Texas 2019 - 86th Regular

Texas House Bill HB160 Compare Versions

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Old	New	Differences
1	1	86R633 TJB-D
2	2	By: Raymond H.B. No. 160
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 certain taxing
8	8	units of a portion of the appraised value of the residence homestead
9	9	of the parent or guardian of a minor who is disabled and who resides
10	10	with the parent or guardian.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 11.13, Tax Code, is amended by amending
13	13	Subsections (c), (d), and (h) and adding Subsection (d-1) to read as
14	14	follows:
15	15	(c) In addition to the exemption provided by Subsection (b)
16	16	[of this section], an individual [adult] who is disabled, is the
17	17	parent or guardian of a minor who is disabled and who resides with
18	18	the parent or guardian, or is 65 years of age or older is entitled to
19	19	an exemption from taxation by a school district of $10,000 of the
20	20	appraised value of the individual's [his] residence homestead.
21	21	(d) In addition to the exemptions provided by Subsections
22	22	(b) and (c) [of this section], an individual who is disabled, is the
23	23	parent or guardian of a minor who is disabled and who resides with
24	24	the parent or guardian, or is 65 years of age or older is entitled to
25	25	an exemption from taxation by a taxing unit of the [a] portion
26	26	determined [(the amount of which is fixed] as provided by
27	27	Subsection (e) [of this section)] of the appraised value of the
28	28	individual's [his] residence homestead if the exemption is adopted
29	29	by [either]:
30	30	(1) [by] the governing body of the taxing unit; or
31	31	(2) [by] a favorable vote of a majority of the
32	32	qualified voters of the taxing unit at an election called by the
33	33	governing body of the [a] taxing unit.
34	34	(d-1) The [, and the] governing body of a taxing unit shall
35	35	call an [the] election described by Subsection (d)(2) on the
36	36	petition of at least 20 percent of the number of qualified voters
37	37	who voted in the preceding election of the taxing unit.
38	38	(h) Joint, community, or successive owners may not each
39	39	receive the same exemption provided by or pursuant to this section
40	40	for the same residence homestead in the same year. An individual
41	41	who is eligible for more than one [disabled person who is 65 or
42	42	older may not receive both a disabled and an elderly residence
43	43	homestead] exemption under Subsection (c) or more than one
44	44	exemption under Subsection (d) is entitled to [but may] choose and
45	45	receive only one exemption under each of those subsections
46	46	[either]. A person may not receive an exemption under this section
47	47	for more than one residence homestead in the same tax year.
48	48	SECTION 2. Section 26.06(b), Tax Code, is amended to read as
49	49	follows:
50	50	(b) The notice of a public hearing may not be smaller than
51	51	one-quarter page of a standard-size or a tabloid-size newspaper,
52	52	and the headline on the notice must be in 24-point or larger
53	53	type. The notice must contain a statement in the following form:
54	54	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
55	55	"The (name of the taxing unit) will hold two public hearings
56	56	on a proposal to increase total tax revenues from properties on the
57	57	tax roll in the preceding tax year by (percentage by which proposed
58	58	tax rate exceeds lower of rollback tax rate or effective tax rate
59	59	calculated under this chapter) percent. Your individual taxes may
60	60	increase at a greater or lesser rate, or even decrease, depending on
61	61	the change in the taxable value of your property in relation to the
62	62	change in taxable value of all other property and the tax rate that
63	63	is adopted.
64	64	"The first public hearing will be held on (date and time) at
65	65	(meeting place).
66	66	"The second public hearing will be held on (date and time) at
67	67	(meeting place).
68	68	"(Names of all members of the governing body, showing how
69	69	each voted on the proposal to consider the tax increase or, if one
70	70	or more were absent, indicating the absences.)
71	71	"The average taxable value of a residence homestead in (name
72	72	of taxing unit) last year was $____ (average taxable value of a
73	73	residence homestead in the taxing unit for the preceding tax year,
74	74	disregarding residence homestead exemptions available only to
75	75	individuals who are disabled, are the parents or guardians of
76	76	minors who are disabled and who reside with the parents or
77	77	guardians, [persons] or are [persons] 65 years of age or
78	78	older). Based on last year's tax rate of $____ (preceding year's
79	79	adopted tax rate) per $100 of taxable value, the amount of taxes
80	80	imposed last year on the average home was $____ (tax on average
81	81	taxable value of a residence homestead in the taxing unit for the
82	82	preceding tax year, disregarding residence homestead exemptions
83	83	available only to individuals who are disabled, are the parents or
84	84	guardians of minors who are disabled and who reside with the parents
85	85	or guardians, [persons] or are [persons] 65 years of age or
86	86	older).
87	87	"The average taxable value of a residence homestead in (name
88	88	of taxing unit) this year is $____ (average taxable value of a
89	89	residence homestead in the taxing unit for the current tax year,
90	90	disregarding residence homestead exemptions available only to
91	91	individuals who are disabled, are the parents or guardians of
92	92	minors who are disabled and who reside with the parents or
93	93	guardians, [persons] or are [persons] 65 years of age or
94	94	older). If the governing body adopts the effective tax rate for
95	95	this year of $____ (effective tax rate) per $100 of taxable value,
96	96	the amount of taxes imposed this year on the average home would be
97	97	$____ (tax on average taxable value of a residence homestead in the
98	98	taxing unit for the current tax year, disregarding residence
99	99	homestead exemptions available only to individuals who are
100	100	disabled, are the parents or guardians of minors who are disabled
101	101	and who reside with the parents or guardians, [persons] or are
102	102	[persons] 65 years of age or older).
103	103	"If the governing body adopts the proposed tax rate of $____
104	104	(proposed tax rate) per $100 of taxable value, the amount of taxes
105	105	imposed this year on the average home would be $____ (tax on the
106	106	average taxable value of a residence in the taxing unit for the
107	107	current year disregarding residence homestead exemptions available
108	108	only to individuals who are disabled, are the parents or guardians
109	109	of minors who are disabled and who reside with the parents or
110	110	guardians, [persons] or are [persons] 65 years of age or older).
111	111	"Members of the public are encouraged to attend the hearings
112	112	and express their views."
113	113	SECTION 3. Section 44.004(c), Education Code, is amended to
114	114	read as follows:
115	115	(c) The notice of public meeting to discuss and adopt the
116	116	budget and the proposed tax rate may not be smaller than one-quarter
117	117	page of a standard-size or a tabloid-size newspaper, and the
118	118	headline on the notice must be in 18-point or larger type. Subject
119	119	to Subsection (d), the notice must:
120	120	(1) contain a statement in the following form:
121	121	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
122	122	"The (name of school district) will hold a public meeting at
123	123	(time, date, year) in (name of room, building, physical location,
124	124	city, state). The purpose of this meeting is to discuss the school
125	125	district's budget that will determine the tax rate that will be
126	126	adopted. Public participation in the discussion is invited." The
127	127	statement of the purpose of the meeting must be in bold type. In
128	128	reduced type, the notice must state: "The tax rate that is
129	129	ultimately adopted at this meeting or at a separate meeting at a
130	130	later date may not exceed the proposed rate shown below unless the
131	131	district publishes a revised notice containing the same information
132	132	and comparisons set out below and holds another public meeting to
133	133	discuss the revised notice.";
134	134	(2) contain a section entitled "Comparison of Proposed
135	135	Budget with Last Year's Budget," which must show the difference,
136	136	expressed as a percent increase or decrease, as applicable, in the
137	137	amounts budgeted for the preceding fiscal year and the amount
138	138	budgeted for the fiscal year that begins in the current tax year for
139	139	each of the following:
140	140	(A) maintenance and operations;
141	141	(B) debt service; and
142	142	(C) total expenditures;
143	143	(3) contain a section entitled "Total Appraised Value
144	144	and Total Taxable Value," which must show the total appraised value
145	145	and the total taxable value of all property and the total appraised
146	146	value and the total taxable value of new property taxable by the
147	147	district in the preceding tax year and the current tax year as
148	148	calculated under Section 26.04, Tax Code;
149	149	(4) contain a statement of the total amount of the
150	150	outstanding and unpaid bonded indebtedness of the school district;
151	151	(5) contain a section entitled "Comparison of Proposed
152	152	Rates with Last Year's Rates," which must:
153	153	(A) show in rows the tax rates described by
154	154	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
155	155	property, for columns entitled "Maintenance & Operations,"
156	156	"Interest & Sinking Fund," and "Total," which is the sum of
157	157	"Maintenance & Operations" and "Interest & Sinking Fund":
158	158	(i) the school district's "Last Year's
159	159	Rate";
160	160	(ii) the "Rate to Maintain Same Level of
161	161	Maintenance & Operations Revenue & Pay Debt Service," which:
162	162	(a) in the case of "Maintenance &
163	163	Operations," is the tax rate that, when applied to the current
164	164	taxable value for the district, as certified by the chief appraiser
165	165	under Section 26.01, Tax Code, and as adjusted to reflect changes
166	166	made by the chief appraiser as of the time the notice is prepared,
167	167	would impose taxes in an amount that, when added to state funds to
168	168	be distributed to the district under Chapter 42, would provide the
169	169	same amount of maintenance and operations taxes and state funds
170	170	distributed under Chapter 42 per student in average daily
171	171	attendance for the applicable school year that was available to the
172	172	district in the preceding school year; and
173	173	(b) in the case of "Interest & Sinking
174	174	Fund," is the tax rate that, when applied to the current taxable
175	175	value for the district, as certified by the chief appraiser under
176	176	Section 26.01, Tax Code, and as adjusted to reflect changes made by
177	177	the chief appraiser as of the time the notice is prepared, and when
178	178	multiplied by the district's anticipated collection rate, would
179	179	impose taxes in an amount that, when added to state funds to be
180	180	distributed to the district under Chapter 46 and any excess taxes
181	181	collected to service the district's debt during the preceding tax
182	182	year but not used for that purpose during that year, would provide
183	183	the amount required to service the district's debt; and
184	184	(iii) the "Proposed Rate";
185	185	(B) contain fourth and fifth columns aligned with
186	186	the columns required by Paragraph (A) that show, for each row
187	187	required by Paragraph (A):
188	188	(i) the "Local Revenue per Student," which
189	189	is computed by multiplying the district's total taxable value of
190	190	property, as certified by the chief appraiser for the applicable
191	191	school year under Section 26.01, Tax Code, and as adjusted to
192	192	reflect changes made by the chief appraiser as of the time the
193	193	notice is prepared, by the total tax rate, and dividing the product
194	194	by the number of students in average daily attendance in the
195	195	district for the applicable school year; and
196	196	(ii) the "State Revenue per Student," which
197	197	is computed by determining the amount of state aid received or to be
198	198	received by the district under Chapters 42, 43, and 46 and dividing
199	199	that amount by the number of students in average daily attendance in
200	200	the district for the applicable school year; and
201	201	(C) contain an asterisk after each calculation
202	202	for "Interest & Sinking Fund" and a footnote to the section that, in
203	203	reduced type, states "The Interest & Sinking Fund tax revenue is
204	204	used to pay for bonded indebtedness on construction, equipment, or
205	205	both. The bonds, and the tax rate necessary to pay those bonds, were
206	206	approved by the voters of this district.";
207	207	(6) contain a section entitled "Comparison of Proposed
208	208	Levy with Last Year's Levy on Average Residence," which must:
209	209	(A) show in rows the information described by
210	210	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
211	211	entitled "Last Year" and "This Year":
212	212	(i) "Average Market Value of Residences,"
213	213	determined using the same group of residences for each year;
214	214	(ii) "Average Taxable Value of Residences,"
215	215	determined after taking into account the limitation on the
216	216	appraised value of residences under Section 23.23, Tax Code, and
217	217	after subtracting all homestead exemptions applicable in each year,
218	218	other than exemptions available only to individuals who are
219	219	disabled, are the parents or guardians of minors who are disabled
220	220	and who reside with the parents or guardians, [persons] or are
221	221	[persons] 65 years of age or older or their surviving spouses, and
222	222	using the same group of residences for each year;
223	223	(iii) "Last Year's Rate Versus Proposed
224	224	Rate per $100 Value"; and
225	225	(iv) "Taxes Due on Average Residence,"
226	226	determined using the same group of residences for each year; and
227	227	(B) contain the following
228	228	information: "Increase (Decrease) in Taxes" expressed in dollars
229	229	and cents, which is computed by subtracting the "Taxes Due on
230	230	Average Residence" for the preceding tax year from the "Taxes Due on
231	231	Average Residence" for the current tax year;
232	232	(7) contain the following statement in bold
233	233	print: "Under state law, the dollar amount of school taxes imposed
234	234	on the residence of a person 65 years of age or older or of the
235	235	surviving spouse of such a person, if the surviving spouse was 55
236	236	years of age or older when the person died, may not be increased
237	237	above the amount paid in the first year after the person turned 65,
238	238	regardless of changes in tax rate or property value.";
239	239	(8) contain the following statement in bold
240	240	print: "Notice of Rollback Rate: The highest tax rate the
241	241	district can adopt before requiring voter approval at an election
242	242	is (the school district rollback rate determined under Section
243	243	26.08, Tax Code). This election will be automatically held if the
244	244	district adopts a rate in excess of the rollback rate of (the school
245	245	district rollback rate)."; and
246	246	(9) contain a section entitled "Fund Balances," which
247	247	must include the estimated amount of interest and sinking fund
248	248	balances and the estimated amount of maintenance and operation or
249	249	general fund balances remaining at the end of the current fiscal
250	250	year that are not encumbered with or by corresponding debt
251	251	obligation, less estimated funds necessary for the operation of the
252	252	district before the receipt of the first payment under Chapter 42 in
253	253	the succeeding school year.
254	254	SECTION 4. Section 8876.152(b), Special District Local Laws
255	255	Code, is amended to read as follows:
256	256	(b) Sections 49.236(a)(1), (a)(2)(A)-(F), and (b) [Section
257	257	49.236], Water Code, apply [as added by Chapter 248 (H.B. 1541),
258	258	Acts of the 78th Legislature, Regular Session, 2003, applies] to
259	259	the district.
260	260	SECTION 5. Sections 49.236(a) and (d), Water Code, as added
261	261	by Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular
262	262	Session, 2003, are amended to read as follows:
263	263	(a) Before the board adopts an ad valorem tax rate for the
264	264	district for debt service, operation and maintenance purposes, or
265	265	contract purposes, the board shall give notice of each meeting of
266	266	the board at which the adoption of a tax rate will be considered.
267	267	The notice must:
268	268	(1) contain a statement in substantially the following
269	269	form:
270	270	"NOTICE OF PUBLIC HEARING ON TAX RATE
271	271	"The (name of the district) will hold a public hearing on a
272	272	proposed tax rate for the tax year (year of tax levy) on (date and
273	273	time) at (meeting place). Your individual taxes may increase or
274	274	decrease, depending on the change in the taxable value of your
275	275	property in relation to the change in taxable value of all other
276	276	property and the tax rate that is adopted.
277	277	"(Names of all board members and, if a vote was taken, an
278	278	indication of how each voted on the proposed tax rate and an
279	279	indication of any absences.)";
280	280	(2) contain the following information:
281	281	(A) the district's total adopted tax rate for the
282	282	preceding year and the proposed tax rate, expressed as an amount per
283	283	$100;
284	284	(B) the difference, expressed as an amount per
285	285	$100 and as a percent increase or decrease, as applicable, in the
286	286	proposed tax rate compared to the adopted tax rate for the preceding
287	287	year;
288	288	(C) the average appraised value of a residence
289	289	homestead in the district in the preceding year and in the current
290	290	year; the district's total homestead exemption, other than an
291	291	exemption available only to individuals who are disabled, are the
292	292	parents or guardians of minors who are disabled and who reside with
293	293	the parents or guardians, [persons] or are [persons] 65 years of age
294	294	or older, applicable to that appraised value in each of those years;
295	295	and the average taxable value of a residence homestead in the
296	296	district in each of those years, disregarding any homestead
297	297	exemption available only to individuals who are disabled, are the
298	298	parents or guardians of minors who are disabled and who reside with
299	299	the parents or guardians, [persons] or are [persons] 65 years of age
300	300	or older;
301	301	(D) the amount of tax that would have been
302	302	imposed by the district in the preceding year on a residence
303	303	homestead appraised at the average appraised value of a residence
304	304	homestead in that year, disregarding any homestead exemption
305	305	available only to individuals who are disabled, are the parents or
306	306	guardians of minors who are disabled and who reside with the parents
307	307	or guardians, [persons] or are [persons] 65 years of age or older;
308	308	(E) the amount of tax that would be imposed by the
309	309	district in the current year on a residence homestead appraised at
310	310	the average appraised value of a residence homestead in that year,
311	311	disregarding any homestead exemption available only to individuals
312	312	who are disabled, are the parents or guardians of minors who are
313	313	disabled and who reside with the parents or guardians, [persons] or
314	314	are [persons] 65 years of age or older, if the proposed tax rate is
315	315	adopted; [and]
316	316	(F) the difference between the amounts of tax
317	317	calculated under Paragraphs (D) and (E), expressed in dollars and
318	318	cents and described as the annual percentage increase or decrease,
319	319	as applicable, in the tax to be imposed by the district on the
320	320	average residence homestead in the district in the current year if
321	321	the proposed tax rate is adopted; and
322	322	(G) if the proposed combined debt service,
323	323	operation and maintenance, and contract tax rate would authorize
324	324	the qualified voters of the district by petition to require a
325	325	rollback election to be held in the district, a description of the
326	326	purpose of the proposed tax increase; and
327	327	(3) contain a statement in substantially the following
328	328	form:
329	329	"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
330	330	"If taxes on the average residence homestead increase by more
331	331	than eight percent, the qualified voters of the district by
332	332	petition may require that an election be held to determine whether
333	333	to reduce the operation and maintenance tax rate to the rollback tax
334	334	rate under Section 49.236(d), Water Code."
335	335	(d) If the governing body of a district adopts a combined
336	336	debt service, operation and maintenance, and contract tax rate that
337	337	would impose more than 1.08 times the amount of tax imposed by the
338	338	district in the preceding year on a residence homestead appraised
339	339	at the average appraised value of a residence homestead in the
340	340	district in that year, disregarding any homestead exemption
341	341	available only to individuals who are disabled, are the parents or
342	342	guardians of minors who are disabled and who reside with the parents
343	343	or guardians, [persons] or are [persons] 65 years of age or older,
344	344	the qualified voters of the district by petition may require that an
345	345	election be held to determine whether or not to reduce the tax rate
346	346	adopted for the current year to the rollback tax rate in accordance
347	347	with the procedures provided by Sections 26.07(b)-(g) and 26.081,
348	348	Tax Code. For purposes of Sections 26.07(b)-(g), Tax Code, and this
349	349	subsection, the rollback tax rate is the current year's debt
350	350	service and contract tax rates plus the operation and maintenance
351	351	tax rate that would impose 1.08 times the amount of the operation
352	352	and maintenance tax imposed by the district in the preceding year on
353	353	a residence homestead appraised at the average appraised value of a
354	354	residence homestead in the district in that year, disregarding any
355	355	homestead exemption available only to individuals who are disabled,
356	356	are the parents or guardians of minors who are disabled and who
357	357	reside with the parents or guardians, [persons] or are [persons] 65
358	358	years of age or older.
359	359	SECTION 6. The following provisions are repealed:
360	360	(1) Section 49.236, Water Code, as added by Chapter
361	361	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
362	362	2003; and
363	363	(2) Section 49.2361, Water Code.
364	364	SECTION 7. This Act applies only to ad valorem taxes imposed
365	365	for a tax year that begins on or after the effective date of this
366	366	Act.
367	367	SECTION 8. This Act takes effect January 1, 2020, but only
368	368	if the constitutional amendment proposed by the 86th Legislature,
369	369	Regular Session, 2019, to provide for an exemption from ad valorem
370	370	taxation by certain political subdivisions of a portion of the
371	371	market value of the residence homestead of the parent or guardian of
372	372	a minor who is disabled and who resides with the parent or guardian
373	373	is approved by the voters. If that amendment is not approved by the
374	374	voters, this Act has no effect.