Texas 2021 - 87th 1st C.S.

Texas Senate Bill SB20 Compare Versions

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1	1	87S10145 SMH-D
2	2	By: Kolkhorst S.B. No. 20
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the reduction of the amount of a limitation on the total
8	8	amount of ad valorem taxes that may be imposed by a school district
9	9	on the residence homestead of an individual who is elderly or
10	10	disabled to reflect any reduction from the preceding tax year in the
11	11	district's maximum compressed rate.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 11.26, Tax Code, is amended by adding
14	14	Subsections (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9) to read as
15	15	follows:
16	16	(a-4) In this section, "maximum compressed rate" means the
17	17	maximum compressed rate of a school district as calculated under
18	18	Section 48.2551, Education Code.
19	19	(a-5) Notwithstanding the other provisions of this section,
20	20	if in the 2022 tax year an individual qualifies for a limitation on
21	21	tax increases provided by this section on the individual's
22	22	residence homestead and the first tax year the individual or the
23	23	individual's spouse qualified for an exemption under Section
24	24	11.13(c) for the same homestead was a tax year before the 2019 tax
25	25	year, the amount of the limitation provided by this section on the
26	26	homestead in the 2022 tax year is equal to the amount computed by:
27	27	(1) multiplying the taxable value of the homestead in
28	28	the 2018 tax year by a tax rate equal to the difference between the
29	29	school district's tier one maintenance and operations rate for the
30	30	2018 tax year and the district's maximum compressed rate for the
31	31	2019 tax year;
32	32	(2) subtracting the greater of zero or the amount
33	33	computed under Subdivision (1) from the amount of tax the district
34	34	imposed on the homestead in the 2018 tax year;
35	35	(3) adding any tax imposed in the 2019 tax year
36	36	attributable to improvements made in the 2018 tax year as provided
37	37	by Subsection (b) to the amount computed under Subdivision (2);
38	38	(4) multiplying the taxable value of the homestead in
39	39	the 2019 tax year by a tax rate equal to the difference between the
40	40	district's maximum compressed rate for the 2019 tax year and the
41	41	district's maximum compressed rate for the 2020 tax year;
42	42	(5) subtracting the amount computed under Subdivision
43	43	(4) from the amount computed under Subdivision (3);
44	44	(6) adding any tax imposed in the 2020 tax year
45	45	attributable to improvements made in the 2019 tax year as provided
46	46	by Subsection (b) to the amount computed under Subdivision (5);
47	47	(7) multiplying the taxable value of the homestead in
48	48	the 2020 tax year by a tax rate equal to the difference between the
49	49	district's maximum compressed rate for the 2020 tax year and the
50	50	district's maximum compressed rate for the 2021 tax year;
51	51	(8) subtracting the amount computed under Subdivision
52	52	(7) from the amount computed under Subdivision (6);
53	53	(9) adding any tax imposed in the 2021 tax year
54	54	attributable to improvements made in the 2020 tax year as provided
55	55	by Subsection (b) to the amount computed under Subdivision (8);
56	56	(10) multiplying the taxable value of the homestead in
57	57	the 2021 tax year by a tax rate equal to the difference between the
58	58	district's maximum compressed rate for the 2021 tax year and the
59	59	district's maximum compressed rate for the 2022 tax year;
60	60	(11) subtracting the amount computed under
61	61	Subdivision (10) from the amount computed under Subdivision (9);
62	62	and
63	63	(12) adding any tax imposed in the 2022 tax year
64	64	attributable to improvements made in the 2021 tax year as provided
65	65	by Subsection (b) to the amount computed under Subdivision (11).
66	66	(a-6) Notwithstanding the other provisions of this section,
67	67	if in the 2022 tax year an individual qualifies for a limitation on
68	68	tax increases provided by this section on the individual's
69	69	residence homestead and the first tax year the individual or the
70	70	individual's spouse qualified for an exemption under Section
71	71	11.13(c) for the same homestead was the 2019 tax year, the amount of
72	72	the limitation provided by this section on the homestead in the 2022
73	73	tax year is equal to the amount computed by:
74	74	(1) multiplying the taxable value of the homestead in
75	75	the 2019 tax year by a tax rate equal to the difference between the
76	76	school district's maximum compressed rate for the 2019 tax year and
77	77	the district's maximum compressed rate for the 2020 tax year;
78	78	(2) subtracting the amount computed under Subdivision
79	79	(1) from the amount of tax the district imposed on the homestead in
80	80	the 2019 tax year;
81	81	(3) adding any tax imposed in the 2020 tax year
82	82	attributable to improvements made in the 2019 tax year as provided
83	83	by Subsection (b) to the amount computed under Subdivision (2);
84	84	(4) multiplying the taxable value of the homestead in
85	85	the 2020 tax year by a tax rate equal to the difference between the
86	86	district's maximum compressed rate for the 2020 tax year and the
87	87	district's maximum compressed rate for the 2021 tax year;
88	88	(5) subtracting the amount computed under Subdivision
89	89	(4) from the amount computed under Subdivision (3);
90	90	(6) adding any tax imposed in the 2021 tax year
91	91	attributable to improvements made in the 2020 tax year as provided
92	92	by Subsection (b) to the amount computed under Subdivision (5);
93	93	(7) multiplying the taxable value of the homestead in
94	94	the 2021 tax year by a tax rate equal to the difference between the
95	95	district's maximum compressed rate for the 2021 tax year and the
96	96	district's maximum compressed rate for the 2022 tax year;
97	97	(8) subtracting the amount computed under Subdivision
98	98	(7) from the amount computed under Subdivision (6); and
99	99	(9) adding any tax imposed in the 2022 tax year
100	100	attributable to improvements made in the 2021 tax year as provided
101	101	by Subsection (b) to the amount computed under Subdivision (8).
102	102	(a-7) Notwithstanding the other provisions of this section,
103	103	if in the 2022 tax year an individual qualifies for a limitation on
104	104	tax increases provided by this section on the individual's
105	105	residence homestead and the first tax year the individual or the
106	106	individual's spouse qualified for an exemption under Section
107	107	11.13(c) for the same homestead was the 2020 tax year, the amount of
108	108	the limitation provided by this section on the homestead in the 2022
109	109	tax year is equal to the amount computed by:
110	110	(1) multiplying the taxable value of the homestead in
111	111	the 2020 tax year by a tax rate equal to the difference between the
112	112	school district's maximum compressed rate for the 2020 tax year and
113	113	the district's maximum compressed rate for the 2021 tax year;
114	114	(2) subtracting the amount computed under Subdivision
115	115	(1) from the amount of tax the district imposed on the homestead in
116	116	the 2020 tax year;
117	117	(3) adding any tax imposed in the 2021 tax year
118	118	attributable to improvements made in the 2020 tax year as provided
119	119	by Subsection (b) to the amount computed under Subdivision (2);
120	120	(4) multiplying the taxable value of the homestead in
121	121	the 2021 tax year by a tax rate equal to the difference between the
122	122	district's maximum compressed rate for the 2021 tax year and the
123	123	district's maximum compressed rate for the 2022 tax year;
124	124	(5) subtracting the amount computed under Subdivision
125	125	(4) from the amount computed under Subdivision (3); and
126	126	(6) adding any tax imposed in the 2022 tax year
127	127	attributable to improvements made in the 2021 tax year as provided
128	128	by Subsection (b) to the amount computed under Subdivision (5).
129	129	(a-8) Notwithstanding the other provisions of this section,
130	130	if in the 2022 tax year an individual qualifies for a limitation on
131	131	tax increases provided by this section on the individual's
132	132	residence homestead and the first tax year the individual or the
133	133	individual's spouse qualified for an exemption under Section
134	134	11.13(c) for the same homestead was the 2021 tax year, the amount of
135	135	the limitation provided by this section on the homestead in the 2022
136	136	tax year is equal to the amount computed by:
137	137	(1) multiplying the taxable value of the homestead in
138	138	the 2021 tax year by a tax rate equal to the difference between the
139	139	school district's maximum compressed rate for the 2021 tax year and
140	140	the district's maximum compressed rate for the 2022 tax year;
141	141	(2) subtracting the amount computed under Subdivision
142	142	(1) from the amount of tax the district imposed on the homestead in
143	143	the 2021 tax year; and
144	144	(3) adding any tax imposed in the 2022 tax year
145	145	attributable to improvements made in the 2021 tax year as provided
146	146	by Subsection (b) to the amount computed under Subdivision (2).
147	147	(a-9) Notwithstanding the other provisions of this section,
148	148	if in the 2023 or a subsequent tax year an individual qualifies for
149	149	a limitation on tax increases provided by this section on the
150	150	individual's residence homestead, the amount of the limitation
151	151	provided by this section on the homestead is equal to the amount
152	152	computed by:
153	153	(1) multiplying the taxable value of the homestead in
154	154	the preceding tax year by a tax rate equal to the difference between
155	155	the school district's maximum compressed rate for the preceding tax
156	156	year and the district's maximum compressed rate for the current tax
157	157	year;
158	158	(2) subtracting the amount computed under Subdivision
159	159	(1) from the amount of tax the district imposed on the homestead in
160	160	the preceding tax year; and
161	161	(3) adding any tax imposed in the current tax year
162	162	attributable to improvements made in the preceding tax year as
163	163	provided by Subsection (b) to the amount computed under Subdivision
164	164	(2).
165	165	SECTION 2. This Act applies only to ad valorem taxes imposed
166	166	for a tax year beginning on or after the effective date of this Act.
167	167	SECTION 3. This Act takes effect January 1, 2022, but only
168	168	if the constitutional amendment proposed by the 87th Legislature,
169	169	1st Called Session, 2021, authorizing the legislature to provide
170	170	for the reduction of the amount of a limitation on the total amount
171	171	of ad valorem taxes that may be imposed for general elementary and
172	172	secondary public school purposes on the residence homestead of a
173	173	person who is elderly or disabled to reflect any statutory
174	174	reduction from the preceding tax year in the maximum compressed
175	175	rate of the maintenance and operations taxes imposed for those
176	176	purposes on the homestead is approved by the voters. If that
177	177	amendment is not approved by the voters, this Act has no effect.