TX
Texas Senate Bill SB12

Texas 2021 - 87th 1st C.S.

Texas Senate Bill SB12 Compare Versions

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1-By: Bettencourt, et al. S.B. No. 12
1+By: Bettencourt, Kolkhorst S.B. No. 12
2+ (In the Senate - Filed July 8, 2021; July 8, 2021, read
3+ first time and referred to Committee on Local Government;
4+ July 12, 2021, reported favorably by the following vote: Yeas 8,
5+ Nays 0; July 12, 2021, sent to printer.)
6+Click here to see the committee vote
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38
49 A BILL TO BE ENTITLED
510 AN ACT
611 relating to the reduction of the amount of a limitation on the total
712 amount of ad valorem taxes that may be imposed by a school district
813 on the residence homestead of an individual who is elderly or
914 disabled to reflect any reduction from the preceding tax year in the
1015 district's maximum compressed rate.
1116 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1217 SECTION 1. Section 11.26, Tax Code, is amended by adding
1318 Subsections (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9) to read as
1419 follows:
1520 (a-4) In this section, "maximum compressed rate" means the
1621 maximum compressed rate of a school district as calculated under
1722 Section 48.2551, Education Code.
1823 (a-5) Notwithstanding the other provisions of this section,
1924 if in the 2022 tax year an individual qualifies for a limitation on
2025 tax increases provided by this section on the individual's
2126 residence homestead and the first tax year the individual or the
2227 individual's spouse qualified for an exemption under Section
2328 11.13(c) for the same homestead was a tax year before the 2019 tax
2429 year, the amount of the limitation provided by this section on the
2530 homestead in the 2022 tax year is equal to the amount computed by:
2631 (1) multiplying the taxable value of the homestead in
2732 the 2018 tax year by a tax rate equal to the difference between the
2833 school district's tier one maintenance and operations rate for the
2934 2018 tax year and the district's maximum compressed rate for the
3035 2019 tax year;
3136 (2) subtracting the greater of zero or the amount
3237 computed under Subdivision (1) from the amount of tax the district
3338 imposed on the homestead in the 2018 tax year;
3439 (3) adding any tax imposed in the 2019 tax year
3540 attributable to improvements made in the 2018 tax year as provided
3641 by Subsection (b) to the amount computed under Subdivision (2);
3742 (4) multiplying the taxable value of the homestead in
3843 the 2019 tax year by a tax rate equal to the difference between the
3944 district's maximum compressed rate for the 2019 tax year and the
4045 district's maximum compressed rate for the 2020 tax year;
4146 (5) subtracting the amount computed under Subdivision
4247 (4) from the amount computed under Subdivision (3);
4348 (6) adding any tax imposed in the 2020 tax year
4449 attributable to improvements made in the 2019 tax year as provided
4550 by Subsection (b) to the amount computed under Subdivision (5);
4651 (7) multiplying the taxable value of the homestead in
4752 the 2020 tax year by a tax rate equal to the difference between the
4853 district's maximum compressed rate for the 2020 tax year and the
4954 district's maximum compressed rate for the 2021 tax year;
5055 (8) subtracting the amount computed under Subdivision
5156 (7) from the amount computed under Subdivision (6);
5257 (9) adding any tax imposed in the 2021 tax year
5358 attributable to improvements made in the 2020 tax year as provided
5459 by Subsection (b) to the amount computed under Subdivision (8);
5560 (10) multiplying the taxable value of the homestead in
5661 the 2021 tax year by a tax rate equal to the difference between the
5762 district's maximum compressed rate for the 2021 tax year and the
5863 district's maximum compressed rate for the 2022 tax year;
5964 (11) subtracting the amount computed under
6065 Subdivision (10) from the amount computed under Subdivision (9);
6166 and
6267 (12) adding any tax imposed in the 2022 tax year
6368 attributable to improvements made in the 2021 tax year as provided
6469 by Subsection (b) to the amount computed under Subdivision (11).
6570 (a-6) Notwithstanding the other provisions of this section,
6671 if in the 2022 tax year an individual qualifies for a limitation on
6772 tax increases provided by this section on the individual's
6873 residence homestead and the first tax year the individual or the
6974 individual's spouse qualified for an exemption under Section
7075 11.13(c) for the same homestead was the 2019 tax year, the amount of
7176 the limitation provided by this section on the homestead in the 2022
7277 tax year is equal to the amount computed by:
7378 (1) multiplying the taxable value of the homestead in
7479 the 2019 tax year by a tax rate equal to the difference between the
7580 school district's maximum compressed rate for the 2019 tax year and
7681 the district's maximum compressed rate for the 2020 tax year;
7782 (2) subtracting the amount computed under Subdivision
7883 (1) from the amount of tax the district imposed on the homestead in
7984 the 2019 tax year;
8085 (3) adding any tax imposed in the 2020 tax year
8186 attributable to improvements made in the 2019 tax year as provided
8287 by Subsection (b) to the amount computed under Subdivision (2);
8388 (4) multiplying the taxable value of the homestead in
8489 the 2020 tax year by a tax rate equal to the difference between the
8590 district's maximum compressed rate for the 2020 tax year and the
8691 district's maximum compressed rate for the 2021 tax year;
8792 (5) subtracting the amount computed under Subdivision
8893 (4) from the amount computed under Subdivision (3);
8994 (6) adding any tax imposed in the 2021 tax year
9095 attributable to improvements made in the 2020 tax year as provided
9196 by Subsection (b) to the amount computed under Subdivision (5);
9297 (7) multiplying the taxable value of the homestead in
9398 the 2021 tax year by a tax rate equal to the difference between the
9499 district's maximum compressed rate for the 2021 tax year and the
95100 district's maximum compressed rate for the 2022 tax year;
96101 (8) subtracting the amount computed under Subdivision
97102 (7) from the amount computed under Subdivision (6); and
98103 (9) adding any tax imposed in the 2022 tax year
99104 attributable to improvements made in the 2021 tax year as provided
100105 by Subsection (b) to the amount computed under Subdivision (8).
101106 (a-7) Notwithstanding the other provisions of this section,
102107 if in the 2022 tax year an individual qualifies for a limitation on
103108 tax increases provided by this section on the individual's
104109 residence homestead and the first tax year the individual or the
105110 individual's spouse qualified for an exemption under Section
106111 11.13(c) for the same homestead was the 2020 tax year, the amount of
107112 the limitation provided by this section on the homestead in the 2022
108113 tax year is equal to the amount computed by:
109114 (1) multiplying the taxable value of the homestead in
110115 the 2020 tax year by a tax rate equal to the difference between the
111116 school district's maximum compressed rate for the 2020 tax year and
112117 the district's maximum compressed rate for the 2021 tax year;
113118 (2) subtracting the amount computed under Subdivision
114119 (1) from the amount of tax the district imposed on the homestead in
115120 the 2020 tax year;
116121 (3) adding any tax imposed in the 2021 tax year
117122 attributable to improvements made in the 2020 tax year as provided
118123 by Subsection (b) to the amount computed under Subdivision (2);
119124 (4) multiplying the taxable value of the homestead in
120125 the 2021 tax year by a tax rate equal to the difference between the
121126 district's maximum compressed rate for the 2021 tax year and the
122127 district's maximum compressed rate for the 2022 tax year;
123128 (5) subtracting the amount computed under Subdivision
124129 (4) from the amount computed under Subdivision (3); and
125130 (6) adding any tax imposed in the 2022 tax year
126131 attributable to improvements made in the 2021 tax year as provided
127132 by Subsection (b) to the amount computed under Subdivision (5).
128133 (a-8) Notwithstanding the other provisions of this section,
129134 if in the 2022 tax year an individual qualifies for a limitation on
130135 tax increases provided by this section on the individual's
131136 residence homestead and the first tax year the individual or the
132137 individual's spouse qualified for an exemption under Section
133138 11.13(c) for the same homestead was the 2021 tax year, the amount of
134139 the limitation provided by this section on the homestead in the 2022
135140 tax year is equal to the amount computed by:
136141 (1) multiplying the taxable value of the homestead in
137142 the 2021 tax year by a tax rate equal to the difference between the
138143 school district's maximum compressed rate for the 2021 tax year and
139144 the district's maximum compressed rate for the 2022 tax year;
140145 (2) subtracting the amount computed under Subdivision
141146 (1) from the amount of tax the district imposed on the homestead in
142147 the 2021 tax year; and
143148 (3) adding any tax imposed in the 2022 tax year
144149 attributable to improvements made in the 2021 tax year as provided
145150 by Subsection (b) to the amount computed under Subdivision (2).
146151 (a-9) Notwithstanding the other provisions of this section,
147152 if in the 2023 or a subsequent tax year an individual qualifies for
148153 a limitation on tax increases provided by this section on the
149154 individual's residence homestead, the amount of the limitation
150155 provided by this section on the homestead is equal to the amount
151156 computed by:
152157 (1) multiplying the taxable value of the homestead in
153158 the preceding tax year by a tax rate equal to the difference between
154159 the school district's maximum compressed rate for the preceding tax
155160 year and the district's maximum compressed rate for the current tax
156161 year;
157162 (2) subtracting the amount computed under Subdivision
158163 (1) from the amount of tax the district imposed on the homestead in
159164 the preceding tax year; and
160165 (3) adding any tax imposed in the current tax year
161166 attributable to improvements made in the preceding tax year as
162167 provided by Subsection (b) to the amount computed under Subdivision
163168 (2).
164- SECTION 2. Subchapter F, Chapter 48, Education Code, is
165- amended by adding Section 48.2542 to read as follows:
166- Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
167- LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
168- Notwithstanding any other provision of this chapter, if a school
169- district is not fully compensated through state aid or the
170- calculation of excess local revenue under this chapter based on the
171- determination of the district's taxable value of property under
172- Subchapter M, Chapter 403, Government Code, the district is
173- entitled to additional state aid in the amount necessary to fully
174- compensate the district for the amount of ad valorem tax revenue
175- lost due to a reduction of the amount of the limitation on tax
176- increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
177- (a-8), and (a-9), Tax Code, as applicable.
178- SECTION 3. Section 48.2551(d), Education Code, is amended
179- to read as follows:
180- (d) The agency shall:
181- (1) calculate and make available school districts'
182- maximum compressed rates, as determined under this section; and
183- (2) post the information described by Section 48.2556
184- on the agency's Internet website as required by that section.
185- SECTION 4. Subchapter F, Chapter 48, Education Code, is
186- amended by adding Section 48.2556 to read as follows:
187- Sec. 48.2556. POSTING ON AGENCY WEBSITE OF INFORMATION
188- RELATED TO REDUCTION OF LIMITATION OF TAX ON HOMESTEADS OF ELDERLY
189- OR DISABLED. (a) The agency shall post the following information
190- on the agency's Internet website for purposes of allowing the chief
191- appraiser of each appraisal district and the assessor for each
192- school district to make the calculations required by Sections
193- 11.26(a-5), (a-6), (a-7), (a-8), and (a-9), Tax Code:
194- (1) each school district's maximum compressed rate, as
195- determined under Section 48.2551, for each tax year beginning with
196- the 2019 tax year; and
197- (2) each school district's tier one maintenance and
198- operations tax rate, as provided by Section 45.0032(a), for the
199- 2018 tax year.
200- (b) The agency shall post each school district's maximum
201- compressed rate for the current tax year, as determined under
202- Section 48.2551, promptly after calculating the rate. If, for the
203- 2022 or a subsequent tax year, the agency calculates a preliminary
204- rate before calculating a final rate, the agency shall post the
205- preliminary rate, and the chief appraiser of each appraisal
206- district and the assessor for each school district shall use the
207- preliminary rate to make the calculations described by Subsection
208- (a).
209- (c) The agency shall notify the chief appraiser of each
210- appraisal district and the assessor for each school district when
211- the agency has complied with Subsection (b). The notice must
212- include the location on the agency's Internet website at which the
213- information required by this section to be posted may be found.
214- SECTION 5. Section 403.302, Government Code, is amended by
215- adding Subsection (j-1) to read as follows:
216- (j-1) In the final certification of the study under
217- Subsection (j), the comptroller shall separately identify the final
218- taxable value for each school district as adjusted to account for
219- the reduction of the amount of the limitation on tax increases
220- provided by Sections 11.26(a-4), (a-5), (a-6), (a-7), (a-8), and
221- (a-9), Tax Code, as applicable.
222- SECTION 6. This Act applies only to ad valorem taxes imposed
169+ SECTION 2. This Act applies only to ad valorem taxes imposed
223170 for a tax year beginning on or after the effective date of this Act.
224- SECTION 7. This Act takes effect January 1, 2022, but only
171+ SECTION 3. This Act takes effect January 1, 2022, but only
225172 if the constitutional amendment proposed by the 87th Legislature,
226173 1st Called Session, 2021, authorizing the legislature to provide
227174 for the reduction of the amount of a limitation on the total amount
228175 of ad valorem taxes that may be imposed for general elementary and
229176 secondary public school purposes on the residence homestead of a
230177 person who is elderly or disabled to reflect any statutory
231178 reduction from the preceding tax year in the maximum compressed
232179 rate of the maintenance and operations taxes imposed for those
233180 purposes on the homestead is approved by the voters. If that
234181 amendment is not approved by the voters, this Act has no effect.
182+ * * * * *