| 1 | 1 | | By: Stephenson H.B. No. 4317 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the adjustment of the limitation on the amount of ad |
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| 7 | 7 | | valorem taxes imposed by a school district on the residence |
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| 8 | 8 | | homestead of an elderly or disabled person if the school district |
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| 9 | 9 | | adopts, changes the amount of, or rescinds a local option residence |
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| 10 | 10 | | homestead exemption. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 11.26, Tax Code, is amended by adding |
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| 13 | 13 | | Subsections (a-4), (a-5), (a-6), and (a-7) to read as follows: |
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| 14 | 14 | | (a-4) Notwithstanding the other provisions of this section, |
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| 15 | 15 | | if in the 2022 tax year or a subsequent tax year a school district |
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| 16 | 16 | | adopts an exemption under Section 11.13(n) for the first time, the |
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| 17 | 17 | | amount of the limitation on tax increases provided by this section |
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| 18 | 18 | | on the residence homestead of an individual who qualifies for the |
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| 19 | 19 | | limitation and who qualified for an exemption under Section |
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| 20 | 20 | | 11.13(c) for that homestead for the preceding tax year is, for the |
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| 21 | 21 | | tax year in which the exemption is adopted, equal to the amount |
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| 22 | 22 | | computed by: |
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| 23 | 23 | | (1) multiplying the dollar amount of the appraised |
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| 24 | 24 | | value of the homestead exempted under Section 11.13(n) by the tax |
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| 25 | 25 | | rate of the district for the current tax year; |
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| 26 | 26 | | (2) subtracting the amount computed under Subdivision |
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| 27 | 27 | | (1) from the amount of tax the district imposed on the homestead in |
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| 28 | 28 | | the preceding tax year; and |
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| 29 | 29 | | (3) adding to the amount computed under Subdivision |
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| 30 | 30 | | (2) any tax imposed by the district on the homestead in the current |
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| 31 | 31 | | tax year attributable to improvements made in the preceding tax |
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| 32 | 32 | | year, as provided by Subsection (b). |
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| 33 | 33 | | (a-5) Except as provided by Subsections (a-6) and (b), a |
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| 34 | 34 | | limitation on tax increases provided by this section on a residence |
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| 35 | 35 | | homestead computed under Subsection (a-4) continues to apply to the |
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| 36 | 36 | | homestead in subsequent tax years until the limitation expires. |
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| 37 | 37 | | (a-6) Notwithstanding the other provisions of this section, |
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| 38 | 38 | | if a school district increases, decreases, or rescinds an exemption |
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| 39 | 39 | | under Section 11.13(n) that the district adopted for the first time |
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| 40 | 40 | | in the 2022 tax year or a subsequent tax year, the amount of the |
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| 41 | 41 | | limitation on tax increases provided by this section on the |
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| 42 | 42 | | residence homestead of an individual who qualifies for the |
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| 43 | 43 | | limitation and who qualified for an exemption under Section |
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| 44 | 44 | | 11.13(c) for that homestead for the preceding tax year is, for the |
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| 45 | 45 | | tax year in which the exemption is increased, decreased, or |
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| 46 | 46 | | rescinded, equal to the amount computed by: |
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| 47 | 47 | | (1) multiplying the change, expressed as a positive |
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| 48 | 48 | | amount, in the dollar amount of the appraised value of the homestead |
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| 49 | 49 | | exempted under Section 11.13(n) as a result of the increase, |
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| 50 | 50 | | decrease, or rescission of that exemption by the tax rate of the |
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| 51 | 51 | | district for the current tax year; |
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| 52 | 52 | | (2) subtracting the amount computed under Subdivision |
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| 53 | 53 | | (1) from, or adding the amount computed under that subdivision to, |
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| 54 | 54 | | as applicable, the amount of tax the district imposed on the |
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| 55 | 55 | | homestead in the preceding tax year; and |
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| 56 | 56 | | (3) adding to the amount computed under Subdivision |
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| 57 | 57 | | (2) any tax imposed by the district on the homestead in the current |
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| 58 | 58 | | tax year attributable to improvements made in the preceding tax |
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| 59 | 59 | | year, as provided by Subsection (b). |
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| 60 | 60 | | (a-7) Except as provided by Subsection (b), a limitation on |
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| 61 | 61 | | tax increases provided by this section on a residence homestead |
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| 62 | 62 | | computed under Subsection (a-6) continues to apply to the homestead |
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| 63 | 63 | | in subsequent tax years until the limitation expires. |
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| 64 | 64 | | SECTION 2. The changes in law made by this Act apply only to |
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| 65 | 65 | | an ad valorem tax year that begins on or after January 1, 2022. |
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| 66 | 66 | | SECTION 3. This Act takes effect January 1, 2022, but only |
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| 67 | 67 | | if the constitutional amendment proposed by the 87th Legislature, |
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| 68 | 68 | | Regular Session, 2021, authorizing the legislature to provide for |
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| 69 | 69 | | the adjustment of the limitation on the amount of ad valorem taxes |
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| 70 | 70 | | imposed by a school district on the residence homestead of an |
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| 71 | 71 | | elderly or disabled person if the school district adopts, changes |
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| 72 | 72 | | the amount of, or rescinds a local option residence homestead |
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| 73 | 73 | | exemption is approved by the voters. If that constitutional |
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| 74 | 74 | | amendment is not approved by the voters, this Act has no effect. |
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