By: Goldman H.B. No. 2455
A BILL TO BE ENTITLED
AN ACT
relating to the limitation of certain special district tax on the
homesteads of the disabled and elderly.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.261, Tax Code, is amended to read as
follows:
Sec. 11.261. LIMITATION OF [COUNTY, MUNICIPAL, OR JUNIOR
COLLEGE] DISTRICT TAX ON HOMESTEADS OF DISABLED AND ELDERLY. (a)
"District" is defined as a county, municipality, junior college,
regional water district or hospital district. This section applies
only to a [county, municipality, or junior college] district that
has established a limitation on the total amount of taxes that may
be imposed by the [county, municipality, or junior college]
district on the residence homestead of a disabled individual or an
individual 65 years of age or older under Section 1-b(h), Article
VIII, Texas Constitution.
(b) The tax officials shall appraise the property to which
the limitation applies and calculate taxes as on other property,
but if the tax so calculated exceeds the limitation provided by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. The
[county, municipality, or junior college] district may not increase
the total annual amount of ad valorem taxes the [county,
municipality, or junior college] district imposes on the residence
homestead of a disabled individual or an individual 65 years of age
or older above the amount of the taxes the [county, municipality, or
junior college]district imposed on the residence homestead in the
first tax year, other than a tax year preceding the tax year in
which the [county, municipality, or junior college] district
established the limitation described by Subsection (a), in which
the individual qualified that residence homestead for the exemption
provided by Section 11.13(c) for a disabled individual or an
individual 65 years of age or older. If the individual qualified
that residence homestead for the exemption after the beginning of
that first year and the residence homestead remains eligible for
the exemption for the next year, and if the [] district taxes
imposed on the residence homestead in the next year are less than
the amount of taxes imposed in that first year, a [county,
municipality, or junior college] district may not subsequently
increase the total annual amount of ad valorem taxes it imposes on
the residence homestead above the amount it imposed on the
residence homestead in the year immediately following the first
year, other than a tax year preceding the tax year in which the
[county, municipality, or junior college] district established the
limitation described by Subsection (a), for which the individual
qualified that residence homestead for the exemption.
(c) If an individual makes improvements to the individual's
residence homestead, other than repairs and other than improvements
required to comply with governmental requirements, the [county,
municipality, or junior college] district may increase the amount
of taxes on the homestead in the first year the value of the
homestead is increased on the appraisal roll because of the
enhancement of value by the improvements. The amount of the tax
increase is determined by applying the current tax rate to the
difference between the appraised value of the homestead with the
improvements and the appraised value it would have had without the
improvements. A limitation provided by this section then applies
to the increased amount of [county, municipal, or junior college]
district taxes on the residence homestead until more improvements,
if any, are made.
(d) A limitation on [county, municipal, or junior college]
district tax increases provided by this section expires if on
January 1:
(1) none of the owners of the structure who qualify for
the exemption provided by Section 11.13(c) for a disabled
individual or an individual 65 years of age or older and who owned
the structure when the limitation provided by this section first
took effect is using the structure as a residence homestead; or
(2) none of the owners of the structure qualifies for
the exemption provided by Section 11.13(c) for a disabled
individual or an individual 65 years of age or older.
(e) If the appraisal roll provides for taxation of appraised
value for a prior year because a residence homestead exemption for
disabled individuals or individuals 65 years of age or older was
erroneously allowed, the tax assessor for the applicable [county,
municipality, or junior college] district shall add, as back taxes
due as provided by Section 26.09(d), the positive difference, if
any, between the tax that should have been imposed for that year and
the tax that was imposed because of the provisions of this section.
(f) A limitation on tax increases provided by this section
does not expire because the owner of an interest in the structure
conveys the interest to a qualifying trust as defined by Section
11.13(j) if the owner or the owner's spouse is a trustor of the
trust and is entitled to occupy the structure.
(g) Except as provided by Subsection (c), if an individual
who receives a limitation on [county, municipal, or junior college]
district tax increases provided by this section subsequently
qualifies a different residence homestead in the same [county,
municipality, or junior college] district for an exemption under
Section 11.13, the [county, municipality, or junior college]
district may not impose ad valorem taxes on the subsequently
qualified homestead in a year in an amount that exceeds the amount
of taxes the [county, municipality, or junior college] district
would have imposed on the subsequently qualified homestead in the
first year in which the individual receives that exemption for the
subsequently qualified homestead had the limitation on tax
increases provided by this section not been in effect, multiplied
by a fraction the numerator of which is the total amount of taxes
the [county, municipality, or junior college] district imposed on
the former homestead in the last year in which the individual
received that exemption for the former homestead and the
denominator of which is the total amount of taxes the [county,
municipality, or junior college] district would have imposed on the
former homestead in the last year in which the individual received
that exemption for the former homestead had the limitation on tax
increases provided by this section not been in effect.
(h) An individual who receives a limitation on [county,
municipal, or junior college] district tax increases under this
section and who subsequently qualifies a different residence
homestead in the same [county, municipality, or junior college]
district for an exemption under Section 11.13, or an agent of the
individual, is entitled to receive from the chief appraiser of the
appraisal district in which the former homestead was located a
written certificate providing the information necessary to
determine whether the individual may qualify for a limitation on
the subsequently qualified homestead under Subsection (g) and to
calculate the amount of taxes the [county, municipality, or junior
college] district may impose on the subsequently qualified
homestead.
(i) If an individual who qualifies for a limitation on
[county, municipal, or junior college] district tax increases under
this section dies, the surviving spouse of the individual is
entitled to the limitation on taxes imposed by the [county,
municipality, or junior college] district on the residence
homestead of the individual if:
(1) the surviving spouse is disabled or is 55 years of
age or older when the individual dies; and
(2) the residence homestead of the individual:
(A) is the residence homestead of the surviving
spouse on the date that the individual dies; and
(B) remains the residence homestead of the
surviving spouse.
(j) If an individual who is 65 years of age or older and
qualifies for a limitation on [county, municipal, or junior
college] district tax increases for the elderly under this section
dies in the first year in which the individual qualified for the
limitation and the individual first qualified for the limitation
after the beginning of that year, except as provided by Subsection
(k), the amount to which the surviving spouse's [county, municipal,
or junior college] district taxes are limited under Subsection (i)
is the amount of taxes imposed by the [county, municipality, or
junior college] district, as applicable, on the residence homestead
in that year determined as if the individual qualifying for the
exemption had lived for the entire year.
(k) If in the first tax year after the year in which an
individual who is 65 years of age or older dies under the
circumstances described by Subsection (j) the amount of taxes
imposed by a [county, municipality, or junior college] district on
the residence homestead of the surviving spouse is less than the
amount of taxes imposed by the [county, municipality, or junior
college] district in the preceding year as limited by Subsection
(j), in a subsequent tax year the surviving spouse's taxes imposed
by the [county, municipality, or junior college] district on that
residence homestead are limited to the amount of taxes imposed by
the [county, municipality, or junior college] district in that
first tax year after the year in which the individual dies.
(l) Notwithstanding Subsection (d), a limitation on
[county, municipal, or junior college] district tax increases
provided by this section does not expire if the owner of the
structure qualifies for an exemption under Section 11.13 under the
circumstances described by Section 11.135(a).
(m) Notwithstanding Subsections (b) and (c), an improvement
to property that would otherwise constitute an improvement under
Subsection (c) is not treated as an improvement under that
subsection if the improvement is a replacement structure for a
structure that was rendered uninhabitable or unusable by a casualty
or by wind or water damage. For purposes of appraising the property
in the tax year in which the structure would have constituted an
improvement under Subsection (c), the replacement structure is
considered to be an improvement under that subsection only if:
(1) the square footage of the replacement structure
exceeds that of the replaced structure as that structure existed
before the casualty or damage occurred; or
(2) the exterior of the replacement structure is of
higher quality construction and composition than that of the
replaced structure.
SECTION 2. This Act takes effect September 1, 2019.