Texas 2019 - 86th Regular

Texas House Bill HB968 Compare Versions

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

Old	New	Differences
1	1	86R7019 SMT-D
2	2	By: González of El Paso H.B. No. 968
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the provision of funding under the foundation school
8	8	program on the basis of property values that do not take into
9	9	account optional homestead exemptions.
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. Sections 403.302(d), (e), (e-1), (i), and (m),
28	28	Government Code, are amended to read as follows:
29	29	(d) For the purposes of this section, "taxable value" means
30	30	the market value of all taxable property less:
31	31	(1) the total dollar amount of any residence homestead
32	32	exemptions lawfully granted under Section 11.13(b) or (c), Tax
33	33	Code, in the year that is the subject of the study for each school
34	34	district;
35	35	(2) [one-half of the total dollar amount of any
36	36	residence homestead exemptions granted under Section 11.13(n), Tax
37	37	Code, in the year that is the subject of the study for each school
38	38	district;
39	39	[(3)] the total dollar amount of any exemptions
40	40	granted before May 31, 1993, within a reinvestment zone under
41	41	agreements authorized by Chapter 312, Tax Code;
42	42	(3) [(4)] subject to Subsection (e), the total dollar
43	43	amount of any captured appraised value of property that:
44	44	(A) is within a reinvestment zone created on or
45	45	before May 31, 1999, or is proposed to be included within the
46	46	boundaries of a reinvestment zone as the boundaries of the zone and
47	47	the proposed portion of tax increment paid into the tax increment
48	48	fund by a school district are described in a written notification
49	49	provided by the municipality or the board of directors of the zone
50	50	to the governing bodies of the other taxing units in the manner
51	51	provided by former Section 311.003(e), Tax Code, before May 31,
52	52	1999, and within the boundaries of the zone as those boundaries
53	53	existed on September 1, 1999, including subsequent improvements to
54	54	the property regardless of when made;
55	55	(B) generates taxes paid into a tax increment
56	56	fund created under Chapter 311, Tax Code, under a reinvestment zone
57	57	financing plan approved under Section 311.011(d), Tax Code, on or
58	58	before September 1, 1999; and
59	59	(C) is eligible for tax increment financing under
60	60	Chapter 311, Tax Code;
61	61	(4) [(5)] the total dollar amount of any captured
62	62	appraised value of property that:
63	63	(A) is within a reinvestment zone:
64	64	(i) created on or before December 31, 2008,
65	65	by a municipality with a population of less than 18,000; and
66	66	(ii) the project plan for which includes
67	67	the alteration, remodeling, repair, or reconstruction of a
68	68	structure that is included on the National Register of Historic
69	69	Places and requires that a portion of the tax increment of the zone
70	70	be used for the improvement or construction of related facilities
71	71	or for affordable housing;
72	72	(B) generates school district taxes that are paid
73	73	into a tax increment fund created under Chapter 311, Tax Code; and
74	74	(C) is eligible for tax increment financing under
75	75	Chapter 311, Tax Code;
76	76	(5) [(6)] the total dollar amount of any exemptions
77	77	granted under Section 11.251 or 11.253, Tax Code;
78	78	(6) [(7)] the difference between the comptroller's
79	79	estimate of the market value and the productivity value of land that
80	80	qualifies for appraisal on the basis of its productive capacity,
81	81	except that the productivity value estimated by the comptroller may
82	82	not exceed the fair market value of the land;
83	83	(7) [(8)] the portion of the appraised value of
84	84	residence homesteads of individuals who receive a tax limitation
85	85	under Section 11.26, Tax Code, on which school district taxes are
86	86	not imposed in the year that is the subject of the study, calculated
87	87	as if the residence homesteads were appraised at the full value
88	88	required by law;
89	89	(8) [(9)] a portion of the market value of property
90	90	not otherwise fully taxable by the district at market value because
91	91	of:
92	92	(A) action required by statute or the
93	93	constitution of this state, other than Section 11.311, Tax Code,
94	94	that, if the tax rate adopted by the district is applied to it,
95	95	produces an amount equal to the difference between the tax that the
96	96	district would have imposed on the property if the property were
97	97	fully taxable at market value and the tax that the district is
98	98	actually authorized to impose on the property, if this subsection
99	99	does not otherwise require that portion to be deducted; or
100	100	(B) action taken by the district under Subchapter
101	101	B or C, Chapter 313, Tax Code, before the expiration of the
102	102	subchapter;
103	103	(9) [(10)] the market value of all tangible personal
104	104	property, other than manufactured homes, owned by a family or
105	105	individual and not held or used for the production of income;
106	106	(10) [(11)] the appraised value of property the
107	107	collection of delinquent taxes on which is deferred under Section
108	108	33.06, Tax Code;
109	109	(11) [(12)] the portion of the appraised value of
110	110	property the collection of delinquent taxes on which is deferred
111	111	under Section 33.065, Tax Code; and
112	112	(12) [(13)] the amount by which the market value of a
113	113	residence homestead to which Section 23.23, Tax Code, applies
114	114	exceeds the appraised value of that property as calculated under
115	115	that section.
116	116	(e) The total dollar amount deducted in each year as
117	117	required by Subsection (d)(3) [(d)(4)] in a reinvestment zone
118	118	created after January 1, 1999, may not exceed the captured
119	119	appraised value estimated for that year as required by Section
120	120	311.011(c)(8), Tax Code, in the reinvestment zone financing plan
121	121	approved under Section 311.011(d), Tax Code, before September 1,
122	122	1999. The number of years for which the total dollar amount may be
123	123	deducted under Subsection (d)(3) [(d)(4)] shall for any zone,
124	124	including those created on or before January 1, 1999, be limited to
125	125	the duration of the zone as specified as required by Section
126	126	311.011(c)(9), Tax Code, in the reinvestment zone financing plan
127	127	approved under Section 311.011(d), Tax Code, before September 1,
128	128	1999. The total dollar amount deducted under Subsection (d)(3)
129	129	[(d)(4)] for any zone, including those created on or before January
130	130	1, 1999, may not be increased by any reinvestment zone financing
131	131	plan amendments that occur after August 31, 1999. The total dollar
132	132	amount deducted under Subsection (d)(3) [(d)(4)] for any zone,
133	133	including those created on or before January 1, 1999, may not be
134	134	increased by a change made after August 31, 1999, in the portion of
135	135	the tax increment retained by the school district.
136	136	(e-1) This subsection applies only to a reinvestment zone
137	137	created by a municipality that has a population of 70,000 or less
138	138	and is located in a county in which all or part of a military
139	139	installation is located. Notwithstanding Subsection (e), if on or
140	140	after January 1, 2017, the municipality adopts an ordinance
141	141	designating a termination date for the zone that is later than the
142	142	termination date designated in the ordinance creating the zone, the
143	143	number of years for which the total dollar amount may be deducted
144	144	under Subsection (d)(3) [(d)(4)] is limited to the duration of the
145	145	zone as determined under Section 311.017, Tax Code.
146	146	(i) If the comptroller determines in the study that the
147	147	market value of property in a school district as determined by the
148	148	appraisal district that appraises property for the school district,
149	149	less the total of the amounts and values listed in Subsection (d) as
150	150	determined by that appraisal district, is valid, the comptroller,
151	151	in determining the taxable value of property in the school district
152	152	under Subsection (d), shall for purposes of Subsection (d)(12)
153	153	[(d)(13)] subtract from the market value as determined by the
154	154	appraisal district of residence homesteads to which Section 23.23,
155	155	Tax Code, applies the amount by which that amount exceeds the
156	156	appraised value of those properties as calculated by the appraisal
157	157	district under Section 23.23, Tax Code. If the comptroller
158	158	determines in the study that the market value of property in a
159	159	school district as determined by the appraisal district that
160	160	appraises property for the school district, less the total of the
161	161	amounts and values listed in Subsection (d) as determined by that
162	162	appraisal district, is not valid, the comptroller, in determining
163	163	the taxable value of property in the school district under
164	164	Subsection (d), shall for purposes of Subsection (d)(12) [(d)(13)]
165	165	subtract from the market value as estimated by the comptroller of
166	166	residence homesteads to which Section 23.23, Tax Code, applies the
167	167	amount by which that amount exceeds the appraised value of those
168	168	properties as calculated by the appraisal district under Section
169	169	23.23, Tax Code.
170	170	(m) Subsection (d)(8) [(d)(9)] does not apply to property
171	171	that was the subject of an application under Subchapter B or C,
172	172	Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
173	173	recommended should be disapproved.
174	174	SECTION 3. Section 311.011(h), Tax Code, is amended to read
175	175	as follows:
176	176	(h) Unless specifically provided otherwise in the plan, all
177	177	amounts contained in the project plan or reinvestment zone
178	178	financing plan, including amounts of expenditures relating to
179	179	project costs and amounts relating to participation by taxing
180	180	units, are considered estimates and do not act as a limitation on
181	181	the described items, but the amounts contained in the project plan
182	182	or reinvestment zone financing plan may not vary materially from
183	183	the estimates. This subsection may not be construed to increase the
184	184	amount of any reduction under Section 403.302(d)(3)
185	185	[403.302(d)(4)], Government Code, in the total taxable value of the
186	186	property in a school district that participates in the zone as
187	187	computed under Section 403.302(d) of that code.
188	188	SECTION 4. Section 311.013(n), Tax Code, is amended to read
189	189	as follows:
190	190	(n) This subsection applies only to a school district whose
191	191	taxable value computed under Section 403.302(d), Government Code,
192	192	is reduced in accordance with Subdivision (3) [(4)] of that
193	193	subsection. In addition to the amount otherwise required to be paid
194	194	into the tax increment fund, the district shall pay into the fund an
195	195	amount equal to the amount by which the amount of taxes the district
196	196	would have been required to pay into the fund in the current year if
197	197	the district levied taxes at the rate the district levied in 2005
198	198	exceeds the amount the district is otherwise required to pay into
199	199	the fund in the year of the reduction. This additional amount may
200	200	not exceed the amount the school district receives in state aid for
201	201	the current tax year under Section 42.2514, Education Code. The
202	202	school district shall pay the additional amount after the district
203	203	receives the state aid to which the district is entitled for the
204	204	current tax year under Section 42.2514, Education Code.
205	205	SECTION 5. Section 42.2522, Education Code, is repealed.
206	206	SECTION 6. Section 403.302, Government Code, as amended by
207	207	this Act, applies only to a school district property value study
208	208	conducted for a tax year that begins on or after January 1, 2020.
209	209	SECTION 7. This Act takes effect September 1, 2019.