Texas 2023 - 88th Regular

Texas Senate Bill SB546 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	By: Blanco S.B. No. 546
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the authority of the governing body of a taxing unit
7	7	other than a school district to adopt an exemption from ad valorem
8	8	taxation of a portion, expressed as a dollar amount, of the
9	9	appraised value of an individual's residence homestead and to the
10	10	authority of the governing body of any taxing unit that has adopted
11	11	an exemption from ad valorem taxation of a percentage of the
12	12	appraised value of an individual's residence homestead to reduce
13	13	the amount of or repeal the exemption.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 11.13, Tax Code, is amended by amending
16	16	Subsections (i) and (n) and adding Subsections (s), (t), (u), (v),
17	17	and (w) to read as follows:
18	18	(i) The assessor and collector for a taxing unit may
19	19	disregard the exemptions authorized by Subsection (b), (c), (d),
20	20	[or] (n), or (s) [of this section] and assess and collect a tax
21	21	pledged for payment of debt without deducting the amount of the
22	22	exemption if:
23	23	(1) prior to adoption of the exemption, the taxing
24	24	unit pledged the taxes for the payment of a debt; and
25	25	(2) granting the exemption would impair the obligation
26	26	of the contract creating the debt.
27	27	(n) In addition to any other exemptions provided by this
28	28	section, except for an exemption under Subsection (s), an
29	29	individual is entitled to an exemption from taxation by a taxing
30	30	unit of a percentage of the appraised value of his residence
31	31	homestead if the exemption is adopted by the governing body of the
32	32	taxing unit before July 1 in the manner provided by law for official
33	33	action by the body. If the percentage set by the taxing unit
34	34	produces an exemption in a tax year of less than $5,000 when applied
35	35	to a particular residence homestead, the individual is entitled to
36	36	an exemption of $5,000 of the appraised value. The percentage
37	37	adopted by the taxing unit may not exceed 20 percent.
38	38	(s) In addition to any other exemptions provided by this
39	39	section, except for an exemption under Subsection (n), an
40	40	individual is entitled to an exemption from taxation by a taxing
41	41	unit other than a school district of a portion of the appraised
42	42	value of the individual's residence homestead if the exemption is
43	43	adopted by the governing body of the taxing unit before July 1 in
44	44	the manner provided by law for official action by the body. The
45	45	amount of the exemption is $14,000 of the appraised value of the
46	46	residence homestead, except that if the average market value of
47	47	residence homesteads in the taxing unit in the tax year in which the
48	48	exemption is adopted exceeds $70,000, as calculated based on the
49	49	appraisal records prepared by the chief appraiser of each appraisal
50	50	district in which the taxing unit participates, the governing body
51	51	may authorize an exemption in a larger dollar amount not to exceed
52	52	an amount equal to 20 percent of the average market value of
53	53	residence homesteads in the taxing unit in the tax year in which the
54	54	exemption is adopted.
55	55	(t) This subsection applies only to a taxing unit the
56	56	governing body of which has ceased granting an exemption under
57	57	Subsection (n) and has adopted an exemption under Subsection (s).
58	58	An individual who would have been entitled to an exemption from
59	59	taxation by the taxing unit under Subsection (n) had the governing
60	60	body not ceased granting an exemption under that subsection is
61	61	entitled to continue to receive an exemption under that subsection
62	62	in lieu of the exemption under Subsection (s) if the individual
63	63	otherwise qualifies for the exemption under Subsection (n) and the
64	64	amount of the exemption under that subsection exceeds the amount of
65	65	the exemption under Subsection (s). The exemption applies only to
66	66	property for which the individual received an exemption under
67	67	Subsection (n) in the last year in which the governing body granted
68	68	an exemption under that subsection. The exemption expires in the
69	69	event of a change in ownership of the property or, if the property
70	70	is owned by a qualifying trust and the trustor of the trust or a
71	71	beneficiary of the trust has the right to use and occupy the
72	72	property as the trustor's or beneficiary's principal residential
73	73	property, a change in the trustor or beneficiary of the trust,
74	74	respectively.
75	75	(u) The governing body of any taxing unit that adopted an
76	76	exemption under Subsection (n) for the 2022 tax year may not reduce
77	77	the amount of or repeal the exemption. This subsection expires
78	78	December 31, 2032.
79	79	(v) Notwithstanding Subsection (u), the governing body of a
80	80	taxing unit other than a school district that adopted an exemption
81	81	under Subsection (n) for the 2022 tax year may repeal the exemption
82	82	if the governing body adopts an exemption under Subsection (s) in an
83	83	amount greater than $14,000. This subsection expires December 31,
84	84	2032.
85	85	(w) The exemption amounts described in Subsections (s) and
86	86	(v) and the average market value of residence homesteads amount
87	87	described in Subsection (s) apply to the 2024 tax year. For each
88	88	subsequent tax year, the comptroller shall adjust those amounts to
89	89	reflect inflation by using the index that the comptroller considers
90	90	to most accurately report changes in the purchasing power of the
91	91	dollar for consumers in this state and shall publicize the adjusted
92	92	amounts.
93	93	SECTION 2. Section 25.23(a), Tax Code, is amended to read as
94	94	follows:
95	95	(a) After submission of appraisal records, the chief
96	96	appraiser shall prepare supplemental appraisal records listing:
97	97	(1) each taxable property the chief appraiser
98	98	discovers that is not included in the records already submitted,
99	99	including property that was omitted from an appraisal roll in a
100	100	prior tax year;
101	101	(2) property on which the appraisal review board has
102	102	not determined a protest at the time of its approval of the
103	103	appraisal records; and
104	104	(3) property that qualifies for an exemption under
105	105	Section 11.13(n) or (s) that was adopted by the governing body of a
106	106	taxing unit after the date the appraisal records were submitted.
107	107	SECTION 3. This Act applies only to ad valorem taxes imposed
108	108	for a tax year that begins on or after the effective date of this
109	109	Act.
110	110	SECTION 4. This Act takes effect January 1, 2024, but only
111	111	if the constitutional amendment proposed by the 88th Legislature,
112	112	Regular Session, 2023, authorizing the governing body of a
113	113	political subdivision other than a school district to adopt an
114	114	exemption from ad valorem taxation of a portion, expressed as a
115	115	dollar amount, of the market value of an individual's residence
116	116	homestead is approved by the voters. If that amendment is not
117	117	approved by the voters, this Act has no effect.