Texas 2021 - 87th Regular

Texas House Bill HB1762 Compare Versions

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1	1	87R2575 SMH/CAE-D
2	2	By: J. Johnson of Harris H.B. No. 1762
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an exemption from ad valorem taxation of the total
8	8	appraised value of the residence homesteads of certain elderly
9	9	persons and their surviving spouses.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 11.13, Tax Code, is amended by amending
12	12	Subsection (i) and adding Subsections (v) and (w) to read as
13	13	follows:
14	14	(i) The assessor and collector for a taxing unit may
15	15	disregard the exemptions authorized by Subsection (b), (c), (d),
16	16	[or] (n), (v), or (w) [of this section] and assess and collect a tax
17	17	pledged for payment of debt without deducting the amount of the
18	18	exemption if:
19	19	(1) prior to adoption of the exemption, the unit
20	20	pledged the taxes for the payment of a debt; and
21	21	(2) granting the exemption would impair the obligation
22	22	of the contract creating the debt.
23	23	(v) In addition to any other exemptions provided by this
24	24	section, an individual is entitled to an exemption from taxation of
25	25	the total appraised value of the individual's residence homestead
26	26	if:
27	27	(1) the individual is 80 years of age or older; and
28	28	(2) the individual has received an exemption under
29	29	this section for the residence homestead for at least the preceding
30	30	10 years.
31	31	(w) The surviving spouse of an individual who qualified for
32	32	an exemption under Subsection (v) is entitled to an exemption from
33	33	taxation of the total appraised value of the same property to which
34	34	the deceased spouse's exemption applied if:
35	35	(1) the deceased spouse died in a year in which the
36	36	deceased spouse qualified for the exemption;
37	37	(2) the surviving spouse was 55 years of age or older
38	38	when the deceased spouse died; and
39	39	(3) the property was the residence homestead of the
40	40	surviving spouse when the deceased spouse died and remains the
41	41	residence homestead of the surviving spouse.
42	42	SECTION 2. Section 11.42(c), Tax Code, is amended to read as
43	43	follows:
44	44	(c) An exemption authorized by Section 11.13(c), [or] (d),
45	45	or (v), 11.132, 11.133, or 11.134 is effective as of January 1 of
46	46	the tax year in which the person qualifies for the exemption and
47	47	applies to the entire tax year.
48	48	SECTION 3. Sections 11.43(k), (l), (m), and (q), Tax Code,
49	49	are amended to read as follows:
50	50	(k) A person who qualifies for an exemption authorized by
51	51	Section 11.13(c), [or] (d), or (v) or 11.132 must apply for the
52	52	exemption no later than the first anniversary of the date the person
53	53	qualified for the exemption.
54	54	(l) The form for an application under Section 11.13 must
55	55	include a space for the applicant to state the applicant's date of
56	56	birth. Failure to provide the date of birth does not affect the
57	57	applicant's eligibility for an exemption under that section, other
58	58	than an exemption under Section 11.13(c) or (d) for an individual 65
59	59	years of age or older or an exemption under Section 11.13(v) for an
60	60	individual 80 years of age or older.
61	61	(m) Notwithstanding Subsections (a) and (k), a person who
62	62	receives an exemption under Section 11.13, other than an exemption
63	63	under Section 11.13(c) or (d) for an individual 65 years of age or
64	64	older or an exemption under Section 11.13(v) for an individual 80
65	65	years of age or older, in a tax year is entitled to receive an
66	66	exemption under Section 11.13(c) or (d) for an individual 65 years
67	67	of age or older or an exemption under Section 11.13(v) for an
68	68	individual 80 years of age or older in the next tax year on the same
69	69	property without applying for the exemption if the person becomes
70	70	65 or 80 years of age, as applicable, in that next year as shown by:
71	71	(1) information in the records of the appraisal
72	72	district that was provided to the appraisal district by the
73	73	individual in an application for an exemption under Section 11.13
74	74	on the property or in correspondence relating to the property; or
75	75	(2) the information provided by the Texas Department
76	76	of Public Safety to the appraisal district under Section 521.049,
77	77	Transportation Code.
78	78	(q) A chief appraiser may not cancel an exemption under
79	79	Section 11.13 that is received by an individual who is 65 years of
80	80	age or older without first providing written notice of the
81	81	cancellation to the individual receiving the exemption. The notice
82	82	must include a form on which the individual may indicate whether the
83	83	individual is qualified to receive the exemption and a
84	84	self-addressed postage prepaid envelope with instructions for
85	85	returning the form to the chief appraiser. The chief appraiser
86	86	shall consider the individual's response on the form in determining
87	87	whether to continue to allow the exemption. If the chief appraiser
88	88	does not receive a response on or before the 60th day after the date
89	89	the notice is mailed, the chief appraiser may cancel the exemption
90	90	on or after the 30th day after the expiration of the 60-day period,
91	91	but only after making a reasonable effort to locate the individual
92	92	and determine whether the individual is qualified to receive the
93	93	exemption. For purposes of this subsection, sending an additional
94	94	notice of cancellation that includes, in bold font equal to or
95	95	greater in size than the surrounding text, the date on which the
96	96	chief appraiser is authorized to cancel the exemption to the
97	97	individual receiving the exemption immediately after the
98	98	expiration of the 60-day period by first class mail in an envelope
99	99	on which is written, in all capital letters, "RETURN SERVICE
100	100	REQUESTED," or another appropriate statement directing the United
101	101	States Postal Service to return the notice if it is not deliverable
102	102	as addressed, or providing the additional notice in another manner
103	103	that the chief appraiser determines is appropriate, constitutes a
104	104	reasonable effort on the part of the chief appraiser. This
105	105	subsection does not apply to an exemption under Section 11.13(c) or
106	106	(d) for an individual 65 years of age or older or an exemption under
107	107	Section 11.13(v) for an individual 80 years of age or older that is
108	108	canceled because the chief appraiser determines that the individual
109	109	receiving the exemption no longer owns the property subject to the
110	110	exemption.
111	111	SECTION 4. Section 26.10(b), Tax Code, is amended to read as
112	112	follows:
113	113	(b) If the appraisal roll shows that a residence homestead
114	114	exemption under Section 11.13(c), [or] (d), or (v), 11.132, 11.133,
115	115	or 11.134 applicable to a property on January 1 of a year terminated
116	116	during the year and if the owner of the property qualifies a
117	117	different property for one of those residence homestead exemptions
118	118	during the same year, the tax due against the former residence
119	119	homestead is calculated by:
120	120	(1) subtracting:
121	121	(A) the amount of the taxes that otherwise would
122	122	be imposed on the former residence homestead for the entire year had
123	123	the owner qualified for the residence homestead exemption for the
124	124	entire year; from
125	125	(B) the amount of the taxes that otherwise would
126	126	be imposed on the former residence homestead for the entire year had
127	127	the owner not qualified for the residence homestead exemption
128	128	during the year;
129	129	(2) multiplying the remainder determined under
130	130	Subdivision (1) by a fraction, the denominator of which is 365 and
131	131	the numerator of which is the number of days that elapsed after the
132	132	date the exemption terminated; and
133	133	(3) adding the product determined under Subdivision
134	134	(2) and the amount described by Subdivision (1)(A).
135	135	SECTION 5. Section 26.112, Tax Code, is amended to read as
136	136	follows:
137	137	Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
138	138	CERTAIN PERSONS. (a) Except as provided by Section 26.10(b), if at
139	139	any time during a tax year property is owned by an individual who
140	140	qualifies for an exemption under Section 11.13(c), [or] (d), or
141	141	(v), 11.133, or 11.134, the amount of the tax due on the property
142	142	for the tax year is calculated as if the individual qualified for
143	143	the exemption on January 1 and continued to qualify for the
144	144	exemption for the remainder of the tax year.
145	145	(b) If an individual qualifies for an exemption under
146	146	Section 11.13(c), [or] (d), or (v), 11.133, or 11.134 with respect
147	147	to the property after the amount of the tax due on the property is
148	148	calculated and the effect of the qualification is to reduce the
149	149	amount of the tax due on the property, the assessor for each taxing
150	150	unit shall recalculate the amount of the tax due on the property and
151	151	correct the tax roll. If the tax bill has been mailed and the tax on
152	152	the property has not been paid, the assessor shall mail a corrected
153	153	tax bill to the person in whose name the property is listed on the
154	154	tax roll or to the person's authorized agent. If the tax on the
155	155	property has been paid, the tax collector for the taxing unit shall
156	156	refund to the person who was the owner of the property on the date
157	157	the tax was paid the amount by which the payment exceeded the tax
158	158	due.
159	159	SECTION 6. Section 33.01(d), Tax Code, is amended to read as
160	160	follows:
161	161	(d) In lieu of the penalty imposed under Subsection (a), a
162	162	delinquent tax incurs a penalty of 50 percent of the amount of the
163	163	tax without regard to the number of months the tax has been
164	164	delinquent if the tax is delinquent because the property owner
165	165	received an exemption under:
166	166	(1) Section 11.13 and the chief appraiser subsequently
167	167	cancels the exemption because the residence was not the principal
168	168	residence of the property owner and the property owner received an
169	169	exemption for two or more additional residence homesteads for the
170	170	tax year in which the tax was imposed;
171	171	(2) Section 11.13(c) or (d) for a person who is 65
172	172	years of age or older and the chief appraiser subsequently cancels
173	173	the exemption because the property owner was younger than 65 years
174	174	of age; [or]
175	175	(3) Section 11.13(v) for a person who is 80 years of
176	176	age or older and the chief appraiser subsequently cancels the
177	177	exemption because the property owner was younger than 80 years of
178	178	age; or
179	179	(4) Section 11.13(q) or (w) and the chief appraiser
180	180	subsequently cancels the exemption because the property owner was
181	181	younger than 55 years of age when the property owner's spouse died.
182	182	SECTION 7. Section 44.004(c), Education Code, is amended to
183	183	read as follows:
184	184	(c) The notice of public meeting to discuss and adopt the
185	185	budget and the proposed tax rate may not be smaller than one-quarter
186	186	page of a standard-size or a tabloid-size newspaper, and the
187	187	headline on the notice must be in 18-point or larger type. Subject
188	188	to Subsection (d), the notice must:
189	189	(1) contain a statement in the following form:
190	190	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
191	191	"The (name of school district) will hold a public meeting at
192	192	(time, date, year) in (name of room, building, physical location,
193	193	city, state). The purpose of this meeting is to discuss the school
194	194	district's budget that will determine the tax rate that will be
195	195	adopted. Public participation in the discussion is invited." The
196	196	statement of the purpose of the meeting must be in bold type. In
197	197	reduced type, the notice must state: "The tax rate that is
198	198	ultimately adopted at this meeting or at a separate meeting at a
199	199	later date may not exceed the proposed rate shown below unless the
200	200	district publishes a revised notice containing the same information
201	201	and comparisons set out below and holds another public meeting to
202	202	discuss the revised notice.";
203	203	(2) contain a section entitled "Comparison of Proposed
204	204	Budget with Last Year's Budget," which must show the difference,
205	205	expressed as a percent increase or decrease, as applicable, in the
206	206	amounts budgeted for the preceding fiscal year and the amount
207	207	budgeted for the fiscal year that begins in the current tax year for
208	208	each of the following:
209	209	(A) maintenance and operations;
210	210	(B) debt service; and
211	211	(C) total expenditures;
212	212	(3) contain a section entitled "Total Appraised Value
213	213	and Total Taxable Value," which must show the total appraised value
214	214	and the total taxable value of all property and the total appraised
215	215	value and the total taxable value of new property taxable by the
216	216	district in the preceding tax year and the current tax year as
217	217	calculated under Section 26.04, Tax Code;
218	218	(4) contain a statement of the total amount of the
219	219	outstanding and unpaid bonded indebtedness of the school district;
220	220	(5) contain a section entitled "Comparison of Proposed
221	221	Rates with Last Year's Rates," which must:
222	222	(A) show in rows the tax rates described by
223	223	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
224	224	property, for columns entitled "Maintenance & Operations,"
225	225	"Interest & Sinking Fund," and "Total," which is the sum of
226	226	"Maintenance & Operations" and "Interest & Sinking Fund":
227	227	(i) the school district's "Last Year's
228	228	Rate";
229	229	(ii) the "Rate to Maintain Same Level of
230	230	Maintenance & Operations Revenue & Pay Debt Service," which:
231	231	(a) in the case of "Maintenance &
232	232	Operations," is the tax rate that, when applied to the current
233	233	taxable value for the district, as certified by the chief appraiser
234	234	under Section 26.01, Tax Code, and as adjusted to reflect changes
235	235	made by the chief appraiser as of the time the notice is prepared,
236	236	would impose taxes in an amount that, when added to state funds to
237	237	be distributed to the district under Chapter 48, would provide the
238	238	same amount of maintenance and operations taxes and state funds
239	239	distributed under Chapter 48 per student in average daily
240	240	attendance for the applicable school year that was available to the
241	241	district in the preceding school year; and
242	242	(b) in the case of "Interest & Sinking
243	243	Fund," is the tax rate that, when applied to the current taxable
244	244	value for the district, as certified by the chief appraiser under
245	245	Section 26.01, Tax Code, and as adjusted to reflect changes made by
246	246	the chief appraiser as of the time the notice is prepared, and when
247	247	multiplied by the district's anticipated collection rate, would
248	248	impose taxes in an amount that, when added to state funds to be
249	249	distributed to the district under Chapter 46 and any excess taxes
250	250	collected to service the district's debt during the preceding tax
251	251	year but not used for that purpose during that year, would provide
252	252	the amount required to service the district's debt; and
253	253	(iii) the "Proposed Rate";
254	254	(B) contain fourth and fifth columns aligned with
255	255	the columns required by Paragraph (A) that show, for each row
256	256	required by Paragraph (A):
257	257	(i) the "Local Revenue per Student," which
258	258	is computed by multiplying the district's total taxable value of
259	259	property, as certified by the chief appraiser for the applicable
260	260	school year under Section 26.01, Tax Code, and as adjusted to
261	261	reflect changes made by the chief appraiser as of the time the
262	262	notice is prepared, by the total tax rate, and dividing the product
263	263	by the number of students in average daily attendance in the
264	264	district for the applicable school year; and
265	265	(ii) the "State Revenue per Student," which
266	266	is computed by determining the amount of state aid received or to be
267	267	received by the district under Chapters 43, 46, and 48 and dividing
268	268	that amount by the number of students in average daily attendance in
269	269	the district for the applicable school year; and
270	270	(C) contain an asterisk after each calculation
271	271	for "Interest & Sinking Fund" and a footnote to the section that, in
272	272	reduced type, states "The Interest & Sinking Fund tax revenue is
273	273	used to pay for bonded indebtedness on construction, equipment, or
274	274	both. The bonds, and the tax rate necessary to pay those bonds, were
275	275	approved by the voters of this district.";
276	276	(6) contain a section entitled "Comparison of Proposed
277	277	Levy with Last Year's Levy on Average Residence," which must:
278	278	(A) show in rows the information described by
279	279	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
280	280	entitled "Last Year" and "This Year":
281	281	(i) "Average Market Value of Residences,"
282	282	determined using the same group of residences for each year;
283	283	(ii) "Average Taxable Value of Residences,"
284	284	determined after taking into account the limitation on the
285	285	appraised value of residences under Section 23.23, Tax Code, and
286	286	after subtracting all homestead exemptions applicable in each year,
287	287	other than exemptions available only to disabled persons, [or]
288	288	persons 65 years of age or older or their surviving spouses, or
289	289	persons 80 years of age or older or their surviving spouses, and
290	290	using the same group of residences for each year;
291	291	(iii) "Last Year's Rate Versus Proposed
292	292	Rate per $100 Value"; and
293	293	(iv) "Taxes Due on Average Residence,"
294	294	determined using the same group of residences for each year; and
295	295	(B) contain the following information: "Increase
296	296	(Decrease) in Taxes" expressed in dollars and cents, which is
297	297	computed by subtracting the "Taxes Due on Average Residence" for
298	298	the preceding tax year from the "Taxes Due on Average Residence" for
299	299	the current tax year;
300	300	(7) contain the following statement in bold print:
301	301	"Under state law, the dollar amount of school taxes imposed on the
302	302	residence of a person 65 years of age or older or of the surviving
303	303	spouse of such a person, if the surviving spouse was 55 years of age
304	304	or older when the person died, may not be increased above the amount
305	305	paid in the first year after the person turned 65, regardless of
306	306	changes in tax rate or property value.";
307	307	(8) contain the following statement in bold print:
308	308	"Notice of Voter-Approval Rate: The highest tax rate the district
309	309	can adopt before requiring voter approval at an election is (the
310	310	school district voter-approval rate determined under Section
311	311	26.08, Tax Code). This election will be automatically held if the
312	312	district adopts a rate in excess of the voter-approval rate of (the
313	313	school district voter-approval rate)."; [and]
314	314	(9) contain a section entitled "Fund Balances," which
315	315	must include the estimated amount of interest and sinking fund
316	316	balances and the estimated amount of maintenance and operation or
317	317	general fund balances remaining at the end of the current fiscal
318	318	year that are not encumbered with or by corresponding debt
319	319	obligation, less estimated funds necessary for the operation of the
320	320	district before the receipt of the first payment under Chapter 48 in
321	321	the succeeding school year; and
322	322	(10) contain the following statement in bold
323	323	print: "Under state law, the residence of a person 80 years of age
324	324	or older or of the surviving spouse of such a person, if the
325	325	surviving spouse was 55 years of age or older when the person died,
326	326	is exempt from taxes."
327	327	SECTION 8. Section 46.071, Education Code, is amended by
328	328	adding Subsection (a-2) and amending Subsections (b) and (c) to
329	329	read as follows:
330	330	(a-2) Beginning with the 2022-2023 school year, in addition
331	331	to state aid a school district is entitled to under Subsection (a),
332	332	a school district is also entitled to additional state aid under
333	333	this subchapter to the extent that state and local revenue used to
334	334	service debt eligible under this chapter is less than the state and
335	335	local revenue that would have been available to the district under
336	336	this chapter as it existed on September 1, 2021, if the residence
337	337	homestead exemption for a person 80 years of age or older or the
338	338	person's surviving spouse under Section 1-b(t), Article VIII, Texas
339	339	Constitution, as proposed by the 87th Legislature, Regular Session,
340	340	2021, had not been adopted.
341	341	(b) Subject to Subsections (c)-(e), additional state aid
342	342	under this section is equal to the amount by which the loss of local
343	343	interest and sinking revenue for debt service attributable to the
344	344	increase in the residence homestead exemption under Section 1-b(c),
345	345	Article VIII, Texas Constitution, and the additional limitation on
346	346	tax increases under Section 1-b(d) of that article as proposed by
347	347	S.J.R. 1, 84th Legislature, Regular Session, 2015, and the
348	348	residence homestead exemption under Section 1-b(t), Article VIII,
349	349	Texas Constitution, as proposed by the 87th Legislature, Regular
350	350	Session, 2021, is not offset by a gain in state aid under this
351	351	chapter.
352	352	(c) For the purpose of determining state aid under
353	353	Subsection (a) or (a-2) [this section], local interest and sinking
354	354	revenue for debt service is limited to revenue required to service
355	355	debt eligible under this chapter as of September 1, 2015, or as of
356	356	September 1, 2021, respectively, including refunding of the
357	357	applicable [that] debt, subject to Section 46.061. The limitation
358	358	imposed by Section 46.034(a) does not apply for the purpose of
359	359	determining state aid under Subsection (a) or (a-2) [this section].
360	360	SECTION 9. Subchapter F, Chapter 48, Education Code, is
361	361	amended by adding Section 48.2541 to read as follows:
362	362	Sec. 48.2541. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
363	363	(a) Beginning with the 2022-2023 school year, a school district is
364	364	entitled to additional state aid to the extent that state and local
365	365	revenue under this chapter and Chapter 49 is less than the state and
366	366	local revenue that would have been available to the district under
367	367	Chapter 49 and this chapter as those chapters existed on September
368	368	1, 2021, if the residence homestead exemption for a person 80 years
369	369	of age or older or the person's surviving spouse under Section
370	370	1-b(t), Article VIII, Texas Constitution, as proposed by the joint
371	371	resolution to add that subsection adopted by the 87th Legislature,
372	372	Regular Session, 2021, had not been adopted.
373	373	(b) The lesser of the school district's currently adopted
374	374	maintenance and operations tax rate or the adopted maintenance and
375	375	operations tax rate for the 2021 tax year is used for the purpose of
376	376	determining additional state aid under Subsection (a).
377	377	SECTION 10. Section 403.302(d-1), Government Code, is
378	378	amended to read as follows:
379	379	(d-1) For purposes of Subsection (d), a residence homestead
380	380	that receives an exemption under Section 11.13(v) or (w), 11.131,
381	381	11.133, or 11.134, Tax Code, in the year that is the subject of the
382	382	study is not considered to be taxable property.
383	383	SECTION 11. The exemptions from ad valorem taxation of a
384	384	residence homestead authorized by Sections 11.13(v) and (w), Tax
385	385	Code, as added by this Act, apply only to taxes imposed beginning
386	386	with the 2022 tax year.
387	387	SECTION 12. This Act takes effect January 1, 2022, but only
388	388	if the constitutional amendment proposed by the 87th Legislature,
389	389	Regular Session, 2021, to exempt from ad valorem taxation the total
390	390	market value of the residence homesteads of certain elderly persons
391	391	and their surviving spouses is approved by the voters. If that
392	392	constitutional amendment is not approved by the voters, this Act
393	393	has no effect.