88R1589 DRS-D
By: Slaton H.B. No. 2889
A BILL TO BE ENTITLED
AN ACT
relating to a credit against the ad valorem taxes imposed by a
taxing unit on the residence homestead of a married couple that
increases in amount based upon the number of children of the couple
and reimbursement to taxing units for the revenue loss incurred as a
result of the credit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 31, Tax Code, is amended by adding
Section 31.038 to read as follows:
Sec. 31.038. HOMESTEAD TAX CREDIT FOR CERTAIN MARRIED
COUPLES. (a) In this section:
(1) "Qualifying child" means a child of any age who is:
(A) a natural child of both spouses of a
qualifying married couple born after the date on which the
qualifying married couple married;
(B) an adopted child of both spouses of a
qualifying married couple adopted after the date on which the
qualifying married couple married; or
(C) the adopted child of one spouse of a
qualifying married couple adopted after the date on which the
qualifying married couple married if the child is the natural or
adopted child of the other spouse and that other spouse was a widow
or widower before the date on which the qualifying married couple
married.
(2) "Qualifying married couple" means a man and a
woman who are legally married to each other, neither of whom have
ever been divorced.
(3) "Residence homestead" has the meaning assigned by
Section 11.13.
(b) A qualifying married couple is entitled to a credit
against the taxes imposed in a tax year by a taxing unit on the
residence homestead of the couple in which both spouses reside.
Subject to Subsection (c), the amount of the credit is equal to the
amount, expressed in decimal form rounded to the nearest hundredth,
computed by multiplying the amount of taxes imposed by the taxing
unit in the applicable tax year on the qualifying married couple's
residence homestead by 10 percent.
(c) A qualifying married couple with four or more qualifying
children may substitute the following, as applicable, for 10
percent when computing the amount of credit to which the couple is
entitled under Subsection (b):
(1) 40 percent, if the qualifying married couple have
four qualifying children;
(2) 50 percent, if the qualifying married couple have
five qualifying children;
(3) 60 percent, if the qualifying married couple have
six qualifying children;
(4) 70 percent, if the qualifying married couple have
seven qualifying children;
(5) 80 percent, if the qualifying married couple have
eight qualifying children;
(6) 90 percent, if the qualifying married couple have
nine qualifying children; or
(7) 100 percent, if the qualifying married couple have
10 or more qualifying children.
(d) A qualifying married couple is entitled to compute the
amount of the credit authorized under this section in the manner
provided by Subsection (c) regardless of whether:
(1) the qualifying children reside in the same
residence homestead in which both spouses of the qualifying married
couple reside; or
(2) one or more of the qualifying children dies.
(e) If one spouse of a qualifying married couple that is
entitled to a credit under this section dies, the surviving spouse
is entitled to receive the credit authorized by this section for as
long as the surviving spouse remains unmarried.
(f) Notwithstanding Subsection (c), the amount of the
credit against the taxes imposed by a taxing unit to which a
qualifying married couple is entitled under this section in any tax
year may not exceed the amount of taxes imposed by the taxing unit
on the qualifying married couple's residence homestead in that tax
year.
(g) To receive a credit under this section, a qualifying
married couple or surviving spouse must file an application each
year with the chief appraiser of the appraisal district in which the
qualifying married couple's or spouse's residence homestead is
located. The application for a married couple must include an
affidavit affirming that the applicants are a qualifying married
couple under Subsection (a)(2). The application for a surviving
spouse must include an affidavit affirming that the surviving
spouse was a member of a qualifying couple. An application must
state the number of qualifying children of the qualifying married
couple or surviving spouse, if applicable, accompanied by:
(1) a copy of the qualifying married couple's or
surviving spouse's marriage license; and
(2) a copy of the birth certificate or adoption order
for each qualifying child, if applicable.
(h) The chief appraiser shall forward a copy of the
application to the assessor for each taxing unit that taxes the
residence homestead.
(i) The comptroller shall adopt rules for the
administration of this section.
SECTION 2. Chapter 140, Local Government Code, is amended
by adding Section 140.014 to read as follows:
Sec. 140.014. MARRIED COUPLE TAX CREDIT REIMBURSEMENT
PAYMENTS. (a) In this section, "taxing unit" and "tax year" have
the meanings assigned by Section 1.04, Tax Code.
(b) A taxing unit is entitled to a married couple tax credit
reimbursement payment from the state for a tax year for which the
chief appraiser of the appraisal district in which the taxing unit
participates approves an application for a credit under Section
31.038, Tax Code.
(c) The amount of the married couple tax credit
reimbursement payment is equal to the revenue loss incurred by the
taxing unit as a result of the credit under Section 31.038, Tax
Code, in the year for which the married couple tax credit
reimbursement payment is sought.
(d) Not later than April 1 of the year following a tax year
for which a married couple tax credit reimbursement payment is
sought, a taxing unit may submit an application to the comptroller
on a form prescribed by the comptroller to receive a married couple
tax credit reimbursement payment for that tax year. A taxing unit
that does not submit the application by the date prescribed by this
subsection is not entitled to a married couple tax credit
reimbursement payment for the preceding tax year.
(e) The comptroller shall review each application by a
taxing unit to determine whether the taxing unit is entitled to a
married couple tax credit reimbursement payment. If the
comptroller determines that the taxing unit is entitled to the
payment, the comptroller shall, using available funds, remit the
payment to the taxing unit not later than the 30th day after the
date the comptroller receives the application for the payment.
SECTION 3. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2024, but only
if the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, to authorize the legislature to provide for
a credit against the ad valorem taxes imposed by a political
subdivision on the residence homestead of a married couple that may
be increased based on the number of children of the couple and to
provide for the reimbursement of political subdivisions for the
revenue loss incurred as a result of the credit is approved by the
voters. If that amendment is not approved by the voters, this Act
has no effect.