Texas 2023 - 88th Regular

Texas Senate Bill SB196 Compare Versions

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Version 2 (New)

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1	1	88R744 TJB-D
2	2	By: Eckhardt S.B. No. 196
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authority of the governing body of a taxing unit to
8	8	adopt an exemption from ad valorem taxation of a portion, expressed
9	9	as a dollar amount, of the appraised value of an individual's
10	10	residence homestead.
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	Subsection (i) and adding Subsection (n-1) to read as follows:
14	14	(i) The assessor and collector for a taxing unit may
15	15	disregard the exemptions authorized by Subsection (b), (c), (d),
16	16	[or] (n), or (n-1) [of this section] and assess and collect a tax
17	17	pledged for payment of debt without deducting the amount of the
18	18	exemption if:
19	19	(1) prior to adoption of the exemption, the unit
20	20	pledged the taxes for the payment of a debt; and
21	21	(2) granting the exemption would impair the obligation
22	22	of the contract creating the debt.
23	23	(n-1) The governing body of a taxing unit, in the manner
24	24	provided by law for official action by the body, may adopt an
25	25	exemption from taxation by the taxing unit of a portion, expressed
26	26	as a dollar amount, of the appraised value of an individual's
27	27	residence homestead. The exemption must be adopted by the
28	28	governing body before July 1 of the tax year in which the exemption
29	29	applies. If the governing body adopts an exemption under this
30	30	subsection, the amount of the exemption in a tax year may not be
31	31	less than $5,000. An individual is entitled to an exemption adopted
32	32	under this subsection in addition to any other exemptions provided
33	33	by this section.
34	34	SECTION 2. Section 45.006(f), Education Code, is amended to
35	35	read as follows:
36	36	(f) The governing body of a school district that adopts a
37	37	tax rate that exceeds $1.50 per $100 valuation of taxable property
38	38	may set the amount of the exemption from taxation authorized by
39	39	Section 11.13(n) or (n-1), Tax Code, at any time before the date the
40	40	governing body adopts the district's tax rate for the tax year in
41	41	which the election approving the additional taxes is held.
42	42	SECTION 3. Section 48.259(a), Education Code, is amended to
43	43	read as follows:
44	44	(a) In any school year, the commissioner may not provide
45	45	funding under this chapter or Chapter 46 based on a school
46	46	district's taxable value of property computed in accordance with
47	47	Section 403.302(d)(2), Government Code, unless:
48	48	(1) funds are specifically appropriated for purposes
49	49	of this section; or
50	50	(2) the commissioner determines that the total amount
51	51	of state funds appropriated for purposes of the Foundation School
52	52	Program for the school year exceeds the amount of state funds
53	53	distributed to school districts in accordance with Section 48.266
54	54	based on the taxable values of property in school districts
55	55	computed in accordance with Section 403.302(d), Government Code,
56	56	without any deduction for residence homestead exemptions granted
57	57	under Section 11.13(n) or (n-1), Tax Code.
58	58	SECTION 4. Section 403.302(d), Government Code, is amended
59	59	to read as follows:
60	60	(d) For the purposes of this section, "taxable value" means
61	61	the market value of all taxable property less:
62	62	(1) the total dollar amount of any residence homestead
63	63	exemptions lawfully granted under Section 11.13(b) or (c), Tax
64	64	Code, in the year that is the subject of the study for each school
65	65	district;
66	66	(2) one-half of the total dollar amount of any
67	67	residence homestead exemptions granted under Section 11.13(n) or
68	68	(n-1), Tax Code, in the year that is the subject of the study for
69	69	each school district;
70	70	(3) the total dollar amount of any exemptions granted
71	71	before May 31, 1993, within a reinvestment zone under agreements
72	72	authorized by Chapter 312, Tax Code;
73	73	(4) subject to Subsection (e), the total dollar amount
74	74	of any captured appraised value of property that:
75	75	(A) is within a reinvestment zone created on or
76	76	before May 31, 1999, or is proposed to be included within the
77	77	boundaries of a reinvestment zone as the boundaries of the zone and
78	78	the proposed portion of tax increment paid into the tax increment
79	79	fund by a school district are described in a written notification
80	80	provided by the municipality or the board of directors of the zone
81	81	to the governing bodies of the other taxing units in the manner
82	82	provided by former Section 311.003(e), Tax Code, before May 31,
83	83	1999, and within the boundaries of the zone as those boundaries
84	84	existed on September 1, 1999, including subsequent improvements to
85	85	the property regardless of when made;
86	86	(B) generates taxes paid into a tax increment
87	87	fund created under Chapter 311, Tax Code, under a reinvestment zone
88	88	financing plan approved under Section 311.011(d), Tax Code, on or
89	89	before September 1, 1999; and
90	90	(C) is eligible for tax increment financing under
91	91	Chapter 311, Tax Code;
92	92	(5) the total dollar amount of any captured appraised
93	93	value of property that:
94	94	(A) is within a reinvestment zone:
95	95	(i) created on or before December 31, 2008,
96	96	by a municipality with a population of less than 18,000; and
97	97	(ii) the project plan for which includes
98	98	the alteration, remodeling, repair, or reconstruction of a
99	99	structure that is included on the National Register of Historic
100	100	Places and requires that a portion of the tax increment of the zone
101	101	be used for the improvement or construction of related facilities
102	102	or for affordable housing;
103	103	(B) generates school district taxes that are paid
104	104	into a tax increment fund created under Chapter 311, Tax Code; and
105	105	(C) is eligible for tax increment financing under
106	106	Chapter 311, Tax Code;
107	107	(6) the total dollar amount of any exemptions granted
108	108	under Section 11.251 or 11.253, Tax Code;
109	109	(7) the difference between the comptroller's estimate
110	110	of the market value and the productivity value of land that
111	111	qualifies for appraisal on the basis of its productive capacity,
112	112	except that the productivity value estimated by the comptroller may
113	113	not exceed the fair market value of the land;
114	114	(8) the portion of the appraised value of residence
115	115	homesteads of individuals who receive a tax limitation under
116	116	Section 11.26, Tax Code, on which school district taxes are not
117	117	imposed in the year that is the subject of the study, calculated as
118	118	if the residence homesteads were appraised at the full value
119	119	required by law;
120	120	(9) a portion of the market value of property not
121	121	otherwise fully taxable by the district at market value because of
122	122	action required by statute or the constitution of this state, other
123	123	than Section 11.311, Tax Code, that, if the tax rate adopted by the
124	124	district is applied to it, produces an amount equal to the
125	125	difference between the tax that the district would have imposed on
126	126	the property if the property were fully taxable at market value and
127	127	the tax that the district is actually authorized to impose on the
128	128	property, if this subsection does not otherwise require that
129	129	portion to be deducted;
130	130	(10) the market value of all tangible personal
131	131	property, other than manufactured homes, owned by a family or
132	132	individual and not held or used for the production of income;
133	133	(11) the appraised value of property the collection of
134	134	delinquent taxes on which is deferred under Section 33.06, Tax
135	135	Code;
136	136	(12) the portion of the appraised value of property
137	137	the collection of delinquent taxes on which is deferred under
138	138	Section 33.065, Tax Code;
139	139	(13) the amount by which the market value of a
140	140	residence homestead to which Section 23.23, Tax Code, applies
141	141	exceeds the appraised value of that property as calculated under
142	142	that section; and
143	143	(14) the total dollar amount of any exemptions granted
144	144	under Section 11.35, Tax Code.
145	145	SECTION 5. Section 25.23(a), Tax Code, is amended to read as
146	146	follows:
147	147	(a) After submission of appraisal records, the chief
148	148	appraiser shall prepare supplemental appraisal records listing:
149	149	(1) each taxable property the chief appraiser
150	150	discovers that is not included in the records already submitted,
151	151	including property that was omitted from an appraisal roll in a
152	152	prior tax year;
153	153	(2) property on which the appraisal review board has
154	154	not determined a protest at the time of its approval of the
155	155	appraisal records; and
156	156	(3) property that qualifies for an exemption under
157	157	Section 11.13(n) or (n-1) that was adopted by the governing body of
158	158	a taxing unit after the date the appraisal records were submitted.
159	159	SECTION 6. This Act applies only to ad valorem taxes imposed
160	160	for a tax year that begins on or after the effective date of this
161	161	Act.
162	162	SECTION 7. This Act takes effect January 1, 2024, but only
163	163	if the constitutional amendment proposed by the 88th Legislature,
164	164	Regular Session, 2023, authorizing the governing body of a
165	165	political subdivision to adopt an exemption from ad valorem
166	166	taxation of a portion, expressed as a dollar amount, of the market
167	167	value of an individual's residence homestead is approved by the
168	168	voters. If that amendment is not approved by the voters, this Act
169	169	has no effect.