Texas 2023 - 88th Regular

Texas House Bill HB610 Compare Versions

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1	1	88R4177 CJC/MEW-D
2	2	By: Raymond H.B. No. 610
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a temporary increase in the amount of the exemption of
8	8	residence homesteads from ad valorem taxation by a school district,
9	9	a temporary reduction in the amount of the limitation on school
10	10	district ad valorem taxes imposed on the residence homesteads of
11	11	the elderly or disabled to reflect the increased exemption amount,
12	12	and a temporary protection of school districts against the
13	13	resulting temporary loss in local revenue.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
16	16	follows:
17	17	(b) An adult is entitled to exemption from taxation by a
18	18	school district of $360,000 [$40,000] of the appraised value of the
19	19	adult's residence homestead, except that only $5,000 of the
20	20	exemption applies to an entity operating under former Chapter 17,
21	21	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
22	22	May 1, 1995, as permitted by Section 11.301, Education Code.
23	23	SECTION 2. Effective January 1, 2025, Section 11.13(b), Tax
24	24	Code, is amended to read as follows:
25	25	(b) An adult is entitled to exemption from taxation by a
26	26	school district of $40,000 of the appraised value of the adult's
27	27	residence homestead, except that only $5,000 of the exemption
28	28	applies to an entity operating under former Chapter 17, 18, 25, 26,
29	29	27, or 28, Education Code, as those chapters existed on May 1, 1995,
30	30	as permitted by Section 11.301, Education Code.
31	31	SECTION 3. Section 11.26(a), Tax Code, is amended to read as
32	32	follows:
33	33	(a) The tax officials shall appraise the property to which
34	34	this section applies and calculate taxes as on other property, but
35	35	if the tax so calculated exceeds the limitation imposed by this
36	36	section, the tax imposed is the amount of the tax as limited by this
37	37	section, except as otherwise provided by this section. A school
38	38	district may not increase the total annual amount of ad valorem tax
39	39	it imposes on the residence homestead of an individual 65 years of
40	40	age or older or on the residence homestead of an individual who is
41	41	disabled, as defined by Section 11.13, above the amount of the tax
42	42	it imposed in the first tax year in which the individual qualified
43	43	that residence homestead for the applicable exemption provided by
44	44	Section 11.13(c) for an individual who is 65 years of age or older
45	45	or is disabled. If the individual qualified that residence
46	46	homestead for the exemption after the beginning of that first year
47	47	and the residence homestead remains eligible for the same exemption
48	48	for the next year, and if the school district taxes imposed on the
49	49	residence homestead in the next year are less than the amount of
50	50	taxes imposed in that first year, a school district may not
51	51	subsequently increase the total annual amount of ad valorem taxes
52	52	it imposes on the residence homestead above the amount it imposed in
53	53	the year immediately following the first year for which the
54	54	individual qualified that residence homestead for the same
55	55	exemption, except as provided by Subsection (b). If the first tax
56	56	year the individual qualified the residence homestead for the
57	57	exemption provided by Section 11.13(c) for individuals 65 years of
58	58	age or older or disabled was a tax year before the 2024 [2015] tax
59	59	year, the amount of the limitation provided by this section for the
60	60	2024 tax year is the amount of the limitation as computed under
61	61	Subsection (a-10) of this section [tax the school district imposed
62	62	for the 2014 tax year] less an amount equal to the product of
63	63	$320,000 and [amount determined by multiplying $10,000 times] the
64	64	tax rate of the school district for the 2024 [2015] tax year[, plus
65	65	any 2015 tax attributable to improvements made in 2014, other than
66	66	improvements made to comply with governmental regulations or
67	67	repairs]. If the first tax year the individual qualified the
68	68	residence homestead for the exemption provided by Section 11.13(c)
69	69	for individuals 65 years of age or older or disabled was the 2024
70	70	tax year or an earlier tax year, the amount of the limitation
71	71	provided by this section for the 2025 tax year is the amount of the
72	72	limitation as computed under Subsection (a-10) of this section plus
73	73	an amount equal to the product of $320,000 and the tax rate of the
74	74	school district for the 2024 tax year.
75	75	SECTION 4. Section 46.071, Education Code, is amended by
76	76	adding Subsections (a-2), (b-2), and (c-2) to read as follows:
77	77	(a-2) Notwithstanding Subsection (a-1), for the 2024-2025
78	78	school year, a school district is entitled to additional state aid
79	79	under this subchapter to the extent that state and local revenue
80	80	used to service debt eligible under this chapter is less than the
81	81	state and local revenue that would have been available to the
82	82	district under this chapter as it existed on September 1, 2023, if
83	83	the increase in the residence homestead exemption under Section
84	84	1-b(c), Article VIII, Texas Constitution, and the additional
85	85	limitation on tax increases under Section 1-b(d) of that article as
86	86	proposed by the 88th Legislature, Regular Session, 2023, had not
87	87	occurred. This subsection expires September 1, 2025.
88	88	(b-2) Notwithstanding Subsection (b-1), subject to
89	89	Subsections (c-2), (d), and (e), additional state aid under this
90	90	section for the 2024-2025 school year is equal to the amount by
91	91	which the loss of local interest and sinking revenue for debt
92	92	service attributable to the increase in the residence homestead
93	93	exemption under Section 1-b(c), Article VIII, Texas Constitution,
94	94	and the additional limitation on tax increases under Section 1-b(d)
95	95	of that article as proposed by the 88th Legislature, Regular
96	96	Session, 2023, is not offset by a gain in state aid under this
97	97	chapter. This subsection expires September 1, 2025.
98	98	(c-2) For the purpose of determining state aid under
99	99	Subsections (a-2) and (b-2), local interest and sinking revenue for
100	100	debt service is limited to revenue required to service debt
101	101	eligible under this chapter as of September 1, 2023, including
102	102	refunding of that debt, subject to Section 46.061. The limitation
103	103	imposed by Section 46.034(a) does not apply for the purpose of
104	104	determining state aid under this section. This subsection expires
105	105	September 1, 2025.
106	106	SECTION 5. Section 48.2543, Education Code, is amended by
107	107	adding Subsections (a-1) and (b-1) to read as follows:
108	108	(a-1) Notwithstanding Subsection (a), for the 2024-2025
109	109	school year, a school district is entitled to additional state aid
110	110	to the extent that state and local revenue under this chapter and
111	111	Chapter 49 is less than the state and local revenue that would have
112	112	been available to the district under this chapter and Chapter 49 as
113	113	those chapters existed on September 1, 2023, if the increase in the
114	114	residence homestead exemption under Section 1-b(c), Article VIII,
115	115	Texas Constitution, and the additional limitation on tax increases
116	116	under Section 1-b(d) of that article as proposed by the 88th
117	117	Legislature, Regular Session, 2023, had not occurred. This
118	118	subsection expires September 1, 2025.
119	119	(b-1) Notwithstanding Subsection (b), for the 2024-2025
120	120	school year, the lesser of the school district's currently adopted
121	121	maintenance and operations tax rate or the adopted maintenance and
122	122	operations tax rate for the 2023 tax year is used for the purpose of
123	123	determining additional state aid under Subsection (a-1). This
124	124	subsection expires September 1, 2025.
125	125	SECTION 6. The changes in law made by this Act to Sections
126	126	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
127	127	begins on or after January 1, 2024.
128	128	SECTION 7. This Act takes effect January 1, 2024, but only
129	129	if the constitutional amendment proposed by the 88th Legislature,
130	130	Regular Session, 2023, to appropriate money from the general
131	131	revenue fund to the foundation school fund and use the money to
132	132	finance a temporary increase in the amount of the exemption of
133	133	residence homesteads from ad valorem taxation by a school district
134	134	and a temporary reduction in the amount of the limitation on school
135	135	district ad valorem taxes imposed on the residence homesteads of
136	136	the elderly or disabled to reflect the increased exemption amount
137	137	is approved by the voters. If that constitutional amendment is not
138	138	approved by the voters, this Act has no effect.