By: Bettencourt, et al. S.B. No. 12
A BILL TO BE ENTITLED
AN ACT
relating to the reduction of the amount of a limitation on the total
amount of ad valorem taxes that may be imposed by a school district
on the residence homestead of an individual who is elderly or
disabled to reflect any reduction from the preceding tax year in the
district's maximum compressed rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.26, Tax Code, is amended by adding
Subsections (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9) to read as
follows:
(a-4) In this section, "maximum compressed rate" means the
maximum compressed rate of a school district as calculated under
Section 48.2551, Education Code.
(a-5) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was a tax year before the 2019 tax
year, the amount of the limitation provided by this section on the
homestead in the 2022 tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2018 tax year by a tax rate equal to the difference between the
school district's tier one maintenance and operations rate for the
2018 tax year and the district's maximum compressed rate for the
2019 tax year;
(2) subtracting the greater of zero or the amount
computed under Subdivision (1) from the amount of tax the district
imposed on the homestead in the 2018 tax year;
(3) adding any tax imposed in the 2019 tax year
attributable to improvements made in the 2018 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4) multiplying the taxable value of the homestead in
the 2019 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2019 tax year and the
district's maximum compressed rate for the 2020 tax year;
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3);
(6) adding any tax imposed in the 2020 tax year
attributable to improvements made in the 2019 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5);
(7) multiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2020 tax year and the
district's maximum compressed rate for the 2021 tax year;
(8) subtracting the amount computed under Subdivision
(7) from the amount computed under Subdivision (6);
(9) adding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (8);
(10) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2021 tax year and the
district's maximum compressed rate for the 2022 tax year;
(11) subtracting the amount computed under
Subdivision (10) from the amount computed under Subdivision (9);
and
(12) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (11).
(a-6) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2019 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2019 tax year by a tax rate equal to the difference between the
school district's maximum compressed rate for the 2019 tax year and
the district's maximum compressed rate for the 2020 tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2019 tax year;
(3) adding any tax imposed in the 2020 tax year
attributable to improvements made in the 2019 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4) multiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2020 tax year and the
district's maximum compressed rate for the 2021 tax year;
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3);
(6) adding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5);
(7) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2021 tax year and the
district's maximum compressed rate for the 2022 tax year;
(8) subtracting the amount computed under Subdivision
(7) from the amount computed under Subdivision (6); and
(9) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (8).
(a-7) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2020 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
school district's maximum compressed rate for the 2020 tax year and
the district's maximum compressed rate for the 2021 tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2020 tax year;
(3) adding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
district's maximum compressed rate for the 2021 tax year and the
district's maximum compressed rate for the 2022 tax year;
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3); and
(6) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5).
(a-8) Notwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2021 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1) multiplying the taxable value of the homestead in
the 2021 tax year by a tax rate equal to the difference between the
school district's maximum compressed rate for the 2021 tax year and
the district's maximum compressed rate for the 2022 tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2021 tax year; and
(3) adding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2).
(a-9) Notwithstanding the other provisions of this section,
if in the 2023 or a subsequent tax year an individual qualifies for
a limitation on tax increases provided by this section on the
individual's residence homestead, the amount of the limitation
provided by this section on the homestead is equal to the amount
computed by:
(1) multiplying the taxable value of the homestead in
the preceding tax year by a tax rate equal to the difference between
the school district's maximum compressed rate for the preceding tax
year and the district's maximum compressed rate for the current tax
year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the preceding tax year; and
(3) adding any tax imposed in the current tax year
attributable to improvements made in the preceding tax year as
provided by Subsection (b) to the amount computed under Subdivision
(2).
SECTION 2. Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2542 to read as follows:
Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
Notwithstanding any other provision of this chapter, if a school
district is not fully compensated through state aid or the
calculation of excess local revenue under this chapter based on the
determination of the district's taxable value of property under
Subchapter M, Chapter 403, Government Code, the district is
entitled to additional state aid in the amount necessary to fully
compensate the district for the amount of ad valorem tax revenue
lost due to a reduction of the amount of the limitation on tax
increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
(a-8), and (a-9), Tax Code, as applicable.
SECTION 3. Section 48.2551(d), Education Code, is amended
to read as follows:
(d) The agency shall:
(1) calculate and make available school districts'
maximum compressed rates, as determined under this section; and
(2) post the information described by Section 48.2556
on the agency's Internet website as required by that section.
SECTION 4. Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2556 to read as follows:
Sec. 48.2556. POSTING ON AGENCY WEBSITE OF INFORMATION
RELATED TO REDUCTION OF LIMITATION OF TAX ON HOMESTEADS OF ELDERLY
OR DISABLED. (a) The agency shall post the following information
on the agency's Internet website for purposes of allowing the chief
appraiser of each appraisal district and the assessor for each
school district to make the calculations required by Sections
11.26(a-5), (a-6), (a-7), (a-8), and (a-9), Tax Code:
(1) each school district's maximum compressed rate, as
determined under Section 48.2551, for each tax year beginning with
the 2019 tax year; and
(2) each school district's tier one maintenance and
operations tax rate, as provided by Section 45.0032(a), for the
2018 tax year.
(b) The agency shall post each school district's maximum
compressed rate for the current tax year, as determined under
Section 48.2551, promptly after calculating the rate. If, for the
2022 or a subsequent tax year, the agency calculates a preliminary
rate before calculating a final rate, the agency shall post the
preliminary rate, and the chief appraiser of each appraisal
district and the assessor for each school district shall use the
preliminary rate to make the calculations described by Subsection
(a).
(c) The agency shall notify the chief appraiser of each
appraisal district and the assessor for each school district when
the agency has complied with Subsection (b). The notice must
include the location on the agency's Internet website at which the
information required by this section to be posted may be found.
SECTION 5. Section 403.302, Government Code, is amended by
adding Subsection (j-1) to read as follows:
(j-1) In the final certification of the study under
Subsection (j), the comptroller shall separately identify the final
taxable value for each school district as adjusted to account for
the reduction of the amount of the limitation on tax increases
provided by Sections 11.26(a-4), (a-5), (a-6), (a-7), (a-8), and
(a-9), Tax Code, as applicable.
SECTION 6. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 7. This Act takes effect January 1, 2022, but only
if the constitutional amendment proposed by the 87th Legislature,
1st Called Session, 2021, authorizing the legislature to provide
for the reduction of the amount of a limitation on the total amount
of ad valorem taxes that may be imposed for general elementary and
secondary public school purposes on the residence homestead of a
person who is elderly or disabled to reflect any statutory
reduction from the preceding tax year in the maximum compressed
rate of the maintenance and operations taxes imposed for those
purposes on the homestead is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.