax
372	372	year but not used for that purpose during that year, would provide
373	373	the amount required to service the district's debt; and
374	374	(iii) the "Proposed Rate";
375	375	(B) contain fourth and fifth columns aligned with
376	376	the columns required by Paragraph (A) that show, for each row
377	377	required by Paragraph (A):
378	378	(i) the "Local Revenue per Student," which
379	379	is computed by multiplying the district's total taxable value of
380	380	property, as certified by the chief appraiser for the applicable
381	381	school year under Section 26.01, Tax Code, and as adjusted to
382	382	reflect changes made by the chief appraiser as of the time the
383	383	notice is prepared, by the total tax rate, and dividing the product
384	384	by the number of students in average daily attendance in the
385	385	district for the applicable school year; and
386	386	(ii) the "State Revenue per Student," which
387	387	is computed by determining the amount of state aid received or to be
388	388	received by the district under Chapters 42, 43, and 46 and dividing
389	389	that amount by the number of students in average daily attendance in
390	390	the district for the applicable school year; and
391	391	(C) contain an asterisk after each calculation
392	392	for "Interest & Sinking Fund" and a footnote to the section that, in
393	393	reduced type, states "The Interest & Sinking Fund tax revenue is
394	394	used to pay for bonded indebtedness on construction, equipment, or
395	395	both. The bonds, and the tax rate necessary to pay those bonds, were
396	396	approved by the voters of this district.";
397	397	(6) contain a section entitled "Comparison of Proposed
398	398	Levy with Last Year's Levy on Average Residence," which must:
399	399	(A) show in rows the information described by
400	400	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
401	401	entitled "Last Year" and "This Year":
402	402	(i) "Average Market Value of Residences,"
403	403	determined using the same group of residences for each year;
404	404	(ii) "Average Taxable Value of Residences,"
405	405	determined after taking into account the limitation on the
406	406	appraised value of residences under Section 23.23, Tax Code, and
407	407	after subtracting all homestead exemptions applicable in each year,
408	408	other than exemptions available only to disabled persons, [or]
409	409	persons 65 years of age or older or their surviving spouses, or
410	410	persons 75 years of age or older or their surviving spouses, and
411	411	using the same group of residences for each year;
412	412	(iii) "Last Year's Rate Versus Proposed
413	413	Rate per $100 Value"; and
414	414	(iv) "Taxes Due on Average Residence,"
415	415	determined using the same group of residences for each year; and
416	416	(B) contain the following
417	417	information: "Increase (Decrease) in Taxes" expressed in dollars
418	418	and cents, which is computed by subtracting the "Taxes Due on
419	419	Average Residence" for the preceding tax year from the "Taxes Due on
420	420	Average Residence" for the current tax year;
421	421	(7) contain the following statement in bold
422	422	print: "Under state law, the dollar amount of school taxes imposed
423	423	on the residence of a person 65 years of age or older or of the
424	424	surviving spouse of such a person, if the surviving spouse was 55
425	425	years of age or older when the person died, may not be increased
426	426	above the amount paid in the first year after the person turned 65,
427	427	regardless of changes in tax rate or property value.";
428	428	(8) contain the following statement in bold
429	429	print: "Notice of Rollback Rate: The highest tax rate the
430	430	district can adopt before requiring voter approval at an election
431	431	is (the school district rollback rate determined under Section
432	432	26.08, Tax Code). This election will be automatically held if the
433	433	district adopts a rate in excess of the rollback rate of (the school
434	434	district rollback rate)."; [and]
435	435	(9) contain a section entitled "Fund Balances," which
436	436	must include the estimated amount of interest and sinking fund
437	437	balances and the estimated amount of maintenance and operation or
438	438	general fund balances remaining at the end of the current fiscal
439	439	year that are not encumbered with or by corresponding debt
440	440	obligation, less estimated funds necessary for the operation of the
441	441	district before the receipt of the first payment under Chapter 42 in
442	442	the succeeding school year; and
443	443	(10) contain the following statement in bold
444	444	print: "Under state law, the residence of a person 75 years of age
445	445	or older or of the surviving spouse of such a person, if the
446	446	surviving spouse was 55 years of age or older when the person died,
447	447	is exempt from taxes."
448	448	SECTION 12. Section 46.003, Education Code, is amended by
449	449	adding Subsection (j) to read as follows:
450	450	(j) Notwithstanding any other provision of this chapter, in
451	451	computing a district's bond tax rate ("BTR") and taxable value of
452	452	property ("DPV") for the 2018-2019 school year, a school district's
453	453	taxable value of property under Subchapter M, Chapter 403,
454	454	Government Code, is determined as if the residence homestead
455	455	exemption for a person 75 years of age or older or the person's
456	456	surviving spouse under Section 1-b(q), Article VIII, Texas
457	457	Constitution, as proposed by the 85th Legislature, 1st Called
458	458	Session, 2017, had been in effect for the 2017 tax year. This
459	459	subsection expires September 1, 2019.
460	460	SECTION 13. Section 46.032, Education Code, is amended by
461	461	adding Subsection (e) to read as follows:
462	462	(e) Notwithstanding any other provision of this chapter, in
463	463	computing a district's existing debt tax rate ("EDTR") and taxable
464	464	value of property ("DPV") for the 2018-2019 school year, a school
465	465	district's taxable value of property under Subchapter M, Chapter
466	466	403, Government Code, is determined as if the residence homestead
467	467	exemption for a person 75 years of age or older or the person's
468	468	surviving spouse under Section 1-b(q), Article VIII, Texas
469	469	Constitution, as proposed by the 85th Legislature, 1st Called
470	470	Session, 2017, had been in effect for the 2017 tax year. This
471	471	subsection expires September 1, 2019.
472	472	SECTION 14. Section 46.071, Education Code, is amended by
473	473	adding Subsection (a-2) and amending Subsections (b) and (c) to
474	474	read as follows:
475	475	(a-2) Beginning with the 2018-2019 school year, in addition
476	476	to state aid a school district is entitled to under Subsection (a),
477	477	a school district is also entitled to additional state aid under
478	478	this subchapter to the extent that state and local revenue used to
479	479	service debt eligible under this chapter is less than the state and
480	480	local revenue that would have been available to the district under
481	481	this chapter as it existed on September 1, 2017, if the residence
482	482	homestead exemption for a person 75 years of age or older or the
483	483	person's surviving spouse under Section 1-b(q), Article VIII, Texas
484	484	Constitution, as proposed by the 85th Legislature, 1st Called
485	485	Session, 2017, had not been adopted.
486	486	(b) Subject to Subsections (c)-(e), additional state aid
487	487	under this section is equal to the amount by which the loss of local
488	488	interest and sinking revenue for debt service attributable to the
489	489	increase in the residence homestead exemption under Section 1-b(c),
490	490	Article VIII, Texas Constitution, and the additional limitation on
491	491	tax increases under Section 1-b(d) of that article as proposed by
492	492	S.J.R. 1, 84th Legislature, Regular Session, 2015, and the
493	493	residence homestead exemption under Section 1-b(q), Article VIII,
494	494	Texas Constitution, as proposed by the 85th Legislature, 1st Called
495	495	Session, 2017, is not offset by a gain in state aid under this
496	496	chapter.
497	497	(c) For the purpose of determining state aid under
498	498	Subsection (a) or (a-2) [this section], local interest and sinking
499	499	revenue for debt service is limited to revenue required to service
500	500	debt eligible under this chapter as of September 1, 2015, or as of
501	501	September 1, 2017, respectively, including refunding of the
502	502	applicable [that] debt, subject to Section 46.061. The limitation
503	503	imposed by Section 46.034(a) does not apply for the purpose of
504	504	determining state aid under Subsection (a) or (a-2) [this section].
505	505	SECTION 15. (a) If S.B. 15, Acts of the 85th Legislature,
506	506	Regular Session, 2017, does not become law, Section 403.302(d-1),
507	507	Government Code, is amended to read as follows:
508	508	(d-1) For purposes of Subsection (d), a residence homestead
509	509	that receives an exemption under Section 11.13(s) or (t), 11.131,
510	510	or 11.133, Tax Code, in the year that is the subject of the study is
511	511	not considered to be taxable property.
512	512	(b) If S.B. 15, Acts of the 85th Legislature, Regular
513	513	Session, 2017, becomes law, Section 403.302(d-1), Government Code,
514	514	as effective January 1, 2018, is amended to read as follows:
515	515	(d-1) For purposes of Subsection (d), a residence homestead
516	516	that receives an exemption under Section 11.13(s) or (t), 11.131,
517	517	11.133, or 11.134, Tax Code, in the year that is the subject of the
518	518	study is not considered to be taxable property.
519	519	SECTION 16. The exemptions from ad valorem taxation of a
520	520	residence homestead authorized by Sections 11.13(s) and (t), Tax
521	521	Code, as added by this Act, apply only to taxes imposed beginning
522	522	with the 2018 tax year.
523	523	SECTION 17. This Act takes effect January 1, 2018, but only
524	524	if the constitutional amendment proposed by the 85th Legislature,
525	525	1st Called Session, 2017, to exempt from ad valorem taxation the
526	526	total market value of the residence homesteads of certain elderly
527	527	persons and their surviving spouses is approved by the voters. If
528	528	that constitutional amendment is not approved by the voters, this
529	529	Act has no effect.