Texas 2023 - 88th Regular

Texas House Bill HB2467 Compare Versions

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1	1	88R10008 CJC-D
2	2	By: Martinez Fischer H.B. No. 2467
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an increase in the amount of the exemption of residence
8	8	homesteads from ad valorem taxation by a school district, an
9	9	adjustment in the amount of the limitation on school district ad
10	10	valorem taxes imposed on the residence homesteads of the elderly or
11	11	disabled to reflect increases in the exemption amount, and the
12	12	protection of school districts against the resulting loss in local
13	13	revenue.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
16	16	follows:
17	17	(b) An adult is entitled to exemption from taxation by a
18	18	school district of $100,000 [$40,000] of the appraised value of the
19	19	adult's residence homestead, except that only $5,000 of the
20	20	exemption applies to an entity operating under former Chapter 17,
21	21	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
22	22	May 1, 1995, as permitted by Section 11.301, Education Code.
23	23	SECTION 2. Section 11.26, Tax Code, is amended by amending
24	24	Subsections (a), (a-10), and (o) and adding Subsection (a-11) to
25	25	read as follows:
26	26	(a) The tax officials shall appraise the property to which
27	27	this section applies and calculate taxes as on other property, but
28	28	if the tax so calculated exceeds the limitation imposed by this
29	29	section, the tax imposed is the amount of the tax as limited by this
30	30	section, except as otherwise provided by this section. A school
31	31	district may not increase the total annual amount of ad valorem tax
32	32	it imposes on the residence homestead of an individual 65 years of
33	33	age or older or on the residence homestead of an individual who is
34	34	disabled, as defined by Section 11.13, above the amount of the tax
35	35	it imposed in the first tax year in which the individual qualified
36	36	that residence homestead for the applicable exemption provided by
37	37	Section 11.13(c) for an individual who is 65 years of age or older
38	38	or is disabled. If the individual qualified that residence
39	39	homestead for the exemption after the beginning of that first year
40	40	and the residence homestead remains eligible for the same exemption
41	41	for the next year, and if the school district taxes imposed on the
42	42	residence homestead in the next year are less than the amount of
43	43	taxes imposed in that first year, a school district may not
44	44	subsequently increase the total annual amount of ad valorem taxes
45	45	it imposes on the residence homestead above the amount it imposed in
46	46	the year immediately following the first year for which the
47	47	individual qualified that residence homestead for the same
48	48	exemption, except as provided by Subsection (b). If the first tax
49	49	year the individual qualified the residence homestead for the
50	50	exemption provided by Section 11.13(c) for individuals 65 years of
51	51	age or older or disabled was a tax year before the 2024 [2015] tax
52	52	year, the amount of the limitation provided by this section for the
53	53	2024 tax year is the amount of the limitation as computed under
54	54	Subsection (a-10) of this section [tax the school district imposed
55	55	for the 2014 tax year] less an amount equal to the product of
56	56	$60,000 and [amount determined by multiplying $10,000 times] the
57	57	tax rate of the school district for the 2024 [2015] tax year[, plus
58	58	any 2015 tax attributable to improvements made in 2014, other than
59	59	improvements made to comply with governmental regulations or
60	60	repairs].
61	61	(a-10) For purposes of this section, "maximum compressed
62	62	rate" means the maximum compressed rate of a school district as
63	63	calculated under Section 48.2551, Education Code. Notwithstanding
64	64	the other provisions of this section, if in the 2024 or a subsequent
65	65	tax year an individual qualifies for a limitation on tax increases
66	66	provided by this section on the individual's residence homestead,
67	67	the amount of the limitation provided by this section on the
68	68	homestead is equal to the amount computed by:
69	69	(1) multiplying the taxable value of the homestead in
70	70	the preceding tax year by a tax rate equal to the difference between
71	71	the school district's maximum compressed rate for the preceding tax
72	72	year and the district's maximum compressed rate for the current tax
73	73	year;
74	74	(2) subtracting the amount computed under Subdivision
75	75	(1) from the amount of tax the district imposed on the homestead in
76	76	the preceding tax year; and
77	77	(3) adding any tax imposed in the current tax year
78	78	attributable to improvements made in the preceding tax year as
79	79	provided by Subsection (b) to the amount computed under Subdivision
80	80	(2).
81	81	(a-11) This subsection applies only to an individual who in
82	82	the 2024 tax year qualifies for a limitation under this section and
83	83	for whom the 2021 tax year or an earlier tax year was the first tax
84	84	year the individual or the individual's spouse qualified for an
85	85	exemption under Section 11.13(c). The amount of the limitation
86	86	provided by this section on the residence homestead of an
87	87	individual to which this subsection applies for the 2024 tax year is
88	88	the amount of the limitation for the 2024 tax year as otherwise
89	89	computed under this section less an amount equal to the product of
90	90	$15,000 and the tax rate of the school district for the 2022 tax
91	91	year. This subsection expires January 1, 2025.
92	92	(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
93	93	improvement to property that would otherwise constitute an
94	94	improvement under Subsection (b) is not treated as an improvement
95	95	under that subsection if the improvement is a replacement structure
96	96	for a structure that was rendered uninhabitable or unusable by a
97	97	casualty or by wind or water damage. For purposes of appraising the
98	98	property in the tax year in which the structure would have
99	99	constituted an improvement under Subsection (b), the replacement
100	100	structure is considered to be an improvement under that subsection
101	101	only if:
102	102	(1) the square footage of the replacement structure
103	103	exceeds that of the replaced structure as that structure existed
104	104	before the casualty or damage occurred; or
105	105	(2) the exterior of the replacement structure is of
106	106	higher quality construction and composition than that of the
107	107	replaced structure.
108	108	SECTION 3. Section 46.071, Education Code, is amended by
109	109	amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
110	110	(b-2), and (c-2) to read as follows:
111	111	(a-1) For [Beginning with] the 2022-2023 and 2023-2024
112	112	school years [year], a school district is entitled to additional
113	113	state aid under this subchapter to the extent that state and local
114	114	revenue used to service debt eligible under this chapter is less
115	115	than the state and local revenue that would have been available to
116	116	the district under this chapter as it existed on September 1, 2021,
117	117	if any increase in the residence homestead exemption under Section
118	118	1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
119	119	Legislature, 3rd Called Session, 2021, had not occurred.
120	120	(a-2) Beginning with the 2024-2025 school year, a school
121	121	district is entitled to additional state aid under this subchapter
122	122	to the extent that state and local revenue used to service debt
123	123	eligible under this chapter is less than the state and local revenue
124	124	that would have been available to the district under this chapter as
125	125	it existed on September 1, 2023, if any increase in the residence
126	126	homestead exemption under Section 1-b(c), Article VIII, Texas
127	127	Constitution, and any additional limitation on tax increases under
128	128	Section 1-b(d) of that article as proposed by the 88th Legislature,
129	129	Regular Session, 2023, had not occurred.
130	130	(b-1) Subject to Subsections (c-1), (d), and (e),
131	131	additional state aid under this section for [beginning with] the
132	132	2022-2023 and 2023-2024 school years [year] is equal to the amount
133	133	by which the loss of local interest and sinking revenue for debt
134	134	service attributable to any increase in the residence homestead
135	135	exemption under Section 1-b(c), Article VIII, Texas Constitution,
136	136	as proposed by the 87th Legislature, 3rd Called Session, 2021, is
137	137	not offset by a gain in state aid under this chapter.
138	138	(b-2) Subject to Subsections (c-2), (d), and (e),
139	139	additional state aid under this section beginning with the
140	140	2024-2025 school year is equal to the amount by which the loss of
141	141	local interest and sinking revenue for debt service attributable to
142	142	any increase in the residence homestead exemption under Section
143	143	1-b(c), Article VIII, Texas Constitution, and any additional
144	144	limitation on tax increases under Section 1-b(d) of that article as
145	145	proposed by the 88th Legislature, Regular Session, 2023, is not
146	146	offset by a gain in state aid under this chapter.
147	147	(c-2) For the purpose of determining state aid under
148	148	Subsections (a-2) and (b-2), local interest and sinking revenue for
149	149	debt service is limited to revenue required to service debt
150	150	eligible under this chapter as of September 1, 2024, including
151	151	refunding of that debt, subject to Section 46.061. The limitation
152	152	imposed by Section 46.034(a) does not apply for the purpose of
153	153	determining state aid under this section.
154	154	SECTION 4. Section 48.2542, Education Code, is amended to
155	155	read as follows:
156	156	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
157	157	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
158	158	Notwithstanding any other provision of this chapter, if a school
159	159	district is not fully compensated through state aid or the
160	160	calculation of excess local revenue under this chapter based on the
161	161	determination of the district's taxable value of property under
162	162	Subchapter M, Chapter 403, Government Code, the district is
163	163	entitled to additional state aid in the amount necessary to fully
164	164	compensate the district for the amount of ad valorem tax revenue
165	165	lost due to a reduction of the amount of the limitation on tax
166	166	increases provided by Sections 11.26(a-10) and (a-11) [11.26(a-4),
167	167	(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code, as
168	168	applicable.
169	169	SECTION 5. Effective January 1, 2025, Section 48.2542,
170	170	Education Code, is amended to read as follows:
171	171	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
172	172	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
173	173	Notwithstanding any other provision of this chapter, if a school
174	174	district is not fully compensated through state aid or the
175	175	calculation of excess local revenue under this chapter based on the
176	176	determination of the district's taxable value of property under
177	177	Subchapter M, Chapter 403, Government Code, the district is
178	178	entitled to additional state aid in the amount necessary to fully
179	179	compensate the district for the amount of ad valorem tax revenue
180	180	lost due to a reduction of the amount of the limitation on tax
181	181	increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
182	182	(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
183	183	applicable].
184	184	SECTION 6. Section 48.2543, Education Code, is amended to
185	185	read as follows:
186	186	Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD
187	187	EXEMPTION. (a) For [Beginning with] the 2022-2023 and 2023-2024
188	188	school years [year], a school district is entitled to additional
189	189	state aid to the extent that state and local revenue under this
190	190	chapter and Chapter 49 is less than the state and local revenue that
191	191	would have been available to the district under this chapter and
192	192	Chapter 49 as those chapters existed on September 1, 2021, if any
193	193	increase in the residence homestead exemption under Section 1-b(c),
194	194	Article VIII, Texas Constitution, as proposed by the 87th
195	195	Legislature, 3rd Called Session, 2021, had not occurred.
196	196	(a-1) Beginning with the 2024-2025 school year, a school
197	197	district is entitled to additional state aid to the extent that
198	198	state and local revenue under this chapter and Chapter 49 is less
199	199	than the state and local revenue that would have been available to
200	200	the district under this chapter and Chapter 49 as those chapters
201	201	existed on September 1, 2023, if any increase in the residence
202	202	homestead exemption under Section 1-b(c), Article VIII, Texas
203	203	Constitution, and any additional limitation on tax increases under
204	204	Section 1-b(d) of that article as proposed by the 88th Legislature,
205	205	Regular Session, 2023, had not occurred.
206	206	(b) The lesser of the school district's currently adopted
207	207	maintenance and operations tax rate or the adopted maintenance and
208	208	operations tax rate for:
209	209	(1) the 2021 tax year is used for the purpose of
210	210	determining additional state aid under Subsection (a); and
211	211	(2) the 2023 tax year is used for the purpose of
212	212	determining additional state aid under Subsection (a-1).
213	213	SECTION 7. Section 48.2556(a), Education Code, is amended
214	214	to read as follows:
215	215	(a) For purposes of allowing the chief appraiser of each
216	216	appraisal district and the assessor for each school district to
217	217	make the calculations required by Sections 11.26(a-10) and (a-11),
218	218	Tax Code, the [The] agency shall post [the following information]
219	219	on the agency's Internet website [for purposes of allowing the
220	220	chief appraiser of each appraisal district and the assessor for
221	221	each school district to make the calculations required by Sections
222	222	11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
223	223	[(1)] each school district's maximum compressed rate,
224	224	as determined under Section 48.2551, for each tax year beginning
225	225	with the 2022 [2019] tax year[; and
226	226	[(2) each school district's tier one maintenance and
227	227	operations tax rate, as provided by Section 45.0032(a), for the
228	228	2018 tax year].
229	229	SECTION 8. Effective January 1, 2025, Section 48.2556(a),
230	230	Education Code, is amended to read as follows:
231	231	(a) For purposes of allowing the chief appraiser of each
232	232	appraisal district and the assessor for each school district to
233	233	make the calculations required by Section 11.26(a-10), Tax Code,
234	234	the [The] agency shall post [the following information] on the
235	235	agency's Internet website [for purposes of allowing the chief
236	236	appraiser of each appraisal district and the assessor for each
237	237	school district to make the calculations required by Sections
238	238	11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
239	239	[(1)] each school district's maximum compressed rate,
240	240	as determined under Section 48.2551, for the current [each] tax
241	241	year and the preceding [beginning with the 2019] tax year[; and
242	242	[(2) each school district's tier one maintenance and
243	243	operations tax rate, as provided by Section 45.0032(a), for the
244	244	2018 tax year].
245	245	SECTION 9. Section 403.302, Government Code, is amended by
246	246	amending Subsection (j-1) and adding Subsection (j-2) to read as
247	247	follows:
248	248	(j-1) In the final certification of the study under
249	249	Subsection (j), the comptroller shall separately identify the final
250	250	taxable value for each school district as adjusted to account for
251	251	the reduction of the amount of the limitation on tax increases
252	252	provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
253	253	(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
254	254	(j-2) In the final certification of the study under
255	255	Subsection (j), the comptroller shall separately identify the final
256	256	taxable value for each school district as adjusted to account for
257	257	the reduction of the amount of the limitation on tax increases
258	258	provided by Section 11.26(a-11), Tax Code. This subsection expires
259	259	January 1, 2025.
260	260	SECTION 10. Sections 11.26(a-1), (a-2), (a-3), (a-4),
261	261	(a-5), (a-6), (a-7), (a-8), and (a-9), Tax Code, are repealed.
262	262	SECTION 11. The changes in law made by this Act to Sections
263	263	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
264	264	begins on or after January 1, 2024.
265	265	SECTION 12. Except as otherwise provided by this Act, this
266	266	Act takes effect January 1, 2024, but only if the constitutional
267	267	amendment proposed by the 88th Legislature, Regular Session, 2023,
268	268	to increase the amount of the exemption of residence homesteads
269	269	from ad valorem taxation by a school district and to adjust the
270	270	amount of the limitation on school district ad valorem taxes
271	271	imposed on the residence homesteads of the elderly or disabled to
272	272	reflect increases in the exemption amount is approved by the
273	273	voters. If that amendment is not approved by the voters, this Act
274	274	has no effect.