By: Bhojani H.B. No. 5100
A BILL TO BE ENTITLED
AN ACT
relating to a one-time credit against the ad valorem taxes imposed
by a taxing unit on the residence homestead of a first-time home
buyer and to the effect of the credit on the determination of the
taxable value of a school district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 31, Tax Code, is amended by adding
Section 31.039 to read as follows:
Sec. 31.039. RESIDENCE HOMESTEAD TAX CREDIT FOR FIRST-TIME
HOME BUYER. (a) In this section, "residence homestead" has the
meaning assigned by Section 11.13.
(b) A person is entitled to a credit against the taxes
imposed by a taxing unit on the residence homestead of the person in
the first tax year following the year in which the person purchased
the property if the person has not previously qualified a property
as the person's residence homestead.
(c) The amount of the credit in the aggregate is equal to the
lesser of:
(1) $3,000; or
(2) one-half of the taxes imposed by the taxing unit on
the residence homestead.
(d) To receive a credit under this section, a person must
file an application with the chief appraiser of the appraisal
district in which the property is located. The application must
include an affidavit affirming that the applicant is qualified for
the credit. The application must be filed not later than the
deadline for filing an application for a residence homestead
exemption on the property for the tax year, including any provision
authorizing the filing of a late application.
(e) The chief appraiser shall approve or deny an application
under this section for each taxing unit for which the appraisal
district appraises the property. A determination of the chief
appraiser is subject to protest and appeal in the same manner as a
determination to approve or deny an application for a residence
homestead exemption.
(f) The chief appraiser shall forward a copy of the
application to the assessor for each taxing unit that imposes taxes
on the residence homestead and certify to the assessor whether the
chief appraiser has approved or denied the application.
(g) The comptroller shall adopt rules for the
administration of this section, including rules prescribing the
documentation required to establish qualification for the credit.
(h) A person who has previously received a credit under this
section may not receive a credit under this section in a subsequent
tax year.
SECTION 2. Section 403.302, Government Code, is amended by
adding Subsection (d-2) to read as follows:
(d-2) For purposes of Subsection (d), taxable value does not
include an amount equal to the taxable value required to generate
revenue, when taxed at the school district's tax rate in the year
that is the subject of the study, in an amount that is equal to the
total amount of the credits provided by the district under Section
31.039, Tax Code, in that year.
SECTION 3. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2024, but only
if the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, to authorize the legislature to provide for
a one-time credit against the ad valorem taxes imposed by a
political subdivision on the residence homestead of a first-time
home buyer and to provide for the reimbursement of political
subdivisions for the revenue loss incurred as a result of the credit
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.