H.R. No. 299
R E S O L U T I O N
BE IT RESOLVED by the House of Representatives of the State of
Texas, 87th Legislature, 3rd Called Session, 2021, That House Rule
13, Section 9(a), be suspended in part as provided by House Rule 13,
Section 9(f), to enable the conference committee appointed to
resolve the differences on Senate Bill 1 (an increase in the amount
of the exemption of residence homesteads from ad valorem taxation
by a school district and the protection of school districts against
the resulting loss in local revenue) to consider and take action on
the following matter:
House Rule 13, Section 9(a)(4), is suspended to permit the
committee to add text on a matter not included in either the house
or senate version of the bill by adding the following new SECTIONS
to the bill:
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 $40,000 [$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. Section 46.071, Education Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsections
(a-1), (b-1), and (c-1) to read as follows:
(a) Beginning with the 2015-2016 school year and continuing
through the 2021-2022 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, 2015, 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 S.J.R. 1, 84th Legislature, Regular
Session, 2015, had not occurred.
(a-1) Beginning with the 2022-2023 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, 2021, if any increase in the residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, as proposed by the 87th Legislature, 3rd Called
Session, 2021, had not occurred.
(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
additional state aid under this section through the 2021-2022
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
S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
a gain in state aid under this chapter.
(b-1) Subject to Subsections (c-1), (d), and (e),
additional state aid under this section beginning with the
2022-2023 school year is equal to the amount by which the loss of
local interest and sinking revenue for debt service attributable to
any increase in the residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
Legislature, 3rd Called Session, 2021, is not offset by a gain in
state aid under this chapter.
(c) For the purpose of determining state aid under
Subsections (a) and (b) [this section], local interest and sinking
revenue for debt service is limited to revenue required to service
debt eligible under this chapter as of September 1, 2015, 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.
(c-1) 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, 2021, 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.
SECTION 3. 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.
(a) Beginning with the 2022-2023 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, 2021, if any increase in the residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, 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 2021 tax year is used for the purpose of
determining additional state aid under Subsection (a).
SECTION 4. The comptroller of public accounts may adopt
rules for the purpose of implementing and administering the changes
in law made by this Act, including rules relating to the form of
certain information required to be provided by tax officials and
the date on which the information must be provided.
SECTION 5. Section 11.13, Tax Code, as amended by this Act,
applies beginning with the 2022 tax year.
Explanation: The addition is necessary to increase the amount
of the exemption of residence homesteads from ad valorem taxation
by a school district from $25,000 to $40,000, protect school
districts against the resulting loss in local revenue, authorize
the comptroller of public accounts to adopt rules to implement the
change in law made by Senate Bill 1, and provide that the change in
law made by Senate Bill 1 to Section 11.13, Tax Code, takes effect
beginning with the 2022 tax year.
Meyer
______________________________
Speaker of the House
I certify that H.R. No. 299 was adopted by the House on
October 18, 2021, by the following vote: Yeas 146, Nays 0, 1
present, not voting.
______________________________
Chief Clerk of the House