By: Hall S.B. No. 24
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of a limitation on the total amount of
ad valorem taxes that may be imposed by certain taxing units on the
residence homestead of an individual who is elderly or disabled.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 11.26(a) and (g), Tax Code, are 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 2022 [2015] tax
year, the amount of the limitation provided by this section is the
amount of tax the school district imposed for the 2022 [2014] tax
year [less an amount equal to the amount determined by multiplying
$10,000 times the tax rate of the school district for the 2015 tax
year, plus any 2015 tax attributable to improvements made in 2014,
other than improvements made to comply with governmental
regulations or repairs].
(g) If [Except as provided by Subsection (b), if] an
individual who receives a limitation on tax increases imposed by
this section, including a surviving spouse who receives a
limitation under Subsection (i), subsequently qualifies a
different residence homestead for the same exemption under Section
11.13, a school district may not impose ad valorem taxes on the
subsequently qualified homestead in a year in an amount that
exceeds the amount of taxes the school district would have imposed
on the subsequently qualified homestead in the first year in which
the individual receives that same exemption for the subsequently
qualified homestead had the limitation on tax increases imposed by
this section not been in effect, multiplied by a fraction the
numerator of which is the total amount of school district taxes
imposed on the former homestead in the last year in which the
individual received that same exemption for the former homestead
and the denominator of which is the total amount of school district
taxes that would have been imposed on the former homestead in the
last year in which the individual received that same exemption for
the former homestead had the limitation on tax increases imposed by
this section not been in effect.
SECTION 2. Sections 11.261(b) and (g), Tax Code, are
amended to read as follows:
(b) The tax officials shall appraise [the] property to which
the limitation applies and calculate taxes as on other property,
but if the tax so calculated exceeds the limitation provided by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. The county,
municipality, or junior college district may not increase the total
annual amount of ad valorem taxes the county, municipality, or
junior college district imposes on the residence homestead of a
disabled individual or an individual 65 years of age or older above
the amount of the taxes the county, municipality, or junior college
district imposed on the residence homestead in the first tax year,
other than a tax year preceding the tax year in which the county,
municipality, or junior college district established the
limitation described by Subsection (a), in which the individual
qualified that residence homestead for the exemption provided by
Section 11.13(c) for a disabled individual or an individual 65
years of age or older. 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 exemption for
the next year, and if the county, municipal, or junior college
district taxes imposed on the residence homestead in the next year
are less than the amount of taxes imposed in that first year, a
county, municipality, or junior college district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed on
the residence homestead in the year immediately following the first
year, other than a tax year preceding the tax year in which the
county, municipality, or junior college district established the
limitation described by Subsection (a), for which the individual
qualified that residence homestead for the exemption. If the first
tax year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for an individual who is 65
years of age or older or who is disabled was a tax year before the
2022 tax year, the amount of the limitation provided by this section
is the amount of tax the county, municipality, or junior college
district imposed for the 2022 tax year.
(g) If [Except as provided by Subsection (c), if] an
individual who receives a limitation on county, municipal, or
junior college district tax increases provided by this section
subsequently qualifies a different residence homestead in the same
county, municipality, or junior college district for an exemption
under Section 11.13, the county, municipality, or junior college
district may not impose ad valorem taxes on the subsequently
qualified homestead in a year in an amount that exceeds the amount
of taxes the county, municipality, or junior college district would
have imposed on the subsequently qualified homestead in the first
year in which the individual receives that exemption for the
subsequently qualified homestead had the limitation on tax
increases provided by this section not been in effect, multiplied
by a fraction the numerator of which is the total amount of taxes
the county, municipality, or junior college district imposed on the
former homestead in the last year in which the individual received
that exemption for the former homestead and the denominator of
which is the total amount of taxes the county, municipality, or
junior college district would have imposed on the former homestead
in the last year in which the individual received that exemption for
the former homestead had the limitation on tax increases provided
by this section not been in effect.
SECTION 3. The following provisions of the Tax Code are
repealed:
(1) Sections 11.26(a-1), (a-2), (a-3), (b), and (o);
and
(2) Sections 11.261(c) and (m).
SECTION 4. The changes in law made by this Act apply only to
ad valorem taxes imposed for a tax year that begins on or after the
effective date of this Act.
SECTION 5. This Act takes effect January 1, 2023, but only
if the constitutional amendment proposed by the 87th Legislature,
2nd Called Session, 2021, relating to the calculation of a
limitation on the total amount of ad valorem taxes that may be
imposed by certain political subdivisions on the residence
homestead of a person who is elderly or disabled is approved by the
voters. If that amendment is not approved by the voters, this Act
has no effect.