Texas 2021 - 87th 2nd C.S.

Texas Senate Bill SB12 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 12
	1	+	By: Bettencourt, et al. S.B. No. 12
	2	+	(Meyer)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the reduction of the amount of a limitation on the total
6	8		amount of ad valorem taxes that may be imposed by a school district
7	9		on the residence homestead of an individual who is elderly or
8	10		disabled to reflect any reduction from the preceding tax year in the
9	11		district's maximum compressed rate and to the protection of school
10	12		districts against the resulting loss in local revenue.
11	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	14		SECTION 1. Section 11.26, Tax Code, is amended by adding
13	15		Subsections (a-4), (a-5), (a-6), (a-7), (a-8), (a-9), and (a-10) to
14	16		read as follows:
15	17		(a-4) In this section, "maximum compressed rate" means the
16	18		maximum compressed rate of a school district as calculated under
17	19		Section 48.2551, Education Code.
18	20		(a-5) Notwithstanding the other provisions of this section,
19	21		if in the 2023 tax year an individual qualifies for a limitation on
20	22		tax increases provided by this section on the individual's
21	23		residence homestead and the first tax year the individual or the
22	24		individual's spouse qualified for an exemption under Section
23	25		11.13(c) for the same homestead was a tax year before the 2019 tax
24	26		year, the amount of the limitation provided by this section on the
25	27		homestead in the 2023 tax year is equal to the amount computed by:
26	28		(1) multiplying the taxable value of the homestead in
27	29		the 2018 tax year by a tax rate equal to the difference between the
28	30		school district's tier one maintenance and operations rate for the
29	31		2018 tax year and the district's maximum compressed rate for the
30	32		2019 tax year;
31	33		(2) subtracting the greater of zero or the amount
32	34		computed under Subdivision (1) from the amount of tax the district
33	35		imposed on the homestead in the 2018 tax year;
34	36		(3) adding any tax imposed in the 2019 tax year
35	37		attributable to improvements made in the 2018 tax year as provided
36	38		by Subsection (b) to the amount computed under Subdivision (2);
37	39		(4) multiplying the taxable value of the homestead in
38	40		the 2019 tax year by a tax rate equal to the difference between the
39	41		district's maximum compressed rate for the 2019 tax year and the
40	42		district's maximum compressed rate for the 2020 tax year;
41	43		(5) subtracting the amount computed under Subdivision
42	44		(4) from the amount computed under Subdivision (3);
43	45		(6) adding any tax imposed in the 2020 tax year
44	46		attributable to improvements made in the 2019 tax year as provided
45	47		by Subsection (b) to the amount computed under Subdivision (5);
46	48		(7) multiplying the taxable value of the homestead in
47	49		the 2020 tax year by a tax rate equal to the difference between the
48	50		district's maximum compressed rate for the 2020 tax year and the
49	51		district's maximum compressed rate for the 2021 tax year;
50	52		(8) subtracting the amount computed under Subdivision
51	53		(7) from the amount computed under Subdivision (6);
52	54		(9) adding any tax imposed in the 2021 tax year
53	55		attributable to improvements made in the 2020 tax year as provided
54	56		by Subsection (b) to the amount computed under Subdivision (8);
55	57		(10) multiplying the taxable value of the homestead in
56	58		the 2021 tax year by a tax rate equal to the difference between the
57	59		district's maximum compressed rate for the 2021 tax year and the
58	60		district's maximum compressed rate for the 2022 tax year;
59	61		(11) subtracting the amount computed under
60	62		Subdivision (10) from the amount computed under Subdivision (9);
61	63		(12) adding any tax imposed in the 2022 tax year
62	64		attributable to improvements made in the 2021 tax year as provided
63	65		by Subsection (b) to the amount computed under Subdivision (11);
64	66		(13) multiplying the taxable value of the homestead in
65	67		the 2022 tax year by a tax rate equal to the difference between the
66	68		district's maximum compressed rate for the 2022 tax year and the
67	69		district's maximum compressed rate for the 2023 tax year;
68	70		(14) subtracting the amount computed under
69	71		Subdivision (13) from the amount computed under Subdivision (12);
70	72		and
71	73		(15) adding any tax imposed in the 2023 tax year
72	74		attributable to improvements made in the 2022 tax year as provided
73	75		by Subsection (b) to the amount computed under Subdivision (14).
74	76		(a-6) Notwithstanding the other provisions of this section,
75	77		if in the 2023 tax year an individual qualifies for a limitation on
76	78		tax increases provided by this section on the individual's
77	79		residence homestead and the first tax year the individual or the
78	80		individual's spouse qualified for an exemption under Section
79	81		11.13(c) for the same homestead was the 2019 tax year, the amount of
80	82		the limitation provided by this section on the homestead in the 2023
81	83		tax year is equal to the amount computed by:
82	84		(1) multiplying the taxable value of the homestead in
83	85		the 2019 tax year by a tax rate equal to the difference between the
84	86		school district's maximum compressed rate for the 2019 tax year and
85	87		the district's maximum compressed rate for the 2020 tax year;
86	88		(2) subtracting the amount computed under Subdivision
87	89		(1) from the amount of tax the district imposed on the homestead in
88	90		the 2019 tax year;
89	91		(3) adding any tax imposed in the 2020 tax year
90	92		attributable to improvements made in the 2019 tax year as provided
91	93		by Subsection (b) to the amount computed under Subdivision (2);
92	94		(4) multiplying the taxable value of the homestead in
93	95		the 2020 tax year by a tax rate equal to the difference between the
94	96		district's maximum compressed rate for the 2020 tax year and the
95	97		district's maximum compressed rate for the 2021 tax year;
96	98		(5) subtracting the amount computed under Subdivision
97	99		(4) from the amount computed under Subdivision (3);
98	100		(6) adding any tax imposed in the 2021 tax year
99	101		attributable to improvements made in the 2020 tax year as provided
100	102		by Subsection (b) to the amount computed under Subdivision (5);
101	103		(7) multiplying the taxable value of the homestead in
102	104		the 2021 tax year by a tax rate equal to the difference between the
103	105		district's maximum compressed rate for the 2021 tax year and the
104	106		district's maximum compressed rate for the 2022 tax year;
105	107		(8) subtracting the amount computed under Subdivision
106	108		(7) from the amount computed under Subdivision (6);
107	109		(9) adding any tax imposed in the 2022 tax year
108	110		attributable to improvements made in the 2021 tax year as provided
109	111		by Subsection (b) to the amount computed under Subdivision (8);
110	112		(10) multiplying the taxable value of the homestead in
111	113		the 2022 tax year by a tax rate equal to the difference between the
112	114		district's maximum compressed rate for the 2022 tax year and the
113	115		district's maximum compressed rate for the 2023 tax year;
114	116		(11) subtracting the amount computed under
115	117		Subdivision (10) from the amount computed under Subdivision (9);
116	118		and
117	119		(12) adding any tax imposed in the 2023 tax year
118	120		attributable to improvements made in the 2022 tax year as provided
119	121		by Subsection (b) to the amount computed under Subdivision (11).
120	122		(a-7) Notwithstanding the other provisions of this section,
121	123		if in the 2023 tax year an individual qualifies for a limitation on
122	124		tax increases provided by this section on the individual's
123	125		residence homestead and the first tax year the individual or the
124	126		individual's spouse qualified for an exemption under Section
125	127		11.13(c) for the same homestead was the 2020 tax year, the amount of
126	128		the limitation provided by this section on the homestead in the 2023
127	129		tax year is equal to the amount computed by:
128	130		(1) multiplying the taxable value of the homestead in
129	131		the 2020 tax year by a tax rate equal to the difference between the
130	132		school district's maximum compressed rate for the 2020 tax year and
131	133		the district's maximum compressed rate for the 2021 tax year;
132	134		(2) subtracting the amount computed under Subdivision
133	135		(1) from the amount of tax the district imposed on the homestead in
134	136		the 2020 tax year;
135	137		(3) adding any tax imposed in the 2021 tax year
136	138		attributable to improvements made in the 2020 tax year as provided
137	139		by Subsection (b) to the amount computed under Subdivision (2);
138	140		(4) multiplying the taxable value of the homestead in
139	141		the 2021 tax year by a tax rate equal to the difference between the
140	142		district's maximum compressed rate for the 2021 tax year and the
141	143		district's maximum compressed rate for the 2022 tax year;
142	144		(5) subtracting the amount computed under Subdivision
143	145		(4) from the amount computed under Subdivision (3);
144	146		(6) adding any tax imposed in the 2022 tax year
145	147		attributable to improvements made in the 2021 tax year as provided
146	148		by Subsection (b) to the amount computed under Subdivision (5);
147	149		(7) multiplying the taxable value of the homestead in
148	150		the 2022 tax year by a tax rate equal to the difference between the
149	151		district's maximum compressed rate for the 2022 tax year and the
150	152		district's maximum compressed rate for the 2023 tax year;
151	153		(8) subtracting the amount computed under Subdivision
152	154		(7) from the amount computed under Subdivision (6); and
153	155		(9) adding any tax imposed in the 2023 tax year
154	156		attributable to improvements made in the 2022 tax year as provided
155	157		by Subsection (b) to the amount computed under Subdivision (8).
156	158		(a-8) Notwithstanding the other provisions of this section,
157	159		if in the 2023 tax year an individual qualifies for a limitation on
158	160		tax increases provided by this section on the individual's
159	161		residence homestead and the first tax year the individual or the
160	162		individual's spouse qualified for an exemption under Section
161	163		11.13(c) for the same homestead was the 2021 tax year, the amount of
162	164		the limitation provided by this section on the homestead in the 2023
163	165		tax year is equal to the amount computed by:
164	166		(1) multiplying the taxable value of the homestead in
165	167		the 2021 tax year by a tax rate equal to the difference between the
166	168		school district's maximum compressed rate for the 2021 tax year and
167	169		the district's maximum compressed rate for the 2022 tax year;
168	170		(2) subtracting the amount computed under Subdivision
169	171		(1) from the amount of tax the district imposed on the homestead in
170	172		the 2021 tax year;
171	173		(3) adding any tax imposed in the 2022 tax year
172	174		attributable to improvements made in the 2021 tax year as provided
173	175		by Subsection (b) to the amount computed under Subdivision (2);
174	176		(4) multiplying the taxable value of the homestead in
175	177		the 2022 tax year by a tax rate equal to the difference between the
176	178		school district's maximum compressed rate for the 2022 tax year and
177	179		the district's maximum compressed rate for the 2023 tax year;
178	180		(5) subtracting the amount computed under Subdivision
179		-	(4) from the amount computed under Subdivision (3); and
	181	+	(4) from the amount of tax the district imposed on the homestead in
	182	+	the 2022 tax year; and
180	183		(6) adding any tax imposed in the 2023 tax year
181	184		attributable to improvements made in the 2022 tax year as provided
182	185		by Subsection (b) to the amount computed under Subdivision (5).
183	186		(a-9) Notwithstanding the other provisions of this section,
184	187		if in the 2023 tax year an individual qualifies for a limitation on
185	188		tax increases provided by this section on the individual's
186	189		residence homestead and the first tax year the individual or the
187	190		individual's spouse qualified for an exemption under Section
188	191		11.13(c) for the same homestead was the 2022 tax year, the amount of
189	192		the limitation provided by this section on the homestead in the 2023
190	193		tax year is equal to the amount computed by:
191	194		(1) multiplying the taxable value of the homestead in
192	195		the 2022 tax year by a tax rate equal to the difference between the
193	196		school district's maximum compressed rate for the 2022 tax year and
194	197		the district's maximum compressed rate for the 2023 tax year;
195	198		(2) subtracting the amount computed under Subdivision
196	199		(1) from the amount of tax the district imposed on the homestead in
197	200		the 2022 tax year; and
198	201		(3) adding any tax imposed in the 2023 tax year
199	202		attributable to improvements made in the 2022 tax year as provided
200	203		by Subsection (b) to the amount computed under Subdivision (2).
201	204		(a-10) Notwithstanding the other provisions of this
202	205		section, if in the 2024 or a subsequent tax year an individual
203	206		qualifies for a limitation on tax increases provided by this
204	207		section on the individual's residence homestead, the amount of the
205	208		limitation provided by this section on the homestead is equal to the
206	209		amount computed by:
207	210		(1) multiplying the taxable value of the homestead in
208	211		the preceding tax year by a tax rate equal to the difference between
209	212		the school district's maximum compressed rate for the preceding tax
210	213		year and the district's maximum compressed rate for the current tax
211	214		year;
212	215		(2) subtracting the amount computed under Subdivision
213	216		(1) from the amount of tax the district imposed on the homestead in
214	217		the preceding tax year; and
215	218		(3) adding any tax imposed in the current tax year
216	219		attributable to improvements made in the preceding tax year as
217	220		provided by Subsection (b) to the amount computed under Subdivision
218	221		(2).
219	222		SECTION 2. Subchapter F, Chapter 48, Education Code, is
220	223		amended by adding Section 48.2542 to read as follows:
221	224		Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
222	225		LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
223	226		Notwithstanding any other provision of this chapter, if a school
224	227		district is not fully compensated through state aid or the
225	228		calculation of excess local revenue under this chapter based on the
226	229		determination of the district's taxable value of property under
227	230		Subchapter M, Chapter 403, Government Code, the district is
228	231		entitled to additional state aid in the amount necessary to fully
229	232		compensate the district for the amount of ad valorem tax revenue
230	233		lost due to a reduction of the amount of the limitation on tax
231	234		increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
232	235		(a-8), (a-9), and (a-10), Tax Code, as applicable.
233	236		SECTION 3. Section 48.2551(d), Education Code, is amended
234	237		to read as follows:
235	238		(d) The agency shall:
236	239		(1) calculate and make available school districts'
237	240		maximum compressed rates, as determined under this section; and
238	241		(2) post the information described by Section 48.2556
239	242		on the agency's Internet website as required by that section.
240	243		SECTION 4. Subchapter F, Chapter 48, Education Code, is
241	244		amended by adding Section 48.2556 to read as follows:
242	245		Sec. 48.2556. POSTING ON AGENCY WEBSITE OF INFORMATION
243	246		RELATED TO REDUCTION OF LIMITATION OF TAX ON HOMESTEADS OF ELDERLY
244	247		OR DISABLED. (a) The agency shall post the following information
245	248		on the agency's Internet website for purposes of allowing the chief
246	249		appraiser of each appraisal district and the assessor for each
247	250		school district to make the calculations required by Sections
248	251		11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
249	252		(1) each school district's maximum compressed rate, as
250	253		determined under Section 48.2551, for each tax year beginning with
251	254		the 2019 tax year; and
252	255		(2) each school district's tier one maintenance and
253	256		operations tax rate, as provided by Section 45.0032(a), for the
254	257		2018 tax year.
255	258		(b) The agency shall post each school district's maximum
256	259		compressed rate for the current tax year, as determined under
257	260		Section 48.2551, promptly after calculating the rate. If, for the
258	261		2023 or a subsequent tax year, the agency calculates a preliminary
259	262		rate before calculating a final rate, the agency shall post the
260	263		preliminary rate, and the chief appraiser of each appraisal
261	264		district and the assessor for each school district shall use the
262	265		preliminary rate to make the calculations described by Subsection
263	266		(a).
264	267		(c) The agency shall notify the chief appraiser of each
265	268		appraisal district and the assessor for each school district when
266	269		the agency has complied with Subsection (b). The notice must
267	270		include the location on the agency's Internet website at which the
268	271		information required by this section to be posted may be found.
269	272		SECTION 5. Section 403.302, Government Code, is amended by
270	273		adding Subsection (j-1) to read as follows:
271	274		(j-1) In the final certification of the study under
272	275		Subsection (j), the comptroller shall separately identify the final
273	276		taxable value for each school district as adjusted to account for
274	277		the reduction of the amount of the limitation on tax increases
275	278		provided by Sections 11.26(a-4), (a-5), (a-6), (a-7), (a-8), (a-9),
276	279		and (a-10), Tax Code, as applicable.
277	280		SECTION 6. This Act applies only to ad valorem taxes imposed
278	281		for a tax year beginning on or after the effective date of this Act.
279	282		SECTION 7. This Act takes effect January 1, 2023, but only
280	283		if the constitutional amendment proposed by the 87th Legislature,
281	284		2nd Called Session, 2021, authorizing the legislature to provide
282	285		for the reduction of the amount of a limitation on the total amount
283	286		of ad valorem taxes that may be imposed for general elementary and
284	287		secondary public school purposes on the residence homestead of a
285	288		person who is elderly or disabled to reflect any statutory
286	289		reduction from the preceding tax year in the maximum compressed
287	290		rate of the maintenance and operations taxes imposed for those
288	291		purposes on the homestead is approved by the voters. If that
289	292		amendment is not approved by the voters, this Act has no effect.
290		-	______________________________ ______________________________
291		-	President of the Senate Speaker of the House
292		-	I hereby certify that S.B. No. 12 passed the Senate on
293		-	August 9, 2021, by the following vote: Yeas 29, Nays 0; and that
294		-	the Senate concurred in House amendment on August 29, 2021, by the
295		-	following vote: Yeas 31, Nays 0.
296		-	______________________________
297		-	Secretary of the Senate
298		-	I hereby certify that S.B. No. 12 passed the House, with
299		-	amendment, on August 27, 2021, by the following vote: Yeas 121,
300		-	Nays 0, one present not voting.
301		-	______________________________
302		-	Chief Clerk of the House
303		-	Approved:
304		-	______________________________
305		-	Date
306		-	______________________________
307		-	Governor