Texas 2021 - 87th Regular

Texas House Bill HB650 Compare Versions

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1	1	87R600 TJB-D
2	2	By: Raymond H.B. No. 650
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 by certain taxing
8	8	units of a portion of the appraised value of the residence homestead
9	9	of the parent or guardian of a person who is disabled and who
10	10	resides with the parent or guardian.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 11.13, Tax Code, is amended by amending
13	13	Subsections (c), (d), and (h) and adding Subsection (d-1) to read as
14	14	follows:
15	15	(c) In addition to the exemption provided by Subsection (b)
16	16	[of this section], an individual [adult] who is disabled, is the
17	17	parent or guardian of a person who is disabled and who resides with
18	18	the parent or guardian, or is 65 years of age or older is entitled to
19	19	an exemption from taxation by a school district of $10,000 of the
20	20	appraised value of the individual's [his] residence homestead.
21	21	(d) In addition to the exemptions provided by Subsections
22	22	(b) and (c) [of this section], an individual who is disabled, is the
23	23	parent or guardian of a person who is disabled and who resides with
24	24	the parent or guardian, or is 65 years of age or older is entitled to
25	25	an exemption from taxation by a taxing unit of the [a] portion
26	26	determined [(the amount of which is fixed] as provided by
27	27	Subsection (e) [of this section)] of the appraised value of the
28	28	individual's [his] residence homestead if the exemption is adopted
29	29	by [either]:
30	30	(1) [by] the governing body of the taxing unit; or
31	31	(2) [by] a favorable vote of a majority of the
32	32	qualified voters of the taxing unit at an election called by the
33	33	governing body of the [a] taxing unit.
34	34	(d-1) The [, and the] governing body of a taxing unit shall
35	35	call an [the] election described by Subsection (d)(2) on the
36	36	petition of at least 20 percent of the number of qualified voters
37	37	who voted in the preceding election of the taxing unit.
38	38	(h) Joint, community, or successive owners may not each
39	39	receive the same exemption provided by or pursuant to this section
40	40	for the same residence homestead in the same tax year. An individual
41	41	who is eligible for more than one [disabled person who is 65 or
42	42	older may not receive both a disabled and an elderly residence
43	43	homestead] exemption under Subsection (c) or more than one
44	44	exemption under Subsection (d) from the same taxing unit in the same
45	45	tax year is entitled to [but may] choose and receive from that
46	46	taxing unit in that tax year only one exemption under each of those
47	47	subsections [either if a taxing unit has adopted both]. An
48	48	individual who is eligible for more than one [disabled person who is
49	49	65 or older may receive both a disabled and an elderly residence
50	50	homestead] exemption under Subsection (c) or (d) in the same tax
51	51	year is entitled to receive each of those exemptions if the person
52	52	receives the exemptions with respect to taxes levied by different
53	53	taxing units. A person may not receive an exemption under this
54	54	section for more than one residence homestead in the same tax year.
55	55	An heir property owner who qualifies heir property as the owner's
56	56	residence homestead under this chapter is considered the sole
57	57	recipient of any exemption granted to the owner for the residence
58	58	homestead by or pursuant to this section.
59	59	SECTION 2. Section 25.19(l), Tax Code, is amended to read as
60	60	follows:
61	61	(l) In addition to the information required by Subsection
62	62	(b), the chief appraiser shall include with a notice required by
63	63	Subsection (a) a brief explanation of each total or partial
64	64	exemption of property from taxation required or authorized by this
65	65	title that is available to:
66	66	(1) a disabled veteran or the veteran's surviving
67	67	spouse or child;
68	68	(2) an individual who is 65 years of age or older or
69	69	the individual's surviving spouse;
70	70	(3) an individual who is disabled or the individual's
71	71	surviving spouse;
72	72	(4) an individual who is the parent or guardian of a
73	73	person who is disabled and who resides with the parent or guardian;
74	74	(5) the surviving spouse of a member of the armed
75	75	services of the United States who is killed in action; or
76	76	(6) [(5)] the surviving spouse of a first responder
77	77	who is killed or fatally injured in the line of duty.
78	78	SECTION 3. Section 26.062(h), Tax Code, is amended to read
79	79	as follows:
80	80	(h) In calculating the average taxable value of a residence
81	81	homestead in the taxing unit for the preceding tax year and the
82	82	current tax year for purposes of Subsections (e) and (f), any
83	83	residence homestead exemption available only to individuals who are
84	84	disabled [persons], are the parents or guardians of persons who are
85	85	disabled and who reside with the parents or guardians, or are
86	86	[persons] 65 years of age or older[,] or their surviving spouses
87	87	must be disregarded.
88	88	SECTION 4. Section 44.004(c), Education Code, is amended to
89	89	read as follows:
90	90	(c) The notice of public meeting to discuss and adopt the
91	91	budget and the proposed tax rate may not be smaller than one-quarter
92	92	page of a standard-size or a tabloid-size newspaper, and the
93	93	headline on the notice must be in 18-point or larger type. Subject
94	94	to Subsection (d), the notice must:
95	95	(1) contain a statement in the following form:
96	96	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
97	97	"The (name of school district) will hold a public meeting at
98	98	(time, date, year) in (name of room, building, physical location,
99	99	city, state). The purpose of this meeting is to discuss the school
100	100	district's budget that will determine the tax rate that will be
101	101	adopted. Public participation in the discussion is invited." The
102	102	statement of the purpose of the meeting must be in bold type. In
103	103	reduced type, the notice must state: "The tax rate that is
104	104	ultimately adopted at this meeting or at a separate meeting at a
105	105	later date may not exceed the proposed rate shown below unless the
106	106	district publishes a revised notice containing the same information
107	107	and comparisons set out below and holds another public meeting to
108	108	discuss the revised notice.";
109	109	(2) contain a section entitled "Comparison of Proposed
110	110	Budget with Last Year's Budget," which must show the difference,
111	111	expressed as a percent increase or decrease, as applicable, in the
112	112	amounts budgeted for the preceding fiscal year and the amount
113	113	budgeted for the fiscal year that begins in the current tax year for
114	114	each of the following:
115	115	(A) maintenance and operations;
116	116	(B) debt service; and
117	117	(C) total expenditures;
118	118	(3) contain a section entitled "Total Appraised Value
119	119	and Total Taxable Value," which must show the total appraised value
120	120	and the total taxable value of all property and the total appraised
121	121	value and the total taxable value of new property taxable by the
122	122	district in the preceding tax year and the current tax year as
123	123	calculated under Section 26.04, Tax Code;
124	124	(4) contain a statement of the total amount of the
125	125	outstanding and unpaid bonded indebtedness of the school district;
126	126	(5) contain a section entitled "Comparison of Proposed
127	127	Rates with Last Year's Rates," which must:
128	128	(A) show in rows the tax rates described by
129	129	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
130	130	property, for columns entitled "Maintenance & Operations,"
131	131	"Interest & Sinking Fund," and "Total," which is the sum of
132	132	"Maintenance & Operations" and "Interest & Sinking Fund":
133	133	(i) the school district's "Last Year's
134	134	Rate";
135	135	(ii) the "Rate to Maintain Same Level of
136	136	Maintenance & Operations Revenue & Pay Debt Service," which:
137	137	(a) in the case of "Maintenance &
138	138	Operations," is the tax rate that, when applied to the current
139	139	taxable value for the district, as certified by the chief appraiser
140	140	under Section 26.01, Tax Code, and as adjusted to reflect changes
141	141	made by the chief appraiser as of the time the notice is prepared,
142	142	would impose taxes in an amount that, when added to state funds to
143	143	be distributed to the district under Chapter 48, would provide the
144	144	same amount of maintenance and operations taxes and state funds
145	145	distributed under Chapter 48 per student in average daily
146	146	attendance for the applicable school year that was available to the
147	147	district in the preceding school year; and
148	148	(b) in the case of "Interest & Sinking
149	149	Fund," is the tax rate that, when applied to the current taxable
150	150	value for the district, as certified by the chief appraiser under
151	151	Section 26.01, Tax Code, and as adjusted to reflect changes made by
152	152	the chief appraiser as of the time the notice is prepared, and when
153	153	multiplied by the district's anticipated collection rate, would
154	154	impose taxes in an amount that, when added to state funds to be
155	155	distributed to the district under Chapter 46 and any excess taxes
156	156	collected to service the district's debt during the preceding tax
157	157	year but not used for that purpose during that year, would provide
158	158	the amount required to service the district's debt; and
159	159	(iii) the "Proposed Rate";
160	160	(B) contain fourth and fifth columns aligned with
161	161	the columns required by Paragraph (A) that show, for each row
162	162	required by Paragraph (A):
163	163	(i) the "Local Revenue per Student," which
164	164	is computed by multiplying the district's total taxable value of
165	165	property, as certified by the chief appraiser for the applicable
166	166	school year under Section 26.01, Tax Code, and as adjusted to
167	167	reflect changes made by the chief appraiser as of the time the
168	168	notice is prepared, by the total tax rate, and dividing the product
169	169	by the number of students in average daily attendance in the
170	170	district for the applicable school year; and
171	171	(ii) the "State Revenue per Student," which
172	172	is computed by determining the amount of state aid received or to be
173	173	received by the district under Chapters 43, 46, and 48 and dividing
174	174	that amount by the number of students in average daily attendance in
175	175	the district for the applicable school year; and
176	176	(C) contain an asterisk after each calculation
177	177	for "Interest & Sinking Fund" and a footnote to the section that, in
178	178	reduced type, states "The Interest & Sinking Fund tax revenue is
179	179	used to pay for bonded indebtedness on construction, equipment, or
180	180	both. The bonds, and the tax rate necessary to pay those bonds, were
181	181	approved by the voters of this district.";
182	182	(6) contain a section entitled "Comparison of Proposed
183	183	Levy with Last Year's Levy on Average Residence," which must:
184	184	(A) show in rows the information described by
185	185	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
186	186	entitled "Last Year" and "This Year":
187	187	(i) "Average Market Value of Residences,"
188	188	determined using the same group of residences for each year;
189	189	(ii) "Average Taxable Value of Residences,"
190	190	determined after taking into account the limitation on the
191	191	appraised value of residences under Section 23.23, Tax Code, and
192	192	after subtracting all homestead exemptions applicable in each year,
193	193	other than exemptions available only to individuals who are
194	194	disabled, are the parents or guardians of persons who are disabled
195	195	and who reside with the parents or guardians, [persons] or are
196	196	[persons] 65 years of age or older or their surviving spouses, and
197	197	using the same group of residences for each year;
198	198	(iii) "Last Year's Rate Versus Proposed
199	199	Rate per $100 Value"; and
200	200	(iv) "Taxes Due on Average Residence,"
201	201	determined using the same group of residences for each year; and
202	202	(B) contain the following information: "Increase
203	203	(Decrease) in Taxes" expressed in dollars and cents, which is
204	204	computed by subtracting the "Taxes Due on Average Residence" for
205	205	the preceding tax year from the "Taxes Due on Average Residence" for
206	206	the current tax year;
207	207	(7) contain the following statement in bold print:
208	208	"Under state law, the dollar amount of school taxes imposed on the
209	209	residence of a person 65 years of age or older or of the surviving
210	210	spouse of such a person, if the surviving spouse was 55 years of age
211	211	or older when the person died, may not be increased above the amount
212	212	paid in the first year after the person turned 65, regardless of
213	213	changes in tax rate or property value.";
214	214	(8) contain the following statement in bold print:
215	215	"Notice of Voter-Approval Rate: The highest tax rate the district
216	216	can adopt before requiring voter approval at an election is (the
217	217	school district voter-approval rate determined under Section
218	218	26.08, Tax Code). This election will be automatically held if the
219	219	district adopts a rate in excess of the voter-approval rate of (the
220	220	school district voter-approval rate)."; and
221	221	(9) contain a section entitled "Fund Balances," which
222	222	must include the estimated amount of interest and sinking fund
223	223	balances and the estimated amount of maintenance and operation or
224	224	general fund balances remaining at the end of the current fiscal
225	225	year that are not encumbered with or by corresponding debt
226	226	obligation, less estimated funds necessary for the operation of the
227	227	district before the receipt of the first payment under Chapter 48 in
228	228	the succeeding school year.
229	229	SECTION 5. Section 49.236(a), Water Code, is amended to
230	230	read as follows:
231	231	(a) Before the board adopts an ad valorem tax rate for the
232	232	district for debt service, operation and maintenance purposes, or
233	233	contract purposes, the board shall give notice of each meeting of
234	234	the board at which the adoption of a tax rate will be
235	235	considered. The notice must:
236	236	(1) contain a statement in substantially the following
237	237	form:
238	238	"NOTICE OF PUBLIC HEARING ON TAX RATE
239	239	"The (name of the district) will hold a public hearing on a
240	240	proposed tax rate for the tax year (year of tax levy) on (date and
241	241	time) at (meeting place). Your individual taxes may increase at a
242	242	greater or lesser rate, or even decrease, depending on the tax rate
243	243	that is adopted and on the change in the taxable value of your
244	244	property in relation to the change in taxable value of all other
245	245	property. The change in the taxable value of your property in
246	246	relation to the change in the taxable value of all other property
247	247	determines the distribution of the tax burden among all property
248	248	owners.
249	249	"(Names of all board members and, if a vote was taken, an
250	250	indication of how each voted on the proposed tax rate and an
251	251	indication of any absences.)";
252	252	(2) contain the following information:
253	253	(A) the district's total adopted tax rate for the
254	254	preceding year and the proposed tax rate, expressed as an amount per
255	255	$100;
256	256	(B) the difference, expressed as an amount per
257	257	$100 and as a percent increase or decrease, as applicable, in the
258	258	proposed tax rate compared to the adopted tax rate for the preceding
259	259	year;
260	260	(C) the average appraised value of a residence
261	261	homestead in the district in the preceding year and in the current
262	262	year; the district's total homestead exemption, other than an
263	263	exemption available only to individuals who are disabled, are the
264	264	parents or guardians of persons who are disabled and who reside with
265	265	the parents or guardians, [persons] or are [persons] 65 years of age
266	266	or older, applicable to that appraised value in each of those years;
267	267	and the average taxable value of a residence homestead in the
268	268	district in each of those years, disregarding any homestead
269	269	exemption available only to individuals who are disabled, are the
270	270	parents or guardians of persons who are disabled and who reside with
271	271	the parents or guardians, [persons] or are [persons] 65 years of age
272	272	or older;
273	273	(D) the amount of tax that would have been
274	274	imposed by the district in the preceding year on a residence
275	275	homestead appraised at the average appraised value of a residence
276	276	homestead in that year, disregarding any homestead exemption
277	277	available only to individuals who are disabled, are the parents or
278	278	guardians of persons who are disabled and who reside with the
279	279	parents or guardians, [persons] or are [persons] 65 years of age or
280	280	older;
281	281	(E) the amount of tax that would be imposed by the
282	282	district in the current year on a residence homestead appraised at
283	283	the average appraised value of a residence homestead in that year,
284	284	disregarding any homestead exemption available only to individuals
285	285	who are disabled, are the parents or guardians of persons who are
286	286	disabled and who reside with the parents or guardians, [persons] or
287	287	are [persons] 65 years of age or older, if the proposed tax rate is
288	288	adopted;
289	289	(F) the difference between the amounts of tax
290	290	calculated under Paragraphs (D) and (E), expressed in dollars and
291	291	cents and described as the annual percentage increase or decrease,
292	292	as applicable, in the tax to be imposed by the district on the
293	293	average residence homestead in the district in the current year if
294	294	the proposed tax rate is adopted; and
295	295	(G) if the proposed combined debt service,
296	296	operation and maintenance, and contract tax rate requires or
297	297	authorizes an election to approve or reduce the tax rate, as
298	298	applicable, a description of the purpose of the proposed tax
299	299	increase;
300	300	(3) contain a statement in substantially the following
301	301	form, as applicable:
302	302	(A) if the district is a district described by
303	303	Section 49.23601:
304	304	"NOTICE OF VOTE ON TAX RATE
305	305	"If the district adopts a combined debt service, operation
306	306	and maintenance, and contract tax rate that would result in the
307	307	taxes on the average residence homestead increasing by more than
308	308	eight percent, an election must be held to determine whether to
309	309	approve the operation and maintenance tax rate under Section
310	310	49.23601, Water Code.";
311	311	(B) if the district is a district described by
312	312	Section 49.23602:
313	313	"NOTICE OF VOTE ON TAX RATE
314	314	"If the district adopts a combined debt service, operation
315	315	and maintenance, and contract tax rate that would result in the
316	316	taxes on the average residence homestead increasing by more than
317	317	3.5 percent, an election must be held to determine whether to
318	318	approve the operation and maintenance tax rate under Section
319	319	49.23602, Water Code."; or
320	320	(C) if the district is a district described by
321	321	Section 49.23603:
322	322	"NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE TAX RATE
323	323	"If the district adopts a combined debt service, operation
324	324	and maintenance, and contract tax rate that would result in the
325	325	taxes on the average residence homestead increasing by more than
326	326	eight percent, the qualified voters of the district by petition may
327	327	require that an election be held to determine whether to reduce the
328	328	operation and maintenance tax rate to the voter-approval tax rate
329	329	under Section 49.23603, Water Code."; and
330	330	(4) include the following statement: "The 86th Texas
331	331	Legislature modified the manner in which the voter-approval tax
332	332	rate is calculated to limit the rate of growth of property taxes in
333	333	the state.".
334	334	SECTION 6. Sections 49.23601(a) and (c), Water Code, are
335	335	amended to read as follows:
336	336	(a) In this section, "voter-approval tax rate" means the
337	337	rate equal to the sum of the following tax rates for the district:
338	338	(1) the current year's debt service tax rate;
339	339	(2) the current year's contract tax rate; and
340	340	(3) the operation and maintenance tax rate that would
341	341	impose 1.08 times the amount of the operation and maintenance tax
342	342	imposed by the district in the preceding year on a residence
343	343	homestead appraised at the average appraised value of a residence
344	344	homestead in the district in that year, disregarding any homestead
345	345	exemption available only to individuals who are disabled, are the
346	346	parents or guardians of persons who are disabled and who reside with
347	347	the parents or guardians, [persons] or are [persons] 65 years of age
348	348	or older.
349	349	(c) If the board of a district adopts a combined debt
350	350	service, contract, and operation and maintenance tax rate that
351	351	would impose more than 1.08 times the amount of tax imposed by the
352	352	district in the preceding year on a residence homestead appraised
353	353	at the average appraised value of a residence homestead in the
354	354	district in that year, disregarding any homestead exemption
355	355	available only to individuals who are disabled, are the parents or
356	356	guardians of persons who are disabled and who reside with the
357	357	parents or guardians, [persons] or are [persons] 65 years of age or
358	358	older, an election must be held in accordance with the procedures
359	359	provided by Sections 26.07(c)-(g), Tax Code, to determine whether
360	360	to approve the adopted tax rate. If the adopted tax rate is not
361	361	approved at the election, the district's tax rate is the
362	362	voter-approval tax rate.
363	363	SECTION 7. Sections 49.23602(a)(2) and (4), Water Code, are
364	364	amended to read as follows:
365	365	(2) "Mandatory tax election rate" means the rate equal
366	366	to the sum of the following tax rates for the district:
367	367	(A) the rate that would impose 1.035 times the
368	368	amount of tax imposed by the district in the preceding year on a
369	369	residence homestead appraised at the average appraised value of a
370	370	residence homestead in the district in that year, disregarding any
371	371	homestead exemption available only to individuals who are disabled,
372	372	are the parents or guardians of persons who are disabled and who
373	373	reside with the parents or guardians, [persons] or are [persons] 65
374	374	years of age or older; and
375	375	(B) the unused increment rate.
376	376	(4) "Voter-approval tax rate" means the rate equal to
377	377	the sum of the following tax rates for the district:
378	378	(A) the current year's debt service tax rate;
379	379	(B) the current year's contract tax rate;
380	380	(C) the operation and maintenance tax rate that
381	381	would impose 1.035 times the amount of the operation and
382	382	maintenance tax imposed by the district in the preceding year on a
383	383	residence homestead appraised at the average appraised value of a
384	384	residence homestead in the district in that year, disregarding any
385	385	homestead exemption available only to individuals who are disabled,
386	386	are the parents or guardians of persons who are disabled and who
387	387	reside with the parents or guardians, [persons] or are [persons] 65
388	388	years of age or older; and
389	389	(D) the unused increment rate.
390	390	SECTION 8. Sections 49.23603(a) and (c), Water Code, are
391	391	amended to read as follows:
392	392	(a) In this section, "voter-approval tax rate" means the
393	393	rate equal to the sum of the following tax rates for the district:
394	394	(1) the current year's debt service tax rate;
395	395	(2) the current year's contract tax rate; and
396	396	(3) the operation and maintenance tax rate that would
397	397	impose 1.08 times the amount of the operation and maintenance tax
398	398	imposed by the district in the preceding year on a residence
399	399	homestead appraised at the average appraised value of a residence
400	400	homestead in the district in that year, disregarding any homestead
401	401	exemption available only to individuals who are disabled, are the
402	402	parents or guardians of persons who are disabled and who reside with
403	403	the parents or guardians, [persons] or are [persons] 65 years of age
404	404	or older.
405	405	(c) If the board of a district adopts a combined debt
406	406	service, contract, and operation and maintenance tax rate that
407	407	would impose more than 1.08 times the amount of tax imposed by the
408	408	district in the preceding year on a residence homestead appraised
409	409	at the average appraised value of a residence homestead in the
410	410	district in that year, disregarding any homestead exemption
411	411	available only to individuals who are disabled, are the parents or
412	412	guardians of persons who are disabled and who reside with the
413	413	parents or guardians, [persons] or are [persons] 65 years of age or
414	414	older, the qualified voters of the district by petition may require
415	415	that an election be held to determine whether to reduce the tax rate
416	416	adopted for the current year to the voter-approval tax rate in
417	417	accordance with the procedures provided by Sections 26.075 and
418	418	26.081, Tax Code.
419	419	SECTION 9. This Act applies only to ad valorem taxes imposed
420	420	for a tax year that begins on or after the effective date of this
421	421	Act.
422	422	SECTION 10. This Act takes effect January 1, 2022, but only
423	423	if the constitutional amendment proposed by the 87th Legislature,
424	424	Regular Session, 2021, to provide for an exemption from ad valorem
425	425	taxation by certain political subdivisions of a portion of the
426	426	market value of the residence homestead of the parent or guardian of
427	427	a person who is disabled and who resides with the parent or guardian
428	428	is approved by the voters. If that amendment is not approved by the
429	429	voters, this Act has no effect.