| 1 | 1 | | 87S10139 TJB-D |
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| 2 | 2 | | By: Shine H.B. No. 224 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of a person who acquires a residence |
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| 8 | 8 | | homestead to receive an ad valorem tax exemption for the homestead |
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| 9 | 9 | | in the year in which the property is acquired. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 11.42(d), Tax Code, is amended to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | (d) A person who acquires property after January 1 of a tax |
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| 14 | 14 | | year may receive an exemption authorized by Section 11.13, other |
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| 15 | 15 | | than an exemption authorized by Section 11.13(c) or (d), 11.17, |
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| 16 | 16 | | 11.18, 11.19, 11.20, 11.21, 11.23, 11.231, or 11.30 for the |
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| 17 | 17 | | applicable portion of that tax year immediately on qualification |
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| 18 | 18 | | for the exemption. |
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| 19 | 19 | | SECTION 2. Chapter 26, Tax Code, is amended by adding |
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| 20 | 20 | | Section 26.1115 to read as follows: |
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| 21 | 21 | | Sec. 26.1115. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD |
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| 22 | 22 | | GENERALLY. (a) If an individual receives one or more exemptions |
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| 23 | 23 | | under Section 11.13 for a portion of a tax year as provided by |
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| 24 | 24 | | Section 11.42(d), except as provided by Subsection (b) of this |
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| 25 | 25 | | section, the amount of tax due on the property for that year is |
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| 26 | 26 | | calculated by: |
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| 27 | 27 | | (1) subtracting: |
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| 28 | 28 | | (A) the amount of the taxes that otherwise would |
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| 29 | 29 | | be imposed on the property for the entire year had the individual |
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| 30 | 30 | | qualified for the exemptions for the entire year; from |
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| 31 | 31 | | (B) the amount of the taxes that otherwise would |
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| 32 | 32 | | be imposed on the property for the entire year had the individual |
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| 33 | 33 | | not qualified for the exemptions during the year; |
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| 34 | 34 | | (2) multiplying the remainder determined under |
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| 35 | 35 | | Subdivision (1) by a fraction, the denominator of which is 365 and |
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| 36 | 36 | | the numerator of which is the number of days in that year that |
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| 37 | 37 | | elapsed before the date the individual first qualified the property |
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| 38 | 38 | | for the exemptions; and |
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| 39 | 39 | | (3) adding the product determined under Subdivision |
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| 40 | 40 | | (2) and the amount described by Subdivision (1)(A). |
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| 41 | 41 | | (b) If an individual receives one or more exemptions to |
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| 42 | 42 | | which Subsection (a) of this section applies for a portion of a tax |
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| 43 | 43 | | year as provided by Section 11.42(d) and the exemptions terminate |
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| 44 | 44 | | during the year in which the individual acquired the property, the |
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| 45 | 45 | | amount of tax due on the property for that year is calculated by: |
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| 46 | 46 | | (1) subtracting: |
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| 47 | 47 | | (A) the amount of the taxes that otherwise would |
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| 48 | 48 | | be imposed on the property for the entire year had the individual |
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| 49 | 49 | | qualified for the exemptions for the entire year; from |
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| 50 | 50 | | (B) the amount of the taxes that otherwise would |
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| 51 | 51 | | be imposed on the property for the entire year had the individual |
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| 52 | 52 | | not qualified for the exemptions during the year; |
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| 53 | 53 | | (2) multiplying the remainder determined under |
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| 54 | 54 | | Subdivision (1) by a fraction, the denominator of which is 365 and |
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| 55 | 55 | | the numerator of which is the sum of: |
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| 56 | 56 | | (A) the number of days in that year that elapsed |
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| 57 | 57 | | before the date the individual first qualified the property for the |
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| 58 | 58 | | exemptions; and |
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| 59 | 59 | | (B) the number of days in that year that elapsed |
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| 60 | 60 | | after the date the exemptions terminated; and |
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| 61 | 61 | | (3) adding the product determined under Subdivision |
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| 62 | 62 | | (2) and the amount described by Subdivision (1)(A). |
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| 63 | 63 | | (c) If an individual qualifies to receive an exemption as |
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| 64 | 64 | | described by Subsection (a) with respect to a property after the |
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| 65 | 65 | | amount of tax due on the property is calculated and if the effect of |
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| 66 | 66 | | the qualification is to reduce the amount of tax due on the |
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| 67 | 67 | | property, the assessor for each taxing unit shall recalculate the |
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| 68 | 68 | | amount of the tax due on the property and correct the tax roll. If |
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| 69 | 69 | | the tax bill has been mailed and the tax on the property has not been |
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| 70 | 70 | | paid, the assessor shall mail a corrected tax bill to the individual |
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| 71 | 71 | | in whose name the property is listed on the tax roll or to the |
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| 72 | 72 | | individual's authorized agent. If the tax on the property has been |
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| 73 | 73 | | paid, the collector for the taxing unit shall refund to the |
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| 74 | 74 | | individual who paid the tax the amount by which the payment exceeded |
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| 75 | 75 | | the tax due. |
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| 76 | 76 | | SECTION 3. This Act applies only to a residence homestead |
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| 77 | 77 | | acquired on or after the effective date of this Act. |
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| 78 | 78 | | SECTION 4. This Act takes effect January 1, 2022. |
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