Texas 2019 - 86th Regular

Texas House Bill HB4352 Compare Versions

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

Old	New	Differences
1	1	86R12831 SMT/KJE-D
2	2	By: Romero, Jr. H.B. No. 4352
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an increase in the amount of the exemption of residence
8	8	homesteads from ad valorem taxation by a school district, a
9	9	reduction in the amount of the limitation on school district ad
10	10	valorem taxes imposed on the residence homesteads of the elderly or
11	11	disabled to reflect the increased exemption amount, and the
12	12	protection of school districts against the resulting loss in local
13	13	revenue.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
16	16	follows:
17	17	(b) An adult is entitled to exemption from taxation by a
18	18	school district of $50,000 [$25,000] of the appraised value of the
19	19	adult's residence homestead, except that only $5,000 of the
20	20	exemption applies to an entity operating under former Chapter 17,
21	21	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
22	22	May 1, 1995, as permitted by Section 11.301, Education Code.
23	23	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
24	24	follows:
25	25	(a) The tax officials shall appraise [the] property to which
26	26	this section applies and calculate taxes as on other property, but
27	27	if the tax [so] calculated exceeds the limitation imposed by this
28	28	section, the tax imposed is the amount of the tax as limited by this
29	29	section, except as otherwise provided by this section. A school
30	30	district may not increase the total annual amount of ad valorem tax
31	31	it imposes on the residence homestead of an individual 65 years of
32	32	age or older or on the residence homestead of an individual who is
33	33	disabled, as defined by Section 11.13, above the amount of the tax
34	34	it imposed in the first tax year in which the individual qualified
35	35	that residence homestead for the applicable exemption provided by
36	36	Section 11.13(c) for an individual who is 65 years of age or older
37	37	or is disabled. If the individual qualified that residence
38	38	homestead for the exemption after the beginning of that first year
39	39	and the residence homestead remains eligible for the same exemption
40	40	for the next year, and if the school district taxes imposed on the
41	41	residence homestead in the next year are less than the amount of
42	42	taxes imposed in that first year, a school district may not
43	43	subsequently increase the total annual amount of ad valorem taxes
44	44	it imposes on the residence homestead above the amount it imposed in
45	45	the year immediately following the first year for which the
46	46	individual qualified that residence homestead for the same
47	47	exemption, except as provided by Subsection (b). If the first tax
48	48	year the individual qualified the residence homestead for the
49	49	exemption provided by Section 11.13(c) for individuals 65 years of
50	50	age or older or disabled was a tax year before the 2021 [2015] tax
51	51	year, the amount of the limitation provided by this section for the
52	52	2021 tax year is the amount of tax the school district imposed for
53	53	the 2020 [2014] tax year less an amount equal to the amount
54	54	determined by multiplying $25,000 [$10,000] times the tax rate of
55	55	the school district for the 2021 [2015] tax year, plus any 2021
56	56	[2015] tax attributable to improvements made in 2020 [2014], other
57	57	than improvements made to comply with governmental regulations or
58	58	repairs.
59	59	SECTION 3. Subchapter A, Chapter 41, Education Code, is
60	60	amended by adding Section 41.0012 to read as follows:
61	61	Sec. 41.0012. COMPUTATION OF WEALTH PER STUDENT FOR
62	62	2021-2022 SCHOOL YEAR. Notwithstanding any other provision of this
63	63	chapter, in computing a school district's wealth per student for
64	64	the 2021-2022 school year, a school district's taxable value of
65	65	property under Subchapter M, Chapter 403, Government Code, is
66	66	determined as if the increase in the residence homestead exemption
67	67	under Section 1-b(c), Article VIII, Texas Constitution, and the
68	68	additional limitation on tax increases under Section 1-b(d) of that
69	69	article in effect for the 2021 tax year as proposed by the 86th
70	70	Legislature, Regular Session, 2019, had been in effect for the 2020
71	71	tax year. This section expires September 1, 2023.
72	72	SECTION 4. Section 42.2518, Education Code, is amended by
73	73	amending Subsections (a) and (b) and adding Subsection (a-1) to
74	74	read as follows:
75	75	(a) Beginning with the 2017-2018 school year and continuing
76	76	through the 2020-2021 school year, a school district is entitled to
77	77	additional state aid to the extent that state and local revenue
78	78	under this chapter and Chapter 41 is less than the state and local
79	79	revenue that would have been available to the district under
80	80	Chapter 41 and this chapter as those chapters existed on September
81	81	1, 2015, excluding any state aid that would have been provided under
82	82	former Section 42.2516, if the increase in the residence homestead
83	83	exemption under Section 1-b(c), Article VIII, Texas Constitution,
84	84	and the additional limitation on tax increases under Section 1-b(d)
85	85	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
86	86	Session, 2015, had not occurred.
87	87	(a-1) Beginning with the 2021-2022 school year, a school
88	88	district is entitled to additional state aid to the extent that
89	89	state and local revenue under this chapter and Chapter 41 is less
90	90	than the state and local revenue that would have been available to
91	91	the district under Chapter 41 and this chapter as those chapters
92	92	existed on September 1, 2020, if the increase in the residence
93	93	homestead exemption under Section 1-b(c), Article VIII, Texas
94	94	Constitution, and the additional limitation on tax increases under
95	95	Section 1-b(d) of that article as proposed by the 86th Legislature,
96	96	Regular Session, 2019, had not occurred.
97	97	(b) The lesser of the school district's currently adopted
98	98	maintenance and operations tax rate or the adopted maintenance and
99	99	operations tax rate for:
100	100	(1) the 2014 tax year is used for the purpose of
101	101	determining additional state aid under Subsection (a); and
102	102	(2) the 2020 tax year is used for the purpose of
103	103	determining additional state aid under Subsection (a-1) [this
104	104	section].
105	105	SECTION 5. Section 42.252, Education Code, is amended by
106	106	adding Subsection (e) to read as follows:
107	107	(e) Notwithstanding any other provision of this chapter, in
108	108	computing each school district's local share of program cost under
109	109	this section for the 2021-2022 school year, a school district's
110	110	taxable value of property under Subchapter M, Chapter 403,
111	111	Government Code, is determined as if the increase in the residence
112	112	homestead exemption under Section 1-b(c), Article VIII, Texas
113	113	Constitution, and the additional limitation on tax increases under
114	114	Section 1-b(d) of that article in effect for the 2021 tax year as
115	115	proposed by the 86th Legislature, Regular Session, 2019, had been
116	116	in effect for the 2020 tax year. This subsection expires September
117	117	1, 2023.
118	118	SECTION 6. Section 42.302, Education Code, is amended by
119	119	adding Subsection (g) to read as follows:
120	120	(g) Notwithstanding any other provision of this chapter, in
121	121	computing a school district's enrichment tax rate ("DTR") and local
122	122	revenue ("LR") for the 2021-2022 school year, a school district's
123	123	taxable value of property under Subchapter M, Chapter 403,
124	124	Government Code, is determined as if the increase in the residence
125	125	homestead exemption under Section 1-b(c), Article VIII, Texas
126	126	Constitution, and the additional limitation on tax increases under
127	127	Section 1-b(d) of that article in effect for the 2021 tax year as
128	128	proposed by the 86th Legislature, Regular Session, 2019, had been
129	129	in effect for the 2020 tax year. This subsection expires September
130	130	1, 2023.
131	131	SECTION 7. Section 46.003, Education Code, is amended by
132	132	adding Subsection (i) to read as follows:
133	133	(i) Notwithstanding any other provision of this chapter, in
134	134	computing a district's bond tax rate ("BTR") and taxable value of
135	135	property ("DPV") for the 2021-2022 school year, a school district's
136	136	taxable value of property under Subchapter M, Chapter 403,
137	137	Government Code, is determined as if the increase in the residence
138	138	homestead exemption under Section 1-b(c), Article VIII, Texas
139	139	Constitution, and the additional limitation on tax increases under
140	140	Section 1-b(d) of that article in effect for the 2021 tax year as
141	141	proposed by the 86th Legislature, Regular Session, 2019, had been
142	142	in effect for the 2020 tax year. This subsection expires September
143	143	1, 2023.
144	144	SECTION 8. Section 46.032, Education Code, is amended by
145	145	adding Subsection (d) to read as follows:
146	146	(d) Notwithstanding any other provision of this chapter, in
147	147	computing a district's existing debt tax rate ("EDTR") and taxable
148	148	value of property ("DPV") for the 2021-2022 school year, a school
149	149	district's taxable value of property under Subchapter M, Chapter
150	150	403, Government Code, is determined as if the increase in the
151	151	residence homestead exemption under Section 1-b(c), Article VIII,
152	152	Texas Constitution, and the additional limitation on tax increases
153	153	under Section 1-b(d) of that article in effect for the 2021 tax year
154	154	as proposed by the 86th Legislature, Regular Session, 2019, had
155	155	been in effect for the 2020 tax year. This subsection expires
156	156	September 1, 2023.
157	157	SECTION 9. Section 46.071, Education Code, is amended by
158	158	amending Subsections (a), (b), and (c) and adding Subsections
159	159	(a-1), (b-1), and (c-1) to read as follows:
160	160	(a) Beginning with the 2015-2016 school year and continuing
161	161	through the 2020-2021 school year, a school district is entitled to
162	162	additional state aid under this subchapter to the extent that state
163	163	and local revenue used to service debt eligible under this chapter
164	164	is less than the state and local revenue that would have been
165	165	available to the district under this chapter as it existed on
166	166	September 1, 2015, if the increase in the residence homestead
167	167	exemption under Section 1-b(c), Article VIII, Texas Constitution,
168	168	and the additional limitation on tax increases under Section 1-b(d)
169	169	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
170	170	Session, 2015, had not occurred.
171	171	(a-1) Beginning with the 2021-2022 school year, a school
172	172	district is entitled to additional state aid under this subchapter
173	173	to the extent that state and local revenue used to service debt
174	174	eligible under this chapter is less than the state and local revenue
175	175	that would have been available to the district under this chapter as
176	176	it existed on September 1, 2020, if the increase in the residence
177	177	homestead exemption under Section 1-b(c), Article VIII, Texas
178	178	Constitution, and the additional limitation on tax increases under
179	179	Section 1-b(d) of that article as proposed by the 86th Legislature,
180	180	Regular Session, 2019, had not occurred.
181	181	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
182	182	additional state aid under this section through the 2020-2021
183	183	school year is equal to the amount by which the loss of local
184	184	interest and sinking revenue for debt service attributable to the
185	185	increase in the residence homestead exemption under Section 1-b(c),
186	186	Article VIII, Texas Constitution, and the additional limitation on
187	187	tax increases under Section 1-b(d) of that article as proposed by
188	188	S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
189	189	a gain in state aid under this chapter.
190	190	(b-1) Subject to Subsections (c-1), (d), and (e),
191	191	additional state aid under this section beginning with the
192	192	2021-2022 school year is equal to the amount by which the loss of
193	193	local interest and sinking revenue for debt service attributable to
194	194	the increase in the residence homestead exemption under Section
195	195	1-b(c), Article VIII, Texas Constitution, and the additional
196	196	limitation on tax increases under Section 1-b(d) of that article as
197	197	proposed by the 86th Legislature, Regular Session, 2019, is not
198	198	offset by a gain in state aid under this chapter.
199	199	(c) For the purpose of determining state aid under
200	200	Subsections (a) and (b) [this section], local interest and sinking
201	201	revenue for debt service is limited to revenue required to service
202	202	debt eligible under this chapter as of September 1, 2015, including
203	203	refunding of that debt, subject to Section 46.061. The limitation
204	204	imposed by Section 46.034(a) does not apply for the purpose of
205	205	determining state aid under this section.
206	206	(c-1) For the purpose of determining state aid under
207	207	Subsections (a-1) and (b-1), local interest and sinking revenue for
208	208	debt service is limited to revenue required to service debt
209	209	eligible under this chapter as of September 1, 2020, including
210	210	refunding of that debt, subject to Section 46.061. The limitation
211	211	imposed by Section 46.034(a) does not apply for the purpose of
212	212	determining state aid under this section.
213	213	SECTION 10. The changes in law made by this Act to Sections
214	214	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
215	215	begins on or after January 1, 2021.
216	216	SECTION 11. This Act takes effect January 1, 2021, but only
217	217	if the constitutional amendment proposed by the 86th Legislature,
218	218	Regular Session, 2019, to increase the amount of the exemption of
219	219	residence homesteads from ad valorem taxation by a school district
220	220	and to reduce the amount of the limitation on school district ad
221	221	valorem taxes imposed on the residence homesteads of the elderly or
222	222	disabled to reflect the increased exemption amount is approved by
223	223	the voters. If that constitutional amendment is not approved by the
224	224	voters, this Act has no effect.