87R2685 SMT-F
By: Shine H.B. No. 993
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a limitation on the total amount of
ad valorem taxes that certain taxing units may impose on the
residence homesteads of individuals who are disabled or elderly and
their surviving spouses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 11.261(b), (d), (e), (f), (g), (i),
(j), and (l), Tax Code, are amended to read as follows:
(b) The tax officials shall appraise the property to which
this section [the limitation] applies and calculate taxes as on
other property, but if the tax so calculated exceeds the limitation
required [provided] by this section, the tax imposed is the amount
of the tax as limited by this section, except as otherwise provided
by this section. A [The] county, municipality, or junior college
district may not increase the total annual amount of ad valorem
taxes the county, municipality, or junior college district imposes
on the residence homestead of an individual who is [a] disabled
[individual] or is [an individual] 65 years of age or older above
the amount of the taxes the county, municipality, or junior college
district imposed on the residence homestead in the first tax year[,
other than a tax year preceding the tax year in which the county,
municipality, or junior college district established the
limitation described by Subsection (a),] in which the individual
qualified that residence homestead for the exemption provided by
Section 11.13(c) for an individual who is [a] disabled [individual]
or is [an individual] 65 years of age or older. If the individual
qualified that residence homestead for the exemption after the
beginning of that first year and the residence homestead remains
eligible for the exemption for the next year, and if the county,
municipal, or junior college district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a county, municipality, or junior
college district may not subsequently increase the total annual
amount of ad valorem taxes it imposes on the residence homestead
above the amount it imposed on the residence homestead in the year
immediately following the first year[, other than a tax year
preceding the tax year in which the county, municipality, or junior
college district established the limitation described by
Subsection (a),] for which the individual qualified that residence
homestead for the exemption.
(d) The [A] limitation on county, municipal, or junior
college district tax increases required [provided] by this section
expires if on January 1:
(1) none of the owners of the structure who qualify for
the exemption provided by Section 11.13(c) for an individual who is
[a] disabled [individual] or is [an individual] 65 years of age or
older and who owned the structure when the limitation [provided by
this section] first took effect is using the structure as a
residence homestead; or
(2) none of the owners of the structure qualifies for
the exemption provided by Section 11.13(c) for an individual who is
[a] disabled [individual] or is [an individual] 65 years of age or
older.
(e) If the appraisal roll provides for taxation of appraised
value for a prior year because a residence homestead exemption for
an individual who is disabled [individuals] or is [individuals] 65
years of age or older was erroneously allowed, the tax assessor for
the applicable county, municipality, or junior college district
shall add, as back taxes due as provided by Section 26.09(d), the
positive difference, if any, between the tax that should have been
imposed for that year and the tax that was imposed because of the
provisions of this section.
(f) The [A] limitation on tax increases required [provided]
by this section does not expire because the owner of an interest in
the structure conveys the interest to a qualifying trust as defined
by Section 11.13(j) if the owner or the owner's spouse is a trustor
of the trust and is entitled to occupy the structure.
(g) Except as provided by Subsection (c), if an individual
who receives a limitation on county, municipal, or junior college
district tax increases required [provided] by this section
subsequently qualifies a different residence homestead in the same
county, municipality, or junior college district for an exemption
under Section 11.13, the county, municipality, or junior college
district may not impose ad valorem taxes on the subsequently
qualified homestead in a year in an amount that exceeds the amount
of taxes the county, municipality, or junior college district would
have imposed on the subsequently qualified homestead in the first
year in which the individual receives that exemption for the
subsequently qualified homestead had the limitation on tax
increases required [provided] by this section not been in effect,
multiplied by a fraction the numerator of which is the total amount
of taxes the county, municipality, or junior college district
imposed on the former homestead in the last year in which the
individual received that exemption for the former homestead and the
denominator of which is the total amount of taxes the county,
municipality, or junior college district would have imposed on the
former homestead in the last year in which the individual received
that exemption for the former homestead had the limitation on tax
increases required [provided] by this section not been in effect.
(i) If an individual who qualifies for the [a] limitation on
county, municipal, or junior college district tax increases under
this section dies, the surviving spouse of the individual is
entitled to the limitation on taxes imposed by the county,
municipality, or junior college district on the residence homestead
of the individual if:
(1) the surviving spouse is disabled or is 55 years of
age or older when the individual dies; and
(2) the residence homestead of the individual:
(A) is the residence homestead of the surviving
spouse on the date that the individual dies; and
(B) remains the residence homestead of the
surviving spouse.
(j) If an individual who is 65 years of age or older and
qualifies for the [a] limitation on county, municipal, or junior
college district tax increases for the elderly under this section
dies in the first year in which the individual qualified for the
limitation and the individual first qualified for the limitation
after the beginning of that year, except as provided by Subsection
(k), the amount to which the surviving spouse's county, municipal,
or junior college district taxes are limited under Subsection (i)
is the amount of taxes imposed by the county, municipality, or
junior college district, as applicable, on the residence homestead
in that year determined as if the individual qualifying for the
exemption had lived for the entire year.
(l) Notwithstanding Subsection (d), the [a] limitation on
county, municipal, or junior college district tax increases
required [provided] by this section does not expire if the owner of
the structure qualifies for an exemption under Section 11.13 under
the circumstances described by Section 11.135(a).
SECTION 2. Section 11.261(a), Tax Code, is repealed.
SECTION 3. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2022, but only
if the constitutional amendment to establish a limitation on the
total amount of ad valorem taxes that certain political
subdivisions may impose on the residence homesteads of persons who
are disabled or elderly and their surviving spouses is approved by
the voters. If that amendment is not approved by the voters, this
Act has no effect.