By: Shaheen H.B. No. 4092
A BILL TO BE ENTITLED
AN ACT
relating to the maximum amount of the local option residence
homestead exemption from ad valorem taxation by a school district
and the effect of such exemptions on the provision of funding under
the foundation school program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 7.062(c), Education Code, is amended to
read as follows:
(c) Except as otherwise provided by this subsection, if the
commissioner certifies that the amount appropriated for a state
fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
the amount to which school districts are entitled under those
subchapters for that year, the commissioner shall use the excess
funds, in an amount not to exceed $20 million in any state fiscal
year, for the purpose of making grants under this section. The use
of excess funds under this subsection has priority over any
provision of Chapter 42 that permits or directs the use of excess
foundation school program funds, including Sections 42.2517,
42.2521, [42.2522,] and 42.2531. The commissioner is required to
use excess funds as provided by this subsection only if the
commissioner is not required to reduce the total amount of state
funds allocated to school districts under Section 42.253(h).
SECTION 2. Section 45.006(f), Education Code, is amended to
read as follows:
(f) The governing body of a school district that adopts a
tax rate that exceeds $1.50 per $100 valuation of taxable property
may set the amount of the exemption from taxation authorized by
Section 11.13(n-2) [11.13(n)], Tax Code, at any time before the
date the governing body adopts the district's tax rate for the tax
year in which the election approving the additional taxes is held.
SECTION 3. Section 403.302(d), Government Code, is amended
to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) [one-half of] the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n-2)
[11.13(n)], Tax Code, in the year that is the subject of the study
for each school district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by former Section 311.003(e), Tax Code, before May 31,
1999, and within the boundaries of the zone as those boundaries
existed on September 1, 1999, including subsequent improvements to
the property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(7) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(9) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state, other than Section 11.311, Tax Code,
that, if the tax rate adopted by the district is applied to it,
produces an amount equal to the difference between the tax that the
district would have imposed on the property if the property were
fully taxable at market value and the tax that the district is
actually authorized to impose on the property, if this subsection
does not otherwise require that portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code, before the expiration of the
subchapter;
(10) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(13) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
SECTION 4. Section 11.13, Tax Code, is amended by amending
Subsections (i) and (n) and adding Subsection (n-2) to read as
follows:
(i) The assessor and collector for a taxing unit may
disregard the exemptions authorized by Subsection (b), (c), (d),
[or] (n), or (n-2) [of this section] and assess and collect a tax
pledged for payment of debt without deducting the amount of the
exemption if:
(1) prior to adoption of the exemption, the taxing
unit pledged the taxes for the payment of a debt; and
(2) granting the exemption would impair the obligation
of the contract creating the debt.
(n) In addition to any other exemptions provided by this
section, an individual is entitled to an exemption from taxation by
a taxing unit other than a school district of a percentage of the
appraised value of the individual's [his] residence homestead if
the exemption is adopted by the governing body of the taxing unit
before July 1 in the manner provided by law for official action by
the body. If the percentage set by the taxing unit produces an
exemption in a tax year of less than $5,000 when applied to a
particular residence homestead, the individual is entitled to an
exemption of $5,000 of the appraised value. The percentage adopted
by the taxing unit may not exceed 20 percent.
(n-2) In addition to any other exemptions provided by this
section, an individual is entitled to an exemption from taxation by
a school district of a percentage of the appraised value of the
individual's residence homestead if the exemption is adopted by the
governing body of the school district before July 1 in the manner
provided by law for official action by the body. The percentage
adopted by the school district may not exceed 50 percent of taxable
income.
SECTION 5. Section 25.23(a), Tax Code, is amended to read as
follows:
(a) After submission of appraisal records, the chief
appraiser shall prepare supplemental appraisal records listing:
(1) each taxable property the chief appraiser
discovers that is not included in the records already submitted,
including property that was omitted from an appraisal roll in a
prior tax year;
(2) property on which the appraisal review board has
not determined a protest at the time of its approval of the
appraisal records; and
(3) property that qualifies for an exemption under
Section 11.13(n) or (n-2) that was adopted by the governing body of
a taxing unit after the date the appraisal records were submitted.
SECTION 6. Section 42.2522, Education Code, is repealed.
SECTION 7. Section 403.302, Government Code, as amended by
this Act, applies only to a school district property value study
conducted for a tax year that begins on or after January 1, 2020.
SECTION 8. This Act applies only to ad valorem taxes imposed
for a tax year that begins on or after January 1, 2020.
SECTION 9. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, to increase the maximum amount of the local
option residence homestead exemption from ad valorem taxation by a
school district from 20 percent to 50 percent, not to exceed
$700,000, is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.