Texas 2021 - 87th 3rd C.S.

Texas Senate Bill SB24 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Hall S.B. No. 24
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the calculation of a limitation on the total amount of
7	7	ad valorem taxes that may be imposed by certain taxing units on the
8	8	residence homestead of an individual who is elderly or disabled.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 11.26(a) and (g), Tax Code, are amended
11	11	to read as follows:
12	12	(a) The tax officials shall appraise [the] property to which
13	13	this section applies and calculate taxes as on other property, but
14	14	if the tax so calculated exceeds the limitation imposed by this
15	15	section, the tax imposed is the amount of the tax as limited by this
16	16	section, except as otherwise provided by this section. A school
17	17	district may not increase the total annual amount of ad valorem tax
18	18	it imposes on the residence homestead of an individual 65 years of
19	19	age or older or on the residence homestead of an individual who is
20	20	disabled, as defined by Section 11.13, above the amount of the tax
21	21	it imposed in the first tax year in which the individual qualified
22	22	that residence homestead for the applicable exemption provided by
23	23	Section 11.13(c) for an individual who is 65 years of age or older
24	24	or is disabled. If the individual qualified that residence
25	25	homestead for the exemption after the beginning of that first year
26	26	and the residence homestead remains eligible for the same exemption
27	27	for the next year, and if the school district taxes imposed on the
28	28	residence homestead in the next year are less than the amount of
29	29	taxes imposed in that first year, a school district may not
30	30	subsequently increase the total annual amount of ad valorem taxes
31	31	it imposes on the residence homestead above the amount it imposed in
32	32	the year immediately following the first year for which the
33	33	individual qualified that residence homestead for the same
34	34	exemption[, except as provided by Subsection (b)]. If the first tax
35	35	year the individual qualified the residence homestead for the
36	36	exemption provided by Section 11.13(c) for individuals 65 years of
37	37	age or older or disabled was a tax year before the 2022 [2015] tax
38	38	year, the amount of the limitation provided by this section is the
39	39	amount of tax the school district imposed for the 2022 [2014] tax
40	40	year [less an amount equal to the amount determined by multiplying
41	41	$10,000 times the tax rate of the school district for the 2015 tax
42	42	year, plus any 2015 tax attributable to improvements made in 2014,
43	43	other than improvements made to comply with governmental
44	44	regulations or repairs].
45	45	(g) If [Except as provided by Subsection (b), if] an
46	46	individual who receives a limitation on tax increases imposed by
47	47	this section, including a surviving spouse who receives a
48	48	limitation under Subsection (i), subsequently qualifies a
49	49	different residence homestead for the same exemption under Section
50	50	11.13, a school district may not impose ad valorem taxes on the
51	51	subsequently qualified homestead in a year in an amount that
52	52	exceeds the amount of taxes the school district would have imposed
53	53	on the subsequently qualified homestead in the first year in which
54	54	the individual receives that same exemption for the subsequently
55	55	qualified homestead had the limitation on tax increases imposed by
56	56	this section not been in effect, multiplied by a fraction the
57	57	numerator of which is the total amount of school district taxes
58	58	imposed on the former homestead in the last year in which the
59	59	individual received that same exemption for the former homestead
60	60	and the denominator of which is the total amount of school district
61	61	taxes that would have been imposed on the former homestead in the
62	62	last year in which the individual received that same exemption for
63	63	the former homestead had the limitation on tax increases imposed by
64	64	this section not been in effect.
65	65	SECTION 2. Sections 11.261(b) and (g), Tax Code, are
66	66	amended to read as follows:
67	67	(b) The tax officials shall appraise [the] property to which
68	68	the limitation applies and calculate taxes as on other property,
69	69	but if the tax so calculated exceeds the limitation provided by this
70	70	section, the tax imposed is the amount of the tax as limited by this
71	71	section, except as otherwise provided by this section. The county,
72	72	municipality, or junior college district may not increase the total
73	73	annual amount of ad valorem taxes the county, municipality, or
74	74	junior college district imposes on the residence homestead of a
75	75	disabled individual or an individual 65 years of age or older above
76	76	the amount of the taxes the county, municipality, or junior college
77	77	district imposed on the residence homestead in the first tax year,
78	78	other than a tax year preceding the tax year in which the county,
79	79	municipality, or junior college district established the
80	80	limitation described by Subsection (a), in which the individual
81	81	qualified that residence homestead for the exemption provided by
82	82	Section 11.13(c) for a disabled individual or an individual 65
83	83	years of age or older. If the individual qualified that residence
84	84	homestead for the exemption after the beginning of that first year
85	85	and the residence homestead remains eligible for the exemption for
86	86	the next year, and if the county, municipal, or junior college
87	87	district taxes imposed on the residence homestead in the next year
88	88	are less than the amount of taxes imposed in that first year, a
89	89	county, municipality, or junior college district may not
90	90	subsequently increase the total annual amount of ad valorem taxes
91	91	it imposes on the residence homestead above the amount it imposed on
92	92	the residence homestead in the year immediately following the first
93	93	year, other than a tax year preceding the tax year in which the
94	94	county, municipality, or junior college district established the
95	95	limitation described by Subsection (a), for which the individual
96	96	qualified that residence homestead for the exemption. If the first
97	97	tax year the individual qualified the residence homestead for the
98	98	exemption provided by Section 11.13(c) for an individual who is 65
99	99	years of age or older or who is disabled was a tax year before the
100	100	2022 tax year, the amount of the limitation provided by this section
101	101	is the amount of tax the county, municipality, or junior college
102	102	district imposed for the 2022 tax year.
103	103	(g) If [Except as provided by Subsection (c), if] an
104	104	individual who receives a limitation on county, municipal, or
105	105	junior college district tax increases provided by this section
106	106	subsequently qualifies a different residence homestead in the same
107	107	county, municipality, or junior college district for an exemption
108	108	under Section 11.13, the county, municipality, or junior college
109	109	district may not impose ad valorem taxes on the subsequently
110	110	qualified homestead in a year in an amount that exceeds the amount
111	111	of taxes the county, municipality, or junior college district would
112	112	have imposed on the subsequently qualified homestead in the first
113	113	year in which the individual receives that exemption for the
114	114	subsequently qualified homestead had the limitation on tax
115	115	increases provided by this section not been in effect, multiplied
116	116	by a fraction the numerator of which is the total amount of taxes
117	117	the county, municipality, or junior college district imposed on the
118	118	former homestead in the last year in which the individual received
119	119	that exemption for the former homestead and the denominator of
120	120	which is the total amount of taxes the county, municipality, or
121	121	junior college district would have imposed on the former homestead
122	122	in the last year in which the individual received that exemption for
123	123	the former homestead had the limitation on tax increases provided
124	124	by this section not been in effect.
125	125	SECTION 3. The following provisions of the Tax Code are
126	126	repealed:
127	127	(1) Sections 11.26(a-1), (a-2), (a-3), (b), and (o);
128	128	and
129	129	(2) Sections 11.261(c) and (m).
130	130	SECTION 4. The changes in law made by this Act apply only to
131	131	ad valorem taxes imposed for a tax year that begins on or after the
132	132	effective date of this Act.
133	133	SECTION 5. This Act takes effect January 1, 2023, but only
134	134	if the constitutional amendment proposed by the 87th Legislature,
135	135	2nd Called Session, 2021, relating to the calculation of a
136	136	limitation on the total amount of ad valorem taxes that may be
137	137	imposed by certain political subdivisions on the residence
138	138	homestead of a person who is elderly or disabled is approved by the
139	139	voters. If that amendment is not approved by the voters, this Act
140	140	has no effect.