Texas 2019 - 86th Regular

Texas House Bill HB322 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R70 CJC-D
2	2	By: Geren H.B. No. 322
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of a limitation on the total amount of
8	8	ad valorem taxes that taxing units may impose on the residence
9	9	homesteads of individuals who are disabled or elderly and their
10	10	surviving spouses.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The heading to Section 11.26, Tax Code, is
13	13	amended to read as follows:
14	14	Sec. 11.26. LIMITATION OF TAXES [SCHOOL TAX] ON HOMESTEADS
15	15	OF INDIVIDUALS WHO ARE ELDERLY OR DISABLED.
16	16	SECTION 2. Sections 11.26(a), (a-1), (a-2), (a-3), (b),
17	17	(c), (e), (g), (h), (i), (j), (k), and (o), Tax Code, are amended to
18	18	read as follows:
19	19	(a) The tax officials shall appraise [the] property to which
20	20	this section applies and calculate taxes as on other property, but
21	21	if the tax [so] calculated exceeds the limitation imposed by this
22	22	section, the tax imposed is the amount of the tax as limited by this
23	23	section, except as otherwise provided by this section. A taxing
24	24	unit [school district] may not increase the total annual amount of
25	25	ad valorem tax it imposes on the residence homestead of an
26	26	individual 65 years of age or older or on the residence homestead of
27	27	an individual who is disabled, as defined by Section 11.13, above
28	28	the amount of the tax it imposed in the first tax year in which the
29	29	individual qualified that residence homestead for the applicable
30	30	exemption provided by Section 11.13(c) for an individual who is 65
31	31	years of age or older or is disabled. If the individual qualified
32	32	that residence homestead for the exemption after the beginning of
33	33	that first year and the residence homestead remains eligible for
34	34	the same exemption for the next year, and if the [school district]
35	35	taxes imposed by a taxing unit on the residence homestead in the
36	36	next year are less than the amount of those taxes imposed in that
37	37	first year, the taxing unit [a school district] may not
38	38	subsequently increase the total annual amount of ad valorem taxes
39	39	it imposes on the residence homestead above the amount it imposed in
40	40	the year immediately following the first year for which the
41	41	individual qualified that residence homestead for the same
42	42	exemption, except as provided by Subsection (b). [If the first tax
43	43	year the individual qualified the residence homestead for the
44	44	exemption provided by Section 11.13(c) for individuals 65 years of
45	45	age or older or disabled was a tax year before the 2015 tax year, the
46	46	amount of the limitation provided by this section is the amount of
47	47	tax the school district imposed for the 2014 tax year less an amount
48	48	equal to the amount determined by multiplying $10,000 times the tax
49	49	rate of the school district for the 2015 tax year, plus any 2015 tax
50	50	attributable to improvements made in 2014, other than improvements
51	51	made to comply with governmental regulations or repairs.]
52	52	(a-1) If the first tax year the individual qualified the
53	53	residence homestead for the exemption provided by Section 11.13(c)
54	54	for individuals 65 years of age or older or disabled was a tax year
55	55	before the 2020 tax year, the amount of the limitation on school
56	56	district taxes provided by this section is the amount of those taxes
57	57	imposed for the 2019 tax year plus any 2020 tax attributable to
58	58	improvements made in 2019, other than improvements made to comply
59	59	with governmental regulations or repairs [Notwithstanding the
60	60	other provisions of this section, if in the 2007 tax year an
61	61	individual qualifies for a limitation on tax increases provided by
62	62	this section on the individual's residence homestead and the first
63	63	tax year the individual or the individual's spouse qualified for an
64	64	exemption under Section 11.13(c) for the same homestead was the
65	65	2006 tax year, the amount of the limitation provided by this section
66	66	on the homestead in the 2007 tax year is equal to the amount
67	67	computed by:
68	68	[(1) multiplying the amount of tax the school district
69	69	imposed on the homestead in the 2006 tax year by a fraction the
70	70	numerator of which is the tax rate of the district for the 2007 tax
71	71	year and the denominator of which is the tax rate of the district
72	72	for the 2006 tax year; and
73	73	[(2) adding any tax imposed in the 2007 tax year
74	74	attributable to improvements made in the 2006 tax year as provided
75	75	by Subsection (b) to the lesser of the amount computed under
76	76	Subdivision (1) or the amount of tax the district imposed on the
77	77	homestead in the 2006 tax year].
78	78	(a-2) If the first tax year the individual qualified the
79	79	residence homestead for the exemption provided by Section 11.13(c)
80	80	for individuals 65 years of age or older or disabled was a tax year
81	81	before the 2020 tax year and the homestead qualified for a
82	82	limitation on county, municipal, or junior college district taxes
83	83	under former Section 11.261, the amount of the limitation on
84	84	county, municipal, or junior college district taxes, as applicable,
85	85	provided by this section is the amount of the tax imposed by the
86	86	applicable taxing unit for the 2019 tax year, plus any 2020 tax
87	87	attributable to improvements made in 2019, other than improvements
88	88	made to comply with governmental regulations or repairs
89	89	[Notwithstanding the other provisions of this section, if in the
90	90	2007 tax year an individual qualifies for a limitation on tax
91	91	increases provided by this section on the individual's residence
92	92	homestead and the first tax year the individual or the individual's
93	93	spouse qualified for an exemption under Section 11.13(c) for the
94	94	same homestead was a tax year before the 2006 tax year, the amount
95	95	of the limitation provided by this section on the homestead in the
96	96	2007 tax year is equal to the amount computed by:
97	97	[(1) multiplying the amount of tax the school district
98	98	imposed on the homestead in the 2005 tax year by a fraction the
99	99	numerator of which is the tax rate of the district for the 2006 tax
100	100	year and the denominator of which is the tax rate of the district
101	101	for the 2005 tax year;
102	102	[(2) adding any tax imposed in the 2006 tax year
103	103	attributable to improvements made in the 2005 tax year as provided
104	104	by Subsection (b) to the lesser of the amount computed under
105	105	Subdivision (1) or the amount of tax the district imposed on the
106	106	homestead in the 2005 tax year;
107	107	[(3) multiplying the amount computed under
108	108	Subdivision (2) by a fraction the numerator of which is the tax rate
109	109	of the district for the 2007 tax year and the denominator of which
110	110	is the tax rate of the district for the 2006 tax year; and
111	111	[(4) adding to the lesser of the amount computed under
112	112	Subdivision (2) or (3) any tax imposed in the 2007 tax year
113	113	attributable to improvements made in the 2006 tax year, as provided
114	114	by Subsection (b)].
115	115	(a-3) Except as provided by Subsection (a-2), for the
116	116	purpose of calculating a limitation on tax increases by a taxing
117	117	unit other than a school district under this section, an individual
118	118	who qualified a residence homestead before January 1, 2020, for an
119	119	exemption under Section 11.13(c) for individuals 65 years of age or
120	120	older or disabled is considered to have qualified the homestead for
121	121	that exemption on January 1, 2020 [(b), a limitation on tax
122	122	increases provided by this section on a residence homestead
123	123	computed under Subsection (a-1) or (a-2) continues to apply to the
124	124	homestead in subsequent tax years until the limitation expires].
125	125	(b) If an individual makes improvements to the individual's
126	126	residence homestead, other than improvements required to comply
127	127	with governmental requirements or repairs, a taxing unit [the
128	128	school district] may increase the tax on the homestead in the first
129	129	year the value of the homestead is increased on the appraisal roll
130	130	because of the enhancement of value by the improvements. The amount
131	131	of the tax increase is determined by applying the taxing unit's
132	132	current tax rate to the difference in the assessed value of the
133	133	homestead with the improvements and the assessed value it would
134	134	have had without the improvements. A limitation under [imposed by]
135	135	this section [then] applies to the increased amount of tax in
136	136	subsequent tax years until more improvements, if any, are made.
137	137	(c) The limitation on tax increases required by this section
138	138	expires if on January 1:
139	139	(1) none of the owners of the structure who qualify for
140	140	the exemption under Section 11.13(c) for individuals 65 years of
141	141	age or older or disabled and who owned the structure when the
142	142	limitation first took effect is using the structure as a residence
143	143	homestead; or
144	144	(2) none of the owners of the structure qualifies for
145	145	the exemption described by Subdivision (1).
146	146	(e) For each school district participating in an appraisal
147	147	district, the chief appraiser shall determine the portion of the
148	148	appraised value of residence homesteads of individuals on which
149	149	school district taxes are not imposed in a tax year because of the
150	150	limitation on tax increases imposed by this section. That portion
151	151	is calculated by determining the taxable value that, if multiplied
152	152	by the tax rate adopted by the school district for the tax year,
153	153	would produce an amount equal to the amount of tax that would have
154	154	been imposed by the school district on those residence homesteads
155	155	if the limitation on tax increases imposed by this section were not
156	156	in effect, but that was not imposed because of that limitation. The
157	157	chief appraiser shall determine that taxable value and certify it
158	158	to the comptroller as soon as practicable for each tax year.
159	159	(g) Except as provided by Subsection (b), if an individual
160	160	who receives a limitation on tax increases imposed by this section,
161	161	including a surviving spouse who receives a limitation under
162	162	Subsection (i), subsequently qualifies a different residence
163	163	homestead for the same exemption under Section 11.13, a taxing unit
164	164	[school district] may not impose ad valorem taxes on the
165	165	subsequently qualified homestead in a year in an amount that
166	166	exceeds the amount of taxes the taxing unit [school district] would
167	167	have imposed on the subsequently qualified homestead in the first
168	168	year in which the individual receives that same exemption for the
169	169	subsequently qualified homestead had the limitation on tax
170	170	increases imposed by this section not been in effect, multiplied by
171	171	a fraction the numerator of which is the total amount of [school
172	172	district] taxes imposed by a taxing unit of the same type on the
173	173	former homestead in the last year in which the individual received
174	174	that same exemption for the former homestead and the denominator of
175	175	which is the total amount of [school district] taxes that would have
176	176	been imposed by the taxing unit of the same type on the former
177	177	homestead in the last year in which the individual received that
178	178	same exemption for the former homestead had the limitation on tax
179	179	increases imposed by this section not been in effect. A limitation
180	180	under this subsection does not apply to a taxing unit if the former
181	181	homestead was not subject to taxation by a taxing unit of the same
182	182	type in the last year in which the individual received the exemption
183	183	for the former homestead.
184	184	(h) An individual who receives a limitation on tax increases
185	185	under this section, including a surviving spouse who receives a
186	186	limitation under Subsection (i), and who subsequently qualifies a
187	187	different residence homestead for an exemption under Section 11.13,
188	188	or an agent of the individual, is entitled to receive from the chief
189	189	appraiser of the appraisal district in which the former homestead
190	190	was located a written certificate providing the information
191	191	necessary to determine whether the individual may qualify for that
192	192	same limitation on the subsequently qualified homestead under
193	193	Subsection (g) and to calculate the amount of taxes the taxing units
194	194	[school district] may impose on the subsequently qualified
195	195	homestead.
196	196	(i) If an individual who receives a limitation on tax
197	197	increases under this section [qualifies for the exemption provided
198	198	by Section 11.13(c) for an individual 65 years of age or older]
199	199	dies, the surviving spouse of the individual is entitled to the
200	200	limitation applicable to the residence homestead of the individual
201	201	if:
202	202	(1) the surviving spouse is 55 years of age or older or
203	203	disabled when the individual dies; and
204	204	(2) the residence homestead of the individual:
205	205	(A) is the residence homestead of the surviving
206	206	spouse on the date that the individual dies; and
207	207	(B) remains the residence homestead of the
208	208	surviving spouse.
209	209	(j) If an individual who qualifies for an exemption provided
210	210	by Section 11.13(c) for an individual 65 years of age or older dies
211	211	in the first year in which the individual qualified for the
212	212	exemption and the individual first qualified for the exemption
213	213	after the beginning of that year, except as provided by Subsection
214	214	(k), the amount to which the surviving spouse's [school district]
215	215	taxes imposed by a taxing unit are limited under Subsection (i) is
216	216	the amount of [school district] taxes imposed by the taxing unit on
217	217	the residence homestead in that year determined as if the
218	218	individual qualifying for the exemption had lived for the entire
219	219	year.
220	220	(k) If in the first tax year after the year in which an
221	221	individual dies in the circumstances described by Subsection (j)
222	222	the amount of [school district] taxes imposed by a taxing unit on
223	223	the residence homestead of the surviving spouse is less than the
224	224	amount of [school district] taxes imposed by the taxing unit in the
225	225	preceding year as limited by Subsection (j), in a subsequent tax
226	226	year the [surviving spouse's school district] taxes imposed by that
227	227	taxing unit on that residence homestead are limited to the amount of
228	228	taxes imposed by the district in that first tax year after the year
229	229	in which the individual dies.
230	230	(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
231	231	improvement to property that would otherwise constitute an
232	232	improvement under Subsection (b) is not treated as an improvement
233	233	under that subsection if the improvement is a replacement structure
234	234	for a structure that was rendered uninhabitable or unusable by a
235	235	casualty or by wind or water damage. For purposes of appraising the
236	236	property in the tax year in which the structure would have
237	237	constituted an improvement under Subsection (b), the replacement
238	238	structure is considered to be an improvement under that subsection
239	239	only if:
240	240	(1) the square footage of the replacement structure
241	241	exceeds that of the replaced structure as that structure existed
242	242	before the casualty or damage occurred; or
243	243	(2) the exterior of the replacement structure is of
244	244	higher quality construction and composition than that of the
245	245	replaced structure.
246	246	SECTION 3. Sections 23.19(b) and (g), Tax Code, are amended
247	247	to read as follows:
248	248	(b) If an appraisal district receives a written request for
249	249	the appraisal of real property and improvements of a cooperative
250	250	housing corporation according to the separate interests of the
251	251	corporation's stockholders, the chief appraiser shall separately
252	252	appraise the interests described by Subsection (d) if the
253	253	conditions required by Subsections (e) and (f) have been met.
254	254	Separate appraisal under this section is for the purposes of
255	255	administration of tax exemptions, determination of applicable
256	256	limitations of taxes under Section 11.26 [or 11.261], and
257	257	apportionment by a cooperative housing corporation of property
258	258	taxes among its stockholders but is not the basis for determining
259	259	value on which a tax is imposed under this title. A stockholder
260	260	whose interest is separately appraised under this section may
261	261	protest and appeal the appraised value in the manner provided by
262	262	this title for protest and appeal of the appraised value of other
263	263	property.
264	264	(g) A tax bill or a separate statement accompanying the tax
265	265	bill to a cooperative housing corporation for which interests of
266	266	stockholders are separately appraised under this section must
267	267	state, in addition to the information required by Section 31.01,
268	268	the appraised value and taxable value of each interest separately
269	269	appraised. Each exemption claimed as provided by this title by a
270	270	person entitled to the exemption shall also be deducted from the
271	271	total appraised value of the property of the corporation. The total
272	272	tax imposed by a taxing unit [school district, county,
273	273	municipality, or junior college district] shall be reduced by any
274	274	amount that represents an increase in taxes attributable to
275	275	separately appraised interests of the real property and
276	276	improvements that are subject to a [the] limitation of taxes
277	277	prescribed by Section 11.26 [or 11.261]. The corporation shall
278	278	apportion among its stockholders liability for reimbursing the
279	279	corporation for property taxes according to the relative taxable
280	280	values of their interests.
281	281	SECTION 4. Sections 26.012(6), (13), and (14), Tax Code,
282	282	are amended to read as follows:
283	283	(6) "Current total value" means the total taxable
284	284	value of property listed on the appraisal roll for the current year,
285	285	including all appraisal roll supplements and corrections as of the
286	286	date of the calculation, less the taxable value of property
287	287	exempted for the current tax year for the first time under Section
288	288	11.31 or 11.315, except that:
289	289	(A) the current total value for a school district
290	290	excludes:
291	291	(i) the total value of homesteads that
292	292	qualify for a tax limitation as provided by Section 11.26; and
293	293	(ii) new property value of property that is
294	294	subject to an agreement entered into under Chapter 313; and
295	295	(B) the current total value for a taxing unit
296	296	other than a school district [county, municipality, or junior
297	297	college district] excludes the total value of homesteads that
298	298	qualify for a tax limitation provided by Section 11.26 [11.261].
299	299	(13) "Last year's levy" means the total of:
300	300	(A) the amount of taxes that would be generated
301	301	by multiplying the total tax rate adopted by the governing body in
302	302	the preceding year by the total taxable value of property on the
303	303	appraisal roll for the preceding year, including:
304	304	(i) taxable value that was reduced in an
305	305	appeal under Chapter 42; and
306	306	(ii) all appraisal roll supplements and
307	307	corrections other than corrections made pursuant to Section
308	308	25.25(d), as of the date of the calculation but excluding[, except
309	309	that last year's taxable value for a school district excludes] the
310	310	total value of homesteads that qualified for a tax limitation as
311	311	provided by Section 11.26 [and last year's taxable value for a
312	312	county, municipality, or junior college district excludes the total
313	313	value of homesteads that qualified for a tax limitation as provided
314	314	by Section 11.261]; and
315	315	(B) the amount of taxes refunded by the taxing
316	316	unit in the preceding year for tax years before that year.
317	317	(14) "Last year's total value" means the total taxable
318	318	value of property listed on the appraisal roll for the preceding
319	319	year, including all appraisal roll supplements and corrections,
320	320	other than corrections made pursuant to Section 25.25(d), as of the
321	321	date of the calculation but excluding[, except that:
322	322	[(A) last year's taxable value for a school
323	323	district excludes] the total value of homesteads that qualified for
324	324	a tax limitation as provided by Section 11.26[; and
325	325	[(B) last year's taxable value for a county,
326	326	municipality, or junior college district excludes the total value
327	327	of homesteads that qualified for a tax limitation as provided by
328	328	Section 11.261].
329	329	SECTION 5. Section 42.302(a-1), Education Code, is amended
330	330	to read as follows:
331	331	(a-1) For purposes of Subsection (a), the dollar amount
332	332	guaranteed level of state and local funds per weighted student per
333	333	cent of tax effort ("GL") for a school district is:
334	334	(1) the greater of the amount of district tax revenue
335	335	per weighted student per cent of tax effort that would be available
336	336	to the Austin Independent School District, as determined by the
337	337	commissioner in cooperation with the Legislative Budget Board, if
338	338	the reduction of the limitation on tax increases as provided by
339	339	Section 11.26(a-1), (a-2), or (a-3), Tax Code, as those provisions
340	340	existed on January 1, 2019, did not apply, or the amount of district
341	341	tax revenue per weighted student per cent of tax effort used for
342	342	purposes of this subdivision in the preceding school year, for the
343	343	first six cents by which the district's maintenance and operations
344	344	tax rate exceeds the rate equal to the sum of the product of the
345	345	state compression percentage, as determined under Section 42.2516,
346	346	multiplied by the maintenance and operations tax rate adopted by
347	347	the district for the 2005 tax year and any additional tax effort
348	348	included in calculating the district's compressed tax rate under
349	349	Section 42.101(a-1); and
350	350	(2) $31.95, for the district's maintenance and
351	351	operations tax effort that exceeds the amount of tax effort
352	352	described by Subdivision (1).
353	353	SECTION 6. The following provisions of the Tax Code are
354	354	repealed:
355	355	(1) Sections 11.26(l) and (m); and
356	356	(2) Section 11.261.
357	357	SECTION 7. Section 11.26, Tax Code, as amended by this Act,
358	358	applies only to ad valorem taxes imposed for a tax year beginning on
359	359	or after the effective date of this Act.
360	360	SECTION 8. This Act takes effect January 1, 2020, but only
361	361	if the constitutional amendment proposed by the 86th Legislature,
362	362	Regular Session, 2019, establishing a limitation on the total
363	363	amount of ad valorem taxes that political subdivisions may impose
364	364	on the residence homesteads of individuals who are disabled or
365	365	elderly and their surviving spouses is approved by the voters. If
366	366	that constitutional amendment is not approved by the voters, this
367	367	Act has no effect.