Texas 2023 - 88th Regular

Texas House Bill HB3757 Compare Versions

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1	1	By: Wilson, Raymond, Morales of Maverick, H.B. No. 3757
2	2	et al.
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, county, municipality, or junior college district to
9	9	establish a limitation on the amount of ad valorem taxes that the
10	10	taxing unit may impose on the residence homesteads of individuals
11	11	who are disabled or elderly and their surviving spouses and to the
12	12	information required to be included in a tax bill.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
15	15	adding Section 11.262 to read as follows:
16	16	Sec. 11.262. LIMITATION OF TAX IMPOSED BY CERTAIN TAXING
17	17	UNITS ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED OR
18	18	ELDERLY. (a) In this section:
19	19	(1) "Eligible individual" means an individual who
20	20	meets any income eligibility requirements for a limitation on tax
21	21	increases provided by this section prescribed by the qualifying
22	22	taxing unit that established the limitation. If the qualifying
23	23	taxing unit does not prescribe income eligibility requirements for
24	24	the limitation on tax increases provided by this section, an
25	25	eligible individual is any individual who is otherwise eligible for
26	26	the limitation provided by this section.
27	27	(2) "Qualifying taxing unit" means a taxing unit other
28	28	than a school district, county, municipality, or junior college
29	29	district.
30	30	(3) "Residence homestead" has the meaning assigned by
31	31	Section 11.13.
32	32	(b) This section applies only to a qualifying taxing unit
33	33	that establishes a limitation under Section 1-b(h-1), Article VIII,
34	34	Texas Constitution, on the total amount of taxes that may be imposed
35	35	by the taxing unit on the residence homestead of an eligible
36	36	individual who is disabled or is 65 years of age or older.
37	37	(c) The governing body of a qualifying taxing unit that
38	38	establishes a limitation on tax increases provided by this section
39	39	may elect to provide the limitation to all individuals who are
40	40	disabled or are 65 years of age or older or to provide the
41	41	limitation only to those individuals who are disabled or are 65
42	42	years of age or older and who meet certain income eligibility
43	43	requirements established by the governing body. If the governing
44	44	body establishes income eligibility requirements for the
45	45	limitation on tax increases provided by this section, those
46	46	requirements must be based on an individual having a household
47	47	income that does not exceed 200 percent of the federal poverty
48	48	level. For purposes of income eligibility requirements established
49	49	under this subsection, if an individual's household income was
50	50	initially determined using only the income of the individual and
51	51	the individual's spouse, on the death of the individual or the
52	52	individual's spouse, the surviving spouse's household income must
53	53	be calculated as though two persons still reside in the household.
54	54	(d) The tax officials shall appraise the residence
55	55	homestead of an eligible individual who is disabled or is 65 years
56	56	of age or older and calculate taxes on that residence homestead in
57	57	the same manner as other residence homesteads, but if the tax so
58	58	calculated exceeds the limitation provided by this section, the tax
59	59	imposed is the amount of the tax as limited by this section, except
60	60	as otherwise provided by this section.
61	61	(e) A qualifying taxing unit may not increase the total
62	62	annual amount of ad valorem taxes the taxing unit imposes on the
63	63	residence homestead of an eligible individual who is disabled or is
64	64	65 years of age or older above the amount of the taxes the taxing
65	65	unit imposed on the residence homestead in the first tax year in
66	66	which the eligible individual qualified that residence homestead
67	67	for the exemption provided by Section 11.13(c) for an individual
68	68	who is disabled or is 65 years of age or older and was an eligible
69	69	individual. If the eligible individual qualified that residence
70	70	homestead for the exemption after the beginning of that first year
71	71	and the residence homestead remains eligible for the exemption for
72	72	the next year, and if the taxes imposed by the taxing unit on the
73	73	residence homestead in the next year are less than the amount of
74	74	those taxes imposed in that first year, the taxing unit may not
75	75	subsequently increase the total annual amount of ad valorem taxes
76	76	it imposes on the residence homestead above the amount it imposed on
77	77	the residence homestead in the year immediately following the first
78	78	year for which the individual qualified that residence homestead
79	79	for the exemption and was an eligible individual.
80	80	(f) If an eligible individual who is disabled or is 65 years
81	81	of age or older makes improvements to the individual's residence
82	82	homestead, other than repairs and other than improvements required
83	83	to comply with governmental requirements, the qualifying taxing
84	84	unit may increase the amount of taxes on the homestead in the first
85	85	year the value of the homestead is increased on the appraisal roll
86	86	because of the enhancement of value by the improvements. The
87	87	amount of the tax increase is determined by applying the current tax
88	88	rate of the qualifying taxing unit to the difference between the
89	89	appraised value of the homestead with the improvements and the
90	90	appraised value the homestead would have had without the
91	91	improvements. The limitation provided by this section then
92	92	applies to the increased amount of taxes on the residence homestead
93	93	until more improvements, if any, are made.
94	94	(g) A limitation on tax increases provided by this section
95	95	expires if on January 1:
96	96	(1) none of the owners of the structure who qualify for
97	97	the exemption provided by Section 11.13(c) for an individual who is
98	98	disabled or is 65 years of age or older and who owned the structure
99	99	when the limitation first took effect are using the structure as a
100	100	residence homestead;
101	101	(2) none of the owners of the structure qualify for the
102	102	exemption provided by Section 11.13(c) for an individual who is
103	103	disabled or is 65 years of age or older; or
104	104	(3) none of the owners of the structure are eligible
105	105	individuals.
106	106	(h) If the appraisal roll provides for taxation of appraised
107	107	value for a prior year because a residence homestead exemption for
108	108	an eligible individual who is disabled or is 65 years of age or
109	109	older was erroneously allowed or because an individual was
110	110	erroneously considered to be an eligible individual, the tax
111	111	assessor for the applicable county shall add, as back taxes due as
112	112	provided by Section 26.09(d), the positive difference, if any,
113	113	between the tax that should have been imposed for that year and the
114	114	tax that was imposed under the requirements of this section.
115	115	(i) A limitation on tax increases provided by this section
116	116	does not expire because the owner of an interest in the structure
117	117	conveys the interest to a qualifying trust as defined by Section
118	118	11.13(j) if the owner or the owner's spouse is a trustor of the
119	119	trust and is entitled to occupy the structure.
120	120	(j) Except as provided by Subsection (f), if an eligible
121	121	individual who receives a limitation on tax increases provided by
122	122	this section, including a surviving spouse who receives a
123	123	limitation under Subsection (l), subsequently qualifies a
124	124	different residence homestead in the same qualifying taxing unit
125	125	for an exemption under Section 11.13, the taxing unit may not impose
126	126	ad valorem taxes on the subsequently qualified homestead in a year
127	127	in an amount that exceeds the amount of taxes the taxing unit would
128	128	have imposed on the subsequently qualified homestead in the first
129	129	year in which the individual receives that exemption for the
130	130	subsequently qualified homestead had the limitation on tax
131	131	increases required by this section not been in effect, multiplied
132	132	by a fraction the numerator of which is the total amount of taxes
133	133	imposed on the former homestead by the taxing unit in the last year
134	134	in which the individual received that exemption for the former
135	135	homestead and the denominator of which is the total amount of taxes
136	136	that would have been imposed on the former homestead by the taxing
137	137	unit in the last year in which the individual received that
138	138	exemption for the former homestead had the limitation on tax
139	139	increases provided by this section not been in effect.
140	140	(k) An eligible individual who receives a limitation on tax
141	141	increases under this section, including a surviving spouse who
142	142	receives a limitation under Subsection (l), and who subsequently
143	143	qualifies a different residence homestead for an exemption under
144	144	Section 11.13, or an agent of the individual, is entitled to receive
145	145	from the chief appraiser of the appraisal district in which the
146	146	former homestead was located a written certificate providing the
147	147	information necessary to determine whether the individual may
148	148	qualify for a limitation on the subsequently qualified homestead
149	149	under Subsection (j) and to calculate the amount of taxes the
150	150	qualifying taxing unit may impose on the subsequently qualified
151	151	homestead.
152	152	(l) If an eligible individual who qualifies for a limitation
153	153	on tax increases under this section dies, the surviving spouse of
154	154	the individual is entitled to the limitation on taxes imposed by the
155	155	qualifying taxing unit on the residence homestead of the individual
156	156	if:
157	157	(1) the surviving spouse:
158	158	(A) is disabled or is 55 years of age or older
159	159	when the individual dies; and
160	160	(B) is an eligible individual; and
161	161	(2) the residence homestead of the individual:
162	162	(A) is the residence homestead of the surviving
163	163	spouse on the date that the individual dies; and
164	164	(B) remains the residence homestead of the
165	165	surviving spouse.
166	166	(m) If an eligible individual who is 65 years of age or older
167	167	and qualifies for a limitation on tax increases for the elderly
168	168	under this section dies in the first year in which the individual
169	169	qualified for the limitation and the individual first qualified for
170	170	the limitation after the beginning of that year, except as provided
171	171	by Subsection (n), the amount to which the surviving spouse's taxes
172	172	are limited under Subsection (l) is the amount of taxes imposed by
173	173	the qualifying taxing unit on the residence homestead in that year
174	174	determined as if the individual qualifying for the exemption had
175	175	lived for the entire year.
176	176	(n) If in the first tax year after the year in which an
177	177	eligible individual who is 65 years of age or older dies under the
178	178	circumstances described by Subsection (m), the amount of taxes
179	179	imposed by the qualifying taxing unit on the residence homestead of
180	180	the surviving spouse is less than the amount of taxes imposed by the
181	181	taxing unit in the preceding year as limited by Subsection (m), in a
182	182	subsequent tax year the surviving spouse's taxes imposed by the
183	183	taxing unit on that residence homestead are limited to the amount of
184	184	taxes imposed by the taxing unit in that first tax year after the
185	185	year in which the individual dies.
186	186	(o) Notwithstanding Subsection (g), a limitation on tax
187	187	increases provided by this section does not expire if the owner of
188	188	the structure qualifies for an exemption under Section 11.13 under
189	189	the circumstances described by Section 11.135(a).
190	190	(p) Notwithstanding Subsections (d) and (f), an improvement
191	191	to property that would otherwise constitute an improvement under
192	192	Subsection (f) is not treated as an improvement under that
193	193	subsection if the improvement is a replacement structure for a
194	194	structure that was rendered uninhabitable or unusable by a casualty
195	195	or by wind or water damage. For purposes of appraising the
196	196	property in the tax year in which the structure would have
197	197	constituted an improvement under Subsection (f), the replacement
198	198	structure is considered to be an improvement under that subsection
199	199	only if:
200	200	(1) the square footage of the replacement structure
201	201	exceeds that of the replaced structure as that structure existed
202	202	before the casualty or damage occurred; or
203	203	(2) the exterior of the replacement structure is of
204	204	higher quality construction and composition than that of the
205	205	replaced structure.
206	206	(q) An heir property owner who qualifies heir property as
207	207	the owner's residence homestead under this chapter is considered
208	208	the sole owner of the property for the purposes of this section.
209	209	(r) The chief appraiser for an appraisal district in which a
210	210	qualifying taxing unit participates may require an individual to
211	211	provide any information that is reasonably necessary for the chief
212	212	appraiser to determine whether the individual is an eligible
213	213	individual for purposes of this section.
214	214	SECTION 2. Sections 23.19(b) and (g), Tax Code, are amended
215	215	to read as follows:
216	216	(b) If an appraisal district receives a written request for
217	217	the appraisal of real property and improvements of a cooperative
218	218	housing corporation according to the separate interests of the
219	219	corporation's stockholders, the chief appraiser shall separately
220	220	appraise the interests described by Subsection (d) if the
221	221	conditions required by Subsections (e) and (f) have been
222	222	met. Separate appraisal under this section is for the purposes of
223	223	administration of tax exemptions, determination of applicable
224	224	limitations of taxes under Section 11.26, [or] 11.261, or 11.262,
225	225	and apportionment by a cooperative housing corporation of property
226	226	taxes among its stockholders but is not the basis for determining
227	227	value on which a tax is imposed under this title. A stockholder
228	228	whose interest is separately appraised under this section may
229	229	protest and appeal the appraised value in the manner provided by
230	230	this title for protest and appeal of the appraised value of other
231	231	property.
232	232	(g) A tax bill or a separate statement accompanying the tax
233	233	bill to a cooperative housing corporation for which interests of
234	234	stockholders are separately appraised under this section must
235	235	state, in addition to the information required by Section 31.01,
236	236	the appraised value and taxable value of each interest separately
237	237	appraised. Each exemption claimed as provided by this title by a
238	238	person entitled to the exemption shall also be deducted from the
239	239	total appraised value of the property of the corporation. The
240	240	total tax imposed by a taxing unit [school district, county,
241	241	municipality, or junior college district] shall be reduced by any
242	242	amount that represents an increase in taxes attributable to
243	243	separately appraised interests of the real property and
244	244	improvements that are subject to the limitation of taxes prescribed
245	245	by Section 11.26, [or] 11.261, or 11.262. The corporation shall
246	246	apportion among its stockholders liability for reimbursing the
247	247	corporation for property taxes according to the relative taxable
248	248	values of their interests.
249	249	SECTION 3. Sections 26.012(6), (13), and (14), Tax Code,
250	250	are amended to read as follows:
251	251	(6) "Current total value" means the total taxable
252	252	value of property listed on the appraisal roll for the current year,
253	253	including all appraisal roll supplements and corrections as of the
254	254	date of the calculation, less the taxable value of property
255	255	exempted for the current tax year for the first time under Section
256	256	11.31 or 11.315, except that:
257	257	(A) the current total value for a school district
258	258	excludes:
259	259	(i) the total value of homesteads that
260	260	qualify for a tax limitation as provided by Section 11.26; and
261	261	(ii) new property value of property that is
262	262	subject to an agreement entered into under Chapter 313; [and]
263	263	(B) the current total value for a county,
264	264	municipality, or junior college district excludes the total value
265	265	of homesteads that qualify for a tax limitation as provided by
266	266	Section 11.261; and
267	267	(C) the current total value for a taxing unit
268	268	other than a school district, county, municipality, or junior
269	269	college district excludes the total value of homesteads that
270	270	qualify for a tax limitation as provided by Section 11.262.
271	271	(13) "Last year's levy" means the total of:
272	272	(A) the amount of taxes that would be generated
273	273	by multiplying the total tax rate adopted by the governing body in
274	274	the preceding year by the total taxable value of property on the
275	275	appraisal roll for the preceding year, including:
276	276	(i) taxable value that was reduced in an
277	277	appeal under Chapter 42;
278	278	(ii) all appraisal roll supplements and
279	279	corrections other than corrections made pursuant to Section
280	280	25.25(d), as of the date of the calculation, except that:
281	281	(a) last year's taxable value for a
282	282	school district excludes the total value of homesteads that
283	283	qualified for a tax limitation as provided by Section 11.26;
284	284	(b) [and] last year's taxable value
285	285	for a county, municipality, or junior college district excludes the
286	286	total value of homesteads that qualified for a tax limitation as
287	287	provided by Section 11.261; and
288	288	(c) last year's taxable value for a
289	289	taxing unit other than a school district, county, municipality, or
290	290	junior college district excludes the total value of homesteads that
291	291	qualified for a tax limitation as provided by Section 11.262; and
292	292	(iii) the portion of taxable value of
293	293	property that is the subject of an appeal under Chapter 42 on July
294	294	25 that is not in dispute; and
295	295	(B) the amount of taxes refunded by the taxing
296	296	unit in the preceding year for tax years before that year.
297	297	(14) "Last year's total value" means the total taxable
298	298	value of property listed on the appraisal roll for the preceding
299	299	year, including all appraisal roll supplements and corrections,
300	300	other than corrections made pursuant to Section 25.25(d), as of the
301	301	date of the calculation, except that:
302	302	(A) last year's taxable value for a school
303	303	district excludes the total value of homesteads that qualified for
304	304	a tax limitation as provided by Section 11.26; [and]
305	305	(B) last year's taxable value for a county,
306	306	municipality, or junior college district excludes the total value
307	307	of homesteads that qualified for a tax limitation as provided by
308	308	Section 11.261; and
309	309	(C) last year's taxable value for a taxing unit
310	310	other than a school district, county, municipality, or junior
311	311	college district excludes the total value of homesteads that
312	312	qualified for a tax limitation as provided by Section 11.262.
313	313	SECTION 4. Section 31.01, Tax Code, is amended by adding
314	314	Subsection (m) to read as follows:
315	315	(m) The tax bill must include the appraisal district's
316	316	account number for the property.
317	317	SECTION 5. This Act applies only to ad valorem taxes imposed
318	318	for a tax year beginning on or after the effective date of this Act.
319	319	SECTION 6. This Act takes effect January 1, 2024, but only
320	320	if the constitutional amendment proposed by the 88th Legislature,
321	321	Regular Session, 2023, to authorize a limitation on the total
322	322	amount of ad valorem taxes that a political subdivision other than a
323	323	school district, county, municipality, or junior college district
324	324	may impose on the residence homesteads of persons who are disabled
325	325	or elderly and their surviving spouses is approved by the voters.
326	326	If that amendment is not approved by the voters, this Act has no
327	327	effect.