By: Bettencourt, et al. S.B. No. 3
(In the Senate - Filed March 1, 2023; March 3, 2023, read
first time and referred to Committee on Local Government;
March 13, 2023, rereferred to Committee on Finance; March 20, 2023,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 17, Nays 0; March 20, 2023, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 3 By: Bettencourt
A BILL TO BE ENTITLED
AN ACT
relating to an increase in the amount of certain exemptions from ad
valorem taxation by a school district applicable to residence
homesteads, an adjustment in the amount of the limitation on school
district ad valorem taxes imposed on the residence homesteads of
the elderly or disabled to reflect increases in the exemption
amounts, and the protection of school districts against the
resulting loss in local revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 11.13(b) and (c), Tax Code, are amended
to read as follows:
(b) An adult is entitled to exemption from taxation by a
school district of $70,000 [$40,000] of the appraised value of the
adult's residence homestead, except that only $5,000 of the
exemption applies to an entity operating under former Chapter 17,
18, 25, 26, 27, or 28, Education Code, as those chapters existed on
May 1, 1995, as permitted by Section 11.301, Education Code.
(c) In addition to the exemption provided by Subsection (b)
[of this section], an adult who is disabled or is 65 or older is
entitled to an exemption from taxation by a school district of
$30,000 [$10,000] of the appraised value of the person's [his]
residence homestead.
SECTION 2. Section 11.26, Tax Code, is amended by amending
Subsections (a), (a-10), and (o) and adding Subsections (a-11) and
(a-12) to read as follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). [If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older or disabled was a tax year before the 2015 tax year, the
amount of the limitation provided by this section is the amount of
tax the school district imposed for the 2014 tax year less an amount
equal to the amount determined by multiplying $10,000 times the tax
rate of the school district for the 2015 tax year, plus any 2015 tax
attributable to improvements made in 2014, other than improvements
made to comply with governmental regulations or repairs.]
(a-10) Notwithstanding the other provisions of this
section, if in the 2024 or a subsequent tax year an individual
qualifies for a limitation on tax increases provided by this
section on the individual's residence homestead, the amount of the
limitation provided by this section on the homestead is equal to the
amount computed by:
(1) multiplying the taxable value of the homestead in
the preceding tax year by a tax rate equal to the difference between
the school district's maximum compressed rate for the preceding tax
year and the district's maximum compressed rate for the current tax
year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the preceding tax year; [and]
(3) adding any tax imposed in the current tax year
attributable to improvements made in the preceding tax year as
provided by Subsection (b) to the amount computed under Subdivision
(2);
(4) multiplying the amount of any increase in the
current tax year as compared to the preceding tax year in the
aggregate amount of the exemptions to which the individual is
entitled under Sections 11.13(b) and (c) by the school district's
tax rate for the current tax year; and
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3).
(a-11) This subsection applies only to an individual who in
the 2023 tax year qualifies for a limitation under this section and
for whom the 2022 tax year or an earlier tax year was the first tax
year the individual or the individual's spouse qualified for an
exemption under Section 11.13(c). The amount of the limitation
provided by this section on the residence homestead of an
individual to which this subsection applies for the 2023 tax year is
the amount of the limitation as computed under Subsection (a-5),
(a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less
an amount equal to the product of $50,000 and the tax rate of the
school district for the 2023 tax year. This subsection expires
January 1, 2025.
(a-12) This subsection applies only to an individual who in
the 2023 tax year qualifies for a limitation under this section and
for whom the 2021 tax year or an earlier tax year was the first tax
year the individual or the individual's spouse qualified for an
exemption under Section 11.13(c). The amount of the limitation
provided by this section on the residence homestead of an
individual to which this subsection applies for the 2023 tax year is
the amount of the limitation as computed under Subsection (a-11) of
this section less an amount equal to the product of $15,000 and the
tax rate of the school district for the 2022 tax year. This
subsection expires January 1, 2025.
(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
improvement to property that would otherwise constitute an
improvement under Subsection (b) is not treated as an improvement
under that subsection if the improvement is a replacement structure
for a structure that was rendered uninhabitable or unusable by a
casualty or by wind or water damage. For purposes of appraising the
property in the tax year in which the structure would have
constituted an improvement under Subsection (b), the replacement
structure is considered to be an improvement under that subsection
only if:
(1) the square footage of the replacement structure
exceeds that of the replaced structure as that structure existed
before the casualty or damage occurred; or
(2) the exterior of the replacement structure is of
higher quality construction and composition than that of the
replaced structure.
SECTION 3. Section 25.23, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) This subsection applies only to the appraisal records
for the 2023 tax year. If the appraisal records submitted to the
appraisal review board include the taxable value of residence
homesteads or show the amount of the exemptions under Sections
11.13(b) and (c) applicable to residence homesteads, the chief
appraiser shall prepare supplemental appraisal records that
reflect exemption amounts under those sections of $70,000 and
$30,000, respectively. This subsection expires December 31, 2024.
SECTION 4. Section 26.04, Tax Code, is amended by adding
Subsections (a-1) and (c-1) to read as follows:
(a-1) On receipt of the appraisal roll for the 2023 tax
year, the assessor for a school district shall determine the total
taxable value of property taxable by the school district and the
taxable value of new property based on a residence homestead
exemption under Section 11.13(b) of $70,000 and a residence
homestead exemption under Section 11.13(c) of $30,000. This
subsection expires December 31, 2024.
(c-1) An officer or employee designated by the governing
body of a school district shall calculate the no-new-revenue tax
rate and the voter-approval tax rate of the school district for the
2023 tax year based on a residence homestead exemption under
Section 11.13(b) of $70,000 and a residence homestead exemption
under Section 11.13(c) of $30,000. This subsection expires
December 31, 2024.
SECTION 5. Section 26.08, Tax Code, is amended by adding
Subsection (q) to read as follows:
(q) For purposes of this section, the voter-approval tax
rate of a school district for the 2023 tax year shall be calculated
based on a residence homestead exemption under Section 11.13(b) of
$70,000 and a residence homestead exemption under Section 11.13(c)
of $30,000. This subsection expires December 31, 2024.
SECTION 6. Section 26.09, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) The assessor for a school district shall calculate the
amount of tax imposed by the school district on a residence
homestead for the 2023 tax year based on exemptions under Sections
11.13(b) and (c) of $40,000 and $10,000, respectively, and
separately based on exemptions under those subsections of $70,000
and $30,000, respectively. This subsection expires December 31,
2024.
SECTION 7. Section 26.15, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) The assessor for a school district shall correct the tax
roll for the school district for the 2023 tax year to reflect the
results of the election to approve the constitutional amendment
proposed by S.J.R. 3, 88th Legislature, Regular Session, 2023.
This subsection expires December 31, 2024.
SECTION 8. Section 31.01, Tax Code, is amended by adding
Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
(d-2) This subsection and Subsections (d-3) and (d-4) apply
only to taxes imposed by a school district on a residence homestead
for the 2023 tax year. The assessor for the school district shall
compute the amount of taxes imposed and the other information
required by this section based on a residence homestead exemption
under Section 11.13(b) of $70,000 and a residence homestead
exemption under Section 11.13(c) of $30,000. The tax bill or the
separate statement must indicate that the bill is a provisional tax
bill and include a statement in substantially the following form:
"If the amount of the exemption from ad valorem taxation by a
school district of a residence homestead had not been increased by
the Texas Legislature, your tax bill would have been $____ (insert
amount equal to the sum of the amount calculated under Section
26.09(c-1) based on an exemption under Section 11.13(b) of $40,000
and an exemption under Section 11.13(c) of $10,000 and the total
amount of taxes imposed by the other taxing units whose taxes are
included in the bill). Because of action by the Texas Legislature
increasing the amounts of certain residence homestead exemptions,
your tax bill has been lowered by $____ (insert difference between
amount calculated under Section 26.09(c-1) based on an exemption
under Section 11.13(b) of $40,000 and an exemption under Section
11.13(c) of $10,000 and amount calculated under Section 26.09(c-1)
based on an exemption under Section 11.13(b) of $70,000 and an
exemption under Section 11.13(c) of $30,000), resulting in a lower
tax bill of $____ (insert amount equal to the sum of the amount
calculated under Section 26.09(c-1) based on an exemption under
Section 11.13(b) of $70,000 and an exemption under Section 11.13(c)
of $30,000 and the total amount of taxes imposed by the other taxing
units whose taxes are included in the bill), contingent on the
approval by the voters at an election to be held November 7, 2023,
of a constitutional amendment authorizing the increase in the
amounts of certain residence homestead exemptions. If the
constitutional amendment is not approved by the voters at the
election, a supplemental school district tax bill in the amount of
$____ (insert difference between amount calculated under Section
26.09(c-1) based on an exemption under Section 11.13(b) of $40,000
and an exemption under Section 11.13(c) of $10,000 and amount
calculated under Section 26.09(c-1) based on an exemption under
Section 11.13(b) of $70,000 and an exemption under Section 11.13(c)
of $30,000) will be mailed to you."
(d-3) A tax bill prepared by the assessor for a school
district as provided by Subsection (d-2) and mailed to a person in
whose name property subject to an exemption under Section 11.13(b)
or (c) is listed on the tax roll and to the person's authorized
agent as provided by Subsection (a) of this section is considered to
be a provisional tax bill until the canvass of the votes on the
constitutional amendment proposed by S.J.R. 3, 88th Legislature,
Regular Session, 2023. If the constitutional amendment is approved
by the voters, the tax bill is considered to be a final tax bill for
the taxes imposed on the property for the 2023 tax year, and no
additional tax bill is required to be mailed to the person and to
the person's authorized agent, unless another provision of this
title requires the mailing of a corrected tax bill. If the
constitutional amendment is not approved by the voters:
(1) a tax bill prepared by the assessor for a school
district as provided by Subsection (d-2) and mailed to a person in
whose name property subject to an exemption under Section 11.13(b)
or (c) is listed on the tax roll and to the person's authorized
agent as provided by Subsection (a) of this section is considered to
be a final tax bill but only as to the portion of the taxes imposed
on the property for the 2023 tax year that are included in the bill;
(2) the amount of taxes imposed by each school
district on a residence homestead for the 2023 tax year is
calculated based on an exemption under Section 11.13(b) of $40,000
and an exemption under Section 11.13(c) of $10,000; and
(3) except as provided by Subsections (f), (i-1), and
(k), the assessor for each school district shall prepare and mail a
supplemental tax bill, by December 1 or as soon thereafter as
practicable, to each person in whose name property subject to an
exemption under Section 11.13(b) or (c) is listed on the tax roll
and to the person's authorized agent in an amount equal to the
difference between the amount calculated under Section 26.09(c-1)
based on an exemption under Section 11.13(b) of $40,000 and an
exemption under Section 11.13(c) of $10,000 and the amount
calculated under Section 26.09(c-1) based on an exemption under
Section 11.13(b) of $70,000 and an exemption under Section 11.13(c)
of $30,000.
(d-4) Except as otherwise provided by Subsection (d-3), the
provisions of this section other than Subsection (d-2) apply to a
supplemental tax bill mailed under Subsection (d-3).
(d-5) This subsection and Subsections (d-2), (d-3), and
(d-4) expire December 31, 2024.
SECTION 9. Section 31.02, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) Except as provided by Subsection (b) of this section
and Sections 31.03 and 31.04, taxes for which a supplemental tax
bill is mailed under Section 31.01(d-3) are due on receipt of the
tax bill and are delinquent if not paid before March 1 of the year
following the year in which imposed. This subsection expires
December 31, 2024.
SECTION 10. Section 46.071, Education Code, is amended by
amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
(b-2), and (c-2) to read as follows:
(a-1) For [Beginning with] the 2022-2023 school year, a
school district is entitled to additional state aid under this
subchapter to the extent that state and local revenue used to
service debt eligible under this chapter is less than the state and
local revenue that would have been available to the district under
this chapter as it existed on September 1, 2021, if any increase in
the residence homestead exemption under Section 1-b(c), Article
VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd
Called Session, 2021, had not occurred.
(a-2) Beginning with the 2023-2024 school year, a school
district is entitled to additional state aid under this subchapter
to the extent that state and local revenue used to service debt
eligible under this chapter is less than the state and local revenue
that would have been available to the district under this chapter as
it existed on September 1, 2022, if any increase in a residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, and any additional limitation on tax increases under
Section 1-b(d) of that article as proposed by the 88th Legislature,
Regular Session, 2023, had not occurred.
(b-1) Subject to Subsections (c-1), (d), and (e),
additional state aid under this section for [beginning with] the
2022-2023 school year is equal to the amount by which the loss of
local interest and sinking revenue for debt service attributable to
any increase in the residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
Legislature, 3rd Called Session, 2021, is not offset by a gain in
state aid under this chapter.
(b-2) Subject to Subsections (c-2), (d), and (e),
additional state aid under this section beginning with the
2023-2024 school year is equal to the amount by which the loss of
local interest and sinking revenue for debt service attributable to
any increase in a residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, and any additional
limitation on tax increases under Section 1-b(d) of that article as
proposed by the 88th Legislature, Regular Session, 2023, is not
offset by a gain in state aid under this chapter.
(c-2) For the purpose of determining state aid under
Subsections (a-2) and (b-2), local interest and sinking revenue for
debt service is limited to revenue required to service debt
eligible under this chapter as of September 1, 2022, including
refunding of that debt, subject to Section 46.061. The limitation
imposed by Section 46.034(a) does not apply for the purpose of
determining state aid under this section.
SECTION 11. Section 48.2542, Education Code, is amended to
read as follows:
Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
Notwithstanding any other provision of this chapter, if a school
district is not fully compensated through state aid or the
calculation of excess local revenue under this chapter based on the
determination of the district's taxable value of property under
Subchapter M, Chapter 403, Government Code, the district is
entitled to additional state aid in the amount necessary to fully
compensate the district for the amount of ad valorem tax revenue
lost due to a reduction of the amount of the limitation on tax
increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
(a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as
applicable.
SECTION 12. Effective January 1, 2025, Section 48.2542,
Education Code, is amended to read as follows:
Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
Notwithstanding any other provision of this chapter, if a school
district is not fully compensated through state aid or the
calculation of excess local revenue under this chapter based on the
determination of the district's taxable value of property under
Subchapter M, Chapter 403, Government Code, the district is
entitled to additional state aid in the amount necessary to fully
compensate the district for the amount of ad valorem tax revenue
lost due to a reduction of the amount of the limitation on tax
increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
applicable].
SECTION 13. Section 48.2543, Education Code, is amended to
read as follows:
Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
(a) For [Beginning with] the 2022-2023 school year, a school
district is entitled to additional state aid to the extent that
state and local revenue under this chapter and Chapter 49 is less
than the state and local revenue that would have been available to
the district under this chapter and Chapter 49 as those chapters
existed on September 1, 2021, if any increase in the residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, as proposed by the 87th Legislature, 3rd Called
Session, 2021, had not occurred.
(a-1) Beginning with the 2023-2024 school year, a school
district is entitled to additional state aid to the extent that
state and local revenue under this chapter and Chapter 49 is less
than the state and local revenue that would have been available to
the district under this chapter and Chapter 49 as those chapters
existed on September 1, 2022, if any increase in a residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, and any additional limitation on tax increases under
Section 1-b(d) of that article as proposed by the 88th Legislature,
Regular Session, 2023, had not occurred.
(b) The lesser of the school district's currently adopted
maintenance and operations tax rate or the adopted maintenance and
operations tax rate for:
(1) the 2021 tax year is used for the purpose of
determining additional state aid under Subsection (a); and
(2) the 2022 tax year is used for the purpose of
determining additional state aid under Subsection (a-1).
SECTION 14. Section 48.2556(a), Education Code, is amended
to read as follows:
(a) The agency shall post the following information on the
agency's Internet website for purposes of allowing the chief
appraiser of each appraisal district and the assessor for each
school district to make the calculations required by Sections
11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and
(a-12), Tax Code:
(1) each school district's maximum compressed rate, as
determined under Section 48.2551, for each tax year beginning with
the 2019 tax year; and
(2) each school district's tier one maintenance and
operations tax rate, as provided by Section 45.0032(a), for the
2018 tax year.
SECTION 15. Effective January 1, 2025, Section 48.2556(a),
Education Code, is amended to read as follows:
(a) For purposes of allowing the chief appraiser of each
appraisal district and the assessor for each school district to
make the calculations required by Section 11.26(a-10), Tax Code,
the [The] agency shall post [the following information] on the
agency's Internet website [for purposes of allowing the chief
appraiser of each appraisal district and the assessor for each
school district to make the calculations required by Sections
11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
[(1)] each school district's maximum compressed rate,
as determined under Section 48.2551, for the current [each] tax
year and the preceding [beginning with the 2019] tax year[; and
[(2) each school district's tier one maintenance and
operations tax rate, as provided by Section 45.0032(a), for the
2018 tax year].
SECTION 16. Section 49.004, Education Code, is amended by
adding Subsections (a-1), (b-1), and (c-1) to read as follows:
(a-1) This subsection applies only if the constitutional
amendment proposed by S.J.R. 3, 88th Legislature, Regular Session,
2023, is approved by the voters in an election held for that
purpose. As soon as practicable after receiving revised property
values that reflect adoption of the constitutional amendment, the
commissioner shall review the local revenue level of districts in
the state and revise as necessary the notifications provided under
Subsection (a) for the 2023-2024 school year. This subsection
expires September 1, 2024.
(b-1) This subsection applies only to a district that has
not previously held an election under this chapter. Notwithstanding
Subsection (b), a district that enters into an agreement to
exercise an option to reduce the district's local revenue level in
excess of entitlement under Section 49.002(3), (4), or (5) for the
2023-2024 school year may request and, as provided by Section
49.0042(a), receive approval from the commissioner to delay the
date of the election otherwise required to be ordered before
September 1. This subsection expires September 1, 2024.
(c-1) Notwithstanding Subsection (c), a district that
receives approval from the commissioner to delay an election as
provided by Subsection (b-1) may adopt a tax rate for the 2023 tax
year before the commissioner certifies that the district has
reduced its local revenue level to the level established by Section
48.257. This subsection expires September 1, 2024.
SECTION 17. Subchapter A, Chapter 49, Education Code, is
amended by adding Section 49.0042 to read as follows:
Sec. 49.0042. TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD
EXEMPTIONS AND LIMITATION ON TAX INCREASES. (a) The commissioner
shall approve a district's request under Section 49.004(b-1) to
delay the date of an election required under this chapter if the
commissioner determines that the district would not have a local
revenue level in excess of entitlement if the constitutional
amendment proposed by S.J.R. 3, 88th Legislature, Regular Session,
2023, were approved by the voters.
(b) The commissioner shall set a date by which each district
that receives approval under this section must order the election.
(c) Not later than the 2024-2025 school year, the
commissioner shall order detachment and annexation of property
under Subchapter G or consolidation under Subchapter H as necessary
to reduce the district's local revenue level to the level
established by Section 48.257 for a district that receives approval
under this section and subsequently:
(1) fails to hold the election; or
(2) does not receive voter approval at the election.
(d) This section expires September 1, 2025.
SECTION 18. Subchapter A, Chapter 49, Education Code, is
amended by adding Section 49.0121 to read as follows:
Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This
section applies only to an election under this chapter that occurs
during the 2023-2024 school year.
(b) Section 49.012 does not apply to a district that
receives approval of a request under Section 49.0042. The district
shall hold the election on a Tuesday or Saturday on or before a date
specified by the commissioner. Section 41.001, Election Code, does
not apply to the election.
(c) This section expires September 1, 2024.
SECTION 19. Section 49.154, Education Code, is amended by
adding Subsections (a-2) and (a-3) to read as follows:
(a-2) Notwithstanding Subsections (a) and (a-1), a district
that receives approval of a request under Section 49.0042 shall pay
for credit purchased:
(1) in equal monthly payments as determined by the
commissioner beginning March 15, 2024, and ending August 15, 2024;
or
(2) in the manner provided by Subsection (a)(2),
provided that the district notifies the commissioner of the
district's election to pay in that manner not later than March 15,
2024.
(a-3) Subsection (a-2) and this subsection expire September
1, 2024.
SECTION 20. Section 49.308, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Notwithstanding Subsection (a), for the 2023-2024
school year, the commissioner shall order any detachments and
annexations of property under this subchapter as soon as
practicable after the canvass of the votes on the constitutional
amendment proposed by S.J.R. 3, 88th Legislature, Regular Session,
2023. This subsection expires September 1, 2024.
SECTION 21. Section 403.302, Government Code, is amended by
amending Subsection (j-1) and adding Subsection (j-2) to read as
follows:
(j-1) In the final certification of the study under
Subsection (j), the comptroller shall separately identify the final
taxable value for each school district as adjusted to account for
the reduction of the amount of the limitation on tax increases
provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
(j-2) In the final certification of the study under
Subsection (j), the comptroller shall separately identify the final
taxable value for each school district as adjusted to account for
the reduction of the amount of the limitation on tax increases
provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9),
(a-10), (a-11), and (a-12), Tax Code. This subsection expires
January 1, 2025.
SECTION 22. (a) Sections 11.26(a-1), (a-2), and (a-3), Tax
Code, are repealed.
(b) Effective January 1, 2025, Sections 11.26(a-5), (a-6),
(a-7), (a-8), and (a-9), Tax Code, are repealed.
SECTION 23. The changes in law made by this Act to Sections
11.13 and 11.26, Tax Code, apply beginning with the ad valorem tax
year that begins January 1, 2023.
SECTION 24. (a) Except as provided by Subsection (b) of
this section or as otherwise provided by this Act:
(1) this Act takes effect on the date on which the
constitutional amendment proposed by S.J.R. 3, 88th Legislature,
Regular Session, 2023, takes effect; and
(2) if that amendment is not approved by the voters,
this Act has no effect.
(b) Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q),
26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and
31.02(a-1), Tax Code, and Sections 49.004(a-1), (b-1), and (c-1),
49.0042, 49.0121, 49.154(a-2) and (a-3), and 49.308(a-1),
Education Code, as added by this Act, take effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
those sections to have immediate effect, those sections take effect
on the 91st day after the last day of the legislative session.
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