Texas 2019 - 86th Regular

Texas House Bill HB4092 Compare Versions

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

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1	1	By: Shaheen H.B. No. 4092
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the maximum amount of the local option residence
7	7	homestead exemption from ad valorem taxation by a school district
8	8	and the effect of such exemptions on the provision of funding under
9	9	the foundation school program.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 7.062(c), Education Code, is amended to
12	12	read as follows:
13	13	(c) Except as otherwise provided by this subsection, if the
14	14	commissioner certifies that the amount appropriated for a state
15	15	fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
16	16	the amount to which school districts are entitled under those
17	17	subchapters for that year, the commissioner shall use the excess
18	18	funds, in an amount not to exceed $20 million in any state fiscal
19	19	year, for the purpose of making grants under this section. The use
20	20	of excess funds under this subsection has priority over any
21	21	provision of Chapter 42 that permits or directs the use of excess
22	22	foundation school program funds, including Sections 42.2517,
23	23	42.2521, [42.2522,] and 42.2531. The commissioner is required to
24	24	use excess funds as provided by this subsection only if the
25	25	commissioner is not required to reduce the total amount of state
26	26	funds allocated to school districts under Section 42.253(h).
27	27	SECTION 2. Section 45.006(f), Education Code, is amended to
28	28	read as follows:
29	29	(f) The governing body of a school district that adopts a
30	30	tax rate that exceeds $1.50 per $100 valuation of taxable property
31	31	may set the amount of the exemption from taxation authorized by
32	32	Section 11.13(n-2) [11.13(n)], Tax Code, at any time before the
33	33	date the governing body adopts the district's tax rate for the tax
34	34	year in which the election approving the additional taxes is held.
35	35	SECTION 3. Section 403.302(d), Government Code, is amended
36	36	to read as follows:
37	37	(d) For the purposes of this section, "taxable value" means
38	38	the market value of all taxable property less:
39	39	(1) the total dollar amount of any residence homestead
40	40	exemptions lawfully granted under Section 11.13(b) or (c), Tax
41	41	Code, in the year that is the subject of the study for each school
42	42	district;
43	43	(2) [one-half of] the total dollar amount of any
44	44	residence homestead exemptions granted under Section 11.13(n-2)
45	45	[11.13(n)], Tax Code, in the year that is the subject of the study
46	46	for each school district;
47	47	(3) the total dollar amount of any exemptions granted
48	48	before May 31, 1993, within a reinvestment zone under agreements
49	49	authorized by Chapter 312, Tax Code;
50	50	(4) subject to Subsection (e), the total dollar amount
51	51	of any captured appraised value of property that:
52	52	(A) is within a reinvestment zone created on or
53	53	before May 31, 1999, or is proposed to be included within the
54	54	boundaries of a reinvestment zone as the boundaries of the zone and
55	55	the proposed portion of tax increment paid into the tax increment
56	56	fund by a school district are described in a written notification
57	57	provided by the municipality or the board of directors of the zone
58	58	to the governing bodies of the other taxing units in the manner
59	59	provided by former Section 311.003(e), Tax Code, before May 31,
60	60	1999, and within the boundaries of the zone as those boundaries
61	61	existed on September 1, 1999, including subsequent improvements to
62	62	the property regardless of when made;
63	63	(B) generates taxes paid into a tax increment
64	64	fund created under Chapter 311, Tax Code, under a reinvestment zone
65	65	financing plan approved under Section 311.011(d), Tax Code, on or
66	66	before September 1, 1999; and
67	67	(C) is eligible for tax increment financing under
68	68	Chapter 311, Tax Code;
69	69	(5) the total dollar amount of any captured appraised
70	70	value of property that:
71	71	(A) is within a reinvestment zone:
72	72	(i) created on or before December 31, 2008,
73	73	by a municipality with a population of less than 18,000; and
74	74	(ii) the project plan for which includes
75	75	the alteration, remodeling, repair, or reconstruction of a
76	76	structure that is included on the National Register of Historic
77	77	Places and requires that a portion of the tax increment of the zone
78	78	be used for the improvement or construction of related facilities
79	79	or for affordable housing;
80	80	(B) generates school district taxes that are paid
81	81	into a tax increment fund created under Chapter 311, Tax Code; and
82	82	(C) is eligible for tax increment financing under
83	83	Chapter 311, Tax Code;
84	84	(6) the total dollar amount of any exemptions granted
85	85	under Section 11.251 or 11.253, Tax Code;
86	86	(7) the difference between the comptroller's estimate
87	87	of the market value and the productivity value of land that
88	88	qualifies for appraisal on the basis of its productive capacity,
89	89	except that the productivity value estimated by the comptroller may
90	90	not exceed the fair market value of the land;
91	91	(8) the portion of the appraised value of residence
92	92	homesteads of individuals who receive a tax limitation under
93	93	Section 11.26, Tax Code, on which school district taxes are not
94	94	imposed in the year that is the subject of the study, calculated as
95	95	if the residence homesteads were appraised at the full value
96	96	required by law;
97	97	(9) a portion of the market value of property not
98	98	otherwise fully taxable by the district at market value because of:
99	99	(A) action required by statute or the
100	100	constitution of this state, other than Section 11.311, Tax Code,
101	101	that, if the tax rate adopted by the district is applied to it,
102	102	produces an amount equal to the difference between the tax that the
103	103	district would have imposed on the property if the property were
104	104	fully taxable at market value and the tax that the district is
105	105	actually authorized to impose on the property, if this subsection
106	106	does not otherwise require that portion to be deducted; or
107	107	(B) action taken by the district under Subchapter
108	108	B or C, Chapter 313, Tax Code, before the expiration of the
109	109	subchapter;
110	110	(10) the market value of all tangible personal
111	111	property, other than manufactured homes, owned by a family or
112	112	individual and not held or used for the production of income;
113	113	(11) the appraised value of property the collection of
114	114	delinquent taxes on which is deferred under Section 33.06, Tax
115	115	Code;
116	116	(12) the portion of the appraised value of property
117	117	the collection of delinquent taxes on which is deferred under
118	118	Section 33.065, Tax Code; and
119	119	(13) the amount by which the market value of a
120	120	residence homestead to which Section 23.23, Tax Code, applies
121	121	exceeds the appraised value of that property as calculated under
122	122	that section.
123	123	SECTION 4. Section 11.13, Tax Code, is amended by amending
124	124	Subsections (i) and (n) and adding Subsection (n-2) to read as
125	125	follows:
126	126	(i) The assessor and collector for a taxing unit may
127	127	disregard the exemptions authorized by Subsection (b), (c), (d),
128	128	[or] (n), or (n-2) [of this section] and assess and collect a tax
129	129	pledged for payment of debt without deducting the amount of the
130	130	exemption if:
131	131	(1) prior to adoption of the exemption, the taxing
132	132	unit pledged the taxes for the payment of a debt; and
133	133	(2) granting the exemption would impair the obligation
134	134	of the contract creating the debt.
135	135	(n) In addition to any other exemptions provided by this
136	136	section, an individual is entitled to an exemption from taxation by
137	137	a taxing unit other than a school district of a percentage of the
138	138	appraised value of the individual's [his] residence homestead if
139	139	the exemption is adopted by the governing body of the taxing unit
140	140	before July 1 in the manner provided by law for official action by
141	141	the body. If the percentage set by the taxing unit produces an
142	142	exemption in a tax year of less than $5,000 when applied to a
143	143	particular residence homestead, the individual is entitled to an
144	144	exemption of $5,000 of the appraised value. The percentage adopted
145	145	by the taxing unit may not exceed 20 percent.
146	146	(n-2) In addition to any other exemptions provided by this
147	147	section, an individual is entitled to an exemption from taxation by
148	148	a school district of a percentage of the appraised value of the
149	149	individual's residence homestead if the exemption is adopted by the
150	150	governing body of the school district before July 1 in the manner
151	151	provided by law for official action by the body. The percentage
152	152	adopted by the school district may not exceed 50 percent of taxable
153	153	income.
154	154	SECTION 5. Section 25.23(a), Tax Code, is amended to read as
155	155	follows:
156	156	(a) After submission of appraisal records, the chief
157	157	appraiser shall prepare supplemental appraisal records listing:
158	158	(1) each taxable property the chief appraiser
159	159	discovers that is not included in the records already submitted,
160	160	including property that was omitted from an appraisal roll in a
161	161	prior tax year;
162	162	(2) property on which the appraisal review board has
163	163	not determined a protest at the time of its approval of the
164	164	appraisal records; and
165	165	(3) property that qualifies for an exemption under
166	166	Section 11.13(n) or (n-2) that was adopted by the governing body of
167	167	a taxing unit after the date the appraisal records were submitted.
168	168	SECTION 6. Section 42.2522, Education Code, is repealed.
169	169	SECTION 7. Section 403.302, Government Code, as amended by
170	170	this Act, applies only to a school district property value study
171	171	conducted for a tax year that begins on or after January 1, 2020.
172	172	SECTION 8. This Act applies only to ad valorem taxes imposed
173	173	for a tax year that begins on or after January 1, 2020.
174	174	SECTION 9. This Act takes effect January 1, 2020, but only
175	175	if the constitutional amendment proposed by the 86th Legislature,
176	176	Regular Session, 2019, to increase the maximum amount of the local
177	177	option residence homestead exemption from ad valorem taxation by a
178	178	school district from 20 percent to 50 percent, not to exceed
179	179	$700,000, is approved by the voters. If that amendment is not
180	180	approved by the voters, this Act has no effect.