Texas 2019 - 86th Regular

Texas House Bill HB3793 Compare Versions

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1	1	86R12005 SMT-D
2	2	By: Stephenson H.B. No. 3793
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 a school
8	8	district for maintenance and operations purposes of the total
9	9	appraised value of a residence homestead and the offsetting of the
10	10	resulting revenue loss to school districts with state sales and use
11	11	tax revenue.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	ARTICLE 1. SCHOOL DISTRICT MAINTENANCE AND OPERATIONS TAXES
14	14	SECTION 1.01. Section 11.13, Tax Code, is amended by adding
15	15	Subsection (s) to read as follows:
16	16	(s) In addition to any other exemptions provided by this
17	17	section, an adult is entitled to an exemption from taxation by a
18	18	school district for maintenance and operations purposes of the
19	19	total appraised value of the adult's residence homestead.
20	20	SECTION 1.02. Section 11.26, Tax Code, is amended by
21	21	amending Subsections (a), (a-3), (b), and (e) and adding
22	22	Subsections (a-4) and (a-5) to read as follows:
23	23	(a) The tax officials shall appraise [the] property to which
24	24	this section applies and calculate taxes as on other residence
25	25	homesteads [property], but if the tax [so] calculated exceeds the
26	26	limitation imposed by this section, the tax imposed is the amount of
27	27	the tax as limited by this section, except as otherwise provided by
28	28	this section. A school district may not increase the total annual
29	29	amount of ad valorem tax it imposes on the residence homestead of an
30	30	individual 65 years of age or older or on the residence homestead of
31	31	an individual who is disabled, as defined by Section 11.13, above
32	32	the amount of the tax it imposed in the first tax year in which the
33	33	individual qualified that residence homestead for the applicable
34	34	exemption provided by Section 11.13(c) for an individual who is 65
35	35	years of age or older or is disabled. If the individual qualified
36	36	that residence homestead for the exemption after the beginning of
37	37	that first year and the residence homestead remains eligible for
38	38	the same exemption for the next year, and if the school district
39	39	taxes imposed on the residence homestead in the next year are less
40	40	than the amount of taxes imposed in that first year, a school
41	41	district may not subsequently increase the total annual amount of
42	42	ad valorem taxes it imposes on the residence homestead above the
43	43	amount it imposed in the year immediately following the first year
44	44	for which the individual qualified that residence homestead for the
45	45	same exemption, except as provided by Subsection (b). If the first
46	46	tax year the individual qualified the residence homestead for the
47	47	exemption provided by Section 11.13(c) for individuals 65 years of
48	48	age or older or disabled was a tax year before the 2015 tax year, the
49	49	amount of the limitation provided by this section is the amount of
50	50	tax the school district imposed for the 2014 tax year less an amount
51	51	equal to the amount determined by multiplying $10,000 times the tax
52	52	rate of the school district for the 2015 tax year, plus any 2015 tax
53	53	attributable to improvements made in 2014, other than improvements
54	54	made to comply with governmental regulations or repairs.
55	55	(a-3) Except as provided by Subsections (a-4) and
56	56	[Subsection] (b), a limitation on tax increases provided by this
57	57	section on a residence homestead computed under Subsection (a-1) or
58	58	(a-2) continues to apply to the homestead in subsequent tax years
59	59	until the limitation expires.
60	60	(a-4) Notwithstanding the other provisions of this section,
61	61	if in the 2020 tax year an individual qualifies for a limitation on
62	62	tax increases provided by this section on the individual's
63	63	residence homestead, the amount of the limitation provided by this
64	64	section on the homestead in the 2020 tax year is equal to the amount
65	65	computed by:
66	66	(1) multiplying the amount of tax the school district
67	67	imposed on the homestead in the 2019 tax year by a fraction the
68	68	numerator of which is the current debt rate of the district for the
69	69	2020 tax year and the denominator of which is the tax rate of the
70	70	district for the 2019 tax year; and
71	71	(2) adding any tax imposed in the 2020 tax year
72	72	attributable to improvements made in the 2019 tax year as provided
73	73	by Subsection (b) to the lesser of the amount computed under
74	74	Subdivision (1) or the amount of tax the district imposed on the
75	75	homestead in the 2019 tax year.
76	76	(a-5) Except as provided by Subsection (b), a limitation on
77	77	tax increases provided by this section on a residence homestead
78	78	computed under Subsection (a-4) continues to apply to the residence
79	79	homestead in subsequent tax years until the limitation expires.
80	80	(b) If an individual makes improvements to the individual's
81	81	residence homestead, other than improvements required to comply
82	82	with governmental requirements or repairs, the school district may
83	83	increase the tax on the homestead in the first year the value of the
84	84	homestead is increased on the appraisal roll because of the
85	85	enhancement of value by the improvements. The amount of the tax
86	86	increase is determined by applying the current debt [tax] rate to
87	87	the difference in the assessed value of the homestead with the
88	88	improvements and the assessed value it would have had without the
89	89	improvements. A limitation imposed by this section then applies to
90	90	the increased amount of tax until more improvements, if any, are
91	91	made.
92	92	(e) For each school district in an appraisal district, the
93	93	chief appraiser shall determine the portion of the appraised value
94	94	of residence homesteads of individuals on which school district
95	95	taxes are not imposed in a tax year because of the limitation on tax
96	96	increases imposed by this section. That portion is calculated by
97	97	determining the taxable value that, if multiplied by the current
98	98	debt [tax] rate adopted by the school district for the tax year,
99	99	would produce an amount equal to the amount of tax that would have
100	100	been imposed by the school district on those residence homesteads
101	101	if the limitation on tax increases imposed by this section were not
102	102	in effect, but that was not imposed because of that limitation. The
103	103	chief appraiser shall determine that taxable value and certify it
104	104	to the comptroller as soon as practicable for each tax year.
105	105	SECTION 1.03. Section 26.09, Tax Code, is amended by adding
106	106	Subsection (f) to read as follows:
107	107	(f) For purposes of calculating the tax imposed on the
108	108	residence homestead of an adult by a school district, the tax rate
109	109	of the district is considered to be the district's current debt
110	110	rate.
111	111	SECTION 1.04. This article applies only to ad valorem taxes
112	112	imposed for a tax year beginning on or after the effective date of
113	113	this Act.
114	114	ARTICLE 2. SALES AND USE TAXES; PAYMENTS TO SCHOOL DISTRICTS
115	115	SECTION 2.01. Subchapter A, Chapter 151, Tax Code, is
116	116	amended by adding Section 151.0023 to read as follows:
117	117	Sec. 151.0023. "ACCOUNTING AND AUDIT SERVICES."
118	118	"Accounting and audit services" means the making and recording of
119	119	business financial records and statements, the creation and
120	120	implementation of accounting or bookkeeping systems, cost
121	121	accounting or bookkeeping services, and services provided by a
122	122	certified public accountant, enrolled agent, or bookkeeping firm in
123	123	connection with the preparation of financial and auditing reports.
124	124	The term includes financial planning services, tax return
125	125	preparation, and budgeting services.
126	126	SECTION 2.02. Section 151.0028(b), Tax Code, is amended to
127	127	read as follows:
128	128	(b) "Amusement services" includes:
129	129	(1) membership in a private club or organization that
130	130	provides entertainment, recreational, sports, dining, or social
131	131	facilities to its members; and
132	132	(2) an admission or ticket to a high school or
133	133	collegiate sporting event.
134	134	SECTION 2.03. Subchapter A, Chapter 151, Tax Code, is
135	135	amended by adding Sections 151.00372, 151.0041, and 151.0046 to
136	136	read as follows:
137	137	Sec. 151.00372. "ENGINEERING SERVICES." "Engineering
138	138	services" means an act or activity constituting the "practice of
139	139	engineering" as that term is defined by Section 1001.003,
140	140	Occupations Code, and any other act or activity provided to an
141	141	engineer's client in relation to the practice of engineering.
142	142	Sec. 151.0041. "LEGAL SERVICES." "Legal services" means an
143	143	act or activity constituting the practice of law and any other act
144	144	or activity provided by an attorney-at-law licensed by the Supreme
145	145	Court of Texas to a client in connection with the practice of law.
146	146	The term also includes services provided by a paralegal or a legal
147	147	secretary employed by an attorney-at-law and provided to the
148	148	attorney's client in relation to the practice of law and lawyer
149	149	referral services.
150	150	Sec. 151.0046. "REAL ESTATE BROKERAGE AND AGENCY SERVICES."
151	151	"Real estate brokerage and agency services" means acts or services
152	152	described by Section 1101.002(1), (6), or (7), Occupations Code,
153	153	that are performed by a person licensed or registered under Chapter
154	154	1101, Occupations Code, including by a person described by Section
155	155	1101.002(2) or (8) of that code.
156	156	SECTION 2.04. Section 151.0101(a), Tax Code, is amended to
157	157	read as follows:
158	158	(a) "Taxable services" means:
159	159	(1) amusement services;
160	160	(2) cable television services;
161	161	(3) personal services;
162	162	(4) motor vehicle parking and storage services;
163	163	(5) the repair, remodeling, maintenance, and
164	164	restoration of tangible personal property, except:
165	165	(A) aircraft;
166	166	(B) a ship, boat, or other vessel, other than:
167	167	(i) a taxable boat or motor as defined by
168	168	Section 160.001;
169	169	(ii) a sports fishing boat; or
170	170	(iii) any other vessel used for pleasure;
171	171	(C) the repair, maintenance, and restoration of a
172	172	motor vehicle; and
173	173	(D) the repair, maintenance, creation, and
174	174	restoration of a computer program, including its development and
175	175	modification, not sold by the person performing the repair,
176	176	maintenance, creation, or restoration service;
177	177	(6) telecommunications services;
178	178	(7) credit reporting services;
179	179	(8) debt collection services;
180	180	(9) insurance services;
181	181	(10) information services;
182	182	(11) real property services;
183	183	(12) data processing services;
184	184	(13) real property repair and remodeling;
185	185	(14) security services;
186	186	(15) telephone answering services;
187	187	(16) Internet access service; [and]
188	188	(17) a sale by a transmission and distribution
189	189	utility, as defined in Section 31.002, Utilities Code, of
190	190	transmission or delivery of service directly to an electricity
191	191	end-use customer whose consumption of electricity is subject to
192	192	taxation under this chapter;
193	193	(18) accounting and audit services;
194	194	(19) engineering services;
195	195	(20) legal services; and
196	196	(21) real estate brokerage and agency services.
197	197	SECTION 2.05. Section 151.801, Tax Code, is amended by
198	198	amending Subsections (a) and (d) and adding Subsection (c-3) to
199	199	read as follows:
200	200	(a) Except for the amounts allocated under Subsections (b),
201	201	(c), [and] (c-2), and (c-3), all proceeds from the collection of the
202	202	taxes imposed by this chapter shall be deposited to the credit of
203	203	the general revenue fund.
204	204	(c-3) The amount of the proceeds from the collection of the
205	205	taxes imposed by this chapter on the sale, storage, or use of
206	206	taxable items not subject to the tax on January 1, 2019, shall be
207	207	deposited to the credit of the school district reimbursement trust
208	208	fund under Section 151.802.
209	209	(d) The comptroller shall determine the amount to be
210	210	deposited to the state highway fund under Subsection (b) according
211	211	to available statistical data indicating the estimated average or
212	212	actual consumption or sales of lubricants used to propel motor
213	213	vehicles over the public roadways. The comptroller shall
214	214	determine the amounts to be deposited to the funds or accounts under
215	215	Subsection (c) according to available statistical data indicating
216	216	the estimated or actual total receipts in this state from taxable
217	217	sales of sporting goods. The comptroller shall determine the
218	218	amount to be deposited to the fund under Subsection (c-2) according
219	219	to available statistical data indicating the estimated or actual
220	220	total receipts in this state from taxes imposed on sales at retail
221	221	of fireworks. The comptroller shall determine the amount to be
222	222	deposited to the fund under Subsection (c-3) according to available
223	223	statistical data indicating the estimated or actual total receipts
224	224	in this state from taxable sales of taxable items described by that
225	225	subsection. If satisfactory data are not available, the comptroller
226	226	may require taxpayers who make taxable sales or uses of those
227	227	lubricants, of sporting goods, [or] of fireworks, or of taxable
228	228	items described by Subsection (c-3) to report to the comptroller as
229	229	necessary to make the allocation required by Subsection (b), (c),
230	230	[or] (c-2), or (c-3).
231	231	SECTION 2.06. Subchapter M, Chapter 151, Tax Code, is
232	232	amended by adding Section 151.802 to read as follows:
233	233	Sec. 151.802. SCHOOL DISTRICT REIMBURSEMENT TRUST FUND.
234	234	(a) The school district reimbursement trust fund is created as a
235	235	trust fund outside the state treasury to be held with the
236	236	comptroller in trust. The fund consists of money deposited to the
237	237	credit of the fund under Section 151.801(c-3). The comptroller
238	238	shall administer the fund as trustee on behalf of each school
239	239	district in this state.
240	240	(b) Beginning in 2021, not later than April 1 of each year,
241	241	the comptroller shall pay to each school district an amount equal to
242	242	the revenue the school district was unable to collect in the
243	243	preceding tax year because of the exemption under Section 11.13(s).
244	244	A school district must apply for the payment authorized under this
245	245	subsection on a form promulgated by the comptroller. If the
246	246	comptroller determines that the balance of the fund in a year is not
247	247	sufficient to pay the full amount of lost revenue to each school
248	248	district that applies for a payment in that year, the comptroller
249	249	shall proportionately reduce the amount of each payment made to a
250	250	school district as necessary to prevent the fund from becoming
251	251	insolvent.
252	252	SECTION 2.07. The following provisions of the Tax Code are
253	253	repealed:
254	254	(1) Section 151.3021;
255	255	(2) Section 151.3071;
256	256	(3) Section 151.3101; and
257	257	(4) Section 151.311.
258	258	SECTION 2.08. The changes in law made by this article do not
259	259	affect tax liability accruing before the effective date of this
260	260	Act. That liability continues in effect as if this Act had not been
261	261	enacted, and the former law is continued in effect for the
262	262	collection of taxes due and for civil and criminal enforcement of
263	263	the liability for those taxes.
264	264	ARTICLE 3. EFFECTIVE DATE
265	265	SECTION 3.01. This Act takes effect January 1, 2020, but
266	266	only if the constitutional amendment proposed by the 86th
267	267	Legislature, Regular Session, 2019, authorizing the legislature to
268	268	exempt from ad valorem taxation by a school district for
269	269	maintenance and operations purposes all or part of the appraised
270	270	value of a residence homestead and to use state money to offset the
271	271	resulting revenue loss to school districts is approved by the
272	272	voters. If that amendment is not approved by the voters, this Act
273	273	has no effect.