87R862 SMH-D
By: Howard H.B. No. 1095
A BILL TO BE ENTITLED
AN ACT
relating to the reduction of the amount of a limitation on the total
amount of ad valorem taxes that may be imposed by a school district
on the residence homestead of an individual who is elderly or
disabled to reflect any reduction from the preceding tax year in the
district's maximum compressed rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.26, Tax Code, is amended by adding
Subsections (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9) to read as
follows:
(a-4) In this section, "maximum compressed rate" means the
maximum compressed rate of a school district as calculated under
Section 48.2551, Education Code.
(a-5) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was a tax year before the 2019 tax
year, the amount of the limitation provided by this section on the
homestead in the 2022 tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2018 tax year by a tax rate equal to the difference between the
school district's tier one maintenance and operations rate for the
2018 tax year and the district's maximum compressed rate for the
2019 tax year;
(2) subtracting the greater of zero or the amount
computed under Subdivision (1) from the amount of tax the district
imposed on the homestead in the 2018 tax year;
(3) adding any tax imposed in the 2019 tax year
attributable to improvements made in the 2018 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4) multiplying the taxable value of the homestead in
the 2019 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2019 tax year and the
district's maximum compressed rate for the 2020 tax year;
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3);
(6) adding any tax imposed in the 2020 tax year
attributable to improvements made in the 2019 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5);
(7) multiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2020 tax year and the
district's maximum compressed rate for the 2021 tax year;
(8) subtracting the amount computed under Subdivision
(7) from the amount computed under Subdivision (6);
(9) adding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (8);
(10) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2021 tax year and the
district's maximum compressed rate for the 2022 tax year;
(11) subtracting the amount computed under
Subdivision (10) from the amount computed under Subdivision (9);
and
(12) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (11).
(a-6) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2019 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2019 tax year by a tax rate equal to the difference between the
school district's maximum compressed rate for the 2019 tax year and
the district's maximum compressed rate for the 2020 tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2019 tax year;
(3) adding any tax imposed in the 2020 tax year
attributable to improvements made in the 2019 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4) multiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2020 tax year and the
district's maximum compressed rate for the 2021 tax year;
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3);
(6) adding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5);
(7) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2021 tax year and the
district's maximum compressed rate for the 2022 tax year;
(8) subtracting the amount computed under Subdivision
(7) from the amount computed under Subdivision (6); and
(9) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (8).
(a-7) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2020 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
school district's maximum compressed rate for the 2020 tax year and
the district's maximum compressed rate for the 2021 tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2020 tax year;
(3) adding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2021 tax year and the
district's maximum compressed rate for the 2022 tax year;
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3); and
(6) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5).
(a-8) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2021 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
school district's maximum compressed rate for the 2021 tax year and
the district's maximum compressed rate for the 2022 tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2021 tax year; and
(3) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2).
(a-9) Notwithstanding the other provisions of this section,
if in the 2023 or a subsequent tax year an individual qualifies for
a limitation on tax increases provided by this section on the
individual's residence homestead, the amount of the limitation
provided by this section on the homestead is equal to the amount
computed by:
(1) multiplying the taxable value of the homestead in
the preceding tax year by a tax rate equal to the difference between
the school district's maximum compressed rate for the preceding tax
year and the district's maximum compressed rate for the current tax
year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the preceding tax year; and
(3) adding any tax imposed in the current tax year
attributable to improvements made in the preceding tax year as
provided by Subsection (b) to the amount computed under Subdivision
(2).
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2022, but only
if the constitutional amendment proposed by the 87th Legislature,
Regular Session, 2021, authorizing the legislature to provide for
the reduction of the amount of a limitation on the total amount of
ad valorem taxes that may be imposed for general elementary and
secondary public school purposes on the residence homestead of a
person who is elderly or disabled to reflect any statutory
reduction from the preceding tax year in the maximum compressed
rate of the maintenance and operations taxes imposed for those
purposes on the homestead is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.