Texas 2023 - 88th Regular

Texas House Bill HB707 Compare Versions

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1	1	88R2885 CJC-D
2	2	By: Geren H.B. No. 707
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of a limitation on the total amount of
8	8	ad valorem taxes that certain taxing units may impose on the
9	9	residence homesteads of individuals who are disabled or elderly and
10	10	their surviving spouses.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The heading to Section 11.261, Tax Code, is
13	13	amended to read as follows:
14	14	Sec. 11.261. LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER
15	15	THAN SCHOOL DISTRICT [COUNTY, MUNICIPAL, OR JUNIOR COLLEGE DISTRICT
16	16	TAX] ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED OR [AND]
17	17	ELDERLY.
18	18	SECTION 2. Section 11.261, Tax Code, is amended by amending
19	19	Subsections (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k),
20	20	and (l) and adding Subsections (b-1) and (b-2) to read as follows:
21	21	(a) This section applies only to a taxing unit other than a
22	22	school district [county, municipality, or junior college district
23	23	that has established a limitation on the total amount of taxes that
24	24	may be imposed by the county, municipality, or junior college
25	25	district on the residence homestead of a disabled individual or an
26	26	individual 65 years of age or older under Section 1-b(h), Article
27	27	VIII, Texas Constitution].
28	28	(b) The tax officials shall appraise the property to which
29	29	this section [the limitation] applies and calculate taxes as on
30	30	other property, but if the tax so calculated exceeds the limitation
31	31	required [provided] by this section, the tax imposed by a taxing
32	32	unit is the amount of the tax as limited by this section, except as
33	33	otherwise provided by this section. A taxing unit [The county,
34	34	municipality, or junior college district] may not increase the
35	35	total annual amount of ad valorem taxes the taxing unit [county,
36	36	municipality, or junior college district] imposes on the residence
37	37	homestead of an individual who is [a] disabled [individual] or is
38	38	[an individual] 65 years of age or older above the amount of the
39	39	taxes the taxing unit [county, municipality, or junior college
40	40	district] imposed on the residence homestead in the first tax
41	41	year[, other than a tax year preceding the tax year in which the
42	42	county, municipality, or junior college district established the
43	43	limitation described by Subsection (a),] in which the individual
44	44	qualified that residence homestead for the exemption provided by
45	45	Section 11.13(c) for an individual who is [a] disabled [individual]
46	46	or is [an individual] 65 years of age or older. If the individual
47	47	qualified that residence homestead for the exemption after the
48	48	beginning of that first year and the residence homestead remains
49	49	eligible for the exemption for the next year, and if the [county,
50	50	municipal, or junior college district] taxes imposed by the taxing
51	51	unit on the residence homestead in the next year are less than the
52	52	amount of taxes imposed in that first year, the taxing unit [a
53	53	county, municipality, or junior college district] may not
54	54	subsequently increase the total annual amount of ad valorem taxes
55	55	it imposes on the residence homestead above the amount it imposed on
56	56	the residence homestead in the year immediately following the first
57	57	year[, other than a tax year preceding the tax year in which the
58	58	county, municipality, or junior college district established the
59	59	limitation described by Subsection (a),] for which the individual
60	60	qualified that residence homestead for the exemption.
61	61	(b-1) If the first tax year the individual qualified the
62	62	residence homestead for the exemption provided by Section 11.13(c)
63	63	for individuals who are disabled or are 65 years of age or older was
64	64	a tax year before the 2024 tax year and the homestead qualified for
65	65	a limitation on county, municipal, or junior college district taxes
66	66	under this section for that tax year, the amount of the limitation
67	67	on county, municipal, or junior college district taxes, as
68	68	applicable, required by this section is the amount of the tax
69	69	imposed by the applicable taxing unit for the 2023 tax year, plus
70	70	any 2024 tax attributable to improvements made in 2023, other than
71	71	improvements made to comply with governmental regulations or
72	72	repairs.
73	73	(b-2) Except as provided by Subsection (b-1), for the
74	74	purpose of calculating a limitation on tax increases by a taxing
75	75	unit under this section, an individual who qualified a residence
76	76	homestead before January 1, 2024, for an exemption under Section
77	77	11.13(c) for individuals who are disabled or are 65 years of age or
78	78	older is considered to have qualified the homestead for that
79	79	exemption on January 1, 2024.
80	80	(c) If an individual makes improvements to the individual's
81	81	residence homestead, other than repairs and other than improvements
82	82	required to comply with governmental requirements, the taxing unit
83	83	[county, municipality, or junior college district] may increase the
84	84	amount of taxes on the homestead in the first year the value of the
85	85	homestead is increased on the appraisal roll because of the
86	86	enhancement of value by the improvements. The amount of the tax
87	87	increase is determined by applying the current tax rate to the
88	88	difference between the appraised value of the homestead with the
89	89	improvements and the appraised value the homestead [it] would have
90	90	had without the improvements. The [A] limitation required
91	91	[provided] by this section then applies to the increased amount of
92	92	[county, municipal, or junior college district] taxes on the
93	93	residence homestead until more improvements, if any, are made.
94	94	(d) A limitation on [county, municipal, or junior college
95	95	district] tax increases by a taxing unit required [provided] by
96	96	this section expires if on January 1:
97	97	(1) none of the owners of the structure who qualify for
98	98	the exemption provided by Section 11.13(c) for an individual who is
99	99	[a] disabled [individual] or is [an individual] 65 years of age or
100	100	older and who owned the structure when the limitation [provided by
101	101	this section] first took effect is using the structure as a
102	102	residence homestead; or
103	103	(2) none of the owners of the structure qualifies for
104	104	the exemption provided by Section 11.13(c) for an individual who is
105	105	[a] disabled [individual] or is [an individual] 65 years of age or
106	106	older.
107	107	(e) If the appraisal roll provides for taxation of appraised
108	108	value for a prior year because a residence homestead exemption for
109	109	an individual who is disabled [individuals] or is [individuals] 65
110	110	years of age or older was erroneously allowed, the tax assessor for
111	111	the applicable taxing unit [county, municipality, or junior college
112	112	district] shall add, as back taxes due as provided by Section
113	113	26.09(d), the positive difference, if any, between the tax that
114	114	should have been imposed for that year and the tax that was imposed
115	115	because of the provisions of this section.
116	116	(f) A limitation on tax increases by a taxing unit required
117	117	[provided] by this section does not expire because the owner of an
118	118	interest in the structure conveys the interest to a qualifying
119	119	trust as defined by Section 11.13(j) if the owner or the owner's
120	120	spouse is a trustor of the trust and is entitled to occupy the
121	121	structure.
122	122	(g) Except as provided by Subsection (c), if an individual
123	123	who receives a limitation on [county, municipal, or junior college
124	124	district] tax increases by a taxing unit required [provided] by
125	125	this section subsequently qualifies a different residence
126	126	homestead [in the same county, municipality, or junior college
127	127	district] for an exemption under Section 11.13, a taxing unit [the
128	128	county, municipality, or junior college district] may not impose ad
129	129	valorem taxes on the subsequently qualified homestead in a year in
130	130	an amount that exceeds the amount of taxes the taxing unit [county,
131	131	municipality, or junior college district] would have imposed on the
132	132	subsequently qualified homestead in the first year in which the
133	133	individual receives that exemption for the subsequently qualified
134	134	homestead had the limitation on tax increases required [provided]
135	135	by this section not been in effect, multiplied by a fraction the
136	136	numerator of which is the total amount of taxes [the county,
137	137	municipality, or junior college district] imposed by a taxing unit
138	138	of the same type on the former homestead in the last year in which
139	139	the individual received that exemption for the former homestead and
140	140	the denominator of which is the total amount of taxes that [the
141	141	county, municipality, or junior college district] would have been
142	142	imposed by the taxing unit of the same type on the former homestead
143	143	in the last year in which the individual received that exemption for
144	144	the former homestead had the limitation on tax increases required
145	145	[provided] by this section not been in effect. A limitation under
146	146	this subsection does not apply to a taxing unit if the former
147	147	homestead was not subject to taxation by a taxing unit of the same
148	148	type in the last year in which the individual received the exemption
149	149	for the former homestead.
150	150	(h) An individual who receives a limitation on [county,
151	151	municipal, or junior college district] tax increases by a taxing
152	152	unit under this section and who subsequently qualifies a different
153	153	residence homestead [in the same county, municipality, or junior
154	154	college district] for an exemption under Section 11.13, or an agent
155	155	of the individual, is entitled to receive from the chief appraiser
156	156	of the appraisal district in which the former homestead was located
157	157	a written certificate providing the information necessary to
158	158	determine whether the individual may qualify for a limitation on
159	159	the subsequently qualified homestead under Subsection (g) and to
160	160	calculate the amount of taxes a taxing unit of the same type [the
161	161	county, municipality, or junior college district] may impose on the
162	162	subsequently qualified homestead.
163	163	(i) If an individual who receives [qualifies for] a
164	164	limitation on [county, municipal, or junior college district] tax
165	165	increases by a taxing unit under this section dies, the surviving
166	166	spouse of the individual is entitled to the limitation on taxes
167	167	imposed by the taxing unit [county, municipality, or junior college
168	168	district] on the residence homestead of the individual if:
169	169	(1) the surviving spouse is disabled or is 55 years of
170	170	age or older when the individual dies; and
171	171	(2) the residence homestead of the individual:
172	172	(A) is the residence homestead of the surviving
173	173	spouse on the date that the individual dies; and
174	174	(B) remains the residence homestead of the
175	175	surviving spouse.
176	176	(j) If an individual who is 65 years of age or older and
177	177	qualifies for a limitation on [county, municipal, or junior college
178	178	district] tax increases for the elderly under this section dies in
179	179	the first year in which the individual qualified for the limitation
180	180	and the individual first qualified for the limitation after the
181	181	beginning of that year, except as provided by Subsection (k), the
182	182	amount to which the surviving spouse's [county, municipal, or
183	183	junior college district] taxes are limited under Subsection (i) is
184	184	the amount of taxes imposed by the taxing unit to which the
185	185	limitation applies [county, municipality, or junior college
186	186	district, as applicable,] on the residence homestead in that year
187	187	determined as if the individual qualifying for the exemption had
188	188	lived for the entire year.
189	189	(k) If in the first tax year after the year in which an
190	190	individual who is 65 years of age or older dies under the
191	191	circumstances described by Subsection (j) the amount of taxes
192	192	imposed by a taxing unit [county, municipality, or junior college
193	193	district] on the residence homestead of the surviving spouse is
194	194	less than the amount of taxes imposed by the taxing unit [county,
195	195	municipality, or junior college district] in the preceding year as
196	196	limited by Subsection (j), in a subsequent tax year the surviving
197	197	spouse's taxes imposed by the taxing unit [county, municipality, or
198	198	junior college district] on that residence homestead are limited to
199	199	the amount of taxes imposed by the taxing unit [county,
200	200	municipality, or junior college district] in that first tax year
201	201	after the year in which the individual dies.
202	202	(l) Notwithstanding Subsection (d), a limitation on
203	203	[county, municipal, or junior college district] tax increases by a
204	204	taxing unit required [provided] by this section does not expire if
205	205	the owner of the structure qualifies for an exemption under Section
206	206	11.13 under the circumstances described by Section 11.135(a).
207	207	SECTION 3. Section 23.19(g), Tax Code, is amended to read as
208	208	follows:
209	209	(g) A tax bill or a separate statement accompanying the tax
210	210	bill to a cooperative housing corporation for which interests of
211	211	stockholders are separately appraised under this section must
212	212	state, in addition to the information required by Section 31.01,
213	213	the appraised value and taxable value of each interest separately
214	214	appraised. Each exemption claimed as provided by this title by a
215	215	person entitled to the exemption shall also be deducted from the
216	216	total appraised value of the property of the corporation. The total
217	217	tax imposed by a school district or other taxing unit [, county,
218	218	municipality, or junior college district] shall be reduced by any
219	219	amount that represents an increase in taxes attributable to
220	220	separately appraised interests of the real property and
221	221	improvements that are subject to the limitation of taxes prescribed
222	222	by Section 11.26 or 11.261. The corporation shall apportion among
223	223	its stockholders liability for reimbursing the corporation for
224	224	property taxes according to the relative taxable values of their
225	225	interests.
226	226	SECTION 4. Sections 26.012(6), (13), and (14), Tax Code,
227	227	are amended to read as follows:
228	228	(6) "Current total value" means the total taxable
229	229	value of property listed on the appraisal roll for the current year,
230	230	including all appraisal roll supplements and corrections as of the
231	231	date of the calculation, less the taxable value of property
232	232	exempted for the current tax year for the first time under Section
233	233	11.31 or 11.315, except that:
234	234	(A) the current total value for a school district
235	235	excludes:
236	236	(i) the total value of homesteads that
237	237	qualify for a tax limitation as provided by Section 11.26; and
238	238	(ii) new property value of property that is
239	239	subject to an agreement entered into under Chapter 313; and
240	240	(B) the current total value for a taxing unit
241	241	other than a school district [county, municipality, or junior
242	242	college district] excludes the total value of homesteads that
243	243	qualify for a tax limitation as provided by Section 11.261.
244	244	(13) "Last year's levy" means the total of:
245	245	(A) the amount of taxes that would be generated
246	246	by multiplying the total tax rate adopted by the governing body in
247	247	the preceding year by the total taxable value of property on the
248	248	appraisal roll for the preceding year, including:
249	249	(i) taxable value that was reduced in an
250	250	appeal under Chapter 42;
251	251	(ii) all appraisal roll supplements and
252	252	corrections other than corrections made pursuant to Section
253	253	25.25(d), as of the date of the calculation, except that last year's
254	254	taxable value for a school district excludes the total value of
255	255	homesteads that qualified for a tax limitation as provided by
256	256	Section 11.26 and last year's taxable value for a taxing unit other
257	257	than a school district [county, municipality, or junior college
258	258	district] excludes the total value of homesteads that qualified for
259	259	a tax limitation as provided by Section 11.261; and
260	260	(iii) the portion of taxable value of
261	261	property that is the subject of an appeal under Chapter 42 on July
262	262	25 that is not in dispute; and
263	263	(B) the amount of taxes refunded by the taxing
264	264	unit in the preceding year for tax years before that year.
265	265	(14) "Last year's total value" means the total taxable
266	266	value of property listed on the appraisal roll for the preceding
267	267	year, including all appraisal roll supplements and corrections,
268	268	other than corrections made pursuant to Section 25.25(d), as of the
269	269	date of the calculation, except that:
270	270	(A) last year's taxable value for a school
271	271	district excludes the total value of homesteads that qualified for
272	272	a tax limitation as provided by Section 11.26; and
273	273	(B) last year's taxable value for a taxing unit
274	274	other than a school district [county, municipality, or junior
275	275	college district] excludes the total value of homesteads that
276	276	qualified for a tax limitation as provided by Section 11.261.
277	277	SECTION 5. This Act applies only to ad valorem taxes imposed
278	278	for a tax year beginning on or after the effective date of this Act.
279	279	SECTION 6. This Act takes effect January 1, 2024, but only
280	280	if the constitutional amendment proposed by the 88th Legislature,
281	281	Regular Session, 2023, establishing a limitation on the total
282	282	amount of ad valorem taxes that certain political subdivisions may
283	283	impose on the residence homesteads of persons who are disabled or
284	284	elderly and their surviving spouses is approved by the voters. If
285	285	that amendment is not approved by the voters, this Act has no
286	286	effect.