87R12041 TJB-D
By: Rodriguez H.B. No. 3359
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the governing body of a taxing unit
other than a school district to adopt an exemption from ad valorem
taxation of a portion, expressed as a dollar amount, of the
appraised value of an individual's residence homestead and the
treatment of such an exemption in the calculation of certain ad
valorem tax rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13, Tax Code, is amended by amending
Subsection (i) and adding Subsections (s) and (t) to read as
follows:
(i) The assessor and collector for a taxing unit may
disregard the exemptions authorized by Subsection (b), (c), (d),
[or] (n), or (s) [of this section] and assess and collect a tax
pledged for payment of debt without deducting the amount of the
exemption if:
(1) prior to adoption of the exemption, the unit
pledged the taxes for the payment of a debt; and
(2) granting the exemption would impair the obligation
of the contract creating the debt.
(s) In addition to any other exemptions provided by this
section, an individual is entitled to an exemption from taxation by
a taxing unit other than a school district of a portion of the
appraised value of the individual's residence homestead if the
exemption is adopted by the governing body of the taxing unit before
July 1 in the manner provided by law for official action by the
body. The amount of the exemption is $5,000 of the appraised value
of the residence homestead, except that if the average market value
of residence homesteads in the taxing unit in the tax year in which
the exemption is adopted exceeds $25,000, as calculated based on
the appraisal records prepared by the chief appraiser of each
appraisal district in which the taxing unit participates, the
governing body may authorize an exemption in a larger dollar amount
not to exceed an amount equal to 20 percent of the average market
value of residence homesteads in the taxing unit in the tax year in
which the exemption is adopted.
(t) This subsection applies only to a taxing unit the
governing body of which has ceased granting an exemption under
Subsection (n) and has adopted an exemption under Subsection (s).
An individual who would have been entitled to an exemption from
taxation by the taxing unit under Subsection (n) had the governing
body not ceased granting an exemption under that subsection is
entitled to continue to receive an exemption under that subsection
in lieu of the exemption under Subsection (s) if the individual
otherwise qualifies for the exemption under Subsection (n) and the
amount of the exemption under that subsection exceeds the amount of
the exemption under Subsection (s). The exemption applies only to
property for which the individual received an exemption under
Subsection (n) in the last year in which the governing body granted
an exemption under that subsection. The exemption expires in the
event of a change in ownership of the property or, if the property
is owned by a qualifying trust and the trustor of the trust or a
beneficiary of the trust has the right to use and occupy the
property as the trustor's or beneficiary's principal residential
property, there is a change in the trustor or beneficiary of the
trust, respectively.
SECTION 2. Section 25.23(a), Tax Code, is amended to read as
follows:
(a) After submission of appraisal records, the chief
appraiser shall prepare supplemental appraisal records listing:
(1) each taxable property the chief appraiser
discovers that is not included in the records already submitted,
including property that was omitted from an appraisal roll in a
prior tax year;
(2) property on which the appraisal review board has
not determined a protest at the time of its approval of the
appraisal records; and
(3) property that qualifies for an exemption under
Section 11.13(n) or (s) that was adopted by the governing body of a
taxing unit after the date the appraisal records were submitted.
SECTION 3. Sections 26.012(6) and (15), Tax Code, are
amended to read as follows:
(6) "Current total value" means the total taxable
value of property listed on the appraisal roll for the current year,
including all appraisal roll supplements and corrections as of the
date of the calculation, less the taxable value of property
exempted for the current tax year for the first time under Section
11.31 or 11.315, except that:
(A) the current total value for a school district
excludes:
(i) the total value of homesteads that
qualify for a tax limitation as provided by Section 11.26; and
(ii) new property value of property that is
subject to an agreement entered into under Chapter 313; [and]
(B) the current total value for a county,
municipality, or junior college district excludes the total value
of homesteads that qualify for a tax limitation provided by Section
11.261; and
(C) the current total value for a taxing unit the
governing body of which has adopted an exemption under Section
11.13(s) includes, with regard to homesteads other than those
described by Paragraph (B) of this subdivision, the total dollar
amount of the exemptions granted under that subsection.
(15) "Lost property levy" means the amount of taxes
levied in the preceding year on property value that was taxable in
the preceding year but is not taxable in the current year because
the property is exempt in the current year under a provision of this
code other than Section 11.13(s), 11.251, 11.253, or 11.35, the
property has qualified for special appraisal under Chapter 23 in
the current year, or the property is located in territory that has
ceased to be a part of the taxing unit since the preceding year.
SECTION 4. This Act applies only to ad valorem taxes imposed
for a tax year that begins on or after the effective date of this
Act.
SECTION 5. This Act takes effect January 1, 2022, but only
if the constitutional amendment proposed by the 87th Legislature,
Regular Session, 2021, authorizing the governing body of a
political subdivision other than a school district to adopt an
exemption from ad valorem taxation of a portion, expressed as a
dollar amount, of the market value of an individual's residence
homestead is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.