Texas 2023 - 88th Regular

Texas House Bill HB582 Compare Versions

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1	1	88R2655 TJB-D
2	2	By: Raymond H.B. No. 582
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 by certain taxing
8	8	units of a portion of the appraised value of the residence homestead
9	9	of the parent or guardian of a person who is disabled and who
10	10	resides with the parent or guardian.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 11.13, Tax Code, is amended by amending
13	13	Subsections (c), (d), and (h) and adding Subsection (d-1) to read as
14	14	follows:
15	15	(c) In addition to the exemption provided by Subsection (b)
16	16	[of this section], an individual [adult] who is disabled, is the
17	17	parent or guardian of a person who is disabled and who resides with
18	18	the parent or guardian, or is 65 years of age or older is entitled to
19	19	an exemption from taxation by a school district of $10,000 of the
20	20	appraised value of the individual's [his] residence homestead.
21	21	(d) In addition to the exemptions provided by Subsections
22	22	(b) and (c) [of this section], an individual who is disabled, is the
23	23	parent or guardian of a person who is disabled and who resides with
24	24	the parent or guardian, or is 65 years of age or older is entitled to
25	25	an exemption from taxation by a taxing unit of the [a] portion
26	26	determined [(the amount of which is fixed] as provided by
27	27	Subsection (e) [of this section)] of the appraised value of the
28	28	individual's [his] residence homestead if the exemption is adopted
29	29	by [either]:
30	30	(1) [by] the governing body of the taxing unit; or
31	31	(2) [by] a favorable vote of a majority of the
32	32	qualified voters of the taxing unit at an election called by the
33	33	governing body of the [a] taxing unit.
34	34	(d-1) The [, and the] governing body of a taxing unit shall
35	35	call an [the] election described by Subsection (d)(2) on the
36	36	petition of at least 20 percent of the number of qualified voters
37	37	who voted in the preceding election of the taxing unit.
38	38	(h) Joint, community, or successive owners may not each
39	39	receive the same exemption provided by or pursuant to this section
40	40	for the same residence homestead in the same tax year. An individual
41	41	who is eligible for more than one [disabled person who is 65 or
42	42	older may not receive both a disabled and an elderly residence
43	43	homestead] exemption under Subsection (c) or more than one
44	44	exemption under Subsection (d) from the same taxing unit in the same
45	45	tax year is entitled to [but may] choose and receive from that
46	46	taxing unit in that tax year only one exemption under each of those
47	47	subsections [either if a taxing unit has adopted both]. An
48	48	individual who is eligible for more than one [disabled person who is
49	49	65 or older may receive both a disabled and an elderly residence
50	50	homestead] exemption under Subsection (c) or (d) in the same tax
51	51	year is entitled to receive each of those exemptions if the person
52	52	receives the exemptions with respect to taxes levied by different
53	53	taxing units. A person may not receive an exemption under this
54	54	section for more than one residence homestead in the same tax year.
55	55	An heir property owner who qualifies heir property as the owner's
56	56	residence homestead under this chapter is considered the sole
57	57	recipient of any exemption granted to the owner for the residence
58	58	homestead by or pursuant to this section.
59	59	SECTION 2. Section 25.19(l), Tax Code, is amended to read as
60	60	follows:
61	61	(l) In addition to the information required by Subsection
62	62	(b), the chief appraiser shall include with a notice required by
63	63	Subsection (a) a brief explanation of each total or partial
64	64	exemption of property from taxation required or authorized by this
65	65	title that is available to:
66	66	(1) a disabled veteran or the veteran's surviving
67	67	spouse or child;
68	68	(2) an individual who is 65 years of age or older or
69	69	the individual's surviving spouse;
70	70	(3) an individual who is disabled or the individual's
71	71	surviving spouse;
72	72	(4) an individual who is the parent or guardian of a
73	73	person who is disabled and who resides with the parent or guardian;
74	74	(5) the surviving spouse of a member of the armed
75	75	services of the United States who is killed in action; or
76	76	(6) [(5)] the surviving spouse of a first responder
77	77	who is killed or fatally injured in the line of duty.
78	78	SECTION 3. Section 26.062(h), Tax Code, is amended to read
79	79	as follows:
80	80	(h) In calculating the average taxable value of a residence
81	81	homestead in the taxing unit for the preceding tax year and the
82	82	current tax year for purposes of Subsections (e) and (f), any
83	83	residence homestead exemption available only to individuals who are
84	84	disabled [persons], are the parents or guardians of persons who are
85	85	disabled and who reside with the parents or guardians, or are
86	86	[persons] 65 years of age or older[,] or their surviving spouses
87	87	must be disregarded.
88	88	SECTION 4. Section 44.004(c), Education Code, is amended to
89	89	read as follows:
90	90	(c) The notice of public meeting to discuss and adopt the
91	91	budget and the proposed tax rate may not be smaller than one-quarter
92	92	page of a standard-size or a tabloid-size newspaper, and the
93	93	headline on the notice must be in 18-point or larger type. Subject
94	94	to Subsection (d), the notice must:
95	95	(1) contain a statement in the following form:
96	96	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
97	97	"The (name of school district) will hold a public meeting at
98	98	(time, date, year) in (name of room, building, physical location,
99	99	city, state). The purpose of this meeting is to discuss the school
100	100	district's budget that will determine the tax rate that will be
101	101	adopted. Public participation in the discussion is invited." The
102	102	statement of the purpose of the meeting must be in bold type. In
103	103	reduced type, the notice must state: "The tax rate that is
104	104	ultimately adopted at this meeting or at a separate meeting at a
105	105	later date may not exceed the proposed rate shown below unless the
106	106	district publishes a revised notice containing the same information
107	107	and comparisons set out below and holds another public meeting to
108	108	discuss the revised notice." In addition, in reduced type, the
109	109	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
110	110	your local property tax database on which you can easily access
111	111	information regarding your property taxes, including information
112	112	about proposed tax rates and scheduled public hearings of each
113	113	entity that taxes your property.";
114	114	(2) contain a section entitled "Comparison of Proposed
115	115	Budget with Last Year's Budget," which must show the difference,
116	116	expressed as a percent increase or decrease, as applicable, in the
117	117	amounts budgeted for the preceding fiscal year and the amount
118	118	budgeted for the fiscal year that begins in the current tax year for
119	119	each of the following:
120	120	(A) maintenance and operations;
121	121	(B) debt service; and
122	122	(C) total expenditures;
123	123	(3) contain a section entitled "Total Appraised Value
124	124	and Total Taxable Value," which must show the total appraised value
125	125	and the total taxable value of all property and the total appraised
126	126	value and the total taxable value of new property taxable by the
127	127	district in the preceding tax year and the current tax year as
128	128	calculated under Section 26.04, Tax Code;
129	129	(4) contain a statement of the total amount of the
130	130	outstanding and unpaid bonded indebtedness of the school district;
131	131	(5) contain a section entitled "Comparison of Proposed
132	132	Rates with Last Year's Rates," which must:
133	133	(A) show in rows the tax rates described by
134	134	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
135	135	property, for columns entitled "Maintenance & Operations,"
136	136	"Interest & Sinking Fund," and "Total," which is the sum of
137	137	"Maintenance & Operations" and "Interest & Sinking Fund":
138	138	(i) the school district's "Last Year's
139	139	Rate";
140	140	(ii) the "Rate to Maintain Same Level of
141	141	Maintenance & Operations Revenue & Pay Debt Service," which:
142	142	(a) in the case of "Maintenance &
143	143	Operations," is the tax rate that, when applied to the current
144	144	taxable value for the district, as certified by the chief appraiser
145	145	under Section 26.01, Tax Code, and as adjusted to reflect changes
146	146	made by the chief appraiser as of the time the notice is prepared,
147	147	would impose taxes in an amount that, when added to state funds to
148	148	be distributed to the district under Chapter 48, would provide the
149	149	same amount of maintenance and operations taxes and state funds
150	150	distributed under Chapter 48 per student in average daily
151	151	attendance for the applicable school year that was available to the
152	152	district in the preceding school year; and
153	153	(b) in the case of "Interest & Sinking
154	154	Fund," is the tax rate that, when applied to the current taxable
155	155	value for the district, as certified by the chief appraiser under
156	156	Section 26.01, Tax Code, and as adjusted to reflect changes made by
157	157	the chief appraiser as of the time the notice is prepared, and when
158	158	multiplied by the district's anticipated collection rate, would
159	159	impose taxes in an amount that, when added to state funds to be
160	160	distributed to the district under Chapter 46 and any excess taxes
161	161	collected to service the district's debt during the preceding tax
162	162	year but not used for that purpose during that year, would provide
163	163	the amount required to service the district's debt; and
164	164	(iii) the "Proposed Rate";
165	165	(B) contain fourth and fifth columns aligned with
166	166	the columns required by Paragraph (A) that show, for each row
167	167	required by Paragraph (A):
168	168	(i) the "Local Revenue per Student," which
169	169	is computed by multiplying the district's total taxable value of
170	170	property, as certified by the chief appraiser for the applicable
171	171	school year under Section 26.01, Tax Code, and as adjusted to
172	172	reflect changes made by the chief appraiser as of the time the
173	173	notice is prepared, by the total tax rate, and dividing the product
174	174	by the number of students in average daily attendance in the
175	175	district for the applicable school year; and
176	176	(ii) the "State Revenue per Student," which
177	177	is computed by determining the amount of state aid received or to be
178	178	received by the district under Chapters 43, 46, and 48 and dividing
179	179	that amount by the number of students in average daily attendance in
180	180	the district for the applicable school year; and
181	181	(C) contain an asterisk after each calculation
182	182	for "Interest & Sinking Fund" and a footnote to the section that, in
183	183	reduced type, states "The Interest & Sinking Fund tax revenue is
184	184	used to pay for bonded indebtedness on construction, equipment, or
185	185	both. The bonds, and the tax rate necessary to pay those bonds, were
186	186	approved by the voters of this district.";
187	187	(6) contain a section entitled "Comparison of Proposed
188	188	Levy with Last Year's Levy on Average Residence," which must:
189	189	(A) show in rows the information described by
190	190	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
191	191	entitled "Last Year" and "This Year":
192	192	(i) "Average Market Value of Residences,"
193	193	determined using the same group of residences for each year;
194	194	(ii) "Average Taxable Value of Residences,"
195	195	determined after taking into account the limitation on the
196	196	appraised value of residences under Section 23.23, Tax Code, and
197	197	after subtracting all homestead exemptions applicable in each year,
198	198	other than exemptions available only to individuals who are
199	199	disabled, are the parents or guardians of persons who are disabled
200	200	and who reside with the parents or guardians, [persons] or are
201	201	[persons] 65 years of age or older or their surviving spouses, and
202	202	using the same group of residences for each year;
203	203	(iii) "Last Year's Rate Versus Proposed
204	204	Rate per $100 Value"; and
205	205	(iv) "Taxes Due on Average Residence,"
206	206	determined using the same group of residences for each year; and
207	207	(B) contain the following information: "Increase
208	208	(Decrease) in Taxes" expressed in dollars and cents, which is
209	209	computed by subtracting the "Taxes Due on Average Residence" for
210	210	the preceding tax year from the "Taxes Due on Average Residence" for
211	211	the current tax year;
212	212	(7) contain the following statement in bold print:
213	213	"Under state law, the dollar amount of school taxes imposed on the
214	214	residence of a person 65 years of age or older or of the surviving
215	215	spouse of such a person, if the surviving spouse was 55 years of age
216	216	or older when the person died, may not be increased above the amount
217	217	paid in the first year after the person turned 65, regardless of
218	218	changes in tax rate or property value.";
219	219	(8) contain the following statement in bold print:
220	220	"Notice of Voter-Approval Rate: The highest tax rate the district
221	221	can adopt before requiring voter approval at an election is (the
222	222	school district voter-approval rate determined under Section
223	223	26.08, Tax Code). This election will be automatically held if the
224	224	district adopts a rate in excess of the voter-approval rate of (the
225	225	school district voter-approval rate)."; and
226	226	(9) contain a section entitled "Fund Balances," which
227	227	must include the estimated amount of interest and sinking fund
228	228	balances and the estimated amount of maintenance and operation or
229	229	general fund balances remaining at the end of the current fiscal
230	230	year that are not encumbered with or by corresponding debt
231	231	obligation, less estimated funds necessary for the operation of the
232	232	district before the receipt of the first payment under Chapter 48 in
233	233	the succeeding school year.
234	234	SECTION 5. Section 49.236(a), Water Code, is amended to
235	235	read as follows:
236	236	(a) Before the board adopts an ad valorem tax rate for the
237	237	district for debt service, operation and maintenance purposes, or
238	238	contract purposes, the board shall give notice of each meeting of
239	239	the board at which the adoption of a tax rate will be considered.
240	240	The notice must:
241	241	(1) contain a statement in substantially the following
242	242	form:
243	243	"NOTICE OF PUBLIC HEARING ON TAX RATE
244	244	"The (name of the district) will hold a public hearing on a
245	245	proposed tax rate for the tax year (year of tax levy) on (date and
246	246	time) at (meeting place). Your individual taxes may increase at a
247	247	greater or lesser rate, or even decrease, depending on the tax rate
248	248	that is adopted and on the change in the taxable value of your
249	249	property in relation to the change in taxable value of all other
250	250	property. The change in the taxable value of your property in
251	251	relation to the change in the taxable value of all other property
252	252	determines the distribution of the tax burden among all property
253	253	owners.
254	254	"Visit Texas.gov/PropertyTaxes to find a link to your local
255	255	property tax database on which you can easily access information
256	256	regarding your property taxes, including information about
257	257	proposed tax rates and scheduled public hearings of each entity
258	258	that taxes your property.
259	259	"(Names of all board members and, if a vote was taken, an
260	260	indication of how each voted on the proposed tax rate and an
261	261	indication of any absences.)";
262	262	(2) contain the following information:
263	263	(A) the district's total adopted tax rate for the
264	264	preceding year and the proposed tax rate, expressed as an amount per
265	265	$100;
266	266	(B) the difference, expressed as an amount per
267	267	$100 and as a percent increase or decrease, as applicable, in the
268	268	proposed tax rate compared to the adopted tax rate for the preceding
269	269	year;
270	270	(C) the average appraised value of a residence
271	271	homestead in the district in the preceding year and in the current
272	272	year; the district's total homestead exemption, other than an
273	273	exemption available only to individuals who are disabled, are the
274	274	parents or guardians of persons who are disabled and who reside with
275	275	the parents or guardians, [persons] or are [persons] 65 years of age
276	276	or older, applicable to that appraised value in each of those years;
277	277	and the average taxable value of a residence homestead in the
278	278	district in each of those years, disregarding any homestead
279	279	exemption available only to individuals who are disabled, are the
280	280	parents or guardians of persons who are disabled and who reside with
281	281	the parents or guardians, [persons] or are [persons] 65 years of age
282	282	or older;
283	283	(D) the amount of tax that would have been
284	284	imposed by the district in the preceding year on a residence
285	285	homestead appraised at the average appraised value of a residence
286	286	homestead in that year, disregarding any homestead exemption
287	287	available only to individuals who are disabled, are the parents or
288	288	guardians of persons who are disabled and who reside with the
289	289	parents or guardians, [persons] or are [persons] 65 years of age or
290	290	older;
291	291	(E) the amount of tax that would be imposed by the
292	292	district in the current year on a residence homestead appraised at
293	293	the average appraised value of a residence homestead in that year,
294	294	disregarding any homestead exemption available only to individuals
295	295	who are disabled, are the parents or guardians of persons who are
296	296	disabled and who reside with the parents or guardians, [persons] or
297	297	are [persons] 65 years of age or older, if the proposed tax rate is
298	298	adopted;
299	299	(F) the difference between the amounts of tax
300	300	calculated under Paragraphs (D) and (E), expressed in dollars and
301	301	cents and described as the annual percentage increase or decrease,
302	302	as applicable, in the tax to be imposed by the district on the
303	303	average residence homestead in the district in the current year if
304	304	the proposed tax rate is adopted; and
305	305	(G) if the proposed combined debt service,
306	306	operation and maintenance, and contract tax rate requires or
307	307	authorizes an election to approve or reduce the tax rate, as
308	308	applicable, a description of the purpose of the proposed tax
309	309	increase;
310	310	(3) contain a statement in substantially the following
311	311	form, as applicable:
312	312	(A) if the district is a district described by
313	313	Section 49.23601:
314	314	"NOTICE OF VOTE ON TAX RATE
315	315	"If the district adopts a combined debt service, operation
316	316	and maintenance, and contract tax rate that would result in the
317	317	taxes on the average residence homestead increasing by more than
318	318	eight percent, an election must be held to determine whether to
319	319	approve the operation and maintenance tax rate under Section
320	320	49.23601, Water Code.";
321	321	(B) if the district is a district described by
322	322	Section 49.23602:
323	323	"NOTICE OF VOTE ON TAX RATE
324	324	"If the district adopts a combined debt service, operation
325	325	and maintenance, and contract tax rate that would result in the
326	326	taxes on the average residence homestead increasing by more than
327	327	3.5 percent, an election must be held to determine whether to
328	328	approve the operation and maintenance tax rate under Section
329	329	49.23602, Water Code."; or
330	330	(C) if the district is a district described by
331	331	Section 49.23603:
332	332	"NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE TAX RATE
333	333	"If the district adopts a combined debt service, operation
334	334	and maintenance, and contract tax rate that would result in the
335	335	taxes on the average residence homestead increasing by more than
336	336	eight percent, the qualified voters of the district by petition may
337	337	require that an election be held to determine whether to reduce the
338	338	operation and maintenance tax rate to the voter-approval tax rate
339	339	under Section 49.23603, Water Code."; and
340	340	(4) include the following statement: "The 86th Texas
341	341	Legislature modified the manner in which the voter-approval tax
342	342	rate is calculated to limit the rate of growth of property taxes in
343	343	the state.".
344	344	SECTION 6. Sections 49.23601(a) and (c), Water Code, are
345	345	amended to read as follows:
346	346	(a) In this section, "voter-approval tax rate" means the
347	347	rate equal to the sum of the following tax rates for the district:
348	348	(1) the current year's debt service tax rate;
349	349	(2) the current year's contract tax rate; and
350	350	(3) the operation and maintenance tax rate that would
351	351	impose 1.08 times the amount of the operation and maintenance tax
352	352	imposed by the district in the preceding year on a residence
353	353	homestead appraised at the average appraised value of a residence
354	354	homestead in the district in that year, disregarding any homestead
355	355	exemption available only to individuals who are disabled, are the
356	356	parents or guardians of persons who are disabled and who reside with
357	357	the parents or guardians, [persons] or are [persons] 65 years of age
358	358	or older.
359	359	(c) If the board of a district adopts a combined debt
360	360	service, contract, and operation and maintenance tax rate that
361	361	would impose more than 1.08 times the amount of tax imposed by the
362	362	district in the preceding year on a residence homestead appraised
363	363	at the average appraised value of a residence homestead in the
364	364	district in that year, disregarding any homestead exemption
365	365	available only to individuals who are disabled, are the parents or
366	366	guardians of persons who are disabled and who reside with the
367	367	parents or guardians, [persons] or are [persons] 65 years of age or
368	368	older, an election must be held in accordance with the procedures
369	369	provided by Sections 26.07(c)-(g), Tax Code, to determine whether
370	370	to approve the adopted tax rate. If the adopted tax rate is not
371	371	approved at the election, the district's tax rate is the
372	372	voter-approval tax rate.
373	373	SECTION 7. Sections 49.23602(a)(2) and (4), Water Code, are
374	374	amended to read as follows:
375	375	(2) "Mandatory tax election rate" means the rate equal
376	376	to the sum of the following tax rates for the district:
377	377	(A) the rate that would impose 1.035 times the
378	378	amount of tax imposed by the district in the preceding year on a
379	379	residence homestead appraised at the average appraised value of a
380	380	residence homestead in the district in that year, disregarding any
381	381	homestead exemption available only to individuals who are disabled,
382	382	are the parents or guardians of persons who are disabled and who
383	383	reside with the parents or guardians, [persons] or are [persons] 65
384	384	years of age or older; and
385	385	(B) the unused increment rate.
386	386	(4) "Voter-approval tax rate" means the rate equal to
387	387	the sum of the following tax rates for the district:
388	388	(A) the current year's debt service tax rate;
389	389	(B) the current year's contract tax rate;
390	390	(C) the operation and maintenance tax rate that
391	391	would impose 1.035 times the amount of the operation and
392	392	maintenance tax imposed by the district in the preceding year on a
393	393	residence homestead appraised at the average appraised value of a
394	394	residence homestead in the district in that year, disregarding any
395	395	homestead exemption available only to individuals who are disabled,
396	396	are the parents or guardians of persons who are disabled and who
397	397	reside with the parents or guardians, [persons] or are [persons] 65
398	398	years of age or older; and
399	399	(D) the unused increment rate.
400	400	SECTION 8. Sections 49.23603(a) and (c), Water Code, are
401	401	amended to read as follows:
402	402	(a) In this section, "voter-approval tax rate" means the
403	403	rate equal to the sum of the following tax rates for the district:
404	404	(1) the current year's debt service tax rate;
405	405	(2) the current year's contract tax rate; and
406	406	(3) the operation and maintenance tax rate that would
407	407	impose 1.08 times the amount of the operation and maintenance tax
408	408	imposed by the district in the preceding year on a residence
409	409	homestead appraised at the average appraised value of a residence
410	410	homestead in the district in that year, disregarding any homestead
411	411	exemption available only to individuals who are disabled, are the
412	412	parents or guardians of persons who are disabled and who reside with
413	413	the parents or guardians, [persons] or are [persons] 65 years of age
414	414	or older.
415	415	(c) If the board of a district adopts a combined debt
416	416	service, contract, and operation and maintenance tax rate that
417	417	would impose more than 1.08 times the amount of tax imposed by the
418	418	district in the preceding year on a residence homestead appraised
419	419	at the average appraised value of a residence homestead in the
420	420	district in that year, disregarding any homestead exemption
421	421	available only to individuals who are disabled, are the parents or
422	422	guardians of persons who are disabled and who reside with the
423	423	parents or guardians, [persons] or are [persons] 65 years of age or
424	424	older, the qualified voters of the district by petition may require
425	425	that an election be held to determine whether to reduce the tax rate
426	426	adopted for the current year to the voter-approval tax rate in
427	427	accordance with the procedures provided by Sections 26.075 and
428	428	26.081, Tax Code.
429	429	SECTION 9. This Act applies only to ad valorem taxes imposed
430	430	for a tax year that begins on or after the effective date of this
431	431	Act.
432	432	SECTION 10. This Act takes effect January 1, 2024, but only
433	433	if the constitutional amendment proposed by the 88th Legislature,
434	434	Regular Session, 2023, to provide for an exemption from ad valorem
435	435	taxation by certain political subdivisions of a portion of the
436	436	market value of the residence homestead of the parent or guardian of
437	437	a person who is disabled and who resides with the parent or guardian
438	438	is approved by the voters. If that amendment is not approved by the
439	439	voters, this Act has no effect.