Texas 2021 - 87th 2nd C.S.

Texas Senate Bill SB55 Compare Versions

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

Old	New	Differences
1	1	87S20103 CJC/KJE-D
2	2	By: Powell S.B. No. 55
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an increase in the amount of the exemption of residence
8	8	homesteads from ad valorem taxation by a school district, a
9	9	reduction in the amount of the limitation on school district ad
10	10	valorem taxes imposed on the residence homesteads of the elderly or
11	11	disabled to reflect the increased exemption amount, and the
12	12	protection of school districts against the resulting loss in local
13	13	revenue.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
16	16	follows:
17	17	(b) An adult is entitled to exemption from taxation by a
18	18	school district of $35,000 [$25,000] of the appraised value of the
19	19	adult's residence homestead, except that only $5,000 of the
20	20	exemption applies to an entity operating under former Chapter 17,
21	21	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
22	22	May 1, 1995, as permitted by Section 11.301, Education Code.
23	23	SECTION 2. Section 11.26(a), Tax Code, is amended to read as
24	24	follows:
25	25	(a) The tax officials shall appraise [the] property to which
26	26	this section applies and calculate taxes as on other property, but
27	27	if the tax [so] calculated exceeds the limitation imposed by this
28	28	section, the tax imposed is the amount of the tax as limited by this
29	29	section, except as otherwise provided by this section. A school
30	30	district may not increase the total annual amount of ad valorem tax
31	31	it imposes on the residence homestead of an individual 65 years of
32	32	age or older or on the residence homestead of an individual who is
33	33	disabled, as defined by Section 11.13, above the amount of the tax
34	34	it imposed in the first tax year in which the individual qualified
35	35	that residence homestead for the applicable exemption provided by
36	36	Section 11.13(c) for an individual who is 65 years of age or older
37	37	or is disabled. If the individual qualified that residence
38	38	homestead for the exemption after the beginning of that first year
39	39	and the residence homestead remains eligible for the same exemption
40	40	for the next year, and if the school district taxes imposed on the
41	41	residence homestead in the next year are less than the amount of
42	42	taxes imposed in that first year, a school district may not
43	43	subsequently increase the total annual amount of ad valorem taxes
44	44	it imposes on the residence homestead above the amount it imposed in
45	45	the year immediately following the first year for which the
46	46	individual qualified that residence homestead for the same
47	47	exemption, except as provided by Subsection (b). If the first tax
48	48	year the individual qualified the residence homestead for the
49	49	exemption provided by Section 11.13(c) for individuals 65 years of
50	50	age or older or disabled was a tax year before the 2023 [2015] tax
51	51	year, the amount of the limitation provided by this section for the
52	52	2023 tax year is the amount of tax the school district imposed for
53	53	the 2022 [2014] tax year less an amount equal to the amount
54	54	determined by multiplying $10,000 times the tax rate of the school
55	55	district for the 2023 [2015] tax year, plus any 2023 [2015] tax
56	56	attributable to improvements made in 2022 [2014], other than
57	57	improvements made to comply with governmental regulations or
58	58	repairs.
59	59	SECTION 3. Section 46.071, Education Code, is amended by
60	60	amending Subsections (a), (b), and (c) and adding Subsections
61	61	(a-1), (b-1), and (c-1) to read as follows:
62	62	(a) Beginning with the 2015-2016 school year and continuing
63	63	through the 2022-2023 school year, a school district is entitled to
64	64	additional state aid under this subchapter to the extent that state
65	65	and local revenue used to service debt eligible under this chapter
66	66	is less than the state and local revenue that would have been
67	67	available to the district under this chapter as it existed on
68	68	September 1, 2015, if the increase in the residence homestead
69	69	exemption under Section 1-b(c), Article VIII, Texas Constitution,
70	70	and the additional limitation on tax increases under Section 1-b(d)
71	71	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
72	72	Session, 2015, had not occurred.
73	73	(a-1) Beginning with the 2023-2024 school year, a school
74	74	district is entitled to additional state aid under this subchapter
75	75	to the extent that state and local revenue used to service debt
76	76	eligible under this chapter is less than the state and local revenue
77	77	that would have been available to the district under this chapter as
78	78	it existed on September 1, 2022, if any increase in the residence
79	79	homestead exemption under Section 1-b(c), Article VIII, Texas
80	80	Constitution, and any additional limitation on tax increases under
81	81	Section 1-b(d) of that article as proposed by the 87th Legislature,
82	82	2nd Called Session, 2021, had not occurred.
83	83	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
84	84	additional state aid under this section through the 2022-2023
85	85	school year is equal to the amount by which the loss of local
86	86	interest and sinking revenue for debt service attributable to the
87	87	increase in the residence homestead exemption under Section 1-b(c),
88	88	Article VIII, Texas Constitution, and the additional limitation on
89	89	tax increases under Section 1-b(d) of that article as proposed by
90	90	S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
91	91	a gain in state aid under this chapter.
92	92	(b-1) Subject to Subsections (c-1), (d), and (e),
93	93	additional state aid under this section beginning with the
94	94	2023-2024 school year is equal to the amount by which the loss of
95	95	local interest and sinking revenue for debt service attributable to
96	96	any increase in the residence homestead exemption under Section
97	97	1-b(c), Article VIII, Texas Constitution, and any additional
98	98	limitation on tax increases under Section 1-b(d) of that article as
99	99	proposed by the 87th Legislature, 2nd Called Session, 2021, is not
100	100	offset by a gain in state aid under this chapter.
101	101	(c) For the purpose of determining state aid under
102	102	Subsections (a) and (b) [this section], local interest and sinking
103	103	revenue for debt service is limited to revenue required to service
104	104	debt eligible under this chapter as of September 1, 2015, including
105	105	refunding of that debt, subject to Section 46.061. The limitation
106	106	imposed by Section 46.034(a) does not apply for the purpose of
107	107	determining state aid under this section.
108	108	(c-1) For the purpose of determining state aid under
109	109	Subsections (a-1) and (b-1), local interest and sinking revenue for
110	110	debt service is limited to revenue required to service debt
111	111	eligible under this chapter as of September 1, 2022, including
112	112	refunding of that debt, subject to Section 46.061. The limitation
113	113	imposed by Section 46.034(a) does not apply for the purpose of
114	114	determining state aid under this section.
115	115	SECTION 4. Subchapter F, Chapter 48, Education Code, is
116	116	amended by adding Section 48.2541 to read as follows:
117	117	Sec. 48.2541. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION
118	118	AND LIMITATION ON TAX INCREASES. (a) Beginning with the 2023-2024
119	119	school year, a school district is entitled to additional state aid
120	120	to the extent that state and local revenue under this chapter and
121	121	Chapter 49 is less than the state and local revenue that would have
122	122	been available to the district under this chapter and Chapter 49 as
123	123	those chapters existed on September 1, 2022, if any increase in the
124	124	residence homestead exemption under Section 1-b(c), Article VIII,
125	125	Texas Constitution, and any additional limitation on tax increases
126	126	under Section 1-b(d) of that article as proposed by the 87th
127	127	Legislature, 2nd Called Session, 2021, had not occurred.
128	128	(b) The lesser of the school district's currently adopted
129	129	maintenance and operations tax rate or the adopted maintenance and
130	130	operations tax rate for the 2022 tax year is used for the purpose of
131	131	determining additional state aid under Subsection (a).
132	132	SECTION 5. The changes in law made by this Act to Sections
133	133	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
134	134	begins on or after January 1, 2023.
135	135	SECTION 6. This Act takes effect January 1, 2023, but only
136	136	if the constitutional amendment proposed by the 87th Legislature,
137	137	2nd Called Session, 2021, to increase the amount of the exemption of
138	138	residence homesteads from ad valorem taxation by a school district
139	139	and to reduce the amount of the limitation on school district ad
140	140	valorem taxes imposed on the residence homesteads of the elderly or
141	141	disabled to reflect the increased exemption amount is approved by
142	142	the voters. If that constitutional amendment is not approved by the
143	143	voters, this Act has no effect.