Texas 2023 - 88th Regular

Texas House Bill HB5042 Compare Versions

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1	1	88R2118 CJC-F
2	2	By: Howard H.B. No. 5042
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an adjustment of the limitation on the total amount of
8	8	ad valorem taxes that may be imposed by a school district on the
9	9	residence homestead of an individual who is elderly or disabled to
10	10	reflect the most recent increase in the amount of the exemption of
11	11	residence homesteads from ad valorem taxation by a school district
12	12	and the protection of school districts against the resulting loss
13	13	in local revenue.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 11.26, Tax Code, is amended by adding
16	16	Subsection (a-11) to read as follows:
17	17	(a-11) This subsection applies only to an individual who in
18	18	the 2024 tax year qualifies for a limitation under this section and
19	19	for whom the 2021 tax year or an earlier tax year was the first tax
20	20	year the individual or the individual's spouse qualified for an
21	21	exemption under Section 11.13(c). The amount of the limitation
22	22	provided by this section on the residence homestead of an
23	23	individual to which this subsection applies for the 2024 tax year is
24	24	the amount of the limitation as computed under Subsection (a-10) of
25	25	this section less an amount equal to the product of $15,000 and the
26	26	tax rate of the school district for the 2022 tax year. This
27	27	subsection expires January 1, 2025.
28	28	SECTION 2. Section 46.071, Education Code, is amended by
29	29	adding Subsection (a-2) and amending Subsections (b-1) and (c-1) to
30	30	read as follows:
31	31	(a-2) Beginning with the 2024-2025 school year, in addition
32	32	to state aid a school district is entitled to under Subsection
33	33	(a-1), a school district is entitled to additional state aid under
34	34	this subchapter to the extent that state and local revenue used to
35	35	service debt eligible under this chapter is less than the state and
36	36	local revenue that would have been available to the district under
37	37	this chapter as it existed on September 1, 2023, if any additional
38	38	limitation on tax increases under Section 1-b(d), Article VIII,
39	39	Texas Constitution, as proposed by the 88th Legislature, Regular
40	40	Session, 2023, had not occurred.
41	41	(b-1) Subject to Subsections (c-1), (d), and (e),
42	42	additional state aid under this section beginning with the
43	43	2022-2023 school year is equal to the amount by which the loss of
44	44	local interest and sinking revenue for debt service attributable to
45	45	any increase in the residence homestead exemption under Section
46	46	1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
47	47	Legislature, 3rd Called Session, 2021, and any additional
48	48	limitation on tax increases under Section 1-b(d), Article VIII,
49	49	Texas Constitution, as proposed by the 88th Legislature, Regular
50	50	Session, 2023, is not offset by a gain in state aid under this
51	51	chapter.
52	52	(c-1) For the purpose of determining state aid under
53	53	Subsection [Subsections] (a-1) or (a-2) [and (b-1)], local interest
54	54	and sinking revenue for debt service is limited to revenue required
55	55	to service debt eligible under this chapter as of September 1, 2021,
56	56	or as of September 1, 2023, respectively, including refunding of
57	57	the applicable [that] debt, subject to Section 46.061. The
58	58	limitation imposed by Section 46.034(a) does not apply for the
59	59	purpose of determining state aid under Subsection (a-1) or (a-2)
60	60	[this section].
61	61	SECTION 3. Section 48.2542, Education Code, is amended to
62	62	read as follows:
63	63	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
64	64	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
65	65	Notwithstanding any other provision of this chapter, if a school
66	66	district is not fully compensated through state aid or the
67	67	calculation of excess local revenue under this chapter based on the
68	68	determination of the district's taxable value of property under
69	69	Subchapter M, Chapter 403, Government Code, the district is
70	70	entitled to additional state aid in the amount necessary to fully
71	71	compensate the district for the amount of ad valorem tax revenue
72	72	lost due to a reduction of the amount of the limitation on tax
73	73	increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
74	74	(a-8), (a-9), [and] (a-10), and (a-11), Tax Code, as applicable.
75	75	SECTION 4. Effective January 1, 2025, Section 48.2542,
76	76	Education Code, is amended to read as follows:
77	77	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
78	78	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
79	79	Notwithstanding any other provision of this chapter, if a school
80	80	district is not fully compensated through state aid or the
81	81	calculation of excess local revenue under this chapter based on the
82	82	determination of the district's taxable value of property under
83	83	Subchapter M, Chapter 403, Government Code, the district is
84	84	entitled to additional state aid in the amount necessary to fully
85	85	compensate the district for the amount of ad valorem tax revenue
86	86	lost due to a reduction of the amount of the limitation on tax
87	87	increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
88	88	(a-8), (a-9), and (a-10), Tax Code, as applicable.
89	89	SECTION 5. Section 48.2543, Education Code, is amended by
90	90	adding Subsection (a-1) and amending Subsection (b) to read as
91	91	follows:
92	92	(a-1) Beginning with the 2024-2025 school year, in addition
93	93	to state aid a school district is entitled to under Subsection (a),
94	94	a school district is entitled to additional state aid to the extent
95	95	that state and local revenue under this chapter and Chapter 49 is
96	96	less than the state and local revenue that would have been available
97	97	to the district under this chapter and Chapter 49 as those chapters
98	98	existed on September 1, 2023, if any additional limitation on tax
99	99	increases under Section 1-b(d), Article VIII, Texas Constitution,
100	100	as proposed by the 88th Legislature, Regular Session, 2023, had not
101	101	occurred.
102	102	(b) The lesser of the school district's currently adopted
103	103	maintenance and operations tax rate or the adopted maintenance and
104	104	operations tax rate for:
105	105	(1) the 2021 tax year is used for the purpose of
106	106	determining additional state aid under Subsection (a); and
107	107	(2) the 2023 tax year is used for the purpose of
108	108	determining additional state aid under Subsection (a-1).
109	109	SECTION 6. Section 48.2556(a), Education Code, is amended
110	110	to read as follows:
111	111	(a) The agency shall post the following information on the
112	112	agency's Internet website for purposes of allowing the chief
113	113	appraiser of each appraisal district and the assessor for each
114	114	school district to make the calculations required by Sections
115	115	11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), and (a-11),
116	116	Tax Code:
117	117	(1) each school district's maximum compressed rate, as
118	118	determined under Section 48.2551, for each tax year beginning with
119	119	the 2019 tax year; and
120	120	(2) each school district's tier one maintenance and
121	121	operations tax rate, as provided by Section 45.0032(a), for the
122	122	2018 tax year.
123	123	SECTION 7. Effective January 1, 2025, Section 48.2556(a),
124	124	Education Code, is amended to read as follows:
125	125	(a) The agency shall post the following information on the
126	126	agency's Internet website for purposes of allowing the chief
127	127	appraiser of each appraisal district and the assessor for each
128	128	school district to make the calculations required by Sections
129	129	11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
130	130	(1) each school district's maximum compressed rate, as
131	131	determined under Section 48.2551, for each tax year beginning with
132	132	the 2019 tax year; and
133	133	(2) each school district's tier one maintenance and
134	134	operations tax rate, as provided by Section 45.0032(a), for the
135	135	2018 tax year.
136	136	SECTION 8. Section 403.302, Government Code, is amended by
137	137	adding Subsection (j-2) to read as follows:
138	138	(j-2) In the final certification of the study under
139	139	Subsection (j), the comptroller shall separately identify the final
140	140	taxable value for each school district as adjusted to account for
141	141	the reduction of the amount of the limitation on tax increases
142	142	provided by Section 11.26(a-11), Tax Code. This subsection expires
143	143	January 1, 2025.
144	144	SECTION 9. The change in law made by this Act to Section
145	145	11.26, Tax Code, applies only to an ad valorem tax year that begins
146	146	on or after January 1, 2024.
147	147	SECTION 10. Except as otherwise provided by this Act, this
148	148	Act takes effect January 1, 2024, but only if the constitutional
149	149	amendment proposed by the 88th Legislature, Regular Session, 2023,
150	150	providing for an adjustment of the limitation on the total amount of
151	151	ad valorem taxes that may be imposed by a school district on the
152	152	residence homestead of a person who is elderly or disabled to
153	153	reflect the most recent increase in the amount of the exemption of
154	154	residence homesteads from ad valorem taxation by a school district
155	155	is approved by the voters. If that amendment is not approved by the
156	156	voters, this Act has no effect.