Texas 2021 - 87th 2nd C.S.

Texas House Bill HB11 Compare Versions

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

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1	1	87S20099 SMH/MEW-D
2	2	By: Meyer H.B. No. 11
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 and to the protection of school
12	12	districts against the resulting loss in local revenue.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 11.26, Tax Code, is amended by adding
15	15	Subsections (a-4), (a-5), (a-6), (a-7), (a-8), (a-9), and (a-10) to
16	16	read as follows:
17	17	(a-4) In this section, "maximum compressed rate" means the
18	18	maximum compressed rate of a school district as calculated under
19	19	Section 48.2551, Education Code.
20	20	(a-5) Notwithstanding the other provisions of this section,
21	21	if in the 2023 tax year an individual qualifies for a limitation on
22	22	tax increases provided by this section on the individual's
23	23	residence homestead and the first tax year the individual or the
24	24	individual's spouse qualified for an exemption under Section
25	25	11.13(c) for the same homestead was a tax year before the 2019 tax
26	26	year, the amount of the limitation provided by this section on the
27	27	homestead in the 2023 tax year is equal to the amount computed by:
28	28	(1) multiplying the taxable value of the homestead in
29	29	the 2018 tax year by a tax rate equal to the difference between the
30	30	school district's tier one maintenance and operations rate for the
31	31	2018 tax year and the district's maximum compressed rate for the
32	32	2019 tax year;
33	33	(2) subtracting the greater of zero or the amount
34	34	computed under Subdivision (1) from the amount of tax the district
35	35	imposed on the homestead in the 2018 tax year;
36	36	(3) adding any tax imposed in the 2019 tax year
37	37	attributable to improvements made in the 2018 tax year as provided
38	38	by Subsection (b) to the amount computed under Subdivision (2);
39	39	(4) multiplying the taxable value of the homestead in
40	40	the 2019 tax year by a tax rate equal to the difference between the
41	41	district's maximum compressed rate for the 2019 tax year and the
42	42	district's maximum compressed rate for the 2020 tax year;
43	43	(5) subtracting the amount computed under Subdivision
44	44	(4) from the amount computed under Subdivision (3);
45	45	(6) adding any tax imposed in the 2020 tax year
46	46	attributable to improvements made in the 2019 tax year as provided
47	47	by Subsection (b) to the amount computed under Subdivision (5);
48	48	(7) multiplying the taxable value of the homestead in
49	49	the 2020 tax year by a tax rate equal to the difference between the
50	50	district's maximum compressed rate for the 2020 tax year and the
51	51	district's maximum compressed rate for the 2021 tax year;
52	52	(8) subtracting the amount computed under Subdivision
53	53	(7) from the amount computed under Subdivision (6);
54	54	(9) adding any tax imposed in the 2021 tax year
55	55	attributable to improvements made in the 2020 tax year as provided
56	56	by Subsection (b) to the amount computed under Subdivision (8);
57	57	(10) multiplying the taxable value of the homestead in
58	58	the 2021 tax year by a tax rate equal to the difference between the
59	59	district's maximum compressed rate for the 2021 tax year and the
60	60	district's maximum compressed rate for the 2022 tax year;
61	61	(11) subtracting the amount computed under
62	62	Subdivision (10) from the amount computed under Subdivision (9);
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	(13) multiplying the taxable value of the homestead in
67	67	the 2022 tax year by a tax rate equal to the difference between the
68	68	district's maximum compressed rate for the 2022 tax year and the
69	69	district's maximum compressed rate for the 2023 tax year;
70	70	(14) subtracting the amount computed under
71	71	Subdivision (13) from the amount computed under Subdivision (12);
72	72	and
73	73	(15) adding any tax imposed in the 2023 tax year
74	74	attributable to improvements made in the 2022 tax year as provided
75	75	by Subsection (b) to the amount computed under Subdivision (14).
76	76	(a-6) Notwithstanding the other provisions of this section,
77	77	if in the 2023 tax year an individual qualifies for a limitation on
78	78	tax increases provided by this section on the individual's
79	79	residence homestead and the first tax year the individual or the
80	80	individual's spouse qualified for an exemption under Section
81	81	11.13(c) for the same homestead was the 2019 tax year, the amount of
82	82	the limitation provided by this section on the homestead in the 2023
83	83	tax year is equal to the amount computed by:
84	84	(1) multiplying the taxable value of the homestead in
85	85	the 2019 tax year by a tax rate equal to the difference between the
86	86	school district's maximum compressed rate for the 2019 tax year and
87	87	the district's maximum compressed rate for the 2020 tax year;
88	88	(2) subtracting the amount computed under Subdivision
89	89	(1) from the amount of tax the district imposed on the homestead in
90	90	the 2019 tax year;
91	91	(3) adding any tax imposed in the 2020 tax year
92	92	attributable to improvements made in the 2019 tax year as provided
93	93	by Subsection (b) to the amount computed under Subdivision (2);
94	94	(4) multiplying the taxable value of the homestead in
95	95	the 2020 tax year by a tax rate equal to the difference between the
96	96	district's maximum compressed rate for the 2020 tax year and the
97	97	district's maximum compressed rate for the 2021 tax year;
98	98	(5) subtracting the amount computed under Subdivision
99	99	(4) from the amount computed under Subdivision (3);
100	100	(6) adding any tax imposed in the 2021 tax year
101	101	attributable to improvements made in the 2020 tax year as provided
102	102	by Subsection (b) to the amount computed under Subdivision (5);
103	103	(7) multiplying the taxable value of the homestead in
104	104	the 2021 tax year by a tax rate equal to the difference between the
105	105	district's maximum compressed rate for the 2021 tax year and the
106	106	district's maximum compressed rate for the 2022 tax year;
107	107	(8) subtracting the amount computed under Subdivision
108	108	(7) from the amount computed under Subdivision (6);
109	109	(9) adding any tax imposed in the 2022 tax year
110	110	attributable to improvements made in the 2021 tax year as provided
111	111	by Subsection (b) to the amount computed under Subdivision (8);
112	112	(10) multiplying the taxable value of the homestead in
113	113	the 2022 tax year by a tax rate equal to the difference between the
114	114	district's maximum compressed rate for the 2022 tax year and the
115	115	district's maximum compressed rate for the 2023 tax year;
116	116	(11) subtracting the amount computed under
117	117	Subdivision (10) from the amount computed under Subdivision (9);
118	118	and
119	119	(12) adding any tax imposed in the 2023 tax year
120	120	attributable to improvements made in the 2022 tax year as provided
121	121	by Subsection (b) to the amount computed under Subdivision (11).
122	122	(a-7) Notwithstanding the other provisions of this section,
123	123	if in the 2023 tax year an individual qualifies for a limitation on
124	124	tax increases provided by this section on the individual's
125	125	residence homestead and the first tax year the individual or the
126	126	individual's spouse qualified for an exemption under Section
127	127	11.13(c) for the same homestead was the 2020 tax year, the amount of
128	128	the limitation provided by this section on the homestead in the 2023
129	129	tax year is equal to the amount computed by:
130	130	(1) multiplying the taxable value of the homestead in
131	131	the 2020 tax year by a tax rate equal to the difference between the
132	132	school district's maximum compressed rate for the 2020 tax year and
133	133	the district's maximum compressed rate for the 2021 tax year;
134	134	(2) subtracting the amount computed under Subdivision
135	135	(1) from the amount of tax the district imposed on the homestead in
136	136	the 2020 tax year;
137	137	(3) adding any tax imposed in the 2021 tax year
138	138	attributable to improvements made in the 2020 tax year as provided
139	139	by Subsection (b) to the amount computed under Subdivision (2);
140	140	(4) multiplying the taxable value of the homestead in
141	141	the 2021 tax year by a tax rate equal to the difference between the
142	142	district's maximum compressed rate for the 2021 tax year and the
143	143	district's maximum compressed rate for the 2022 tax year;
144	144	(5) subtracting the amount computed under Subdivision
145	145	(4) from the amount computed under Subdivision (3);
146	146	(6) adding any tax imposed in the 2022 tax year
147	147	attributable to improvements made in the 2021 tax year as provided
148	148	by Subsection (b) to the amount computed under Subdivision (5);
149	149	(7) multiplying the taxable value of the homestead in
150	150	the 2022 tax year by a tax rate equal to the difference between the
151	151	district's maximum compressed rate for the 2022 tax year and the
152	152	district's maximum compressed rate for the 2023 tax year;
153	153	(8) subtracting the amount computed under Subdivision
154	154	(7) from the amount computed under Subdivision (6); and
155	155	(9) adding any tax imposed in the 2023 tax year
156	156	attributable to improvements made in the 2022 tax year as provided
157	157	by Subsection (b) to the amount computed under Subdivision (8).
158	158	(a-8) Notwithstanding the other provisions of this section,
159	159	if in the 2023 tax year an individual qualifies for a limitation on
160	160	tax increases provided by this section on the individual's
161	161	residence homestead and the first tax year the individual or the
162	162	individual's spouse qualified for an exemption under Section
163	163	11.13(c) for the same homestead was the 2021 tax year, the amount of
164	164	the limitation provided by this section on the homestead in the 2023
165	165	tax year is equal to the amount computed by:
166	166	(1) multiplying the taxable value of the homestead in
167	167	the 2021 tax year by a tax rate equal to the difference between the
168	168	school district's maximum compressed rate for the 2021 tax year and
169	169	the district's maximum compressed rate for the 2022 tax year;
170	170	(2) subtracting the amount computed under Subdivision
171	171	(1) from the amount of tax the district imposed on the homestead in
172	172	the 2021 tax year;
173	173	(3) adding any tax imposed in the 2022 tax year
174	174	attributable to improvements made in the 2021 tax year as provided
175	175	by Subsection (b) to the amount computed under Subdivision (2);
176	176	(4) multiplying the taxable value of the homestead in
177	177	the 2022 tax year by a tax rate equal to the difference between the
178	178	school district's maximum compressed rate for the 2022 tax year and
179	179	the district's maximum compressed rate for the 2023 tax year;
180	180	(5) subtracting the amount computed under Subdivision
181	181	(4) from the amount of tax the district imposed on the homestead in
182	182	the 2022 tax year; and
183	183	(6) adding any tax imposed in the 2023 tax year
184	184	attributable to improvements made in the 2022 tax year as provided
185	185	by Subsection (b) to the amount computed under Subdivision (5).
186	186	(a-9) Notwithstanding the other provisions of this section,
187	187	if in the 2023 tax year an individual qualifies for a limitation on
188	188	tax increases provided by this section on the individual's
189	189	residence homestead and the first tax year the individual or the
190	190	individual's spouse qualified for an exemption under Section
191	191	11.13(c) for the same homestead was the 2022 tax year, the amount of
192	192	the limitation provided by this section on the homestead in the 2023
193	193	tax year is equal to the amount computed by:
194	194	(1) multiplying the taxable value of the homestead in
195	195	the 2022 tax year by a tax rate equal to the difference between the
196	196	school district's maximum compressed rate for the 2022 tax year and
197	197	the district's maximum compressed rate for the 2023 tax year;
198	198	(2) subtracting the amount computed under Subdivision
199	199	(1) from the amount of tax the district imposed on the homestead in
200	200	the 2022 tax year; and
201	201	(3) adding any tax imposed in the 2023 tax year
202	202	attributable to improvements made in the 2022 tax year as provided
203	203	by Subsection (b) to the amount computed under Subdivision (2).
204	204	(a-10) Notwithstanding the other provisions of this
205	205	section, if in the 2024 or a subsequent tax year an individual
206	206	qualifies for a limitation on tax increases provided by this
207	207	section on the individual's residence homestead, the amount of the
208	208	limitation provided by this section on the homestead is equal to the
209	209	amount computed by:
210	210	(1) multiplying the taxable value of the homestead in
211	211	the preceding tax year by a tax rate equal to the difference between
212	212	the school district's maximum compressed rate for the preceding tax
213	213	year and the district's maximum compressed rate for the current tax
214	214	year;
215	215	(2) subtracting the amount computed under Subdivision
216	216	(1) from the amount of tax the district imposed on the homestead in
217	217	the preceding tax year; and
218	218	(3) adding any tax imposed in the current tax year
219	219	attributable to improvements made in the preceding tax year as
220	220	provided by Subsection (b) to the amount computed under Subdivision
221	221	(2).
222	222	SECTION 2. Subchapter F, Chapter 48, Education Code, is
223	223	amended by adding Section 48.2542 to read as follows:
224	224	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
225	225	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
226	226	Notwithstanding any other provision of this chapter, if a school
227	227	district is not fully compensated through state aid or the
228	228	calculation of excess local revenue under this chapter based on the
229	229	determination of the district's taxable value of property under
230	230	Subchapter M, Chapter 403, Government Code, the district is
231	231	entitled to additional state aid in the amount necessary to fully
232	232	compensate the district for the amount of ad valorem tax revenue
233	233	lost due to a reduction of the amount of the limitation on tax
234	234	increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
235	235	(a-8), (a-9), and (a-10), Tax Code, as applicable.
236	236	SECTION 3. Section 48.2551(d), Education Code, is amended
237	237	to read as follows:
238	238	(d) The agency shall:
239	239	(1) calculate and make available school districts'
240	240	maximum compressed rates, as determined under this section; and
241	241	(2) post the information described by Section 48.2556
242	242	on the agency's Internet website as required by that section.
243	243	SECTION 4. Subchapter F, Chapter 48, Education Code, is
244	244	amended by adding Section 48.2556 to read as follows:
245	245	Sec. 48.2556. POSTING ON AGENCY WEBSITE OF INFORMATION
246	246	RELATED TO REDUCTION OF LIMITATION OF TAX ON HOMESTEADS OF ELDERLY
247	247	OR DISABLED. (a) The agency shall post the following information
248	248	on the agency's Internet website for purposes of allowing the chief
249	249	appraiser of each appraisal district and the assessor for each
250	250	school district to make the calculations required by Sections
251	251	11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
252	252	(1) each school district's maximum compressed rate, as
253	253	determined under Section 48.2551, for each tax year beginning with
254	254	the 2019 tax year; and
255	255	(2) each school district's tier one maintenance and
256	256	operations tax rate, as provided by Section 45.0032(a), for the
257	257	2018 tax year.
258	258	(b) The agency shall post each school district's maximum
259	259	compressed rate for the current tax year, as determined under
260	260	Section 48.2551, promptly after calculating the rate. If, for the
261	261	2023 or a subsequent tax year, the agency calculates a preliminary
262	262	rate before calculating a final rate, the agency shall post the
263	263	preliminary rate, and the chief appraiser of each appraisal
264	264	district and the assessor for each school district shall use the
265	265	preliminary rate to make the calculations described by Subsection
266	266	(a).
267	267	(c) The agency shall notify the chief appraiser of each
268	268	appraisal district and the assessor for each school district when
269	269	the agency has complied with Subsection (b). The notice must
270	270	include the location on the agency's Internet website at which the
271	271	information required by this section to be posted may be found.
272	272	SECTION 5. Section 403.302, Government Code, is amended by
273	273	adding Subsection (j-1) to read as follows:
274	274	(j-1) In the final certification of the study under
275	275	Subsection (j), the comptroller shall separately identify the final
276	276	taxable value for each school district as adjusted to account for
277	277	the reduction of the amount of the limitation on tax increases
278	278	provided by Sections 11.26(a-4), (a-5), (a-6), (a-7), (a-8), (a-9),
279	279	and (a-10), Tax Code, as applicable.
280	280	SECTION 6. This Act applies only to ad valorem taxes imposed
281	281	for a tax year beginning on or after the effective date of this Act.
282	282	SECTION 7. This Act takes effect January 1, 2023, but only
283	283	if the constitutional amendment proposed by the 87th Legislature,
284	284	2nd Called Session, 2021, authorizing the legislature to provide
285	285	for the reduction of the amount of a limitation on the total amount
286	286	of ad valorem taxes that may be imposed for general elementary and
287	287	secondary public school purposes on the residence homestead of a
288	288	person who is elderly or disabled to reflect any statutory
289	289	reduction from the preceding tax year in the maximum compressed
290	290	rate of the maintenance and operations taxes imposed for those
291	291	purposes on the homestead is approved by the voters. If that
292	292	amendment is not approved by the voters, this Act has no effect.