Texas 2023 - 88th Regular

Texas House Bill HB3973 Compare Versions

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1	1	88R11030 MLH-D
2	2	By: Cook H.B. No. 3973
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an exemption from ad valorem taxation of a portion of
8	8	the appraised value of the residence homesteads of certain elderly
9	9	persons and their surviving spouses.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 11.13, Tax Code, is amended by amending
12	12	Subsection (i) and adding Subsections (s) and (t) to read as
13	13	follows:
14	14	(i) The assessor and collector for a taxing unit may
15	15	disregard the exemptions authorized by Subsection (b), (c), (d),
16	16	[or] (n), (s), or (t) [of this section] and assess and collect a tax
17	17	pledged for payment of debt without deducting the amount of the
18	18	exemption if:
19	19	(1) prior to adoption of the exemption, the taxing
20	20	unit pledged the taxes for the payment of a debt; and
21	21	(2) granting the exemption would impair the obligation
22	22	of the contract creating the debt.
23	23	(s) In addition to any other exemptions provided by this
24	24	section, an individual is entitled to an exemption from taxation of
25	25	$150,000 of the appraised value of the individual's residence
26	26	homestead if:
27	27	(1) the individual is 75 years of age or older; and
28	28	(2) the individual has received an exemption under
29	29	this section for the residence homestead for at least the preceding
30	30	10 years.
31	31	(t) The surviving spouse of an individual who qualified for
32	32	an exemption under Subsection (s) is entitled to an exemption from
33	33	taxation of $150,000 of the appraised value of the same property to
34	34	which the deceased spouse's exemption applied if:
35	35	(1) the deceased spouse died in a year in which the
36	36	deceased spouse qualified for the exemption;
37	37	(2) the surviving spouse was 55 years of age or older
38	38	when the deceased spouse died; and
39	39	(3) the property was the residence homestead of the
40	40	surviving spouse when the deceased spouse died and remains the
41	41	residence homestead of the surviving spouse.
42	42	SECTION 2. Section 11.42(c), Tax Code, is amended to read as
43	43	follows:
44	44	(c) An exemption authorized by Section 11.13(c), [or] (d),
45	45	or (s), 11.132, 11.133, or 11.134 is effective as of January 1 of
46	46	the tax year in which the person qualifies for the exemption and
47	47	applies to the entire tax year.
48	48	SECTION 3. Sections 11.43(k), (l), (m), and (q), Tax Code,
49	49	are amended to read as follows:
50	50	(k) A person who qualifies for an exemption authorized by
51	51	Section 11.13(c), [or] (d), or (s) or 11.132 must apply for the
52	52	exemption no later than the first anniversary of the date the person
53	53	qualified for the exemption.
54	54	(l) The form for an application under Section 11.13 must
55	55	include a space for the applicant to state the applicant's date of
56	56	birth. Failure to provide the date of birth does not affect the
57	57	applicant's eligibility for an exemption under that section, other
58	58	than an exemption under Section 11.13(c) or (d) for an individual 65
59	59	years of age or older or an exemption under Section 11.13(s) for an
60	60	individual 75 years of age or older.
61	61	(m) Notwithstanding Subsections (a) and (k), a person who
62	62	receives an exemption under Section 11.13, other than an exemption
63	63	under Section 11.13(c) or (d) for an individual 65 years of age or
64	64	older or an exemption under Section 11.13(s) for an individual 75
65	65	years of age or older, in a tax year is entitled to receive an
66	66	exemption under Section 11.13(c) or (d) for an individual 65 years
67	67	of age or older or an exemption under Section 11.13(s) for an
68	68	individual 75 years of age or older in the next tax year on the same
69	69	property without applying for the exemption if the person becomes
70	70	65 or 75 years of age, as applicable, in that next year as shown by:
71	71	(1) information in the records of the appraisal
72	72	district that was provided to the appraisal district by the
73	73	individual in an application for an exemption under Section 11.13
74	74	on the property or in correspondence relating to the property; or
75	75	(2) the information provided by the Texas Department
76	76	of Public Safety to the appraisal district under Section 521.049,
77	77	Transportation Code.
78	78	(q) A chief appraiser may not cancel an exemption under
79	79	Section 11.13 that is received by an individual who is 65 years of
80	80	age or older without first providing written notice of the
81	81	cancellation to the individual receiving the exemption. The notice
82	82	must include a form on which the individual may indicate whether the
83	83	individual is qualified to receive the exemption and a
84	84	self-addressed postage prepaid envelope with instructions for
85	85	returning the form to the chief appraiser. The chief appraiser
86	86	shall consider the individual's response on the form in determining
87	87	whether to continue to allow the exemption. If the chief appraiser
88	88	does not receive a response on or before the 60th day after the date
89	89	the notice is mailed, the chief appraiser may cancel the exemption
90	90	on or after the 30th day after the expiration of the 60-day period,
91	91	but only after making a reasonable effort to locate the individual
92	92	and determine whether the individual is qualified to receive the
93	93	exemption. For purposes of this subsection, sending an additional
94	94	notice of cancellation that includes, in bold font equal to or
95	95	greater in size than the surrounding text, the date on which the
96	96	chief appraiser is authorized to cancel the exemption to the
97	97	individual receiving the exemption immediately after the
98	98	expiration of the 60-day period by first class mail in an envelope
99	99	on which is written, in all capital letters, "RETURN SERVICE
100	100	REQUESTED," or another appropriate statement directing the United
101	101	States Postal Service to return the notice if it is not deliverable
102	102	as addressed, or providing the additional notice in another manner
103	103	that the chief appraiser determines is appropriate, constitutes a
104	104	reasonable effort on the part of the chief appraiser. This
105	105	subsection does not apply to an exemption under Section 11.13(c) or
106	106	(d) for an individual 65 years of age or older or an exemption under
107	107	Section 11.13(s) for an individual 75 years of age or older that is
108	108	canceled because the chief appraiser determines that the individual
109	109	receiving the exemption no longer owns the property subject to the
110	110	exemption.
111	111	SECTION 4. Section 26.10(b), Tax Code, is amended to read as
112	112	follows:
113	113	(b) If the appraisal roll shows that a residence homestead
114	114	exemption under Section 11.13(c), [or] (d), or (s), 11.132, 11.133,
115	115	or 11.134 applicable to a property on January 1 of a year terminated
116	116	during the year and if the owner of the property qualifies a
117	117	different property for one of those residence homestead exemptions
118	118	during the same year, the tax due against the former residence
119	119	homestead is calculated by:
120	120	(1) subtracting:
121	121	(A) the amount of the taxes that otherwise would
122	122	be imposed on the former residence homestead for the entire year had
123	123	the owner qualified for the residence homestead exemption for the
124	124	entire year; from
125	125	(B) the amount of the taxes that otherwise would
126	126	be imposed on the former residence homestead for the entire year had
127	127	the owner not qualified for the residence homestead exemption
128	128	during the year;
129	129	(2) multiplying the remainder determined under
130	130	Subdivision (1) by a fraction, the denominator of which is 365 and
131	131	the numerator of which is the number of days that elapsed after the
132	132	date the exemption terminated; and
133	133	(3) adding the product determined under Subdivision
134	134	(2) and the amount described by Subdivision (1)(A).
135	135	SECTION 5. Section 26.112, Tax Code, is amended to read as
136	136	follows:
137	137	Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
138	138	CERTAIN PERSONS. (a) Except as provided by Section 26.10(b), if at
139	139	any time during a tax year property is owned by an individual who
140	140	qualifies for an exemption under Section 11.13(c), [or] (d), or
141	141	(s), 11.133, or 11.134, the amount of the tax due on the property
142	142	for the tax year is calculated as if the individual qualified for
143	143	the exemption on January 1 and continued to qualify for the
144	144	exemption for the remainder of the tax year.
145	145	(b) If an individual qualifies for an exemption under
146	146	Section 11.13(c), [or] (d), or (s), 11.133, or 11.134 with respect
147	147	to the property after the amount of the tax due on the property is
148	148	calculated and the effect of the qualification is to reduce the
149	149	amount of the tax due on the property, the assessor for each taxing
150	150	unit shall recalculate the amount of the tax due on the property and
151	151	correct the tax roll. If the tax bill has been mailed and the tax on
152	152	the property has not been paid, the assessor shall mail a corrected
153	153	tax bill to the person in whose name the property is listed on the
154	154	tax roll or to the person's authorized agent. If the tax on the
155	155	property has been paid, the tax collector for the taxing unit shall
156	156	refund to the person who was the owner of the property on the date
157	157	the tax was paid the amount by which the payment exceeded the tax
158	158	due.
159	159	SECTION 6. Section 33.01(d), Tax Code, is amended to read as
160	160	follows:
161	161	(d) In lieu of the penalty imposed under Subsection (a), a
162	162	delinquent tax incurs a penalty of 50 percent of the amount of the
163	163	tax without regard to the number of months the tax has been
164	164	delinquent if the tax is delinquent because the property owner
165	165	received an exemption under:
166	166	(1) Section 11.13 and the chief appraiser subsequently
167	167	cancels the exemption because the residence was not the principal
168	168	residence of the property owner and the property owner received an
169	169	exemption for two or more additional residence homesteads for the
170	170	tax year in which the tax was imposed;
171	171	(2) Section 11.13(c) or (d) for a person who is 65
172	172	years of age or older and the chief appraiser subsequently cancels
173	173	the exemption because the property owner was younger than 65 years
174	174	of age; [or]
175	175	(3) Section 11.13(s) for a person who is 75 years of
176	176	age or older and the chief appraiser subsequently cancels the
177	177	exemption because the property owner was younger than 75 years of
178	178	age; or
179	179	(4) Section 11.13(q) or (t) and the chief appraiser
180	180	subsequently cancels the exemption because the property owner was
181	181	younger than 55 years of age when the property owner's spouse died.
182	182	SECTION 7. Section 44.004(c), Education Code, is amended to
183	183	read as follows:
184	184	(c) The notice of public meeting to discuss and adopt the
185	185	budget and the proposed tax rate may not be smaller than one-quarter
186	186	page of a standard-size or a tabloid-size newspaper, and the
187	187	headline on the notice must be in 18-point or larger type. Subject
188	188	to Subsection (d), the notice must:
189	189	(1) contain a statement in the following form:
190	190	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
191	191	"The (name of school district) will hold a public meeting at
192	192	(time, date, year) in (name of room, building, physical location,
193	193	city, state). The purpose of this meeting is to discuss the school
194	194	district's budget that will determine the tax rate that will be
195	195	adopted. Public participation in the discussion is invited." The
196	196	statement of the purpose of the meeting must be in bold type. In
197	197	reduced type, the notice must state: "The tax rate that is
198	198	ultimately adopted at this meeting or at a separate meeting at a
199	199	later date may not exceed the proposed rate shown below unless the
200	200	district publishes a revised notice containing the same information
201	201	and comparisons set out below and holds another public meeting to
202	202	discuss the revised notice." In addition, in reduced type, the
203	203	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
204	204	your local property tax database on which you can easily access
205	205	information regarding your property taxes, including information
206	206	about proposed tax rates and scheduled public hearings of each
207	207	entity that taxes your property.";
208	208	(2) contain a section entitled "Comparison of Proposed
209	209	Budget with Last Year's Budget," which must show the difference,
210	210	expressed as a percent increase or decrease, as applicable, in the
211	211	amounts budgeted for the preceding fiscal year and the amount
212	212	budgeted for the fiscal year that begins in the current tax year for
213	213	each of the following:
214	214	(A) maintenance and operations;
215	215	(B) debt service; and
216	216	(C) total expenditures;
217	217	(3) contain a section entitled "Total Appraised Value
218	218	and Total Taxable Value," which must show the total appraised value
219	219	and the total taxable value of all property and the total appraised
220	220	value and the total taxable value of new property taxable by the
221	221	district in the preceding tax year and the current tax year as
222	222	calculated under Section 26.04, Tax Code;
223	223	(4) contain a statement of the total amount of the
224	224	outstanding and unpaid bonded indebtedness of the school district;
225	225	(5) contain a section entitled "Comparison of Proposed
226	226	Rates with Last Year's Rates," which must:
227	227	(A) show in rows the tax rates described by
228	228	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
229	229	property, for columns entitled "Maintenance & Operations,"
230	230	"Interest & Sinking Fund," and "Total," which is the sum of
231	231	"Maintenance & Operations" and "Interest & Sinking Fund":
232	232	(i) the school district's "Last Year's
233	233	Rate";
234	234	(ii) the "Rate to Maintain Same Level of
235	235	Maintenance & Operations Revenue & Pay Debt Service," which:
236	236	(a) in the case of "Maintenance &
237	237	Operations," is the tax rate that, when applied to the current
238	238	taxable value for the district, as certified by the chief appraiser
239	239	under Section 26.01, Tax Code, and as adjusted to reflect changes
240	240	made by the chief appraiser as of the time the notice is prepared,
241	241	would impose taxes in an amount that, when added to state funds to
242	242	be distributed to the district under Chapter 48, would provide the
243	243	same amount of maintenance and operations taxes and state funds
244	244	distributed under Chapter 48 per student in average daily
245	245	attendance for the applicable school year that was available to the
246	246	district in the preceding school year; and
247	247	(b) in the case of "Interest & Sinking
248	248	Fund," is the tax rate that, when applied to the current taxable
249	249	value for the district, as certified by the chief appraiser under
250	250	Section 26.01, Tax Code, and as adjusted to reflect changes made by
251	251	the chief appraiser as of the time the notice is prepared, and when
252	252	multiplied by the district's anticipated collection rate, would
253	253	impose taxes in an amount that, when added to state funds to be
254	254	distributed to the district under Chapter 46 and any excess taxes
255	255	collected to service the district's debt during the preceding tax
256	256	year but not used for that purpose during that year, would provide
257	257	the amount required to service the district's debt; and
258	258	(iii) the "Proposed Rate";
259	259	(B) contain fourth and fifth columns aligned with
260	260	the columns required by Paragraph (A) that show, for each row
261	261	required by Paragraph (A):
262	262	(i) the "Local Revenue per Student," which
263	263	is computed by multiplying the district's total taxable value of
264	264	property, as certified by the chief appraiser for the applicable
265	265	school year under Section 26.01, Tax Code, and as adjusted to
266	266	reflect changes made by the chief appraiser as of the time the
267	267	notice is prepared, by the total tax rate, and dividing the product
268	268	by the number of students in average daily attendance in the
269	269	district for the applicable school year; and
270	270	(ii) the "State Revenue per Student," which
271	271	is computed by determining the amount of state aid received or to be
272	272	received by the district under Chapters 43, 46, and 48 and dividing
273	273	that amount by the number of students in average daily attendance in
274	274	the district for the applicable school year; and
275	275	(C) contain an asterisk after each calculation
276	276	for "Interest & Sinking Fund" and a footnote to the section that, in
277	277	reduced type, states "The Interest & Sinking Fund tax revenue is
278	278	used to pay for bonded indebtedness on construction, equipment, or
279	279	both. The bonds, and the tax rate necessary to pay those bonds, were
280	280	approved by the voters of this district.";
281	281	(6) contain a section entitled "Comparison of Proposed
282	282	Levy with Last Year's Levy on Average Residence," which must:
283	283	(A) show in rows the information described by
284	284	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
285	285	entitled "Last Year" and "This Year":
286	286	(i) "Average Market Value of Residences,"
287	287	determined using the same group of residences for each year;
288	288	(ii) "Average Taxable Value of Residences,"
289	289	determined after taking into account the limitation on the
290	290	appraised value of residences under Section 23.23, Tax Code, and
291	291	after subtracting all homestead exemptions applicable in each year,
292	292	other than exemptions available only to disabled persons, [or]
293	293	persons 65 years of age or older or their surviving spouses, or
294	294	persons 75 years of age or older or their surviving spouses, and
295	295	using the same group of residences for each year;
296	296	(iii) "Last Year's Rate Versus Proposed
297	297	Rate per $100 Value"; and
298	298	(iv) "Taxes Due on Average Residence,"
299	299	determined using the same group of residences for each year; and
300	300	(B) contain the following information: "Increase
301	301	(Decrease) in Taxes" expressed in dollars and cents, which is
302	302	computed by subtracting the "Taxes Due on Average Residence" for
303	303	the preceding tax year from the "Taxes Due on Average Residence" for
304	304	the current tax year;
305	305	(7) contain the following statement in bold print:
306	306	"Under state law, the dollar amount of school taxes imposed on the
307	307	residence of a person 65 years of age or older or of the surviving
308	308	spouse of such a person, if the surviving spouse was 55 years of age
309	309	or older when the person died, may not be increased above the amount
310	310	paid in the first year after the person turned 65, regardless of
311	311	changes in tax rate or property value.";
312	312	(8) contain the following statement in bold print:
313	313	"Notice of Voter-Approval Rate: The highest tax rate the district
314	314	can adopt before requiring voter approval at an election is (the
315	315	school district voter-approval rate determined under Section
316	316	26.08, Tax Code). This election will be automatically held if the
317	317	district adopts a rate in excess of the voter-approval rate of (the
318	318	school district voter-approval rate)."; [and]
319	319	(9) contain a section entitled "Fund Balances," which
320	320	must include the estimated amount of interest and sinking fund
321	321	balances and the estimated amount of maintenance and operation or
322	322	general fund balances remaining at the end of the current fiscal
323	323	year that are not encumbered with or by corresponding debt
324	324	obligation, less estimated funds necessary for the operation of the
325	325	district before the receipt of the first payment under Chapter 48 in
326	326	the succeeding school year; and
327	327	(10) contain the following statement in bold print:
328	328	"Under state law, $150,000 of the appraised value of the residence
329	329	of a person 75 years of age or older or of the surviving spouse of
330	330	such a person, if the surviving spouse was 55 years of age or older
331	331	when the person died, is exempt from taxes."
332	332	SECTION 8. The exemptions from ad valorem taxation of a
333	333	residence homestead authorized by Sections 11.13(s) and (t), Tax
334	334	Code, as added by this Act, apply only to taxes imposed beginning
335	335	with the 2024 tax year.
336	336	SECTION 9. This Act takes effect January 1, 2024, but only
337	337	if the constitutional amendment proposed by the 88th Legislature,
338	338	Regular Session, 2023, to exempt from ad valorem taxation a portion
339	339	of the market value of the residence homesteads of certain elderly
340	340	persons and their surviving spouses is approved by the voters. If
341	341	that amendment is not approved by the voters, this Act has no
342	342	effect.