Texas 2021 - 87th 3rd C.S.

Texas House Bill HR299 Compare Versions

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Old	New	Differences
1	1	H.R. No. 299
2	2
3	3
4	4	R E S O L U T I O N
5	5	BE IT RESOLVED by the House of Representatives of the State of
6	6	Texas, 87th Legislature, 3rd Called Session, 2021, That House Rule
7	7	13, Section 9(a), be suspended in part as provided by House Rule 13,
8	8	Section 9(f), to enable the conference committee appointed to
9	9	resolve the differences on Senate Bill 1 (an increase in the amount
10	10	of the exemption of residence homesteads from ad valorem taxation
11	11	by a school district and the protection of school districts against
12	12	the resulting loss in local revenue) to consider and take action on
13	13	the following matter:
14	14	House Rule 13, Section 9(a)(4), is suspended to permit the
15	15	committee to add text on a matter not included in either the house
16	16	or senate version of the bill by adding the following new SECTIONS
17	17	to the bill:
18	18	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
19	19	follows:
20	20	(b) An adult is entitled to exemption from taxation by a
21	21	school district of $40,000 [$25,000] of the appraised value of the
22	22	adult's residence homestead, except that only $5,000 of the
23	23	exemption applies to an entity operating under former Chapter 17,
24	24	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
25	25	May 1, 1995, as permitted by Section 11.301, Education Code.
26	26	SECTION 2. Section 46.071, Education Code, is amended by
27	27	amending Subsections (a), (b), and (c) and adding Subsections
28	28	(a-1), (b-1), and (c-1) to read as follows:
29	29	(a) Beginning with the 2015-2016 school year and continuing
30	30	through the 2021-2022 school year, a school district is entitled to
31	31	additional state aid under this subchapter to the extent that state
32	32	and local revenue used to service debt eligible under this chapter
33	33	is less than the state and local revenue that would have been
34	34	available to the district under this chapter as it existed on
35	35	September 1, 2015, if the increase in the residence homestead
36	36	exemption under Section 1-b(c), Article VIII, Texas Constitution,
37	37	and the additional limitation on tax increases under Section 1-b(d)
38	38	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
39	39	Session, 2015, had not occurred.
40	40	(a-1) Beginning with the 2022-2023 school year, a school
41	41	district is entitled to additional state aid under this subchapter
42	42	to the extent that state and local revenue used to service debt
43	43	eligible under this chapter is less than the state and local revenue
44	44	that would have been available to the district under this chapter as
45	45	it existed on September 1, 2021, if any increase in the residence
46	46	homestead exemption under Section 1-b(c), Article VIII, Texas
47	47	Constitution, as proposed by the 87th Legislature, 3rd Called
48	48	Session, 2021, had not occurred.
49	49	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
50	50	additional state aid under this section through the 2021-2022
51	51	school year is equal to the amount by which the loss of local
52	52	interest and sinking revenue for debt service attributable to the
53	53	increase in the residence homestead exemption under Section 1-b(c),
54	54	Article VIII, Texas Constitution, and the additional limitation on
55	55	tax increases under Section 1-b(d) of that article as proposed by
56	56	S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
57	57	a gain in state aid under this chapter.
58	58	(b-1) Subject to Subsections (c-1), (d), and (e),
59	59	additional state aid under this section beginning with the
60	60	2022-2023 school year is equal to the amount by which the loss of
61	61	local interest and sinking revenue for debt service attributable to
62	62	any increase in the residence homestead exemption under Section
63	63	1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
64	64	Legislature, 3rd Called Session, 2021, is not offset by a gain in
65	65	state aid under this chapter.
66	66	(c) For the purpose of determining state aid under
67	67	Subsections (a) and (b) [this section], local interest and sinking
68	68	revenue for debt service is limited to revenue required to service
69	69	debt eligible under this chapter as of September 1, 2015, including
70	70	refunding of that debt, subject to Section 46.061. The limitation
71	71	imposed by Section 46.034(a) does not apply for the purpose of
72	72	determining state aid under this section.
73	73	(c-1) For the purpose of determining state aid under
74	74	Subsections (a-1) and (b-1), local interest and sinking revenue for
75	75	debt service is limited to revenue required to service debt
76	76	eligible under this chapter as of September 1, 2021, including
77	77	refunding of that debt, subject to Section 46.061. The limitation
78	78	imposed by Section 46.034(a) does not apply for the purpose of
79	79	determining state aid under this section.
80	80	SECTION 3. Subchapter F, Chapter 48, Education Code, is
81	81	amended by adding Section 48.2543 to read as follows:
82	82	Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
83	83	(a) Beginning with the 2022-2023 school year, a school district is
84	84	entitled to additional state aid to the extent that state and local
85	85	revenue under this chapter and Chapter 49 is less than the state and
86	86	local revenue that would have been available to the district under
87	87	this chapter and Chapter 49 as those chapters existed on September
88	88	1, 2021, if any increase in the residence homestead exemption under
89	89	Section 1-b(c), Article VIII, Texas Constitution, as proposed by
90	90	the 87th Legislature, 3rd Called Session, 2021, had not occurred.
91	91	(b) The lesser of the school district's currently adopted
92	92	maintenance and operations tax rate or the adopted maintenance and
93	93	operations tax rate for the 2021 tax year is used for the purpose of
94	94	determining additional state aid under Subsection (a).
95	95	SECTION 4. The comptroller of public accounts may adopt
96	96	rules for the purpose of implementing and administering the changes
97	97	in law made by this Act, including rules relating to the form of
98	98	certain information required to be provided by tax officials and
99	99	the date on which the information must be provided.
100	100	SECTION 5. Section 11.13, Tax Code, as amended by this Act,
101	101	applies beginning with the 2022 tax year.
102	102	Explanation: The addition is necessary to increase the amount
103	103	of the exemption of residence homesteads from ad valorem taxation
104	104	by a school district from $25,000 to $40,000, protect school
105	105	districts against the resulting loss in local revenue, authorize
106	106	the comptroller of public accounts to adopt rules to implement the
107	107	change in law made by Senate Bill 1, and provide that the change in
108	108	law made by Senate Bill 1 to Section 11.13, Tax Code, takes effect
109	109	beginning with the 2022 tax year.
110	110	Meyer
111	111	______________________________
112	112	Speaker of the House
113	113	I certify that H.R. No. 299 was adopted by the House on
114	114	October 18, 2021, by the following vote: Yeas 146, Nays 0, 1
115	115	present, not voting.
116	116	______________________________
117	117	Chief Clerk of the House