By: Leach H.B. No. 716
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of part of the
appraised value of the residence homestead of a severely disabled
veteran or the surviving spouse of a severely disabled veteran
based on the disability rating of the veteran.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.136 to read as follows:
Sec. 11.136. RESIDENCE HOMESTEAD OF CERTAIN SEVERELY
DISABLED VETERANS. (a) In this section:
(1) "Disability rating" and "disabled veteran" have
the meanings assigned by Section 11.22.
(2) "Residence homestead" has the meaning assigned by
Section 11.13.
(3) "Surviving spouse" has the meaning assigned by
Section 11.131.
(b) A "Severely Disabled Veteran" is a disabled veteran who
has a disability rating of at least 80 percent but less than 100
percent is entitled to an exemption from taxation of a percentage of
the appraised value of the disabled veteran's residence homestead
equal to the disabled veteran's disability rating.
(c) The surviving spouse of a Severely Disabled Veteran who
qualified for an exemption under Subsection (b) of a percentage of
the appraised value of the Severely Disabled Veteran's residence
homestead when the Severely Disabled Veteran died is entitled to an
exemption from taxation of the same percentage of the appraised
value of the same property to which the Severely Disabled Veteran's
exemption applied if:
(1) the surviving spouse has not remarried since the
death of the Severely Disabled Veteran; and
(2) the property:
(A) was the residence homestead of the surviving
spouse when the Severely Disabled Veteran died; and
(B) remains the residence homestead of the
surviving spouse.
(d) If a surviving spouse who qualifies for an exemption
under Subsection (c) subsequently qualifies a different property as
the surviving spouse's residence homestead, the surviving spouse is
entitled to an exemption from taxation of the subsequently
qualified residence homestead in an amount equal to the dollar
amount of the exemption from taxation of the former residence
homestead under Subsection (c) in the last year in which the
surviving spouse received an exemption under that subsection for
that residence homestead if the surviving spouse has not remarried
since the death of the Severely Disabled Veteran. The surviving
spouse is entitled to receive from the chief appraiser of the
appraisal district in which the former residence homestead was
located a written certificate providing the information necessary
to determine the amount of the exemption to which the surviving
spouse is entitled on the subsequently qualified residence
homestead.
SECTION 2. (a) Section 11.42(c), Tax Code, is amended to
read as follows:
(c) An exemption authorized by Section 11.13(c) or (d),
11.132, 11.133, [or] 11.134, or 11.136 is effective as of January 1
of the tax year in which the person qualifies for the exemption and
applies to the entire tax year.
(b) Section 11.43(c), Tax Code, is reenacted and amended to
read as follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.134, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183,
11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),
11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once
allowed, need not be claimed in subsequent years, and except as
otherwise provided by Subsection (e), the exemption applies to the
property until it changes ownership or the person's qualification
for the exemption changes. However, except as provided by
Subsection (r), the chief appraiser may require a person allowed
one of the exemptions in a prior year to file a new application to
confirm the person's current qualification for the exemption by
delivering a written notice that a new application is required,
accompanied by an appropriate application form, to the person
previously allowed the exemption. If the person previously allowed
the exemption is 65 years of age or older, the chief appraiser may
not cancel the exemption due to the person's failure to file the new
application unless the chief appraiser complies with the
requirements of Subsection (q), if applicable.
(c) Section 11.431(a), Tax Code, is reenacted and amended to
read as follows:
(a) The chief appraiser shall accept and approve or deny an
application for a residence homestead exemption, including an
exemption under Section 11.131, [or] 11.132, or 11.136 for the
residence homestead of a Severely Disabled Veteran or the surviving
spouse of a Severely Disabled Veteran, an exemption under Section
11.133 for the residence homestead of the surviving spouse of a
member of the armed services of the United States who is killed in
action, or an exemption under Section 11.134 for the residence
homestead of the surviving spouse of a first responder who is killed
or fatally injured in the line of duty, after the deadline for
filing it has passed if it is filed not later than two years after
the delinquency date for the taxes on the homestead.
(d) Section 26.10(b), Tax Code, is amended to read as
follows:
(b) If the appraisal roll shows that a residence homestead
exemption under Section 11.13(c) or (d), 11.132, 11.133, [or]
11.134, or 11.136 applicable to a property on January 1 of a year
terminated during the year and if the owner of the property
qualifies a different property for one of those residence homestead
exemptions during the same year, the tax due against the former
residence homestead is calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the former residence homestead for the entire year had
the owner qualified for the residence homestead exemption for the
entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the former residence homestead for the entire year had
the owner not qualified for the residence homestead exemption
during the year;
(2) multiplying the remainder determined under
Subdivision (1) by a fraction, the denominator of which is 365 and
the numerator of which is the number of days that elapsed after the
date the exemption terminated; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
SECTION 3. Section 11.43(k), Tax Code, is amended to read as
follows:
(k) A person who qualifies for an exemption authorized by
Section 11.13(c) or (d), [or] 11.132, or 11.136 must apply for the
exemption no later than the first anniversary of the date the person
qualified for the exemption.
SECTION 4. Section 26.1127, Tax Code, is amended to read as
follows:
Sec. 26.1127. CALCULATION OF TAXES ON [DONATED] RESIDENCE
HOMESTEAD OF CERTAIN DISABLED VETERANS [VETERAN] OR SURVIVING
SPOUSE OF CERTAIN DISABLED VETERANS [VETERAN]. (a) Except as
provided by Section 26.10(b), if at any time during a tax year
property is owned by an individual who qualifies for an exemption
under Section 11.132 or 11.136, the amount of the tax due on the
property for the tax year is calculated as if the individual
qualified for the exemption on January 1 and continued to qualify
for the exemption for the remainder of the tax year.
(b) If an individual qualifies for an exemption under
Section 11.132 or 11.136 with respect to the property after the
amount of the tax due on the property is calculated and the effect
of the qualification is to reduce the amount of the tax due on the
property, the assessor for each taxing unit shall recalculate the
amount of the tax due on the property and correct the tax roll. If
the tax bill has been mailed and the tax on the property has not been
paid, the assessor shall mail a corrected tax bill to the individual
in whose name the property is listed on the tax roll or to the
individual's authorized agent. If the tax on the property has been
paid, the tax collector for the taxing unit shall refund to the
individual who paid the tax the amount by which the payment exceeded
the tax due.
SECTION 5. Section 31.031(a), Tax Code, is amended to read
as follows:
(a) This section applies only to:
(1) an individual who is:
(A) disabled or at least 65 years of age; and
(B) qualified for an exemption under Section
11.13(c); or
(2) an individual who is:
(A) a Severely Disabled Veteran or the unmarried
surviving spouse of a Severely Disabled Veteran; and
(B) qualified for an exemption under Section
11.132, 11.136, or 11.22.
SECTION 6. Section 140.011(a)(2), Local Government Code, is
amended to read as follows:
(2) "Local government" means:
(A) a municipality adjacent to or within twenty
miles of a military installation; and,
(B) a county in which a United States military
installation is wholly or partly located.
SECTION 7. Section 140.011(c), Local Government Code, is
amended to read as follows:
(c) For the purposes of this section, the amount of a local
government's lost ad valorem tax revenue for a fiscal year is
calculated by multiplying the ad valorem tax rate adopted by the
local government under Section 26.05, Tax Code, for the tax year in
which the fiscal year begins by the sum of:
(1) the total appraised value of all property located
in the local government that is exempt [granted an exemption] from
taxation under Section 11.131, Tax Code, for that tax year; and
(2) the total dollar amount of the portion of the
appraised value of all property located in the local government
that is exempt from taxation under Section 11.136, Tax Code, for
that tax year.
SECTION 8. This Act applies only to ad valorem taxes imposed
for an ad valorem tax year that begins on or after the effective
date of this Act.
SECTION 9. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, authorizing the legislature to provide for
an exemption from ad valorem taxation of part of the market value of
the residence homestead of a Severely Disabled Veteran or the
surviving spouse of a Severely Disabled Veteran based on the
disability rating of the veteran and harmonizing certain related
provisions of the constitution is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.