Texas 2021 - 87th Regular

Texas House Bill HB183 Compare Versions

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1	1	87R1115 TJB-D
2	2	By: Bernal H.B. No. 183
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a limitation on the total amount of ad valorem taxes
8	8	that a school district may impose on certain residence homesteads
9	9	following a substantial school tax increase.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
12	12	adding Section 11.262 to read as follows:
13	13	Sec. 11.262. LIMITATION OF SCHOOL TAXES ON CERTAIN
14	14	HOMESTEADS FOLLOWING SUBSTANTIAL TAX INCREASE. (a) In this
15	15	section, "residence homestead" has the meaning assigned by Section
16	16	11.13.
17	17	(b) The chief appraiser shall appraise, and the tax assessor
18	18	for each school district shall calculate the taxes on, each
19	19	residence homestead in the manner provided by law for other
20	20	property.
21	21	(c) Except as provided by Subsection (g), if an individual
22	22	qualifies property as the individual's residence homestead for at
23	23	least 15 consecutive tax years and the total amount of school
24	24	district taxes imposed on the property in that 15th tax year is at
25	25	least 120 percent greater than the total amount of those taxes
26	26	imposed in the first of those tax years, not including taxes imposed
27	27	on the appraised value of all improvements made to the property
28	28	during that period, a school district may not impose taxes on that
29	29	residence homestead in a subsequent tax year in an amount that
30	30	exceeds the least of the following amounts:
31	31	(1) the amount of school taxes calculated for the
32	32	current tax year under Subsection (b);
33	33	(2) the amount of school taxes imposed for that 15th
34	34	tax year; or
35	35	(3) the amount of school taxes as limited under
36	36	Section 11.26, if applicable.
37	37	(c-1) An individual may not receive a limitation on taxes
38	38	under Subsection (c) based on an increase in taxes for any period
39	39	that began before the 2008 tax year.
40	40	(d) If an individual who qualifies for a limitation under
41	41	this section dies, the surviving spouse of the individual is
42	42	entitled to continue receiving the limitation on school taxes
43	43	imposed by a school district on the residence homestead of the
44	44	individual if the property:
45	45	(1) is the residence homestead of the surviving spouse
46	46	on the date that the individual dies; and
47	47	(2) remains the residence homestead of the surviving
48	48	spouse.
49	49	(e) Except as provided by Subsection (d) or (f), a
50	50	limitation under this section expires on January 1 if the property
51	51	is not the residence homestead of the individual entitled to the
52	52	limitation for the preceding tax year.
53	53	(f) A limitation under this section does not expire if:
54	54	(1) an owner of an interest in the residence homestead
55	55	conveys the interest to a qualifying trust as defined by Section
56	56	11.13(j) and the owner or the owner's spouse is:
57	57	(A) a trustor of the trust; and
58	58	(B) entitled to occupy the property; or
59	59	(2) the owner of the structure qualifies for an
60	60	exemption under Section 11.13 under the circumstances described by
61	61	Section 11.135(a).
62	62	(g) Except as provided by Subsection (h), a school district
63	63	may increase the tax on a residence homestead subject to a
64	64	limitation under this section in the first year the appraised value
65	65	of the property is increased as the result of an improvement made to
66	66	the property in the preceding tax year. The amount of the tax
67	67	increase is determined by applying the current tax rate of the
68	68	school district to the difference in the taxable value of the
69	69	property with the improvement and the taxable value the property
70	70	would have had without the improvement. A limitation imposed by
71	71	this section then applies to the increased amount of tax until
72	72	another improvement is made to the property.
73	73	(h) An improvement to a residence homestead is not treated
74	74	as an improvement under Subsection (g) if the improvement is:
75	75	(1) a repair;
76	76	(2) required to be made to comply with a governmental
77	77	requirement; or
78	78	(3) subject to Subsection (i), a replacement structure
79	79	for a structure that was rendered uninhabitable or unusable by a
80	80	casualty or by wind or water damage.
81	81	(i) A replacement structure described by Subsection (h)(3)
82	82	is considered to be an improvement under Subsection (g) only if:
83	83	(1) the square footage of the replacement structure
84	84	exceeds the square footage of the replaced structure as the
85	85	replaced structure existed before the casualty or damage occurred;
86	86	or
87	87	(2) the exterior of the replacement structure is of
88	88	higher quality construction and composition than that of the
89	89	replaced structure.
90	90	(j) If the appraisal roll provides for taxation of appraised
91	91	value for a prior year because a limitation under this section was
92	92	erroneously allowed, the tax assessor for the school district shall
93	93	add as back taxes due, as provided by Section 26.09(d), the positive
94	94	difference, if any, between the tax that should have been imposed
95	95	for that tax year and the tax that was imposed because of the
96	96	provisions of this section.
97	97	(k) For each school district in an appraisal district, the
98	98	chief appraiser shall determine the portion of the appraised value
99	99	of residence homesteads of individuals on which school district
100	100	taxes are not imposed in a tax year because of the limitation under
101	101	this section. That portion is calculated by determining the
102	102	taxable value that, if multiplied by the tax rate adopted by the
103	103	school district for the tax year, would produce an amount equal to
104	104	the amount of tax that would have been imposed by the school
105	105	district on those properties if the limitation under this section
106	106	were not in effect, but that was not imposed because of that
107	107	limitation. The chief appraiser shall determine that taxable value
108	108	and certify it to the comptroller as soon as practicable for each
109	109	tax year.
110	110	SECTION 2. Sections 23.19(b) and (g), Tax Code, are amended
111	111	to read as follows:
112	112	(b) If an appraisal district receives a written request for
113	113	the appraisal of real property and improvements of a cooperative
114	114	housing corporation according to the separate interests of the
115	115	corporation's stockholders, the chief appraiser shall separately
116	116	appraise the interests described by Subsection (d) if the
117	117	conditions required by Subsections (e) and (f) have been met.
118	118	Separate appraisal under this section is for the purposes of
119	119	administration of tax exemptions, determination of applicable
120	120	limitations of taxes under Section 11.26, [or] 11.261, or 11.262,
121	121	and apportionment by a cooperative housing corporation of property
122	122	taxes among its stockholders but is not the basis for determining
123	123	value on which a tax is imposed under this title. A stockholder
124	124	whose interest is separately appraised under this section may
125	125	protest and appeal the appraised value in the manner provided by
126	126	this title for protest and appeal of the appraised value of other
127	127	property.
128	128	(g) A tax bill or a separate statement accompanying the tax
129	129	bill to a cooperative housing corporation for which interests of
130	130	stockholders are separately appraised under this section must
131	131	state, in addition to the information required by Section 31.01,
132	132	the appraised value and taxable value of each interest separately
133	133	appraised. Each exemption claimed as provided by this title by a
134	134	person entitled to the exemption shall also be deducted from the
135	135	total appraised value of the property of the corporation. The total
136	136	tax imposed by a school district, county, municipality, or junior
137	137	college district shall be reduced by any amount that represents an
138	138	increase in taxes attributable to separately appraised interests of
139	139	the real property and improvements that are subject to the
140	140	limitation of taxes prescribed by Section 11.26, [or] 11.261, or
141	141	11.262. The corporation shall apportion among its stockholders
142	142	liability for reimbursing the corporation for property taxes
143	143	according to the relative taxable values of their interests.
144	144	SECTION 3. Sections 26.012(6), (13), and (14), Tax Code,
145	145	are amended to read as follows:
146	146	(6) "Current total value" means the total taxable
147	147	value of property listed on the appraisal roll for the current year,
148	148	including all appraisal roll supplements and corrections as of the
149	149	date of the calculation, less the taxable value of property
150	150	exempted for the current tax year for the first time under Section
151	151	11.31 or 11.315, except that:
152	152	(A) the current total value for a school district
153	153	excludes:
154	154	(i) the total value of homesteads that
155	155	qualify for a tax limitation as provided by Sections [Section]
156	156	11.26 and 11.262; and
157	157	(ii) new property value of property that is
158	158	subject to an agreement entered into under Chapter 313; and
159	159	(B) the current total value for a county,
160	160	municipality, or junior college district excludes the total value
161	161	of homesteads that qualify for a tax limitation provided by Section
162	162	11.261.
163	163	(13) "Last year's levy" means the total of:
164	164	(A) the amount of taxes that would be generated
165	165	by multiplying the total tax rate adopted by the governing body in
166	166	the preceding year by the total taxable value of property on the
167	167	appraisal roll for the preceding year, including:
168	168	(i) taxable value that was reduced in an
169	169	appeal under Chapter 42;
170	170	(ii) all appraisal roll supplements and
171	171	corrections other than corrections made pursuant to Section
172	172	25.25(d), as of the date of the calculation, except that last year's
173	173	taxable value for a school district excludes the total value of
174	174	homesteads that qualified for a tax limitation as provided by
175	175	Sections [Section] 11.26 and 11.262 and last year's taxable value
176	176	for a county, municipality, or junior college district excludes the
177	177	total value of homesteads that qualified for a tax limitation as
178	178	provided by Section 11.261; and
179	179	(iii) the portion of taxable value of
180	180	property that is the subject of an appeal under Chapter 42 on July
181	181	25 that is not in dispute; and
182	182	(B) the amount of taxes refunded by the taxing
183	183	unit in the preceding year for tax years before that year.
184	184	(14) "Last year's total value" means the total taxable
185	185	value of property listed on the appraisal roll for the preceding
186	186	year, including all appraisal roll supplements and corrections,
187	187	other than corrections made pursuant to Section 25.25(d), as of the
188	188	date of the calculation, except that:
189	189	(A) last year's taxable value for a school
190	190	district excludes the total value of homesteads that qualified for
191	191	a tax limitation as provided by Sections [Section] 11.26 and
192	192	11.262; and
193	193	(B) last year's taxable value for a county,
194	194	municipality, or junior college district excludes the total value
195	195	of homesteads that qualified for a tax limitation as provided by
196	196	Section 11.261.
197	197	SECTION 4. Section 44.004(c), Education Code, is amended to
198	198	read as follows:
199	199	(c) The notice of public meeting to discuss and adopt the
200	200	budget and the proposed tax rate may not be smaller than one-quarter
201	201	page of a standard-size or a tabloid-size newspaper, and the
202	202	headline on the notice must be in 18-point or larger type. Subject
203	203	to Subsection (d), the notice must:
204	204	(1) contain a statement in the following form:
205	205	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
206	206	"The (name of school district) will hold a public meeting at
207	207	(time, date, year) in (name of room, building, physical location,
208	208	city, state). The purpose of this meeting is to discuss the school
209	209	district's budget that will determine the tax rate that will be
210	210	adopted. Public participation in the discussion is invited." The
211	211	statement of the purpose of the meeting must be in bold type. In
212	212	reduced type, the notice must state: "The tax rate that is
213	213	ultimately adopted at this meeting or at a separate meeting at a
214	214	later date may not exceed the proposed rate shown below unless the
215	215	district publishes a revised notice containing the same information
216	216	and comparisons set out below and holds another public meeting to
217	217	discuss the revised notice.";
218	218	(2) contain a section entitled "Comparison of Proposed
219	219	Budget with Last Year's Budget," which must show the difference,
220	220	expressed as a percent increase or decrease, as applicable, in the
221	221	amounts budgeted for the preceding fiscal year and the amount
222	222	budgeted for the fiscal year that begins in the current tax year for
223	223	each of the following:
224	224	(A) maintenance and operations;
225	225	(B) debt service; and
226	226	(C) total expenditures;
227	227	(3) contain a section entitled "Total Appraised Value
228	228	and Total Taxable Value," which must show the total appraised value
229	229	and the total taxable value of all property and the total appraised
230	230	value and the total taxable value of new property taxable by the
231	231	district in the preceding tax year and the current tax year as
232	232	calculated under Section 26.04, Tax Code;
233	233	(4) contain a statement of the total amount of the
234	234	outstanding and unpaid bonded indebtedness of the school district;
235	235	(5) contain a section entitled "Comparison of Proposed
236	236	Rates with Last Year's Rates," which must:
237	237	(A) show in rows the tax rates described by
238	238	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
239	239	property, for columns entitled "Maintenance & Operations,"
240	240	"Interest & Sinking Fund," and "Total," which is the sum of
241	241	"Maintenance & Operations" and "Interest & Sinking Fund":
242	242	(i) the school district's "Last Year's
243	243	Rate";
244	244	(ii) the "Rate to Maintain Same Level of
245	245	Maintenance & Operations Revenue & Pay Debt Service," which:
246	246	(a) in the case of "Maintenance &
247	247	Operations," is the tax rate that, when applied to the current
248	248	taxable value for the district, as certified by the chief appraiser
249	249	under Section 26.01, Tax Code, and as adjusted to reflect changes
250	250	made by the chief appraiser as of the time the notice is prepared,
251	251	would impose taxes in an amount that, when added to state funds to
252	252	be distributed to the district under Chapter 48, would provide the
253	253	same amount of maintenance and operations taxes and state funds
254	254	distributed under Chapter 48 per student in average daily
255	255	attendance for the applicable school year that was available to the
256	256	district in the preceding school year; and
257	257	(b) in the case of "Interest & Sinking
258	258	Fund," is the tax rate that, when applied to the current taxable
259	259	value for the district, as certified by the chief appraiser under
260	260	Section 26.01, Tax Code, and as adjusted to reflect changes made by
261	261	the chief appraiser as of the time the notice is prepared, and when
262	262	multiplied by the district's anticipated collection rate, would
263	263	impose taxes in an amount that, when added to state funds to be
264	264	distributed to the district under Chapter 46 and any excess taxes
265	265	collected to service the district's debt during the preceding tax
266	266	year but not used for that purpose during that year, would provide
267	267	the amount required to service the district's debt; and
268	268	(iii) the "Proposed Rate";
269	269	(B) contain fourth and fifth columns aligned with
270	270	the columns required by Paragraph (A) that show, for each row
271	271	required by Paragraph (A):
272	272	(i) the "Local Revenue per Student," which
273	273	is computed by multiplying the district's total taxable value of
274	274	property, as certified by the chief appraiser for the applicable
275	275	school year under Section 26.01, Tax Code, and as adjusted to
276	276	reflect changes made by the chief appraiser as of the time the
277	277	notice is prepared, by the total tax rate, and dividing the product
278	278	by the number of students in average daily attendance in the
279	279	district for the applicable school year; and
280	280	(ii) the "State Revenue per Student," which
281	281	is computed by determining the amount of state aid received or to be
282	282	received by the district under Chapters 43, 46, and 48 and dividing
283	283	that amount by the number of students in average daily attendance in
284	284	the district for the applicable school year; and
285	285	(C) contain an asterisk after each calculation
286	286	for "Interest & Sinking Fund" and a footnote to the section that, in
287	287	reduced type, states "The Interest & Sinking Fund tax revenue is
288	288	used to pay for bonded indebtedness on construction, equipment, or
289	289	both. The bonds, and the tax rate necessary to pay those bonds, were
290	290	approved by the voters of this district.";
291	291	(6) contain a section entitled "Comparison of Proposed
292	292	Levy with Last Year's Levy on Average Residence," which must:
293	293	(A) show in rows the information described by
294	294	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
295	295	entitled "Last Year" and "This Year":
296	296	(i) "Average Market Value of Residences,"
297	297	determined using the same group of residences for each year;
298	298	(ii) "Average Taxable Value of Residences,"
299	299	determined after taking into account the limitation on the
300	300	appraised value of residences under Section 23.23, Tax Code, and
301	301	after subtracting all homestead exemptions applicable in each year,
302	302	other than exemptions available only to disabled persons or persons
303	303	65 years of age or older or their surviving spouses, and using the
304	304	same group of residences for each year;
305	305	(iii) "Last Year's Rate Versus Proposed
306	306	Rate per $100 Value"; and
307	307	(iv) "Taxes Due on Average Residence,"
308	308	determined using the same group of residences for each year; and
309	309	(B) contain the following information: "Increase
310	310	(Decrease) in Taxes" expressed in dollars and cents, which is
311	311	computed by subtracting the "Taxes Due on Average Residence" for
312	312	the preceding tax year from the "Taxes Due on Average Residence" for
313	313	the current tax year;
314	314	(7) contain the following statement in bold print:
315	315	"Under state law, the dollar amount of school taxes imposed on the
316	316	residence of a person 65 years of age or older or of the surviving
317	317	spouse of such a person, if the surviving spouse was 55 years of age
318	318	or older when the person died, may not be increased above the amount
319	319	paid in the first year after the person turned 65, regardless of
320	320	changes in tax rate or property value.";
321	321	(8) contain the following statement in bold print:
322	322	"Notice of Voter-Approval Rate: The highest tax rate the district
323	323	can adopt before requiring voter approval at an election is (the
324	324	school district voter-approval rate determined under Section
325	325	26.08, Tax Code). This election will be automatically held if the
326	326	district adopts a rate in excess of the voter-approval rate of (the
327	327	school district voter-approval rate)."; [and]
328	328	(9) contain a section entitled "Fund Balances," which
329	329	must include the estimated amount of interest and sinking fund
330	330	balances and the estimated amount of maintenance and operation or
331	331	general fund balances remaining at the end of the current fiscal
332	332	year that are not encumbered with or by corresponding debt
333	333	obligation, less estimated funds necessary for the operation of the
334	334	district before the receipt of the first payment under Chapter 48 in
335	335	the succeeding school year; and
336	336	(10) contain the following statement in bold print:
337	337	"Under state law, the dollar amount of school taxes imposed on a
338	338	residence homestead that qualifies as the owner's residence
339	339	homestead for at least 15 consecutive years, during which time the
340	340	total amount of school district taxes imposed on the property has
341	341	increased by at least 120 percent, may not be increased above the
342	342	amount of school taxes imposed on the property in that 15th
343	343	consecutive year, regardless of changes in tax rate or property
344	344	value.".
345	345	SECTION 5. Section 403.302(d), Government Code, is amended
346	346	to read as follows:
347	347	(d) For the purposes of this section, "taxable value" means
348	348	the market value of all taxable property less:
349	349	(1) the total dollar amount of any residence homestead
350	350	exemptions lawfully granted under Section 11.13(b) or (c), Tax
351	351	Code, in the year that is the subject of the study for each school
352	352	district;
353	353	(2) one-half of the total dollar amount of any
354	354	residence homestead exemptions granted under Section 11.13(n), Tax
355	355	Code, in the year that is the subject of the study for each school
356	356	district;
357	357	(3) the total dollar amount of any exemptions granted
358	358	before May 31, 1993, within a reinvestment zone under agreements
359	359	authorized by Chapter 312, Tax Code;
360	360	(4) subject to Subsection (e), the total dollar amount
361	361	of any captured appraised value of property that:
362	362	(A) is within a reinvestment zone created on or
363	363	before May 31, 1999, or is proposed to be included within the
364	364	boundaries of a reinvestment zone as the boundaries of the zone and
365	365	the proposed portion of tax increment paid into the tax increment
366	366	fund by a school district are described in a written notification
367	367	provided by the municipality or the board of directors of the zone
368	368	to the governing bodies of the other taxing units in the manner
369	369	provided by former Section 311.003(e), Tax Code, before May 31,
370	370	1999, and within the boundaries of the zone as those boundaries
371	371	existed on September 1, 1999, including subsequent improvements to
372	372	the property regardless of when made;
373	373	(B) generates taxes paid into a tax increment
374	374	fund created under Chapter 311, Tax Code, under a reinvestment zone
375	375	financing plan approved under Section 311.011(d), Tax Code, on or
376	376	before September 1, 1999; and
377	377	(C) is eligible for tax increment financing under
378	378	Chapter 311, Tax Code;
379	379	(5) the total dollar amount of any captured appraised
380	380	value of property that:
381	381	(A) is within a reinvestment zone:
382	382	(i) created on or before December 31, 2008,
383	383	by a municipality with a population of less than 18,000; and
384	384	(ii) the project plan for which includes
385	385	the alteration, remodeling, repair, or reconstruction of a
386	386	structure that is included on the National Register of Historic
387	387	Places and requires that a portion of the tax increment of the zone
388	388	be used for the improvement or construction of related facilities
389	389	or for affordable housing;
390	390	(B) generates school district taxes that are paid
391	391	into a tax increment fund created under Chapter 311, Tax Code; and
392	392	(C) is eligible for tax increment financing under
393	393	Chapter 311, Tax Code;
394	394	(6) the total dollar amount of any exemptions granted
395	395	under Section 11.251 or 11.253, Tax Code;
396	396	(7) the difference between the comptroller's estimate
397	397	of the market value and the productivity value of land that
398	398	qualifies for appraisal on the basis of its productive capacity,
399	399	except that the productivity value estimated by the comptroller may
400	400	not exceed the fair market value of the land;
401	401	(8) the portion of the appraised value of residence
402	402	homesteads of individuals who receive a tax limitation under
403	403	Section 11.26 or 11.262, Tax Code, on which school district taxes
404	404	are not imposed in the year that is the subject of the study,
405	405	calculated as if the residence homesteads were appraised at the
406	406	full value required by law;
407	407	(9) a portion of the market value of property not
408	408	otherwise fully taxable by the district at market value because of
409	409	action required by statute or the constitution of this state, other
410	410	than Section 11.311, Tax Code, that, if the tax rate adopted by the
411	411	district is applied to it, produces an amount equal to the
412	412	difference between the tax that the district would have imposed on
413	413	the property if the property were fully taxable at market value and
414	414	the tax that the district is actually authorized to impose on the
415	415	property, if this subsection does not otherwise require that
416	416	portion to be deducted;
417	417	(10) the market value of all tangible personal
418	418	property, other than manufactured homes, owned by a family or
419	419	individual and not held or used for the production of income;
420	420	(11) the appraised value of property the collection of
421	421	delinquent taxes on which is deferred under Section 33.06, Tax
422	422	Code;
423	423	(12) the portion of the appraised value of property
424	424	the collection of delinquent taxes on which is deferred under
425	425	Section 33.065, Tax Code;
426	426	(13) the amount by which the market value of a
427	427	residence homestead to which Section 23.23, Tax Code, applies
428	428	exceeds the appraised value of that property as calculated under
429	429	that section; and
430	430	(14) the total dollar amount of any exemptions granted
431	431	under Section 11.35, Tax Code.
432	432	SECTION 6. The limitation on school taxes provided by
433	433	Section 11.262, Tax Code, as added by this Act, applies only to ad
434	434	valorem taxes imposed for an ad valorem tax year that begins on or
435	435	after the effective date of this Act.
436	436	SECTION 7. This Act takes effect January 1, 2022, but only
437	437	if the constitutional amendment proposed by the 87th Legislature,
438	438	Regular Session, 2021, authorizing the legislature to limit the
439	439	total amount of ad valorem taxes that a school district may impose
440	440	on the residence homestead of an individual and the surviving
441	441	spouse of the individual if the individual qualifies the property
442	442	as the individual's residence homestead for 15 consecutive tax
443	443	years and the school taxes on the property increase by at least 120
444	444	percent during that period is approved by the voters. If that
445	445	amendment is not approved by the voters, this Act has no effect.