By: Bettencourt S.R. No. 97
SENATE RESOLUTION
BE IT RESOLVED by the Senate of the State of Texas, 87th
Legislature, 3rd Called Session, 2021, That Senate Rule 12.03 be
suspended in part as provided by Senate Rule 12.08 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:
Senate Rule 12.03(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.
Suspending limitations on conference committee jurisdiction,
S.B. No. 1.