Texas 2021 - 87th 1st C.S.

Texas House Bill HB72 Compare Versions

Only one version of the bill is available at this time.

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1	1	87S10211 SMH/CAE-D
2	2	By: Schofield H.B. No. 72
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 a school
8	8	district of a dollar amount or a percentage, whichever is greater,
9	9	of the appraised value of a residence homestead, a reduction of the
10	10	limitation on the total amount of ad valorem taxes that may be
11	11	imposed by a school district on the homestead of a person who is
12	12	elderly or disabled to reflect any increase in the exemption
13	13	amount, and the protection of school districts against the
14	14	resulting loss in local revenue.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
17	17	follows:
18	18	(b) An adult is entitled to exemption from taxation by a
19	19	school district of $25,000 of the appraised value of the adult's
20	20	residence homestead or 16.7 percent of the appraised value of the
21	21	adult's residence homestead, whichever is greater, except that only
22	22	$5,000 of the exemption applies to an entity operating under former
23	23	Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters
24	24	existed on May 1, 1995, as permitted by Section 11.301, Education
25	25	Code.
26	26	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
27	27	follows:
28	28	(a) The tax officials shall appraise the property to which
29	29	this section applies and calculate taxes as on other property, but
30	30	if the tax so calculated exceeds the limitation imposed by this
31	31	section, the tax imposed is the amount of the tax as limited by this
32	32	section, except as otherwise provided by this section. A school
33	33	district may not increase the total annual amount of ad valorem tax
34	34	it imposes on the residence homestead of an individual 65 years of
35	35	age or older or on the residence homestead of an individual who is
36	36	disabled, as defined by Section 11.13, above the amount of the tax
37	37	it imposed in the first tax year in which the individual qualified
38	38	that residence homestead for the applicable exemption provided by
39	39	Section 11.13(c) for an individual who is 65 years of age or older
40	40	or is disabled. If the individual qualified that residence
41	41	homestead for the exemption after the beginning of that first year
42	42	and the residence homestead remains eligible for the same exemption
43	43	for the next year, and if the school district taxes imposed on the
44	44	residence homestead in the next year are less than the amount of
45	45	taxes imposed in that first year, a school district may not
46	46	subsequently increase the total annual amount of ad valorem taxes
47	47	it imposes on the residence homestead above the amount it imposed in
48	48	the year immediately following the first year for which the
49	49	individual qualified that residence homestead for the same
50	50	exemption, except as provided by Subsection (b). If the first tax
51	51	year the individual qualified the residence homestead for the
52	52	exemption provided by Section 11.13(c) for individuals 65 years of
53	53	age or older or disabled was a tax year before the 2015 tax year, the
54	54	amount of the limitation provided by this section is the amount of
55	55	tax the school district imposed for the 2014 tax year less an amount
56	56	equal to the amount determined by multiplying $10,000 times the tax
57	57	rate of the school district for the 2015 tax year, plus any 2015 tax
58	58	attributable to improvements made in 2014, other than improvements
59	59	made to comply with governmental regulations or repairs. If the
60	60	first tax year the individual qualified the residence homestead for
61	61	the exemption provided by Section 11.13(c) for individuals 65 years
62	62	of age or older or disabled was a tax year before the 2022 tax year
63	63	and the appraised value of the homestead for the 2022 tax year is
64	64	more than $149,701, the amount of the limitation provided by this
65	65	section is the amount of tax the school district imposed for the
66	66	2021 tax year, less an amount equal to the amount computed by
67	67	subtracting $25,000 from an amount equal to 16.7 percent of the
68	68	appraised value of the homestead for the 2022 tax year and
69	69	multiplying that amount by the tax rate of the school district for
70	70	the 2022 tax year, plus any 2022 tax attributable to improvements
71	71	made in 2021, other than improvements made to comply with
72	72	governmental regulations or repairs. Except as provided by
73	73	Subsection (b), a limitation on tax increases provided by this
74	74	section on a residence homestead computed under this subsection
75	75	continues to apply to the homestead in subsequent tax years until
76	76	the limitation expires.
77	77	SECTION 3. Section 46.071, Education Code, is amended by
78	78	amending Subsections (a), (b), and (c) and adding Subsections
79	79	(a-1), (b-1), and (c-1) to read as follows:
80	80	(a) Beginning with the 2015-2016 school year and continuing
81	81	through the 2021-2022 school year, a school district is entitled to
82	82	additional state aid under this subchapter to the extent that state
83	83	and local revenue used to service debt eligible under this chapter
84	84	is less than the state and local revenue that would have been
85	85	available to the district under this chapter as it existed on
86	86	September 1, 2015, if the increase in the residence homestead
87	87	exemption under Section 1-b(c), Article VIII, Texas Constitution,
88	88	and the additional limitation on tax increases under Section 1-b(d)
89	89	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
90	90	Session, 2015, had not occurred.
91	91	(a-1) Beginning with the 2022-2023 school year, a school
92	92	district is entitled to additional state aid under this subchapter
93	93	to the extent that state and local revenue used to service debt
94	94	eligible under this chapter is less than the state and local revenue
95	95	that would have been available to the district under this chapter as
96	96	it existed on September 1, 2021, if any increase in the residence
97	97	homestead exemption under Section 1-b(c), Article VIII, Texas
98	98	Constitution, and any additional limitation on tax increases under
99	99	Section 1-b(d) of that article as proposed by the 87th Legislature,
100	100	1st Called Session, 2021, had not occurred.
101	101	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
102	102	additional state aid under this section through the 2021-2022
103	103	school year is equal to the amount by which the loss of local
104	104	interest and sinking revenue for debt service attributable to the
105	105	increase in the residence homestead exemption under Section 1-b(c),
106	106	Article VIII, Texas Constitution, and the additional limitation on
107	107	tax increases under Section 1-b(d) of that article as proposed by
108	108	S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
109	109	a gain in state aid under this chapter.
110	110	(b-1) Subject to Subsections (c-1), (d), and (e),
111	111	additional state aid under this section beginning with the
112	112	2022-2023 school year is equal to the amount by which the loss of
113	113	local interest and sinking revenue for debt service attributable to
114	114	any increase in the residence homestead exemption under Section
115	115	1-b(c), Article VIII, Texas Constitution, and any additional
116	116	limitation on tax increases under Section 1-b(d) of that article as
117	117	proposed by the 87th Legislature, 1st Called Session, 2021, is not
118	118	offset by a gain in state aid under this chapter.
119	119	(c) For the purpose of determining state aid under
120	120	Subsections (a) and (b) [this section], local interest and sinking
121	121	revenue for debt service is limited to revenue required to service
122	122	debt eligible under this chapter as of September 1, 2015, including
123	123	refunding of that debt, subject to Section 46.061. The limitation
124	124	imposed by Section 46.034(a) does not apply for the purpose of
125	125	determining state aid under this section.
126	126	(c-1) For the purpose of determining state aid under
127	127	Subsections (a-1) and (b-1), local interest and sinking revenue for
128	128	debt service is limited to revenue required to service debt
129	129	eligible under this chapter as of September 1, 2021, including
130	130	refunding of that debt, subject to Section 46.061. The limitation
131	131	imposed by Section 46.034(a) does not apply for the purpose of
132	132	determining state aid under this section.
133	133	SECTION 4. Subchapter F, Chapter 48, Education Code, is
134	134	amended by adding Section 48.2541 to read as follows:
135	135	Sec. 48.2541. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION
136	136	AND LIMITATION ON TAX INCREASES. (a) Beginning with the 2022-2023
137	137	school year, a school district is entitled to additional state aid
138	138	to the extent that state and local revenue under this chapter and
139	139	Chapter 49 is less than the state and local revenue that would have
140	140	been available to the district under this chapter and Chapter 49 as
141	141	those chapters existed on September 1, 2021, if any increase in the
142	142	residence homestead exemption under Section 1-b(c), Article VIII,
143	143	Texas Constitution, and any additional limitation on tax increases
144	144	under Section 1-b(d) of that article as proposed by the 87th
145	145	Legislature, 1st Called Session, 2021, had not occurred.
146	146	(b) The lesser of the school district's currently adopted
147	147	maintenance and operations tax rate or the adopted maintenance and
148	148	operations tax rate for the 2021 tax year is used for the purpose of
149	149	determining additional state aid under Subsection (a).
150	150	SECTION 5. The changes in law made by this Act to Sections
151	151	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
152	152	begins on or after January 1, 2022.
153	153	SECTION 6. This Act takes effect January 1, 2022, but only
154	154	if the constitutional amendment proposed by the 87th Legislature,
155	155	1st Called Session, 2021, providing for an exemption from ad
156	156	valorem taxation for public school purposes of $25,000 or 16.7
157	157	percent, whichever is greater, of the market value of a residence
158	158	homestead and providing for a reduction of the limitation on the
159	159	total amount of ad valorem taxes that may be imposed for those
160	160	purposes on the homestead of a person who is elderly or disabled to
161	161	reflect any increase in the exemption amount is approved by the
162	162	voters. If that constitutional amendment is not approved by the
163	163	voters, this Act has no effect.