Texas 2023 - 88th Regular

Texas House Bill HB402 Compare Versions

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Version 2 (New)

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1	1	88R2202 CJC-D
2	2	By: Schofield H.B. No. 402
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of a limitation on the total amount of
8	8	ad valorem taxes that certain taxing units may impose on the
9	9	residence homesteads of individuals who are disabled or elderly and
10	10	their surviving spouses.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The heading to Section 11.261, Tax Code, is
13	13	amended to read as follows:
14	14	Sec. 11.261. LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER
15	15	THAN SCHOOL DISTRICT [COUNTY, MUNICIPAL, OR JUNIOR COLLEGE DISTRICT
16	16	TAX] ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED OR [AND]
17	17	ELDERLY.
18	18	SECTION 2. Section 11.261, Tax Code, is amended by amending
19	19	Subsections (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k),
20	20	and (l) and adding Subsections (b-1) and (b-2) to read as follows:
21	21	(a) This section applies only to a taxing unit other than a
22	22	school district [county, municipality, or junior college district
23	23	that has established a limitation on the total amount of taxes that
24	24	may be imposed by the county, municipality, or junior college
25	25	district on the residence homestead of a disabled individual or an
26	26	individual 65 years of age or older under Section 1-b(h), Article
27	27	VIII, Texas Constitution].
28	28	(b) The tax officials shall appraise the property to which
29	29	this section [the limitation] applies and calculate taxes as on
30	30	other property, but if the tax so calculated exceeds the limitation
31	31	required [provided] by this section, the tax imposed by a taxing
32	32	unit is the amount of the tax as limited by this section, except as
33	33	otherwise provided by this section. A taxing unit [The county,
34	34	municipality, or junior college district] may not increase the
35	35	total annual amount of ad valorem taxes the taxing unit [county,
36	36	municipality, or junior college district] imposes on the residence
37	37	homestead of an individual who is [a] disabled [individual] or is
38	38	[an individual] 65 years of age or older above the amount of the
39	39	taxes the taxing unit [county, municipality, or junior college
40	40	district] imposed on the residence homestead in the first tax
41	41	year[, other than a tax year preceding the tax year in which the
42	42	county, municipality, or junior college district established the
43	43	limitation described by Subsection (a),] in which the individual
44	44	qualified that residence homestead for the exemption provided by
45	45	Section 11.13(c) for an individual who is [a] disabled [individual]
46	46	or is [an individual] 65 years of age or older. If the individual
47	47	qualified that residence homestead for the exemption after the
48	48	beginning of that first year and the residence homestead remains
49	49	eligible for the exemption for the next year, and if the [county,
50	50	municipal, or junior college district] taxes imposed by the taxing
51	51	unit on the residence homestead in the next year are less than the
52	52	amount of taxes imposed in that first year, the taxing unit [a
53	53	county, municipality, or junior college district] may not
54	54	subsequently increase the total annual amount of ad valorem taxes
55	55	it imposes on the residence homestead above the amount it imposed on
56	56	the residence homestead in the year immediately following the first
57	57	year[, other than a tax year preceding the tax year in which the
58	58	county, municipality, or junior college district established the
59	59	limitation described by Subsection (a),] for which the individual
60	60	qualified that residence homestead for the exemption.
61	61	(b-1) If the first tax year the individual qualified the
62	62	residence homestead for the exemption provided by Section 11.13(c)
63	63	for individuals who are disabled or are 65 years of age or older was
64	64	a tax year before the 2024 tax year and the homestead qualified for
65	65	a limitation on county, municipal, or junior college district taxes
66	66	under this section for that tax year, the amount of the limitation
67	67	on county, municipal, or junior college district taxes, as
68	68	applicable, required by this section is the amount of the tax
69	69	imposed by the applicable taxing unit for the 2023 tax year, plus
70	70	any 2024 tax attributable to improvements made in 2023, other than
71	71	improvements made to comply with governmental regulations or
72	72	repairs.
73	73	(b-2) Except as provided by Subsection (b-1), for the
74	74	purpose of calculating a limitation on tax increases by a taxing
75	75	unit under this section, an individual who qualified a residence
76	76	homestead before January 1, 2024, for an exemption under Section
77	77	11.13(c) for individuals who are disabled or are 65 years of age or
78	78	older is considered to have qualified the homestead for that
79	79	exemption on January 1, 2024.
80	80	(c) If an individual makes improvements to the individual's
81	81	residence homestead, other than repairs and other than improvements
82	82	required to comply with governmental requirements, the taxing unit
83	83	[county, municipality, or junior college district] may increase the
84	84	amount of taxes on the homestead in the first year the value of the
85	85	homestead is increased on the appraisal roll because of the
86	86	enhancement of value by the improvements. The amount of the tax
87	87	increase is determined by applying the current tax rate to the
88	88	difference between the appraised value of the homestead with the
89	89	improvements and the appraised value the homestead [it] would have
90	90	had without the improvements. The [A] limitation required
91	91	[provided] by this section then applies to the increased amount of
92	92	[county, municipal, or junior college district] taxes on the
93	93	residence homestead until more improvements, if any, are made.
94	94	(d) A limitation on [county, municipal, or junior college
95	95	district] tax increases by a taxing unit required [provided] by
96	96	this section expires if on January 1:
97	97	(1) none of the owners of the structure who qualify for
98	98	the exemption provided by Section 11.13(c) for an individual who is
99	99	[a] disabled [individual] or is [an individual] 65 years of age or
100	100	older and who owned the structure when the limitation [provided by
101	101	this section] first took effect is using the structure as a
102	102	residence homestead; or
103	103	(2) none of the owners of the structure qualifies for
104	104	the exemption provided by Section 11.13(c) for an individual who is
105	105	[a] disabled [individual] or is [an individual] 65 years of age or
106	106	older.
107	107	(e) If the appraisal roll provides for taxation of appraised
108	108	value for a prior year because a residence homestead exemption for
109	109	an individual who is disabled [individuals] or is [individuals] 65
110	110	years of age or older was erroneously allowed, the tax assessor for
111	111	the applicable taxing unit [county, municipality, or junior college
112	112	district] shall add, as back taxes due as provided by Section
113	113	26.09(d), the positive difference, if any, between the tax that
114	114	should have been imposed for that year and the tax that was imposed
115	115	because of the provisions of this section.
116	116	(f) A limitation on tax increases by a taxing unit required
117	117	[provided] by this section does not expire because the owner of an
118	118	interest in the structure conveys the interest to a qualifying
119	119	trust as defined by Section 11.13(j) if the owner or the owner's
120	120	spouse is a trustor of the trust and is entitled to occupy the
121	121	structure.
122	122	(g) Except as provided by Subsection (c), if an individual
123	123	who receives a limitation on [county, municipal, or junior college
124	124	district] tax increases by a taxing unit required [provided] by
125	125	this section subsequently qualifies a different residence
126	126	homestead in the same taxing unit [county, municipality, or junior
127	127	college district] for an exemption under Section 11.13, the taxing
128	128	unit [county, municipality, or junior college district] may not
129	129	impose ad valorem taxes on the subsequently qualified homestead in
130	130	a year in an amount that exceeds the amount of taxes the taxing unit
131	131	[county, municipality, or junior college district] would have
132	132	imposed on the subsequently qualified homestead in the first year
133	133	in which the individual receives that exemption for the
134	134	subsequently qualified homestead had the limitation on tax
135	135	increases required [provided] by this section not been in effect,
136	136	multiplied by a fraction the numerator of which is the total amount
137	137	of taxes the taxing unit [county, municipality, or junior college
138	138	district] imposed on the former homestead in the last year in which
139	139	the individual received that exemption for the former homestead and
140	140	the denominator of which is the total amount of taxes the taxing
141	141	unit [county, municipality, or junior college district] would have
142	142	imposed on the former homestead in the last year in which the
143	143	individual received that exemption for the former homestead had the
144	144	limitation on tax increases required [provided] by this section not
145	145	been in effect.
146	146	(h) An individual who receives a limitation on [county,
147	147	municipal, or junior college district] tax increases by a taxing
148	148	unit under this section and who subsequently qualifies a different
149	149	residence homestead in the same taxing unit [county, municipality,
150	150	or junior college district] for an exemption under Section 11.13,
151	151	or an agent of the individual, is entitled to receive from the chief
152	152	appraiser of the appraisal district in which the former homestead
153	153	was located a written certificate providing the information
154	154	necessary to determine whether the individual may qualify for a
155	155	limitation on the subsequently qualified homestead under
156	156	Subsection (g) and to calculate the amount of taxes the taxing unit
157	157	[county, municipality, or junior college district] may impose on
158	158	the subsequently qualified homestead.
159	159	(i) If an individual who qualifies for a limitation on
160	160	[county, municipal, or junior college district] tax increases by a
161	161	taxing unit under this section dies, the surviving spouse of the
162	162	individual is entitled to the limitation on taxes imposed by the
163	163	taxing unit [county, municipality, or junior college district] on
164	164	the residence homestead of the individual if:
165	165	(1) the surviving spouse is disabled or is 55 years of
166	166	age or older when the individual dies; and
167	167	(2) the residence homestead of the individual:
168	168	(A) is the residence homestead of the surviving
169	169	spouse on the date that the individual dies; and
170	170	(B) remains the residence homestead of the
171	171	surviving spouse.
172	172	(j) If an individual who is 65 years of age or older and
173	173	qualifies for a limitation on [county, municipal, or junior college
174	174	district] tax increases for the elderly under this section dies in
175	175	the first year in which the individual qualified for the limitation
176	176	and the individual first qualified for the limitation after the
177	177	beginning of that year, except as provided by Subsection (k), the
178	178	amount to which the surviving spouse's [county, municipal, or
179	179	junior college district] taxes are limited under Subsection (i) is
180	180	the amount of taxes imposed by the taxing unit to which the
181	181	limitation applies [county, municipality, or junior college
182	182	district, as applicable,] on the residence homestead in that year
183	183	determined as if the individual qualifying for the exemption had
184	184	lived for the entire year.
185	185	(k) If in the first tax year after the year in which an
186	186	individual who is 65 years of age or older dies under the
187	187	circumstances described by Subsection (j) the amount of taxes
188	188	imposed by a taxing unit [county, municipality, or junior college
189	189	district] on the residence homestead of the surviving spouse is
190	190	less than the amount of taxes imposed by the taxing unit [county,
191	191	municipality, or junior college district] in the preceding year as
192	192	limited by Subsection (j), in a subsequent tax year the surviving
193	193	spouse's taxes imposed by the taxing unit [county, municipality, or
194	194	junior college district] on that residence homestead are limited to
195	195	the amount of taxes imposed by the taxing unit [county,
196	196	municipality, or junior college district] in that first tax year
197	197	after the year in which the individual dies.
198	198	(l) Notwithstanding Subsection (d), a limitation on
199	199	[county, municipal, or junior college district] tax increases by a
200	200	taxing unit required [provided] by this section does not expire if
201	201	the owner of the structure qualifies for an exemption under Section
202	202	11.13 under the circumstances described by Section 11.135(a).
203	203	SECTION 3. Section 23.19(g), Tax Code, is amended to read as
204	204	follows:
205	205	(g) A tax bill or a separate statement accompanying the tax
206	206	bill to a cooperative housing corporation for which interests of
207	207	stockholders are separately appraised under this section must
208	208	state, in addition to the information required by Section 31.01,
209	209	the appraised value and taxable value of each interest separately
210	210	appraised. Each exemption claimed as provided by this title by a
211	211	person entitled to the exemption shall also be deducted from the
212	212	total appraised value of the property of the corporation. The total
213	213	tax imposed by a school district or other taxing unit [, county,
214	214	municipality, or junior college district] shall be reduced by any
215	215	amount that represents an increase in taxes attributable to
216	216	separately appraised interests of the real property and
217	217	improvements that are subject to the limitation of taxes prescribed
218	218	by Section 11.26 or 11.261. The corporation shall apportion among
219	219	its stockholders liability for reimbursing the corporation for
220	220	property taxes according to the relative taxable values of their
221	221	interests.
222	222	SECTION 4. Sections 26.012(6), (13), and (14), Tax Code,
223	223	are amended to read as follows:
224	224	(6) "Current total value" means the total taxable
225	225	value of property listed on the appraisal roll for the current year,
226	226	including all appraisal roll supplements and corrections as of the
227	227	date of the calculation, less the taxable value of property
228	228	exempted for the current tax year for the first time under Section
229	229	11.31 or 11.315, except that:
230	230	(A) the current total value for a school district
231	231	excludes:
232	232	(i) the total value of homesteads that
233	233	qualify for a tax limitation as provided by Section 11.26; and
234	234	(ii) new property value of property that is
235	235	subject to an agreement entered into under Chapter 313; and
236	236	(B) the current total value for a taxing unit
237	237	other than a school district [county, municipality, or junior
238	238	college district] excludes the total value of homesteads that
239	239	qualify for a tax limitation as provided by Section 11.261.
240	240	(13) "Last year's levy" means the total of:
241	241	(A) the amount of taxes that would be generated
242	242	by multiplying the total tax rate adopted by the governing body in
243	243	the preceding year by the total taxable value of property on the
244	244	appraisal roll for the preceding year, including:
245	245	(i) taxable value that was reduced in an
246	246	appeal under Chapter 42;
247	247	(ii) all appraisal roll supplements and
248	248	corrections other than corrections made pursuant to Section
249	249	25.25(d), as of the date of the calculation, except that last year's
250	250	taxable value for a school district excludes the total value of
251	251	homesteads that qualified for a tax limitation as provided by
252	252	Section 11.26 and last year's taxable value for a taxing unit other
253	253	than a school district [county, municipality, or junior college
254	254	district] excludes the total value of homesteads that qualified for
255	255	a tax limitation as provided by Section 11.261; and
256	256	(iii) the portion of taxable value of
257	257	property that is the subject of an appeal under Chapter 42 on July
258	258	25 that is not in dispute; and
259	259	(B) the amount of taxes refunded by the taxing
260	260	unit in the preceding year for tax years before that year.
261	261	(14) "Last year's total value" means the total taxable
262	262	value of property listed on the appraisal roll for the preceding
263	263	year, including all appraisal roll supplements and corrections,
264	264	other than corrections made pursuant to Section 25.25(d), as of the
265	265	date of the calculation, except that:
266	266	(A) last year's taxable value for a school
267	267	district excludes the total value of homesteads that qualified for
268	268	a tax limitation as provided by Section 11.26; and
269	269	(B) last year's taxable value for a taxing unit
270	270	other than a school district [county, municipality, or junior
271	271	college district] excludes the total value of homesteads that
272	272	qualified for a tax limitation as provided by Section 11.261.
273	273	SECTION 5. This Act applies only to ad valorem taxes imposed
274	274	for a tax year beginning on or after the effective date of this Act.
275	275	SECTION 6. This Act takes effect January 1, 2024, but only
276	276	if the constitutional amendment proposed by the 88th Legislature,
277	277	Regular Session, 2023, establishing a limitation on the total
278	278	amount of ad valorem taxes that certain political subdivisions may
279	279	impose on the residence homesteads of persons who are disabled or
280	280	elderly and their surviving spouses is approved by the voters. If
281	281	that amendment is not approved by the voters, this Act has no
282	282	effect.