Texas 2021 - 87th 2nd C.S.

Texas House Bill HB123 Compare Versions

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

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1	1	By: Zwiener H.B. No. 123
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to an increase in the amount of the exemption of residence
7	7	homesteads from ad valorem taxation by a school district, a
8	8	reduction in the amount of the limitation on school district ad
9	9	valorem taxes imposed on the residence homesteads of the elderly or
10	10	disabled to reflect the increased exemption amount, and the
11	11	protection of school districts against the resulting loss in local
12	12	revenue.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
15	15	follows:
16	16	(b) An adult is entitled to exemption from taxation by a
17	17	school district of $50,000 [$25,000] of the appraised value of the
18	18	adult's residence homestead, except that only $5,000 of the
19	19	exemption applies to an entity operating under former Chapter 17,
20	20	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
21	21	May 1, 1995, as permitted by Section 11.301, Education Code.
22	22	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
23	23	follows:
24	24	(a) The tax officials shall appraise [the] property to which
25	25	this section applies and calculate taxes as on other property, but
26	26	if the tax [so] calculated exceeds the limitation imposed by this
27	27	section, the tax imposed is the amount of the tax as limited by this
28	28	section, except as otherwise provided by this section. A school
29	29	district may not increase the total annual amount of ad valorem tax
30	30	it imposes on the residence homestead of an individual 65 years of
31	31	age or older or on the residence homestead of an individual who is
32	32	disabled, as defined by Section 11.13, above the amount of the tax
33	33	it imposed in the first tax year in which the individual qualified
34	34	that residence homestead for the applicable exemption provided by
35	35	Section 11.13(c) for an individual who is 65 years of age or older
36	36	or is disabled. If the individual qualified that residence
37	37	homestead for the exemption after the beginning of that first year
38	38	and the residence homestead remains eligible for the same exemption
39	39	for the next year, and if the school district taxes imposed on the
40	40	residence homestead in the next year are less than the amount of
41	41	taxes imposed in that first year, a school district may not
42	42	subsequently increase the total annual amount of ad valorem taxes
43	43	it imposes on the residence homestead above the amount it imposed in
44	44	the year immediately following the first year for which the
45	45	individual qualified that residence homestead for the same
46	46	exemption, except as provided by Subsection (b). If the first tax
47	47	year the individual qualified the residence homestead for the
48	48	exemption provided by Section 11.13(c) for individuals 65 years of
49	49	age or older or disabled was a tax year before the 2023 [2015] tax
50	50	year, the amount of the limitation provided by this section for the
51	51	2023 tax year is the amount of tax the school district imposed for
52	52	the 2022 [2014] tax year less an amount equal to the amount
53	53	determined by multiplying $25,000 [$10,000] times the tax rate of
54	54	the school district for the 2023 [2015] tax year, plus any 2023
55	55	[2015] tax attributable to improvements made in 2022 [2014], other
56	56	than improvements made to comply with governmental regulations or
57	57	repairs.
58	58	SECTION 3. Section 46.071, Education Code, is amended by
59	59	amending Subsections (a), (b), and (c) and adding Subsections
60	60	(a-1), (b-1), and (c-1) to read as follows:
61	61	(a) Beginning with the 2015-2016 school year and continuing
62	62	through the 2022-2023 school year, a school district is entitled to
63	63	additional state aid under this subchapter to the extent that state
64	64	and local revenue used to service debt eligible under this chapter
65	65	is less than the state and local revenue that would have been
66	66	available to the district under this chapter as it existed on
67	67	September 1, 2015, if the increase in the residence homestead
68	68	exemption under Section 1-b(c), Article VIII, Texas Constitution,
69	69	and the additional limitation on tax increases under Section 1-b(d)
70	70	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
71	71	Session, 2015, had not occurred.
72	72	(a-1) Beginning with the 2023-2024 school year, a school
73	73	district is entitled to additional state aid under this subchapter
74	74	to the extent that state and local revenue used to service debt
75	75	eligible under this chapter is less than the state and local revenue
76	76	that would have been available to the district under this chapter as
77	77	it existed on September 1, 2022, if any increase in the residence
78	78	homestead exemption under Section 1-b(c), Article VIII, Texas
79	79	Constitution, and any additional limitation on tax increases under
80	80	Section 1-b(d) of that article as proposed by the 87th Legislature,
81	81	2nd Called Session, 2021, had not occurred.
82	82	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
83	83	additional state aid under this section through the 2022-2023
84	84	school year is equal to the amount by which the loss of local
85	85	interest and sinking revenue for debt service attributable to the
86	86	increase in the residence homestead exemption under Section 1-b(c),
87	87	Article VIII, Texas Constitution, and the additional limitation on
88	88	tax increases under Section 1-b(d) of that article as proposed by
89	89	S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
90	90	a gain in state aid under this chapter.
91	91	(b-1) Subject to Subsections (c-1), (d), and (e),
92	92	additional state aid under this section beginning with the
93	93	2023-2024 school year is equal to the amount by which the loss of
94	94	local interest and sinking revenue for debt service attributable to
95	95	any increase in the residence homestead exemption under Section
96	96	1-b(c), Article VIII, Texas Constitution, and any additional
97	97	limitation on tax increases under Section 1-b(d) of that article as
98	98	proposed by the 87th Legislature, 2nd Called Session, 2021, is not
99	99	offset by a gain in state aid under this chapter.
100	100	(c) For the purpose of determining state aid under
101	101	Subsections (a) and (b) [this section], local interest and sinking
102	102	revenue for debt service is limited to revenue required to service
103	103	debt eligible under this chapter as of September 1, 2015, including
104	104	refunding of that debt, subject to Section 46.061. The limitation
105	105	imposed by Section 46.034(a) does not apply for the purpose of
106	106	determining state aid under this section.
107	107	(c-1) For the purpose of determining state aid under
108	108	Subsections (a-1) and (b-1), local interest and sinking revenue for
109	109	debt service is limited to revenue required to service debt
110	110	eligible under this chapter as of September 1, 2022, including
111	111	refunding of that debt, subject to Section 46.061. The limitation
112	112	imposed by Section 46.034(a) does not apply for the purpose of
113	113	determining state aid under this section.
114	114	SECTION 4. Subchapter F, Chapter 48, Education Code, is
115	115	amended by adding Section 48.2541 to read as follows:
116	116	Sec. 48.2541. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION
117	117	AND LIMITATION ON TAX INCREASES. (a) Beginning with the 2023-2024
118	118	school year, a school district is entitled to additional state aid
119	119	to the extent that state and local revenue under this chapter and
120	120	Chapter 49 is less than the state and local revenue that would have
121	121	been available to the district under this chapter and Chapter 49 as
122	122	those chapters existed on September 1, 2022, if any increase in the
123	123	residence homestead exemption under Section 1-b(c), Article VIII,
124	124	Texas Constitution, and any additional limitation on tax increases
125	125	under Section 1-b(d) of that article as proposed by the 87th
126	126	Legislature, 2nd Called Session, 2021, had not occurred.
127	127	(b) The lesser of the school district's currently adopted
128	128	maintenance and operations tax rate or the adopted maintenance and
129	129	operations tax rate for the 2022 tax year is used for the purpose of
130	130	determining additional state aid under Subsection (a).
131	131	SECTION 5. The changes in law made by this Act to Sections
132	132	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
133	133	begins on or after January 1, 2023.
134	134	SECTION 6. This Act takes effect January 1, 2023, but only
135	135	if the constitutional amendment proposed by the 87th Legislature,
136	136	2nd Called Session, 2021, to increase the amount of the exemption of
137	137	residence homesteads from ad valorem taxation by a school district
138	138	and to reduce the amount of the limitation on school district ad
139	139	valorem taxes imposed on the residence homesteads of the elderly or
140	140	disabled to reflect the increased exemption amount is approved by
141	141	the voters. If that constitutional amendment is not approved by the
142	142	voters, this Act has no effect.