Texas 2023 - 88th Regular

Texas House Bill HB2889 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R1589 DRS-D
2	2	By: Slaton H.B. No. 2889
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a credit against the ad valorem taxes imposed by a
8	8	taxing unit on the residence homestead of a married couple that
9	9	increases in amount based upon the number of children of the couple
10	10	and reimbursement to taxing units for the revenue loss incurred as a
11	11	result of the credit.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Chapter 31, Tax Code, is amended by adding
14	14	Section 31.038 to read as follows:
15	15	Sec. 31.038. HOMESTEAD TAX CREDIT FOR CERTAIN MARRIED
16	16	COUPLES. (a) In this section:
17	17	(1) "Qualifying child" means a child of any age who is:
18	18	(A) a natural child of both spouses of a
19	19	qualifying married couple born after the date on which the
20	20	qualifying married couple married;
21	21	(B) an adopted child of both spouses of a
22	22	qualifying married couple adopted after the date on which the
23	23	qualifying married couple married; or
24	24	(C) the adopted child of one spouse of a
25	25	qualifying married couple adopted after the date on which the
26	26	qualifying married couple married if the child is the natural or
27	27	adopted child of the other spouse and that other spouse was a widow
28	28	or widower before the date on which the qualifying married couple
29	29	married.
30	30	(2) "Qualifying married couple" means a man and a
31	31	woman who are legally married to each other, neither of whom have
32	32	ever been divorced.
33	33	(3) "Residence homestead" has the meaning assigned by
34	34	Section 11.13.
35	35	(b) A qualifying married couple is entitled to a credit
36	36	against the taxes imposed in a tax year by a taxing unit on the
37	37	residence homestead of the couple in which both spouses reside.
38	38	Subject to Subsection (c), the amount of the credit is equal to the
39	39	amount, expressed in decimal form rounded to the nearest hundredth,
40	40	computed by multiplying the amount of taxes imposed by the taxing
41	41	unit in the applicable tax year on the qualifying married couple's
42	42	residence homestead by 10 percent.
43	43	(c) A qualifying married couple with four or more qualifying
44	44	children may substitute the following, as applicable, for 10
45	45	percent when computing the amount of credit to which the couple is
46	46	entitled under Subsection (b):
47	47	(1) 40 percent, if the qualifying married couple have
48	48	four qualifying children;
49	49	(2) 50 percent, if the qualifying married couple have
50	50	five qualifying children;
51	51	(3) 60 percent, if the qualifying married couple have
52	52	six qualifying children;
53	53	(4) 70 percent, if the qualifying married couple have
54	54	seven qualifying children;
55	55	(5) 80 percent, if the qualifying married couple have
56	56	eight qualifying children;
57	57	(6) 90 percent, if the qualifying married couple have
58	58	nine qualifying children; or
59	59	(7) 100 percent, if the qualifying married couple have
60	60	10 or more qualifying children.
61	61	(d) A qualifying married couple is entitled to compute the
62	62	amount of the credit authorized under this section in the manner
63	63	provided by Subsection (c) regardless of whether:
64	64	(1) the qualifying children reside in the same
65	65	residence homestead in which both spouses of the qualifying married
66	66	couple reside; or
67	67	(2) one or more of the qualifying children dies.
68	68	(e) If one spouse of a qualifying married couple that is
69	69	entitled to a credit under this section dies, the surviving spouse
70	70	is entitled to receive the credit authorized by this section for as
71	71	long as the surviving spouse remains unmarried.
72	72	(f) Notwithstanding Subsection (c), the amount of the
73	73	credit against the taxes imposed by a taxing unit to which a
74	74	qualifying married couple is entitled under this section in any tax
75	75	year may not exceed the amount of taxes imposed by the taxing unit
76	76	on the qualifying married couple's residence homestead in that tax
77	77	year.
78	78	(g) To receive a credit under this section, a qualifying
79	79	married couple or surviving spouse must file an application each
80	80	year with the chief appraiser of the appraisal district in which the
81	81	qualifying married couple's or spouse's residence homestead is
82	82	located. The application for a married couple must include an
83	83	affidavit affirming that the applicants are a qualifying married
84	84	couple under Subsection (a)(2). The application for a surviving
85	85	spouse must include an affidavit affirming that the surviving
86	86	spouse was a member of a qualifying couple. An application must
87	87	state the number of qualifying children of the qualifying married
88	88	couple or surviving spouse, if applicable, accompanied by:
89	89	(1) a copy of the qualifying married couple's or
90	90	surviving spouse's marriage license; and
91	91	(2) a copy of the birth certificate or adoption order
92	92	for each qualifying child, if applicable.
93	93	(h) The chief appraiser shall forward a copy of the
94	94	application to the assessor for each taxing unit that taxes the
95	95	residence homestead.
96	96	(i) The comptroller shall adopt rules for the
97	97	administration of this section.
98	98	SECTION 2. Chapter 140, Local Government Code, is amended
99	99	by adding Section 140.014 to read as follows:
100	100	Sec. 140.014. MARRIED COUPLE TAX CREDIT REIMBURSEMENT
101	101	PAYMENTS. (a) In this section, "taxing unit" and "tax year" have
102	102	the meanings assigned by Section 1.04, Tax Code.
103	103	(b) A taxing unit is entitled to a married couple tax credit
104	104	reimbursement payment from the state for a tax year for which the
105	105	chief appraiser of the appraisal district in which the taxing unit
106	106	participates approves an application for a credit under Section
107	107	31.038, Tax Code.
108	108	(c) The amount of the married couple tax credit
109	109	reimbursement payment is equal to the revenue loss incurred by the
110	110	taxing unit as a result of the credit under Section 31.038, Tax
111	111	Code, in the year for which the married couple tax credit
112	112	reimbursement payment is sought.
113	113	(d) Not later than April 1 of the year following a tax year
114	114	for which a married couple tax credit reimbursement payment is
115	115	sought, a taxing unit may submit an application to the comptroller
116	116	on a form prescribed by the comptroller to receive a married couple
117	117	tax credit reimbursement payment for that tax year. A taxing unit
118	118	that does not submit the application by the date prescribed by this
119	119	subsection is not entitled to a married couple tax credit
120	120	reimbursement payment for the preceding tax year.
121	121	(e) The comptroller shall review each application by a
122	122	taxing unit to determine whether the taxing unit is entitled to a
123	123	married couple tax credit reimbursement payment. If the
124	124	comptroller determines that the taxing unit is entitled to the
125	125	payment, the comptroller shall, using available funds, remit the
126	126	payment to the taxing unit not later than the 30th day after the
127	127	date the comptroller receives the application for the payment.
128	128	SECTION 3. This Act applies only to ad valorem taxes imposed
129	129	for a tax year beginning on or after the effective date of this Act.
130	130	SECTION 4. This Act takes effect January 1, 2024, but only
131	131	if the constitutional amendment proposed by the 88th Legislature,
132	132	Regular Session, 2023, to authorize the legislature to provide for
133	133	a credit against the ad valorem taxes imposed by a political
134	134	subdivision on the residence homestead of a married couple that may
135	135	be increased based on the number of children of the couple and to
136	136	provide for the reimbursement of political subdivisions for the
137	137	revenue loss incurred as a result of the credit is approved by the
138	138	voters. If that amendment is not approved by the voters, this Act
139	139	has no effect.