Texas 2021 - 87th 3rd C.S.

Texas Senate Bill SB1 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1
	1	+	87S30961 CJC-F
	2	+	By: Bettencourt, et al. S.B. No. 1
	3	+	(Meyer)
	4	+	Substitute the following for S.B. No. 1: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5		-	relating to an increase in the amount of the exemption of residence
6		-	homesteads from ad valorem taxation by a school district and the
7		-	protection of school districts against the resulting loss in local
8		-	revenue.
	9	+	relating to the provision of direct relief from ad valorem taxes to
	10	+	certain property owners in this state through the distribution of
	11	+	certain federal economic assistance money received by the state and
	12	+	a study of the provision of additional ad valorem tax relief; making
	13	+	an appropriation.
9	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10		-	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
11		-	follows:
12		-	(b) An adult is entitled to exemption from taxation by a
13		-	school district of $40,000 [$25,000] of the appraised value of the
14		-	adult's residence homestead, except that only $5,000 of the
15		-	exemption applies to an entity operating under former Chapter 17,
16		-	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
17		-	May 1, 1995, as permitted by Section 11.301, Education Code.
18		-	SECTION 2. Section 46.071, Education Code, is amended by
19		-	amending Subsections (a), (b), and (c) and adding Subsections
20		-	(a-1), (b-1), and (c-1) to read as follows:
21		-	(a) Beginning with the 2015-2016 school year and continuing
22		-	through the 2021-2022 school year, a school district is entitled to
23		-	additional state aid under this subchapter to the extent that state
24		-	and local revenue used to service debt eligible under this chapter
25		-	is less than the state and local revenue that would have been
26		-	available to the district under this chapter as it existed on
27		-	September 1, 2015, if the increase in the residence homestead
28		-	exemption under Section 1-b(c), Article VIII, Texas Constitution,
29		-	and the additional limitation on tax increases under Section 1-b(d)
30		-	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
31		-	Session, 2015, had not occurred.
32		-	(a-1) Beginning with the 2022-2023 school year, a school
33		-	district is entitled to additional state aid under this subchapter
34		-	to the extent that state and local revenue used to service debt
35		-	eligible under this chapter is less than the state and local revenue
36		-	that would have been available to the district under this chapter as
37		-	it existed on September 1, 2021, if any increase in the residence
38		-	homestead exemption under Section 1-b(c), Article VIII, Texas
39		-	Constitution, as proposed by the 87th Legislature, 3rd Called
40		-	Session, 2021, had not occurred.
41		-	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
42		-	additional state aid under this section through the 2021-2022
43		-	school year is equal to the amount by which the loss of local
44		-	interest and sinking revenue for debt service attributable to the
45		-	increase in the residence homestead exemption under Section 1-b(c),
46		-	Article VIII, Texas Constitution, and the additional limitation on
47		-	tax increases under Section 1-b(d) of that article as proposed by
48		-	S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
49		-	a gain in state aid under this chapter.
50		-	(b-1) Subject to Subsections (c-1), (d), and (e),
51		-	additional state aid under this section beginning with the
52		-	2022-2023 school year is equal to the amount by which the loss of
53		-	local interest and sinking revenue for debt service attributable to
54		-	any increase in the residence homestead exemption under Section
55		-	1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
56		-	Legislature, 3rd Called Session, 2021, is not offset by a gain in
57		-	state aid under this chapter.
58		-	(c) For the purpose of determining state aid under
59		-	Subsections (a) and (b) [this section], local interest and sinking
60		-	revenue for debt service is limited to revenue required to service
61		-	debt eligible under this chapter as of September 1, 2015, including
62		-	refunding of that debt, subject to Section 46.061. The limitation
63		-	imposed by Section 46.034(a) does not apply for the purpose of
64		-	determining state aid under this section.
65		-	(c-1) For the purpose of determining state aid under
66		-	Subsections (a-1) and (b-1), local interest and sinking revenue for
67		-	debt service is limited to revenue required to service debt
68		-	eligible under this chapter as of September 1, 2021, including
69		-	refunding of that debt, subject to Section 46.061. The limitation
70		-	imposed by Section 46.034(a) does not apply for the purpose of
71		-	determining state aid under this section.
72		-	SECTION 3. Subchapter F, Chapter 48, Education Code, is
73		-	amended by adding Section 48.2543 to read as follows:
74		-	Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
75		-	(a) Beginning with the 2022-2023 school year, a school district is
76		-	entitled to additional state aid to the extent that state and local
77		-	revenue under this chapter and Chapter 49 is less than the state and
78		-	local revenue that would have been available to the district under
79		-	this chapter and Chapter 49 as those chapters existed on September
80		-	1, 2021, if any increase in the residence homestead exemption under
81		-	Section 1-b(c), Article VIII, Texas Constitution, as proposed by
82		-	the 87th Legislature, 3rd Called Session, 2021, had not occurred.
83		-	(b) The lesser of the school district's currently adopted
84		-	maintenance and operations tax rate or the adopted maintenance and
85		-	operations tax rate for the 2021 tax year is used for the purpose of
86		-	determining additional state aid under Subsection (a).
87		-	SECTION 4. The comptroller of public accounts may adopt
88		-	rules for the purpose of implementing and administering the changes
89		-	in law made by this Act, including rules relating to the form of
90		-	certain information required to be provided by tax officials and
91		-	the date on which the information must be provided.
92		-	SECTION 5. Section 11.13, Tax Code, as amended by this Act,
93		-	applies beginning with the 2022 tax year.
94		-	SECTION 6. (a) Except as provided by Subsection (b) of this
95		-	section:
96		-	(1) this Act takes effect on the date on which the
97		-	constitutional amendment proposed by the 87th Legislature, 3rd
98		-	Called Session, 2021, increasing the amount of the residence
99		-	homestead exemption from ad valorem taxation for public school
100		-	purposes is approved by the voters; and
101		-	(2) if that amendment is not approved by the voters,
102		-	this Act has no effect.
103		-	(b) Section 4 of this Act takes effect immediately if this
104		-	Act receives a vote of two-thirds of all the members elected to each
105		-	house, as provided by Section 39, Article III, Texas Constitution.
106		-	If this Act does not receive the vote necessary for immediate
107		-	effect, Section 4 of this Act takes effect on the 91st day after the
108		-	last day of the legislative session.
109		-	______________________________ ______________________________
110		-	President of the Senate Speaker of the House
111		-	I hereby certify that S.B. No. 1 passed the Senate on
112		-	September 22, 2021, by the following vote: Yeas 30, Nays 1;
113		-	October 15, 2021, Senate refused to concur in House amendments and
114		-	requested appointment of Conference Committee; October 15, 2021,
115		-	House granted request of the Senate; October 18, 2021, Senate
116		-	adopted Conference Committee Report by the following
117		-	vote: Yeas 31, Nays 0.
118		-	______________________________
119		-	Secretary of the Senate
120		-	I hereby certify that S.B. No. 1 passed the House, with
121		-	amendments, on October 15, 2021, by the following vote: Yeas 140,
122		-	Nays 4, one present not voting; October 15, 2021, House granted
123		-	request of the Senate for appointment of Conference Committee;
124		-	October 18, 2021, House adopted Conference Committee Report by the
125		-	following vote: Yeas 146, Nays 0, one present not voting.
126		-	______________________________
127		-	Chief Clerk of the House
128		-	Approved:
129		-	______________________________
130		-	Date
131		-	______________________________
132		-	Governor
	15	+	SECTION 1. (a) In this section, "COVID-19" means the 2019
	16	+	novel coronavirus disease.
	17	+	(b) The legislature finds that:
	18	+	(1) the widespread effects of COVID-19 in this state
	19	+	have resulted in a state of disaster being declared by the governor
	20	+	under Section 418.014, Government Code;
	21	+	(2) COVID-19 is a public calamity for the purposes of
	22	+	Section 51, Article III, Texas Constitution;
	23	+	(3) as part of the American Rescue Plan Act of 2021
	24	+	(Pub. L. No. 117-2), the United States Congress established the
	25	+	Coronavirus State Fiscal Recovery Fund (42 U.S.C. Section 802) for
	26	+	the purpose of providing money to the states for certain purposes,
	27	+	including "to respond to the public health emergency with respect
	28	+	to the Coronavirus Disease 2019 (COVID-19) or its negative economic
	29	+	impacts, including assistance to households";
	30	+	(4) ad valorem taxes imposed on households in this
	31	+	state are especially burdensome for this state's residents and the
	32	+	negative economic effects of COVID-19 have made it difficult for
	33	+	local governments to reduce the ad valorem tax burden; and
	34	+	(5) previous state COVID-19 relief efforts have not
	35	+	adequately addressed the additional burden ad valorem taxes have
	36	+	imposed on households living in residence homesteads during the
	37	+	COVID-19 pandemic.
	38	+	SECTION 2. Subchapter B, Chapter 403, Government Code, is
	39	+	amended by adding Section 403.03059 to read as follows:
	40	+	Sec. 403.03059. AUTHORIZATION TO DISTRIBUTE CERTAIN
	41	+	FEDERAL ECONOMIC ASSISTANCE MONEY TO CERTAIN HOMEOWNERS. (a) The
	42	+	purpose of this section is to provide assistance to households in
	43	+	this state in response to the negative economic effects of the
	44	+	COVID-19 public health emergency by providing direct relief from ad
	45	+	valorem taxes to eligible property owners.
	46	+	(b) In this section, "eligible property owner" means a
	47	+	person who, as of May 1, 2022, owns property for which the person
	48	+	receives an exemption under Section 11.13, Tax Code.
	49	+	(c) Notwithstanding any other provision of this chapter,
	50	+	not later than September 1, 2022, or as soon thereafter as
	51	+	practicable, the comptroller shall issue a warrant to each eligible
	52	+	property owner in the amount calculated under Subsection (d) that
	53	+	is payable from money appropriated to the comptroller for that
	54	+	purpose.
	55	+	(d) The comptroller shall calculate the amount of the
	56	+	warrant to which each eligible property owner is entitled by
	57	+	dividing the total amount of money appropriated to the comptroller
	58	+	for the purposes of this section by the total number of eligible
	59	+	property owners.
	60	+	(e) On request by the comptroller, each appraisal district
	61	+	shall, not later than July 1, 2022, submit to the comptroller, in an
	62	+	electronic format specified by the comptroller, any information
	63	+	determined by the comptroller to be necessary to identify eligible
	64	+	property owners for purposes of this section. This state and the
	65	+	comptroller are not liable for an error in the information provided
	66	+	to the comptroller under this subsection.
	67	+	(f) Sections 403.055 and 403.0551 of this code and Section
	68	+	1.111(f), Tax Code, do not apply to a warrant issued under this
	69	+	section.
	70	+	(g) The information provided by an appraisal district to the
	71	+	comptroller under Subsection (e) is confidential and excepted from
	72	+	the requirements of Section 552.021.
	73	+	(h) If a person who is not an eligible property owner,
	74	+	including an eligible property owner's agent or mortgage servicer,
	75	+	receives a payment issued under this section that is intended for an
	76	+	eligible property owner, the person shall forward the full amount
	77	+	of the payment, as well as any information that accompanied the
	78	+	payment, to the eligible property owner as soon as practicable.
	79	+	(i) The comptroller may adopt rules for the administration
	80	+	of this section, including rules prescribing procedures to prevent
	81	+	warrant fraud.
	82	+	(j) This section expires January 1, 2023.
	83	+	SECTION 3. (a) In this section, "committee" means the joint
	84	+	interim committee on property tax relief.
	85	+	(b) The committee is established for the purpose of:
	86	+	(1) conducting the study required under Subsection (h)
	87	+	of this section; and
	88	+	(2) reporting the committee's findings to the
	89	+	legislature under Subsection (j) of this section.
	90	+	(c) The committee is composed of 10 members as follows:
	91	+	(1) the chair of the senate committee on finance;
	92	+	(2) the chair of the senate committee on local
	93	+	government;
	94	+	(3) the chair of the senate committee on education;
	95	+	(4) two members of the senate appointed by the
	96	+	lieutenant governor;
	97	+	(5) the chair of the house committee on
	98	+	appropriations;
	99	+	(6) the chair of the house committee on ways and means;
	100	+	(7) the chair of the house committee on public
	101	+	education; and
	102	+	(8) two members of the house of representatives
	103	+	appointed by the speaker of the house of representatives.
	104	+	(d) The lieutenant governor shall appoint a co-chair of the
	105	+	committee from the members described by Subsections (c)(1)-(4) of
	106	+	this section, and the speaker of the house of representatives shall
	107	+	appoint a co-chair of the committee from the members described by
	108	+	Subsections (c)(5)-(8) of this section.
	109	+	(e) The lieutenant governor and the speaker of the house of
	110	+	representatives shall make the appointments required under
	111	+	Subsections (c) and (d) of this section not later than the 60th day
	112	+	after the effective date of this Act.
	113	+	(f) The committee shall meet at the joint call of the
	114	+	co-chairs.
	115	+	(g) The committee has all other powers and duties provided
	116	+	to a special committee by:
	117	+	(1) Subchapter B, Chapter 301, Government Code;
	118	+	(2) the rules of the senate and house of
	119	+	representatives; and
	120	+	(3) the policies of the senate and house committees on
	121	+	administration.
	122	+	(h) The committee shall study matters relating to the
	123	+	burdens on property owners imposed by the current ad valorem tax
	124	+	structure in this state and identify potential solutions to reduce
	125	+	those burdens.
	126	+	(i) The comptroller of public accounts and the Legislative
	127	+	Budget Board shall provide information to the committee necessary
	128	+	to conduct the study required under Subsection (h) of this section.
	129	+	(j) Not later than December 1, 2022, the committee shall:
	130	+	(1) prepare a written report of the committee's
	131	+	findings, including recommendations for legislation; and
	132	+	(2) submit the report described by Subdivision (1) of
	133	+	this subsection to the legislature.
	134	+	(k) The committee is abolished and this section expires
	135	+	January 1, 2023.
	136	+	SECTION 4. The amount of $3,000,000,000 is appropriated to
	137	+	the comptroller of public accounts from money received by this
	138	+	state from the Coronavirus State Fiscal Recovery Fund (42
	139	+	U.S.C. Section 802) established under the American Rescue Plan Act
	140	+	of 2021 (Pub. L. No. 117-2) and deposited to the credit of the
	141	+	Coronavirus Relief Fund No. 325 for the purpose of making the
	142	+	payments required by Section 403.03059, Government Code, as added
	143	+	by this Act, during the period beginning on the effective date of
	144	+	this Act and ending January 1, 2023.
	145	+	SECTION 5. This Act takes effect immediately if it receives
	146	+	a vote of two-thirds of all the members elected to each house, as
	147	+	provided by Section 39, Article III, Texas Constitution. If this
	148	+	Act does not receive the vote necessary for immediate effect, this
	149	+	Act takes effect on the 91st day after the last day of the
	150	+	legislative session.