| 1 | 1 | | By: Bhojani H.B. No. 5100 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to a one-time credit against the ad valorem taxes imposed |
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| 7 | 7 | | by a taxing unit on the residence homestead of a first-time home |
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| 8 | 8 | | buyer and to the effect of the credit on the determination of the |
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| 9 | 9 | | taxable value of a school district. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Chapter 31, Tax Code, is amended by adding |
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| 12 | 12 | | Section 31.039 to read as follows: |
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| 13 | 13 | | Sec. 31.039. RESIDENCE HOMESTEAD TAX CREDIT FOR FIRST-TIME |
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| 14 | 14 | | HOME BUYER. (a) In this section, "residence homestead" has the |
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| 15 | 15 | | meaning assigned by Section 11.13. |
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| 16 | 16 | | (b) A person is entitled to a credit against the taxes |
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| 17 | 17 | | imposed by a taxing unit on the residence homestead of the person in |
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| 18 | 18 | | the first tax year following the year in which the person purchased |
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| 19 | 19 | | the property if the person has not previously qualified a property |
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| 20 | 20 | | as the person's residence homestead. |
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| 21 | 21 | | (c) The amount of the credit in the aggregate is equal to the |
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| 22 | 22 | | lesser of: |
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| 23 | 23 | | (1) $3,000; or |
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| 24 | 24 | | (2) one-half of the taxes imposed by the taxing unit on |
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| 25 | 25 | | the residence homestead. |
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| 26 | 26 | | (d) To receive a credit under this section, a person must |
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| 27 | 27 | | file an application with the chief appraiser of the appraisal |
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| 28 | 28 | | district in which the property is located. The application must |
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| 29 | 29 | | include an affidavit affirming that the applicant is qualified for |
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| 30 | 30 | | the credit. The application must be filed not later than the |
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| 31 | 31 | | deadline for filing an application for a residence homestead |
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| 32 | 32 | | exemption on the property for the tax year, including any provision |
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| 33 | 33 | | authorizing the filing of a late application. |
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| 34 | 34 | | (e) The chief appraiser shall approve or deny an application |
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| 35 | 35 | | under this section for each taxing unit for which the appraisal |
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| 36 | 36 | | district appraises the property. A determination of the chief |
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| 37 | 37 | | appraiser is subject to protest and appeal in the same manner as a |
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| 38 | 38 | | determination to approve or deny an application for a residence |
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| 39 | 39 | | homestead exemption. |
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| 40 | 40 | | (f) The chief appraiser shall forward a copy of the |
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| 41 | 41 | | application to the assessor for each taxing unit that imposes taxes |
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| 42 | 42 | | on the residence homestead and certify to the assessor whether the |
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| 43 | 43 | | chief appraiser has approved or denied the application. |
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| 44 | 44 | | (g) The comptroller shall adopt rules for the |
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| 45 | 45 | | administration of this section, including rules prescribing the |
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| 46 | 46 | | documentation required to establish qualification for the credit. |
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| 47 | 47 | | (h) A person who has previously received a credit under this |
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| 48 | 48 | | section may not receive a credit under this section in a subsequent |
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| 49 | 49 | | tax year. |
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| 50 | 50 | | SECTION 2. Section 403.302, Government Code, is amended by |
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| 51 | 51 | | adding Subsection (d-2) to read as follows: |
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| 52 | 52 | | (d-2) For purposes of Subsection (d), taxable value does not |
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| 53 | 53 | | include an amount equal to the taxable value required to generate |
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| 54 | 54 | | revenue, when taxed at the school district's tax rate in the year |
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| 55 | 55 | | that is the subject of the study, in an amount that is equal to the |
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| 56 | 56 | | total amount of the credits provided by the district under Section |
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| 57 | 57 | | 31.039, Tax Code, in that year. |
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| 58 | 58 | | SECTION 3. This Act applies only to ad valorem taxes imposed |
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| 59 | 59 | | for a tax year beginning on or after the effective date of this Act. |
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| 60 | 60 | | SECTION 4. This Act takes effect January 1, 2024, but only |
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| 61 | 61 | | if the constitutional amendment proposed by the 88th Legislature, |
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| 62 | 62 | | Regular Session, 2023, to authorize the legislature to provide for |
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| 63 | 63 | | a one-time credit against the ad valorem taxes imposed by a |
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| 64 | 64 | | political subdivision on the residence homestead of a first-time |
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| 65 | 65 | | home buyer and to provide for the reimbursement of political |
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| 66 | 66 | | subdivisions for the revenue loss incurred as a result of the credit |
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| 67 | 67 | | is approved by the voters. If that amendment is not approved by the |
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| 68 | 68 | | voters, this Act has no effect. |
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