87S30450 CJC/MEW-D
By: Raymond H.B. No. 152
A BILL TO BE ENTITLED
AN ACT
relating to a temporary increase in the amount of the exemption of
residence homesteads from ad valorem taxation by a school district,
a temporary reduction in the amount of the limitation on school
district ad valorem taxes imposed on the residence homesteads of
the elderly or disabled to reflect the increased exemption amount,
and a temporary protection of school districts against the
resulting temporary loss in local revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13(b), Tax Code, is amended to read as
follows:
(b) An adult is entitled to exemption from taxation by a
school district of $105,000 [$25,000] of the appraised value of the
adult's residence homestead, except that only $5,000 of the
exemption applies to an entity operating under former Chapter 17,
18, 25, 26, 27, or 28, Education Code, as those chapters existed on
May 1, 1995, as permitted by Section 11.301, Education Code.
SECTION 2. Effective January 1, 2024, Section 11.13(b), Tax
Code, is amended to read as follows:
(b) An adult is entitled to exemption from taxation by a
school district of $25,000 of the appraised value of the adult's
residence homestead, except that only $5,000 of the exemption
applies to an entity operating under former Chapter 17, 18, 25, 26,
27, or 28, Education Code, as those chapters existed on May 1, 1995,
as permitted by Section 11.301, Education Code.
SECTION 3. (a) This section takes effect only if the
constitutional amendment proposed by S.J.R. No. 2, 87th
Legislature, 2nd Called Session, 2021, is approved by the voters.
If that amendment is not approved by the voters, this section has no
effect.
(b) Section 11.26(a), Tax Code, is amended to read as
follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older or disabled was a tax year before the 2023 [2015] tax
year, the amount of the limitation provided by this section for the
2023 tax year is the amount of the limitation as computed under
Subsection (a-5), (a-6), (a-7), (a-8), or (a-9) of this section, as
applicable, [tax the school district imposed for the 2014 tax year]
less an amount equal to the product of $80,000 and [amount
determined by multiplying $10,000 times] the tax rate of the school
district for the 2023 [2015] tax year[, plus any 2015 tax
attributable to improvements made in 2014, other than improvements
made to comply with governmental regulations or repairs]. If the
first tax year the individual qualified the residence homestead for
the exemption provided by Section 11.13(c) for individuals 65 years
of age or older or disabled was the 2023 tax year or an earlier tax
year, the amount of the limitation provided by this section for the
2024 tax year is the amount of the limitation as computed under
Subsection (a-10) of this section plus an amount equal to the
product of $80,000 and the tax rate of the school district for the
2023 tax year.
SECTION 4. (a) This section takes effect only if the
constitutional amendment proposed by S.J.R. No. 2, 87th
Legislature, 2nd Called Session, 2021, is not approved by the
voters. If that amendment is approved by the voters, this section
has no effect.
(b) Section 11.26(a), Tax Code, is amended to read as
follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older or disabled was a tax year before the 2023 [2015] tax
year, the amount of the limitation provided by this section for the
2023 tax year is the amount of tax the school district imposed for
the 2022 [2014] tax year less an amount equal to the product of
$80,000 and [amount determined by multiplying $10,000 times] the
tax rate of the school district for the 2023 [2015] tax year, plus
any 2023 [2015] tax attributable to improvements made in 2022
[2014], other than improvements made to comply with governmental
regulations or repairs. If the first tax year the individual
qualified the residence homestead for the exemption provided by
Section 11.13(c) for individuals 65 years of age or older or
disabled was the 2023 tax year or an earlier tax year, the amount of
the limitation provided by this section for the 2024 and subsequent
tax years is the amount of tax the school district imposed for the
2023 tax year plus an amount equal to the product of $80,000 and the
tax rate of the school district for the 2023 tax year, plus any 2024
tax attributable to improvements made in 2023, other than
improvements made to comply with governmental regulations or
repairs.
SECTION 5. Section 46.071, Education Code, is amended by
adding Subsections (a-1), (b-1), and (c-1) to read as follows:
(a-1) Notwithstanding Subsection (a), for the 2023-2024
school year, a school district is entitled to additional state aid
under this subchapter to the extent that state and local revenue
used to service debt eligible under this chapter is less than the
state and local revenue that would have been available to the
district under this chapter as it existed on September 1, 2022, if
the increase in the residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, and the additional
limitation on tax increases under Section 1-b(d) of that article as
proposed by the 87th Legislature, 3rd Called Session, 2021, had not
occurred. This subsection expires September 1, 2024.
(b-1) Notwithstanding Subsection (b), subject to
Subsections (c-1), (d), and (e), additional state aid under this
section for the 2023-2024 school year is equal to the amount by
which the loss of local interest and sinking revenue for debt
service attributable to the increase in the residence homestead
exemption under Section 1-b(c), Article VIII, Texas Constitution,
and the additional limitation on tax increases under Section 1-b(d)
of that article as proposed by the 87th Legislature, 3rd Called
Session, 2021, is not offset by a gain in state aid under this
chapter. This subsection expires September 1, 2024.
(c-1) Notwithstanding Subsection (c), for the purpose of
determining state aid under Subsections (a-1) and (b-1), local
interest and sinking revenue for debt service is limited to revenue
required to service debt eligible under this chapter as of
September 1, 2022, including refunding of that debt, subject to
Section 46.061. The limitation imposed by Section 46.034(a) does
not apply for the purpose of determining state aid under this
section. This subsection expires September 1, 2024.
SECTION 6. Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2543 to read as follows:
Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION
AND LIMITATION ON TAX INCREASES FOR THE 2023-2024 SCHOOL YEAR. (a)
For the 2023-2024 school year, a school district is entitled to
additional state aid to the extent that state and local revenue
under this chapter and Chapter 49 is less than the state and local
revenue that would have been available to the district under this
chapter and Chapter 49 as those chapters existed on September 1,
2022, if the increase in the residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, and the
additional limitation on tax increases under Section 1-b(d) of that
article as proposed by the 87th Legislature, 3rd Called Session,
2021, had not occurred.
(b) The lesser of the school district's currently adopted
maintenance and operations tax rate or the adopted maintenance and
operations tax rate for the 2022 tax year is used for the purpose of
determining additional state aid under Subsection (a).
(c) This section expires September 1, 2024.
SECTION 7. The changes in law made by this Act to Sections
11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
begins on or after January 1, 2023.
SECTION 8. This Act takes effect January 1, 2023, but only
if the constitutional amendment proposed by the 87th Legislature,
3rd Called Session, 2021, to appropriate money from the economic
stabilization fund to the foundation school fund and use the money
to finance a temporary increase in the amount of the exemption of
residence homesteads from ad valorem taxation by a school district
and a temporary reduction in the amount of the limitation on school
district ad valorem taxes imposed on the residence homesteads of
the elderly or disabled to reflect the increased exemption amount
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.