Texas 2021 - 87th Regular

Texas House Bill HB1798 Compare Versions

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1	1	87R4710 SMT-D
2	2	By: Shaheen H.B. No. 1798
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the effect of a disaster declaration on the ad valorem
8	8	tax rate of a taxing unit other than a school district and the
9	9	appraised value of certain property in the taxing unit.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 1.12(d), Tax Code, is amended to read as
12	12	follows:
13	13	(d) For purposes of this section, the appraisal ratio of
14	14	real property [a homestead] to which Section 23.23 or 23.231
15	15	applies is the ratio of the property's market value as determined by
16	16	the appraisal district or appraisal review board, as applicable, to
17	17	the market value of the property according to law. The appraisal
18	18	ratio is not calculated according to the appraised value of the
19	19	property as limited by Section 23.23 or 23.231, as applicable.
20	20	SECTION 2. Subchapter B, Chapter 23, Tax Code, is amended by
21	21	adding Section 23.231 to read as follows:
22	22	Sec. 23.231. TEMPORARY LIMITATION ON APPRAISED VALUE OF
23	23	REAL PROPERTY LOCATED IN TAXING UNIT AFFECTED BY DISASTER. (a)
24	24	This section applies only to real property located in a taxing unit
25	25	any part of which is located in an area that at any time during the
26	26	preceding tax year was declared a disaster area by the governor or
27	27	by the president of the United States.
28	28	(b) Notwithstanding the requirements of Section 25.18 and
29	29	regardless of whether the appraisal office has appraised the
30	30	property and determined the market value of the property for the tax
31	31	year, an appraisal office may increase the appraised value of
32	32	property to which this section applies for a tax year for purposes
33	33	of taxation by any taxing unit that taxes the property to an amount
34	34	not to exceed the lesser of:
35	35	(1) the market value of the property for the most
36	36	recent tax year that the market value was determined by the
37	37	appraisal office; or
38	38	(2) the sum of:
39	39	(A) the appraised value of the property for the
40	40	preceding tax year; and
41	41	(B) the market value of all new improvements to
42	42	the property.
43	43	(c) When appraising property to which this section applies,
44	44	the chief appraiser shall:
45	45	(1) appraise the property at its market value; and
46	46	(2) include in the appraisal records both the market
47	47	value and the amount computed under Subsection (b)(2).
48	48	(d) Notwithstanding Subsection (b) of this section, the
49	49	appraised value of a residence homestead that is subject to a
50	50	limitation on increases in appraised value under this section is
51	51	equal to the lesser of the amount computed under Section 23.23 or
52	52	the amount computed under Subsection (b) of this section.
53	53	(e) Sections 23.23(d), (e), (f), and (g) apply to a
54	54	limitation under this section in the same manner as those
55	55	subsections apply to a limitation under Section 23.23, except that
56	56	the definition of "new improvement" is not limited to an
57	57	improvement to a residence homestead.
58	58	SECTION 3. Chapter 26, Tax Code, is amended by adding
59	59	Section 26.0501 to read as follows:
60	60	Sec. 26.0501. TEMPORARY LIMITATION ON TAX RATE OF CERTAIN
61	61	TAXING UNITS AFFECTED BY DISASTER. (a) This section does not apply
62	62	to a school district.
63	63	(b) Notwithstanding any other provision of this chapter, a
64	64	taxing unit any part of which is located in an area that at any time
65	65	during the preceding tax year was declared a disaster area by the
66	66	governor or by the president of the United States may not adopt a
67	67	tax rate for the current tax year that exceeds the sum of:
68	68	(1) the no-new-revenue maintenance and operations
69	69	rate for the taxing unit; and
70	70	(2) the current debt rate for the taxing unit.
71	71	SECTION 4. Section 42.26(d), Tax Code, is amended to read as
72	72	follows:
73	73	(d) For purposes of this section, the value of the property
74	74	subject to the suit and the value of a comparable property or sample
75	75	property that is used for comparison must be the market value
76	76	determined by the appraisal district when the property is [a
77	77	residence homestead] subject to the limitation on appraised value
78	78	imposed by Section 23.23 or 23.231.
79	79	SECTION 5. Section 44.004(c), Education Code, is amended to
80	80	read as follows:
81	81	(c) The notice of public meeting to discuss and adopt the
82	82	budget and the proposed tax rate may not be smaller than one-quarter
83	83	page of a standard-size or a tabloid-size newspaper, and the
84	84	headline on the notice must be in 18-point or larger type. Subject
85	85	to Subsection (d), the notice must:
86	86	(1) contain a statement in the following form:
87	87	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
88	88	"The (name of school district) will hold a public meeting at
89	89	(time, date, year) in (name of room, building, physical location,
90	90	city, state). The purpose of this meeting is to discuss the school
91	91	district's budget that will determine the tax rate that will be
92	92	adopted. Public participation in the discussion is invited." The
93	93	statement of the purpose of the meeting must be in bold type. In
94	94	reduced type, the notice must state: "The tax rate that is
95	95	ultimately adopted at this meeting or at a separate meeting at a
96	96	later date may not exceed the proposed rate shown below unless the
97	97	district publishes a revised notice containing the same information
98	98	and comparisons set out below and holds another public meeting to
99	99	discuss the revised notice.";
100	100	(2) contain a section entitled "Comparison of Proposed
101	101	Budget with Last Year's Budget," which must show the difference,
102	102	expressed as a percent increase or decrease, as applicable, in the
103	103	amounts budgeted for the preceding fiscal year and the amount
104	104	budgeted for the fiscal year that begins in the current tax year for
105	105	each of the following:
106	106	(A) maintenance and operations;
107	107	(B) debt service; and
108	108	(C) total expenditures;
109	109	(3) contain a section entitled "Total Appraised Value
110	110	and Total Taxable Value," which must show the total appraised value
111	111	and the total taxable value of all property and the total appraised
112	112	value and the total taxable value of new property taxable by the
113	113	district in the preceding tax year and the current tax year as
114	114	calculated under Section 26.04, Tax Code;
115	115	(4) contain a statement of the total amount of the
116	116	outstanding and unpaid bonded indebtedness of the school district;
117	117	(5) contain a section entitled "Comparison of Proposed
118	118	Rates with Last Year's Rates," which must:
119	119	(A) show in rows the tax rates described by
120	120	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
121	121	property, for columns entitled "Maintenance & Operations,"
122	122	"Interest & Sinking Fund," and "Total," which is the sum of
123	123	"Maintenance & Operations" and "Interest & Sinking Fund":
124	124	(i) the school district's "Last Year's
125	125	Rate";
126	126	(ii) the "Rate to Maintain Same Level of
127	127	Maintenance & Operations Revenue & Pay Debt Service," which:
128	128	(a) in the case of "Maintenance &
129	129	Operations," is the tax rate that, when applied to the current
130	130	taxable value for the district, as certified by the chief appraiser
131	131	under Section 26.01, Tax Code, and as adjusted to reflect changes
132	132	made by the chief appraiser as of the time the notice is prepared,
133	133	would impose taxes in an amount that, when added to state funds to
134	134	be distributed to the district under Chapter 48, would provide the
135	135	same amount of maintenance and operations taxes and state funds
136	136	distributed under Chapter 48 per student in average daily
137	137	attendance for the applicable school year that was available to the
138	138	district in the preceding school year; and
139	139	(b) in the case of "Interest & Sinking
140	140	Fund," is the tax rate that, when applied to the current taxable
141	141	value for the district, as certified by the chief appraiser under
142	142	Section 26.01, Tax Code, and as adjusted to reflect changes made by
143	143	the chief appraiser as of the time the notice is prepared, and when
144	144	multiplied by the district's anticipated collection rate, would
145	145	impose taxes in an amount that, when added to state funds to be
146	146	distributed to the district under Chapter 46 and any excess taxes
147	147	collected to service the district's debt during the preceding tax
148	148	year but not used for that purpose during that year, would provide
149	149	the amount required to service the district's debt; and
150	150	(iii) the "Proposed Rate";
151	151	(B) contain fourth and fifth columns aligned with
152	152	the columns required by Paragraph (A) that show, for each row
153	153	required by Paragraph (A):
154	154	(i) the "Local Revenue per Student," which
155	155	is computed by multiplying the district's total taxable value of
156	156	property, as certified by the chief appraiser for the applicable
157	157	school year under Section 26.01, Tax Code, and as adjusted to
158	158	reflect changes made by the chief appraiser as of the time the
159	159	notice is prepared, by the total tax rate, and dividing the product
160	160	by the number of students in average daily attendance in the
161	161	district for the applicable school year; and
162	162	(ii) the "State Revenue per Student," which
163	163	is computed by determining the amount of state aid received or to be
164	164	received by the district under Chapters 43, 46, and 48 and dividing
165	165	that amount by the number of students in average daily attendance in
166	166	the district for the applicable school year; and
167	167	(C) contain an asterisk after each calculation
168	168	for "Interest & Sinking Fund" and a footnote to the section that, in
169	169	reduced type, states "The Interest & Sinking Fund tax revenue is
170	170	used to pay for bonded indebtedness on construction, equipment, or
171	171	both. The bonds, and the tax rate necessary to pay those bonds, were
172	172	approved by the voters of this district.";
173	173	(6) contain a section entitled "Comparison of Proposed
174	174	Levy with Last Year's Levy on Average Residence," which must:
175	175	(A) show in rows the information described by
176	176	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
177	177	entitled "Last Year" and "This Year":
178	178	(i) "Average Market Value of Residences,"
179	179	determined using the same group of residences for each year;
180	180	(ii) "Average Taxable Value of Residences,"
181	181	determined after taking into account the limitation on the
182	182	appraised value of residences under Section 23.23 or 23.231, Tax
183	183	Code, and after subtracting all homestead exemptions applicable in
184	184	each year, other than exemptions available only to disabled persons
185	185	or persons 65 years of age or older or their surviving spouses, and
186	186	using the same group of residences for each year;
187	187	(iii) "Last Year's Rate Versus Proposed
188	188	Rate per $100 Value"; and
189	189	(iv) "Taxes Due on Average Residence,"
190	190	determined using the same group of residences for each year; and
191	191	(B) contain the following information: "Increase
192	192	(Decrease) in Taxes" expressed in dollars and cents, which is
193	193	computed by subtracting the "Taxes Due on Average Residence" for
194	194	the preceding tax year from the "Taxes Due on Average Residence" for
195	195	the current tax year;
196	196	(7) contain the following statement in bold print:
197	197	"Under state law, the dollar amount of school taxes imposed on the
198	198	residence of a person 65 years of age or older or of the surviving
199	199	spouse of such a person, if the surviving spouse was 55 years of age
200	200	or older when the person died, may not be increased above the amount
201	201	paid in the first year after the person turned 65, regardless of
202	202	changes in tax rate or property value.";
203	203	(8) contain the following statement in bold print:
204	204	"Notice of Voter-Approval Rate: The highest tax rate the district
205	205	can adopt before requiring voter approval at an election is (the
206	206	school district voter-approval rate determined under Section
207	207	26.08, Tax Code). This election will be automatically held if the
208	208	district adopts a rate in excess of the voter-approval rate of (the
209	209	school district voter-approval rate)."; and
210	210	(9) contain a section entitled "Fund Balances," which
211	211	must include the estimated amount of interest and sinking fund
212	212	balances and the estimated amount of maintenance and operation or
213	213	general fund balances remaining at the end of the current fiscal
214	214	year that are not encumbered with or by corresponding debt
215	215	obligation, less estimated funds necessary for the operation of the
216	216	district before the receipt of the first payment under Chapter 48 in
217	217	the succeeding school year.
218	218	SECTION 6. Sections 403.302(d) and (i), Government Code,
219	219	are amended to read as follows:
220	220	(d) For the purposes of this section, "taxable value" means
221	221	the market value of all taxable property less:
222	222	(1) the total dollar amount of any residence homestead
223	223	exemptions lawfully granted under Section 11.13(b) or (c), Tax
224	224	Code, in the year that is the subject of the study for each school
225	225	district;
226	226	(2) one-half of the total dollar amount of any
227	227	residence homestead exemptions granted under Section 11.13(n), Tax
228	228	Code, in the year that is the subject of the study for each school
229	229	district;
230	230	(3) the total dollar amount of any exemptions granted
231	231	before May 31, 1993, within a reinvestment zone under agreements
232	232	authorized by Chapter 312, Tax Code;
233	233	(4) subject to Subsection (e), the total dollar amount
234	234	of any captured appraised value of property that:
235	235	(A) is within a reinvestment zone created on or
236	236	before May 31, 1999, or is proposed to be included within the
237	237	boundaries of a reinvestment zone as the boundaries of the zone and
238	238	the proposed portion of tax increment paid into the tax increment
239	239	fund by a school district are described in a written notification
240	240	provided by the municipality or the board of directors of the zone
241	241	to the governing bodies of the other taxing units in the manner
242	242	provided by former Section 311.003(e), Tax Code, before May 31,
243	243	1999, and within the boundaries of the zone as those boundaries
244	244	existed on September 1, 1999, including subsequent improvements to
245	245	the property regardless of when made;
246	246	(B) generates taxes paid into a tax increment
247	247	fund created under Chapter 311, Tax Code, under a reinvestment zone
248	248	financing plan approved under Section 311.011(d), Tax Code, on or
249	249	before September 1, 1999; and
250	250	(C) is eligible for tax increment financing under
251	251	Chapter 311, Tax Code;
252	252	(5) the total dollar amount of any captured appraised
253	253	value of property that:
254	254	(A) is within a reinvestment zone:
255	255	(i) created on or before December 31, 2008,
256	256	by a municipality with a population of less than 18,000; and
257	257	(ii) the project plan for which includes
258	258	the alteration, remodeling, repair, or reconstruction of a
259	259	structure that is included on the National Register of Historic
260	260	Places and requires that a portion of the tax increment of the zone
261	261	be used for the improvement or construction of related facilities
262	262	or for affordable housing;
263	263	(B) generates school district taxes that are paid
264	264	into a tax increment fund created under Chapter 311, Tax Code; and
265	265	(C) is eligible for tax increment financing under
266	266	Chapter 311, Tax Code;
267	267	(6) the total dollar amount of any exemptions granted
268	268	under Section 11.251 or 11.253, Tax Code;
269	269	(7) the difference between the comptroller's estimate
270	270	of the market value and the productivity value of land that
271	271	qualifies for appraisal on the basis of its productive capacity,
272	272	except that the productivity value estimated by the comptroller may
273	273	not exceed the fair market value of the land;
274	274	(8) the portion of the appraised value of residence
275	275	homesteads of individuals who receive a tax limitation under
276	276	Section 11.26, Tax Code, on which school district taxes are not
277	277	imposed in the year that is the subject of the study, calculated as
278	278	if the residence homesteads were appraised at the full value
279	279	required by law;
280	280	(9) a portion of the market value of property not
281	281	otherwise fully taxable by the district at market value because of
282	282	action required by statute or the constitution of this state, other
283	283	than Section 11.311, Tax Code, that, if the tax rate adopted by the
284	284	district is applied to it, produces an amount equal to the
285	285	difference between the tax that the district would have imposed on
286	286	the property if the property were fully taxable at market value and
287	287	the tax that the district is actually authorized to impose on the
288	288	property, if this subsection does not otherwise require that
289	289	portion to be deducted;
290	290	(10) the market value of all tangible personal
291	291	property, other than manufactured homes, owned by a family or
292	292	individual and not held or used for the production of income;
293	293	(11) the appraised value of property the collection of
294	294	delinquent taxes on which is deferred under Section 33.06, Tax
295	295	Code;
296	296	(12) the portion of the appraised value of property
297	297	the collection of delinquent taxes on which is deferred under
298	298	Section 33.065, Tax Code;
299	299	(13) the amount by which the market value of property
300	300	[a residence homestead] to which Section 23.23 or 23.231, Tax Code,
301	301	applies exceeds the appraised value of that property as calculated
302	302	under Section 23.23 or 23.231, as applicable [that section]; and
303	303	(14) the total dollar amount of any exemptions granted
304	304	under Section 11.35, Tax Code.
305	305	(i) If the comptroller determines in the study that the
306	306	market value of property in a school district as determined by the
307	307	appraisal district that appraises property for the school district,
308	308	less the total of the amounts and values listed in Subsection (d) as
309	309	determined by that appraisal district, is valid, the comptroller,
310	310	in determining the taxable value of property in the school district
311	311	under Subsection (d), shall for purposes of Subsection (d)(13)
312	312	subtract from the market value as determined by the appraisal
313	313	district of properties [residence homesteads] to which Section
314	314	23.23 or 23.231, Tax Code, applies the amount by which that amount
315	315	exceeds the appraised value of those properties as calculated by
316	316	the appraisal district under Section 23.23 or 23.231, Tax Code, as
317	317	applicable. If the comptroller determines in the study that the
318	318	market value of property in a school district as determined by the
319	319	appraisal district that appraises property for the school district,
320	320	less the total of the amounts and values listed in Subsection (d) as
321	321	determined by that appraisal district, is not valid, the
322	322	comptroller, in determining the taxable value of property in the
323	323	school district under Subsection (d), shall for purposes of
324	324	Subsection (d)(13) subtract from the market value as estimated by
325	325	the comptroller of properties [residence homesteads] to which
326	326	Section 23.23 or 23.231, Tax Code, applies the amount by which that
327	327	amount exceeds the appraised value of those properties as
328	328	calculated by the appraisal district under Section 23.23 or 23.231,
329	329	Tax Code, as applicable.
330	330	SECTION 7. The change in law made by this Act applies
331	331	beginning with the 2022 tax year.
332	332	SECTION 8. (a) Except as provided by Subsection (b) of this
333	333	section, this Act takes effect January 1, 2022, but only if the
334	334	constitutional amendment to authorize the legislature to provide
335	335	for a temporary limitation on the appraised value for ad valorem tax
336	336	purposes of real property located in a political subdivision any
337	337	part of which is located in an area that at any time during the
338	338	preceding tax year was declared a disaster area is approved by the
339	339	voters. If that amendment is not approved by the voters, this Act
340	340	has no effect.
341	341	(b) This subsection and Section 26.0501, Tax Code, as added
342	342	by this Act, take effect January 1, 2022, regardless of whether the
343	343	constitutional amendment described by Subsection (a) of this
344	344	section is approved by the voters.