Texas 2023 - 88th Regular

Texas House Bill HB1083 Compare Versions

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Version 2 (New)

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1	1	88R428 CJC-D
2	2	By: Bucy H.B. No. 1083
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authority of a taxing unit other than a school
8	8	district to establish a limitation on the amount of ad valorem taxes
9	9	that the taxing unit may impose on the residence homesteads of
10	10	individuals who are disabled or elderly and their surviving
11	11	spouses.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. The heading to Section 11.261, Tax Code, is
14	14	amended to read as follows:
15	15	Sec. 11.261. LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER
16	16	THAN SCHOOL DISTRICT [COUNTY, MUNICIPAL, OR JUNIOR COLLEGE DISTRICT
17	17	TAX] ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED OR [AND]
18	18	ELDERLY.
19	19	SECTION 2. Sections 11.261(a), (b), (c), (d), (e), (g),
20	20	(h), (i), (j), (k), and (l), Tax Code, are amended to read as
21	21	follows:
22	22	(a) This section applies only to a taxing unit that:
23	23	(1) is not a school [a county, municipality, or junior
24	24	college] district; and
25	25	(2) [that] has established a limitation on the total
26	26	amount of taxes that may be imposed by the taxing unit [county,
27	27	municipality, or junior college district] on the residence
28	28	homestead of an [a disabled] individual who is disabled or is [an
29	29	individual] 65 years of age or older under Section 1-b(h), Article
30	30	VIII, Texas Constitution.
31	31	(b) The tax officials shall appraise the property to which
32	32	the limitation applies and calculate taxes as on other property,
33	33	but if the tax so calculated exceeds the limitation provided by this
34	34	section, the tax imposed by a taxing unit is the amount of the tax as
35	35	limited by this section, except as otherwise provided by this
36	36	section. The taxing unit [county, municipality, or junior college
37	37	district] may not increase the total annual amount of ad valorem
38	38	taxes the taxing unit [county, municipality, or junior college
39	39	district] imposes on the residence homestead of an [a disabled]
40	40	individual who is disabled or is [an individual] 65 years of age or
41	41	older above the amount of the taxes the taxing unit [county,
42	42	municipality, or junior college district] imposed on the residence
43	43	homestead in the first tax year, other than a tax year preceding the
44	44	tax year in which the taxing unit [county, municipality, or junior
45	45	college district] established the limitation described by
46	46	Subsection (a), in which the individual qualified that residence
47	47	homestead for the exemption provided by Section 11.13(c) for an [a
48	48	disabled] individual who is disabled or is [an individual] 65 years
49	49	of age or older. If the individual qualified that residence
50	50	homestead for the exemption after the beginning of that first year
51	51	and the residence homestead remains eligible for the exemption for
52	52	the next year, and if the [county, municipal, or junior college
53	53	district] taxes imposed by the taxing unit on the residence
54	54	homestead in the next year are less than the amount of taxes imposed
55	55	in that first year, the taxing unit [a county, municipality, or
56	56	junior college district] may not subsequently increase the total
57	57	annual amount of ad valorem taxes it imposes on the residence
58	58	homestead above the amount it imposed on the residence homestead in
59	59	the year immediately following the first year, other than a tax year
60	60	preceding the tax year in which the taxing unit [county,
61	61	municipality, or junior college district] established the
62	62	limitation described by Subsection (a), for which the individual
63	63	qualified that residence homestead for the exemption.
64	64	(c) If an individual makes improvements to the individual's
65	65	residence homestead, other than repairs and other than improvements
66	66	required to comply with governmental requirements, the taxing unit
67	67	[county, municipality, or junior college district] may increase the
68	68	amount of taxes on the homestead in the first year the value of the
69	69	homestead is increased on the appraisal roll because of the
70	70	enhancement of value by the improvements. The amount of the tax
71	71	increase is determined by applying the current tax rate to the
72	72	difference between the appraised value of the homestead with the
73	73	improvements and the appraised value the homestead [it] would have
74	74	had without the improvements. A limitation provided by this
75	75	section then applies to the increased amount of [county, municipal,
76	76	or junior college district] taxes on the residence homestead until
77	77	more improvements, if any, are made.
78	78	(d) A limitation on [county, municipal, or junior college
79	79	district] tax increases by a taxing unit provided by this section
80	80	expires if on January 1:
81	81	(1) none of the owners of the structure who qualify for
82	82	the exemption provided by Section 11.13(c) for an [a disabled]
83	83	individual who is disabled or is [an individual] 65 years of age or
84	84	older and who owned the structure when the limitation provided by
85	85	this section first took effect is using the structure as a residence
86	86	homestead; or
87	87	(2) none of the owners of the structure qualifies for
88	88	the exemption provided by Section 11.13(c) for an [a disabled]
89	89	individual who is disabled or is [an individual] 65 years of age or
90	90	older.
91	91	(e) If the appraisal roll provides for taxation of appraised
92	92	value for a prior year because a residence homestead exemption for
93	93	[disabled] individuals who are disabled or are [individuals] 65
94	94	years of age or older was erroneously allowed, the tax assessor for
95	95	the applicable taxing unit [county, municipality, or junior college
96	96	district] shall add, as back taxes due as provided by Section
97	97	26.09(d), the positive difference, if any, between the tax that
98	98	should have been imposed for that year and the tax that was imposed
99	99	because of the provisions of this section.
100	100	(g) Except as provided by Subsection (c), if an individual
101	101	who receives a limitation on [county, municipal, or junior college
102	102	district] tax increases by a taxing unit provided by this section
103	103	subsequently qualifies a different residence homestead in the same
104	104	taxing unit [county, municipality, or junior college district] for
105	105	an exemption under Section 11.13, the taxing unit [county,
106	106	municipality, or junior college district] may not impose ad valorem
107	107	taxes on the subsequently qualified homestead in a year in an amount
108	108	that exceeds the amount of taxes the taxing unit [county,
109	109	municipality, or junior college district] would have imposed on the
110	110	subsequently qualified homestead in the first year in which the
111	111	individual receives that exemption for the subsequently qualified
112	112	homestead had the limitation on tax increases provided by this
113	113	section not been in effect, multiplied by a fraction the numerator
114	114	of which is the total amount of taxes the taxing unit [county,
115	115	municipality, or junior college district] imposed on the former
116	116	homestead in the last year in which the individual received that
117	117	exemption for the former homestead and the denominator of which is
118	118	the total amount of taxes the taxing unit [county, municipality, or
119	119	junior college district] would have imposed on the former homestead
120	120	in the last year in which the individual received that exemption for
121	121	the former homestead had the limitation on tax increases provided
122	122	by this section not been in effect.
123	123	(h) An individual who receives a limitation on [county,
124	124	municipal, or junior college district] tax increases by a taxing
125	125	unit under this section and who subsequently qualifies a different
126	126	residence homestead in the same taxing unit [county, municipality,
127	127	or junior college district] for an exemption under Section 11.13,
128	128	or an agent of the individual, is entitled to receive from the chief
129	129	appraiser of the appraisal district in which the former homestead
130	130	was located a written certificate providing the information
131	131	necessary to determine whether the individual may qualify for a
132	132	limitation on the subsequently qualified homestead under
133	133	Subsection (g) and to calculate the amount of taxes the taxing unit
134	134	[county, municipality, or junior college district] may impose on
135	135	the subsequently qualified homestead.
136	136	(i) If an individual who qualifies for a limitation on
137	137	[county, municipal, or junior college district] tax increases by a
138	138	taxing unit under this section dies, the surviving spouse of the
139	139	individual is entitled to the limitation on taxes imposed by the
140	140	taxing unit [county, municipality, or junior college district] on
141	141	the residence homestead of the individual if:
142	142	(1) the surviving spouse is disabled or is 55 years of
143	143	age or older when the individual dies; and
144	144	(2) the residence homestead of the individual:
145	145	(A) is the residence homestead of the surviving
146	146	spouse on the date that the individual dies; and
147	147	(B) remains the residence homestead of the
148	148	surviving spouse.
149	149	(j) If an individual who is 65 years of age or older and
150	150	qualifies for a limitation on [county, municipal, or junior college
151	151	district] tax increases for the elderly under this section dies in
152	152	the first year in which the individual qualified for the limitation
153	153	and the individual first qualified for the limitation after the
154	154	beginning of that year, except as provided by Subsection (k), the
155	155	amount to which the surviving spouse's [county, municipal, or
156	156	junior college district] taxes are limited under Subsection (i) is
157	157	the amount of taxes imposed by the taxing unit to which the
158	158	limitation applies [county, municipality, or junior college
159	159	district, as applicable,] on the residence homestead in that year
160	160	determined as if the individual qualifying for the exemption had
161	161	lived for the entire year.
162	162	(k) If in the first tax year after the year in which an
163	163	individual who is 65 years of age or older dies under the
164	164	circumstances described by Subsection (j) the amount of taxes
165	165	imposed by a taxing unit [county, municipality, or junior college
166	166	district] on the residence homestead of the surviving spouse is
167	167	less than the amount of taxes imposed by the taxing unit [county,
168	168	municipality, or junior college district] in the preceding year as
169	169	limited by Subsection (j), in a subsequent tax year the surviving
170	170	spouse's taxes imposed by the taxing unit [county, municipality, or
171	171	junior college district] on that residence homestead are limited to
172	172	the amount of taxes imposed by the taxing unit [county,
173	173	municipality, or junior college district] in that first tax year
174	174	after the year in which the individual dies.
175	175	(l) Notwithstanding Subsection (d), a limitation on
176	176	[county, municipal, or junior college district] tax increases by a
177	177	taxing unit provided by this section does not expire if the owner of
178	178	the structure qualifies for an exemption under Section 11.13 under
179	179	the circumstances described by Section 11.135(a).
180	180	SECTION 3. Section 23.19(g), Tax Code, is amended to read as
181	181	follows:
182	182	(g) A tax bill or a separate statement accompanying the tax
183	183	bill to a cooperative housing corporation for which interests of
184	184	stockholders are separately appraised under this section must
185	185	state, in addition to the information required by Section 31.01,
186	186	the appraised value and taxable value of each interest separately
187	187	appraised. Each exemption claimed as provided by this title by a
188	188	person entitled to the exemption shall also be deducted from the
189	189	total appraised value of the property of the corporation. The total
190	190	tax imposed by a school district or other taxing unit [, county,
191	191	municipality, or junior college district] shall be reduced by any
192	192	amount that represents an increase in taxes attributable to
193	193	separately appraised interests of the real property and
194	194	improvements that are subject to the limitation of taxes prescribed
195	195	by Section 11.26 or 11.261. The corporation shall apportion among
196	196	its stockholders liability for reimbursing the corporation for
197	197	property taxes according to the relative taxable values of their
198	198	interests.
199	199	SECTION 4. Sections 26.012(6), (13), and (14), Tax Code,
200	200	are amended to read as follows:
201	201	(6) "Current total value" means the total taxable
202	202	value of property listed on the appraisal roll for the current year,
203	203	including all appraisal roll supplements and corrections as of the
204	204	date of the calculation, less the taxable value of property
205	205	exempted for the current tax year for the first time under Section
206	206	11.31 or 11.315, except that:
207	207	(A) the current total value for a school district
208	208	excludes:
209	209	(i) the total value of homesteads that
210	210	qualify for a tax limitation as provided by Section 11.26; and
211	211	(ii) new property value of property that is
212	212	subject to an agreement entered into under Chapter 313; and
213	213	(B) the current total value for a taxing unit
214	214	other than a school [county, municipality, or junior college]
215	215	district excludes the total value of homesteads that qualify for a
216	216	tax limitation provided by Section 11.261.
217	217	(13) "Last year's levy" means the total of:
218	218	(A) the amount of taxes that would be generated
219	219	by multiplying the total tax rate adopted by the governing body in
220	220	the preceding year by the total taxable value of property on the
221	221	appraisal roll for the preceding year, including:
222	222	(i) taxable value that was reduced in an
223	223	appeal under Chapter 42;
224	224	(ii) all appraisal roll supplements and
225	225	corrections other than corrections made pursuant to Section
226	226	25.25(d), as of the date of the calculation, except that last year's
227	227	taxable value for a school district excludes the total value of
228	228	homesteads that qualified for a tax limitation as provided by
229	229	Section 11.26 and last year's taxable value for a taxing unit other
230	230	than a school [county, municipality, or junior college] district
231	231	excludes the total value of homesteads that qualified for a tax
232	232	limitation as provided by Section 11.261; and
233	233	(iii) the portion of taxable value of
234	234	property that is the subject of an appeal under Chapter 42 on July
235	235	25 that is not in dispute; and
236	236	(B) the amount of taxes refunded by the taxing
237	237	unit in the preceding year for tax years before that year.
238	238	(14) "Last year's total value" means the total taxable
239	239	value of property listed on the appraisal roll for the preceding
240	240	year, including all appraisal roll supplements and corrections,
241	241	other than corrections made pursuant to Section 25.25(d), as of the
242	242	date of the calculation, except that:
243	243	(A) last year's taxable value for a school
244	244	district excludes the total value of homesteads that qualified for
245	245	a tax limitation as provided by Section 11.26; and
246	246	(B) last year's taxable value for a taxing unit
247	247	other than a school [county, municipality, or junior college]
248	248	district excludes the total value of homesteads that qualified for
249	249	a tax limitation as provided by Section 11.261.
250	250	SECTION 5. This Act applies only to ad valorem taxes imposed
251	251	for a tax year beginning on or after the effective date of this Act.
252	252	SECTION 6. This Act takes effect January 1, 2024, but only
253	253	if the constitutional amendment proposed by the 88th Legislature,
254	254	Regular Session, 2023, to authorize a political subdivision other
255	255	than a school district to establish a limitation on the amount of ad
256	256	valorem taxes that the political subdivision may impose on the
257	257	residence homesteads of persons who are disabled or elderly and
258	258	their surviving spouses is approved by the voters. If that
259	259	amendment is not approved by the voters, this Act has no effect.