Texas 2021 - 87th 3rd C.S.

Texas Senate Bill SR97 Compare Versions

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1	1	By: Bettencourt S.R. No. 97
2	2
3	3
4	4	SENATE RESOLUTION
5	5	BE IT RESOLVED by the Senate of the State of Texas, 87th
6	6	Legislature, 3rd Called Session, 2021, That Senate Rule 12.03 be
7	7	suspended in part as provided by Senate Rule 12.08 to enable the
8	8	conference committee appointed to resolve the differences on
9	9	Senate Bill 1 (an increase in the amount of the exemption of
10	10	residence homesteads from ad valorem taxation by a school
11	11	district and the protection of school districts against the
12	12	resulting loss in local revenue) to consider and take action on
13	13	the following matter:
14	14	Senate Rule 12.03(4) is suspended to permit the committee
15	15	to add text on a matter not included in either the house or senate
16	16	version of the bill by adding the following new SECTIONS to the
17	17	bill:
18	18	SECTION 1. Section 11.13(b), Tax Code, is amended to read
19	19	as follows:
20	20	(b) An adult is entitled to exemption from taxation by a
21	21	school district of $40,000 [$25,000] of the appraised value of
22	22	the adult's residence homestead, except that only $5,000 of the
23	23	exemption applies to an entity operating under former Chapter 17,
24	24	18, 25, 26, 27, or 28, Education Code, as those chapters existed
25	25	on May 1, 1995, as permitted by Section 11.301, Education Code.
26	26	SECTION 2. Section 46.071, Education Code, is amended by
27	27	amending Subsections (a), (b), and (c) and adding Subsections
28	28	(a-1), (b-1), and (c-1) to read as follows:
29	29	(a) Beginning with the 2015-2016 school year and
30	30	continuing through the 2021-2022 school year, a school district
31	31	is entitled to additional state aid under this subchapter to the
32	32	extent that state and local revenue used to service debt eligible
33	33	under this chapter is less than the state and local revenue that
34	34	would have been available to the district under this chapter as
35	35	it existed on September 1, 2015, if the increase in the residence
36	36	homestead exemption under Section 1-b(c), Article VIII, Texas
37	37	Constitution, and the additional limitation on tax increases
38	38	under Section 1-b(d) of that article as proposed by S.J.R. 1,
39	39	84th Legislature, Regular Session, 2015, had not occurred.
40	40	(a-1) Beginning with the 2022-2023 school year, a school
41	41	district is entitled to additional state aid under this
42	42	subchapter to the extent that state and local revenue used to
43	43	service debt eligible under this chapter is less than the state
44	44	and local revenue that would have been available to the district
45	45	under this chapter as it existed on September 1, 2021, if any
46	46	increase in the residence homestead exemption under Section
47	47	1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
48	48	Legislature, 3rd Called Session, 2021, had not occurred.
49	49	(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
50	50	additional state aid under this section through the 2021-2022
51	51	school year is equal to the amount by which the loss of local
52	52	interest and sinking revenue for debt service attributable to the
53	53	increase in the residence homestead exemption under Section
54	54	1-b(c), Article VIII, Texas Constitution, and the additional
55	55	limitation on tax increases under Section 1-b(d) of that article
56	56	as proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015,
57	57	is not offset by a gain in state aid under this chapter.
58	58	(b-1) Subject to Subsections (c-1), (d), and (e),
59	59	additional state aid under this section beginning with the
60	60	2022-2023 school year is equal to the amount by which the loss of
61	61	local interest and sinking revenue for debt service attributable
62	62	to any increase in the residence homestead exemption under
63	63	Section 1-b(c), Article VIII, Texas Constitution, as proposed by
64	64	the 87th Legislature, 3rd Called Session, 2021, is not offset by
65	65	a gain in state aid under this chapter.
66	66	(c) For the purpose of determining state aid under
67	67	Subsections (a) and (b) [this section], local interest and
68	68	sinking revenue for debt service is limited to revenue required
69	69	to service debt eligible under this chapter as of September 1,
70	70	2015, including refunding of that debt, subject to Section
71	71	46.061. The limitation imposed by Section 46.034(a) does not
72	72	apply for the purpose of determining state aid under this
73	73	section.
74	74	(c-1) For the purpose of determining state aid under
75	75	Subsections (a-1) and (b-1), local interest and sinking revenue
76	76	for debt service is limited to revenue required to service debt
77	77	eligible under this chapter as of September 1, 2021, including
78	78	refunding of that debt, subject to Section 46.061. The
79	79	limitation imposed by Section 46.034(a) does not apply for the
80	80	purpose of determining state aid under this section.
81	81	SECTION 3. Subchapter F, Chapter 48, Education Code, is
82	82	amended by adding Section 48.2543 to read as follows:
83	83	Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD
84	84	EXEMPTION. (a) Beginning with the 2022-2023 school year, a
85	85	school district is entitled to additional state aid to the extent
86	86	that state and local revenue under this chapter and Chapter 49 is
87	87	less than the state and local revenue that would have been
88	88	available to the district under this chapter and Chapter 49 as
89	89	those chapters existed on September 1, 2021, if any increase in
90	90	the residence homestead exemption under Section 1-b(c), Article
91	91	VIII, Texas Constitution, as proposed by the 87th Legislature,
92	92	3rd Called Session, 2021, had not occurred.
93	93	(b) The lesser of the school district's currently adopted
94	94	maintenance and operations tax rate or the adopted maintenance
95	95	and operations tax rate for the 2021 tax year is used for the
96	96	purpose of determining additional state aid under Subsection
97	97	(a).
98	98	SECTION 4. The comptroller of public accounts may adopt
99	99	rules for the purpose of implementing and administering the
100	100	changes in law made by this Act, including rules relating to the
101	101	form of certain information required to be provided by tax
102	102	officials and the date on which the information must be provided.
103	103	SECTION 5. Section 11.13, Tax Code, as amended by this
104	104	Act, applies beginning with the 2022 tax year.
105	105	Explanation: The addition is necessary to increase the
106	106	amount of the exemption of residence homesteads from ad valorem
107	107	taxation by a school district from $25,000 to $40,000, protect
108	108	school districts against the resulting loss in local revenue,
109	109	authorize the comptroller of public accounts to adopt rules to
110	110	implement the change in law made by Senate Bill 1, and provide
111	111	that the change in law made by Senate Bill 1 to Section 11.13, Tax
112	112	Code, takes effect beginning with the 2022 tax year.
113	113	Suspending limitations on conference committee jurisdiction,
114	114	S.B. No. 1.