Texas 2021 - 87th 3rd C.S.

Texas House Bill HB152 Compare Versions

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

Old	New	Differences
1	1	87S30450 CJC/MEW-D
2	2	By: Raymond H.B. No. 152
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a temporary increase in the amount of the exemption of
8	8	residence homesteads from ad valorem taxation by a school district,
9	9	a temporary reduction in the amount of the limitation on school
10	10	district ad valorem taxes imposed on the residence homesteads of
11	11	the elderly or disabled to reflect the increased exemption amount,
12	12	and a temporary protection of school districts against the
13	13	resulting temporary loss in local 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 $105,000 [$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. Effective January 1, 2024, Section 11.13(b), Tax
24	24	Code, is amended to read as follows:
25	25	(b) An adult is entitled to exemption from taxation by a
26	26	school district of $25,000 of the appraised value of the adult's
27	27	residence homestead, except that only $5,000 of the exemption
28	28	applies to an entity operating under former Chapter 17, 18, 25, 26,
29	29	27, or 28, Education Code, as those chapters existed on May 1, 1995,
30	30	as permitted by Section 11.301, Education Code.
31	31	SECTION 3. (a) This section takes effect only if the
32	32	constitutional amendment proposed by S.J.R. No. 2, 87th
33	33	Legislature, 2nd Called Session, 2021, is approved by the voters.
34	34	If that amendment is not approved by the voters, this section has no
35	35	effect.
36	36	(b) Section 11.26(a), Tax Code, is amended to read as
37	37	follows:
38	38	(a) The tax officials shall appraise the property to which
39	39	this section applies and calculate taxes as on other property, but
40	40	if the tax so calculated exceeds the limitation imposed by this
41	41	section, the tax imposed is the amount of the tax as limited by this
42	42	section, except as otherwise provided by this section. A school
43	43	district may not increase the total annual amount of ad valorem tax
44	44	it imposes on the residence homestead of an individual 65 years of
45	45	age or older or on the residence homestead of an individual who is
46	46	disabled, as defined by Section 11.13, above the amount of the tax
47	47	it imposed in the first tax year in which the individual qualified
48	48	that residence homestead for the applicable exemption provided by
49	49	Section 11.13(c) for an individual who is 65 years of age or older
50	50	or is disabled. If the individual qualified that residence
51	51	homestead for the exemption after the beginning of that first year
52	52	and the residence homestead remains eligible for the same exemption
53	53	for the next year, and if the school district taxes imposed on the
54	54	residence homestead in the next year are less than the amount of
55	55	taxes imposed in that first year, a school district may not
56	56	subsequently increase the total annual amount of ad valorem taxes
57	57	it imposes on the residence homestead above the amount it imposed in
58	58	the year immediately following the first year for which the
59	59	individual qualified that residence homestead for the same
60	60	exemption, except as provided by Subsection (b). If the first tax
61	61	year the individual qualified the residence homestead for the
62	62	exemption provided by Section 11.13(c) for individuals 65 years of
63	63	age or older or disabled was a tax year before the 2023 [2015] tax
64	64	year, the amount of the limitation provided by this section for the
65	65	2023 tax year is the amount of the limitation as computed under
66	66	Subsection (a-5), (a-6), (a-7), (a-8), or (a-9) of this section, as
67	67	applicable, [tax the school district imposed for the 2014 tax year]
68	68	less an amount equal to the product of $80,000 and [amount
69	69	determined by multiplying $10,000 times] the tax rate of the school
70	70	district for the 2023 [2015] tax year[, plus any 2015 tax
71	71	attributable to improvements made in 2014, other than improvements
72	72	made to comply with governmental regulations or repairs]. If the
73	73	first tax year the individual qualified the residence homestead for
74	74	the exemption provided by Section 11.13(c) for individuals 65 years
75	75	of age or older or disabled was the 2023 tax year or an earlier tax
76	76	year, the amount of the limitation provided by this section for the
77	77	2024 tax year is the amount of the limitation as computed under
78	78	Subsection (a-10) of this section plus an amount equal to the
79	79	product of $80,000 and the tax rate of the school district for the
80	80	2023 tax year.
81	81	SECTION 4. (a) This section takes effect only if the
82	82	constitutional amendment proposed by S.J.R. No. 2, 87th
83	83	Legislature, 2nd Called Session, 2021, is not approved by the
84	84	voters. If that amendment is approved by the voters, this section
85	85	has no effect.
86	86	(b) Section 11.26(a), Tax Code, is amended to read as
87	87	follows:
88	88	(a) The tax officials shall appraise the property to which
89	89	this section applies and calculate taxes as on other property, but
90	90	if the tax so calculated exceeds the limitation imposed by this
91	91	section, the tax imposed is the amount of the tax as limited by this
92	92	section, except as otherwise provided by this section. A school
93	93	district may not increase the total annual amount of ad valorem tax
94	94	it imposes on the residence homestead of an individual 65 years of
95	95	age or older or on the residence homestead of an individual who is
96	96	disabled, as defined by Section 11.13, above the amount of the tax
97	97	it imposed in the first tax year in which the individual qualified
98	98	that residence homestead for the applicable exemption provided by
99	99	Section 11.13(c) for an individual who is 65 years of age or older
100	100	or is disabled. If the individual qualified that residence
101	101	homestead for the exemption after the beginning of that first year
102	102	and the residence homestead remains eligible for the same exemption
103	103	for the next year, and if the school district taxes imposed on the
104	104	residence homestead in the next year are less than the amount of
105	105	taxes imposed in that first year, a school district may not
106	106	subsequently increase the total annual amount of ad valorem taxes
107	107	it imposes on the residence homestead above the amount it imposed in
108	108	the year immediately following the first year for which the
109	109	individual qualified that residence homestead for the same
110	110	exemption, except as provided by Subsection (b). If the first tax
111	111	year the individual qualified the residence homestead for the
112	112	exemption provided by Section 11.13(c) for individuals 65 years of
113	113	age or older or disabled was a tax year before the 2023 [2015] tax
114	114	year, the amount of the limitation provided by this section for the
115	115	2023 tax year is the amount of tax the school district imposed for
116	116	the 2022 [2014] tax year less an amount equal to the product of
117	117	$80,000 and [amount determined by multiplying $10,000 times] the
118	118	tax rate of the school district for the 2023 [2015] tax year, plus
119	119	any 2023 [2015] tax attributable to improvements made in 2022
120	120	[2014], other than improvements made to comply with governmental
121	121	regulations or repairs. If the first tax year the individual
122	122	qualified the residence homestead for the exemption provided by
123	123	Section 11.13(c) for individuals 65 years of age or older or
124	124	disabled was the 2023 tax year or an earlier tax year, the amount of
125	125	the limitation provided by this section for the 2024 and subsequent
126	126	tax years is the amount of tax the school district imposed for the
127	127	2023 tax year plus an amount equal to the product of $80,000 and the
128	128	tax rate of the school district for the 2023 tax year, plus any 2024
129	129	tax attributable to improvements made in 2023, other than
130	130	improvements made to comply with governmental regulations or
131	131	repairs.
132	132	SECTION 5. Section 46.071, Education Code, is amended by
133	133	adding Subsections (a-1), (b-1), and (c-1) to read as follows:
134	134	(a-1) Notwithstanding Subsection (a), for the 2023-2024
135	135	school year, a school district is entitled to additional state aid
136	136	under this subchapter to the extent that state and local revenue
137	137	used to service debt eligible under this chapter is less than the
138	138	state and local revenue that would have been available to the
139	139	district under this chapter as it existed on September 1, 2022, if
140	140	the increase in the residence homestead exemption under Section
141	141	1-b(c), Article VIII, Texas Constitution, and the additional
142	142	limitation on tax increases under Section 1-b(d) of that article as
143	143	proposed by the 87th Legislature, 3rd Called Session, 2021, had not
144	144	occurred. This subsection expires September 1, 2024.
145	145	(b-1) Notwithstanding Subsection (b), subject to
146	146	Subsections (c-1), (d), and (e), additional state aid under this
147	147	section for the 2023-2024 school year is equal to the amount by
148	148	which the loss of local interest and sinking revenue for debt
149	149	service attributable to the increase in the residence homestead
150	150	exemption under Section 1-b(c), Article VIII, Texas Constitution,
151	151	and the additional limitation on tax increases under Section 1-b(d)
152	152	of that article as proposed by the 87th Legislature, 3rd Called
153	153	Session, 2021, is not offset by a gain in state aid under this
154	154	chapter. This subsection expires September 1, 2024.
155	155	(c-1) Notwithstanding Subsection (c), for the purpose of
156	156	determining state aid under Subsections (a-1) and (b-1), local
157	157	interest and sinking revenue for debt service is limited to revenue
158	158	required to service debt eligible under this chapter as of
159	159	September 1, 2022, including refunding of that debt, subject to
160	160	Section 46.061. The limitation imposed by Section 46.034(a) does
161	161	not apply for the purpose of determining state aid under this
162	162	section. This subsection expires September 1, 2024.
163	163	SECTION 6. Subchapter F, Chapter 48, Education Code, is
164	164	amended by adding Section 48.2543 to read as follows:
165	165	Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION
166	166	AND LIMITATION ON TAX INCREASES FOR THE 2023-2024 SCHOOL YEAR. (a)
167	167	For the 2023-2024 school year, a school district is entitled to
168	168	additional state aid to the extent that state and local revenue
169	169	under this chapter and Chapter 49 is less than the state and local
170	170	revenue that would have been available to the district under this
171	171	chapter and Chapter 49 as those chapters existed on September 1,
172	172	2022, if the increase in the residence homestead exemption under
173	173	Section 1-b(c), Article VIII, Texas Constitution, and the
174	174	additional limitation on tax increases under Section 1-b(d) of that
175	175	article as proposed by the 87th Legislature, 3rd Called Session,
176	176	2021, had not occurred.
177	177	(b) The lesser of the school district's currently adopted
178	178	maintenance and operations tax rate or the adopted maintenance and
179	179	operations tax rate for the 2022 tax year is used for the purpose of
180	180	determining additional state aid under Subsection (a).
181	181	(c) This section expires September 1, 2024.
182	182	SECTION 7. The changes in law made by this Act to Sections
183	183	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
184	184	begins on or after January 1, 2023.
185	185	SECTION 8. This Act takes effect January 1, 2023, but only
186	186	if the constitutional amendment proposed by the 87th Legislature,
187	187	3rd Called Session, 2021, to appropriate money from the economic
188	188	stabilization fund to the foundation school fund and use the money
189	189	to finance a temporary increase in the amount of the exemption of
190	190	residence homesteads from ad valorem taxation by a school district
191	191	and a temporary reduction in the amount of the limitation on school
192	192	district ad valorem taxes imposed on the residence homesteads of
193	193	the elderly or disabled to reflect the increased exemption amount
194	194	is approved by the voters. If that amendment is not approved by the
195	195	voters, this Act has no effect.