Texas 2023 - 88th 1st C.S.

Texas Senate Bill SB1 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Bettencourt, et al. S.B. No. 1
	1	+	88S10094 CJC/TJB/KJE-D
	2	+	By: Bettencourt S.B. No. 1
2	3
3	4
4	5		A BILL TO BE ENTITLED
5	6		AN ACT
6		-	relating to a reduction in the maximum compressed tax rate of a
7		-	school district and additional state aid for certain school
8		-	districts impacted by compression, an increase in the amount of
9		-	certain exemptions from ad valorem taxation by a school district
10		-	applicable to residence homesteads, an adjustment in the amount of
11		-	the limitation on school district ad valorem taxes imposed on the
12		-	residence homesteads of the elderly or disabled to reflect
13		-	increases in the exemption amounts, and the protection of school
14		-	districts against the resulting loss in local revenue.
	7	+	relating to providing property tax relief through the public school
	8	+	finance system.
15	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	10		ARTICLE 1. SHORT TITLE
17	11		SECTION 1.01. This Act may be cited as the Property Tax
18	12		Relief Act.
19	13		ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
20	14		SECTION 2.01. Subchapter F, Chapter 48, Education Code, is
21	15		amended by adding Sections 48.2555 and 48.283 to read as follows:
22	16		Sec. 48.2555. MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
23	17		SCHOOL YEAR. (a) Notwithstanding any other provision of this title
24	18		or Chapter 26, Tax Code, for the 2023-2024 school year, the
25	19		commissioner shall calculate the value of a school district's
26	20		maximum compressed tax rate by determining the district's maximum
27	21		compressed rate under Section 48.2551 or 48.2552(b), if applicable,
28	22		and reducing the tax rate determined under the applicable section
29	23		by $0.10.
30	24		(b) If a school district's maximum compressed tax rate as
31	25		calculated under Subsection (a) would be less than 90 percent of
32	26		another school district's maximum compressed tax rate under
33	27		Subsection (a), the district's maximum compressed tax rate is the
34	28		value at which the district's maximum compressed tax rate would be
35	29		equal to 90 percent of the other district's maximum compressed tax
36	30		rate.
37	31		(c) Notwithstanding any other provision of this title or
38	32		Chapter 26, Tax Code, for purposes of determining funding for
39	33		school districts for the 2023-2024 school year, a reference in any
40	34		of the following provisions of law to a school district's maximum
41	35		compressed tax rate or maximum compressed rate as determined under
42	36		Section 48.2551 means the maximum compressed tax rate determined
43	37		for the district under this section:
44	38		(1) Section 13.054(f);
45	39		(2) Section 45.003(d);
46	40		(3) Section 45.0032(a);
47	41		(4) Section 48.051(a);
48	42		(5) Sections 48.2553(a) and (e); and
49	43		(6) Section 26.08(n), Tax Code.
50	44		(d) For purposes of Section 30.003(f-1), a reference in that
51	45		section to Section 48.2551 includes this section.
52	46		(e) Notwithstanding any other provision of this title, for
53	47		purposes of determining a school district's maximum compressed tax
54	48		rate under Section 48.2551 for the 2024-2025 school year, the value
55	49		of the district's "PYMCR" is the maximum compressed tax rate
56	50		determined for the district under this section for the preceding
57	51		school year.
58	52		(f) This section expires September 1, 2025.
59	53		Sec. 48.283. ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
60	54		IMPACTED BY COMPRESSION. (a) For the 2023-2024 and 2024-2025
61	55		school years, a school district that received an adjustment under
62	56		Section 48.257(b) for the 2022-2023 school year is entitled to
63	57		additional state aid in an amount equal to the difference, if the
64	58		difference is greater than zero, between:
65	59		(1) the amount of state and local revenue that would
66	60		have been available to the district under this chapter and Chapter
67	61		49 for the current school year if the district's maximum compressed
68	62		tax rate had not been reduced under Section 48.2555, as added by
69	63		S.B. 1, Acts of the 88th Legislature, 1st Called Session, 2023; and
70	64		(2) the amount of state and local revenue available to
71	65		the district under this chapter and Chapter 49 for the current
72	66		school year.
73	67		(b) This section expires September 1, 2026.
74	68		ARTICLE 3. SCHOOL DISTRICT RESIDENCE HOMESTEAD EXEMPTION
75	69		SECTION 3.01. Section 11.13(b), Tax Code, is amended to
76	70		read as follows:
77	71		(b) An adult is entitled to exemption from taxation by a
78	72		school district of $100,000 [$40,000] of the appraised value of the
79	73		adult's residence homestead, except that only $5,000 of the
80	74		exemption applies to an entity operating under former Chapter 17,
81	75		18, 25, 26, 27, or 28, Education Code, as those chapters existed on
82	76		May 1, 1995, as permitted by Section 11.301, Education Code.
83	77		SECTION 3.02. Section 11.26, Tax Code, is amended by
84	78		amending Subsections (a), (a-10), and (o) and adding Subsections
85	79		(a-11) and (a-12) to read as follows:
86	80		(a) The tax officials shall appraise the property to which
87	81		this section applies and calculate taxes as on other property, but
88	82		if the tax so calculated exceeds the limitation imposed by this
89	83		section, the tax imposed is the amount of the tax as limited by this
90	84		section, except as otherwise provided by this section. A school
91	85		district may not increase the total annual amount of ad valorem tax
92	86		it imposes on the residence homestead of an individual 65 years of
93	87		age or older or on the residence homestead of an individual who is
94	88		disabled, as defined by Section 11.13, above the amount of the tax
95	89		it imposed in the first tax year in which the individual qualified
96	90		that residence homestead for the applicable exemption provided by
97	91		Section 11.13(c) for an individual who is 65 years of age or older
98	92		or is disabled. If the individual qualified that residence
99	93		homestead for the exemption after the beginning of that first year
100	94		and the residence homestead remains eligible for the same exemption
101	95		for the next year, and if the school district taxes imposed on the
102	96		residence homestead in the next year are less than the amount of
103	97		taxes imposed in that first year, a school district may not
104	98		subsequently increase the total annual amount of ad valorem taxes
105	99		it imposes on the residence homestead above the amount it imposed in
106	100		the year immediately following the first year for which the
107	101		individual qualified that residence homestead for the same
108	102		exemption, except as provided by Subsection (b). [If the first tax
109	103		year the individual qualified the residence homestead for the
110	104		exemption provided by Section 11.13(c) for individuals 65 years of
111	105		age or older or disabled was a tax year before the 2015 tax year, the
112	106		amount of the limitation provided by this section is the amount of
113	107		tax the school district imposed for the 2014 tax year less an amount
114	108		equal to the amount determined by multiplying $10,000 times the tax
115	109		rate of the school district for the 2015 tax year, plus any 2015 tax
116	110		attributable to improvements made in 2014, other than improvements
117	111		made to comply with governmental regulations or repairs.]
118	112		(a-10) Notwithstanding the other provisions of this
119	113		section, if in the 2024 or a subsequent tax year an individual
120	114		qualifies for a limitation on tax increases provided by this
121	115		section on the individual's residence homestead, the amount of the
122	116		limitation provided by this section on the homestead is equal to the
123	117		amount computed by:
124	118		(1) multiplying the taxable value of the homestead in
125	119		the preceding tax year by a tax rate equal to the difference between
126	120		the school district's maximum compressed rate for the preceding tax
127	121		year and the district's maximum compressed rate for the current tax
128	122		year;
129	123		(2) subtracting the amount computed under Subdivision
130	124		(1) from the amount of tax the district imposed on the homestead in
131	125		the preceding tax year; [and]
132	126		(3) adding any tax imposed in the current tax year
133	127		attributable to improvements made in the preceding tax year as
134	128		provided by Subsection (b) to the amount computed under Subdivision
135	129		(2);
136	130		(4) multiplying the amount of any increase in the
137	131		current tax year as compared to the preceding tax year in the
138	132		aggregate amount of the exemptions to which the individual is
139	133		entitled under Sections 11.13(b) and (c) by the school district's
140	134		tax rate for the current tax year; and
141	135		(5) subtracting the amount computed under Subdivision
142	136		(4) from the amount computed under Subdivision (3).
143	137		(a-11) This subsection applies only to an individual who in
144	138		the 2023 tax year qualifies for a limitation under this section and
145	139		for whom the 2022 tax year or an earlier tax year was the first tax
146	140		year the individual or the individual's spouse qualified for an
147	141		exemption under Section 11.13(c). The amount of the limitation
148	142		provided by this section on the residence homestead of an
149	143		individual to which this subsection applies for the 2023 tax year is
150	144		the amount of the limitation as computed under Subsection (a-5),
151	145		(a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less
152	146		an amount equal to the product of $60,000 and the tax rate of the
153	147		school district for the 2023 tax year. This subsection expires
154	148		January 1, 2025.
155	149		(a-12) This subsection applies only to an individual who in
156	150		the 2023 tax year qualifies for a limitation under this section and
157	151		for whom the 2021 tax year or an earlier tax year was the first tax
158	152		year the individual or the individual's spouse qualified for an
159	153		exemption under Section 11.13(c). The amount of the limitation
160	154		provided by this section on the residence homestead of an
161	155		individual to which this subsection applies for the 2023 tax year is
162	156		the amount of the limitation as computed under Subsection (a-11) of
163	157		this section less an amount equal to the product of $15,000 and the
164	158		tax rate of the school district for the 2022 tax year. This
165	159		subsection expires January 1, 2025.
166	160		(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
167	161		improvement to property that would otherwise constitute an
168	162		improvement under Subsection (b) is not treated as an improvement
169	163		under that subsection if the improvement is a replacement structure
170	164		for a structure that was rendered uninhabitable or unusable by a
171	165		casualty or by wind or water damage. For purposes of appraising the
172	166		property in the tax year in which the structure would have
173	167		constituted an improvement under Subsection (b), the replacement
174	168		structure is considered to be an improvement under that subsection
175	169		only if:
176	170		(1) the square footage of the replacement structure
177	171		exceeds that of the replaced structure as that structure existed
178	172		before the casualty or damage occurred; or
179	173		(2) the exterior of the replacement structure is of
180	174		higher quality construction and composition than that of the
181	175		replaced structure.
182	176		SECTION 3.03. Section 46.071, Education Code, is amended by
183	177		amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
184	178		(b-2), and (c-2) to read as follows:
185	179		(a-1) For [Beginning with] the 2022-2023 school year, a
186	180		school district is entitled to additional state aid under this
187	181		subchapter to the extent that state and local revenue used to
188	182		service debt eligible under this chapter is less than the state and
189	183		local revenue that would have been available to the district under
190	184		this chapter as it existed on September 1, 2021, if any increase in
191	185		the residence homestead exemption under Section 1-b(c), Article
192	186		VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd
193	187		Called Session, 2021, had not occurred.
194	188		(a-2) Beginning with the 2023-2024 school year, a school
195	189		district is entitled to additional state aid under this subchapter
196	190		to the extent that state and local revenue used to service debt
197	191		eligible under this chapter is less than the state and local revenue
198	192		that would have been available to the district under this chapter as
199	193		it existed on September 1, 2022, if any increase in a residence
200	194		homestead exemption under Section 1-b(c), Article VIII, Texas
201	195		Constitution, and any additional limitation on tax increases under
202	196		Section 1-b(d) of that article as proposed by the 88th Legislature,
203	197		1st Called Session, 2023, had not occurred.
204	198		(b-1) Subject to Subsections (c-1), (d), and (e),
205	199		additional state aid under this section for [beginning with] the
206	200		2022-2023 school year is equal to the amount by which the loss of
207	201		local interest and sinking revenue for debt service attributable to
208	202		any increase in the residence homestead exemption under Section
209	203		1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
210	204		Legislature, 3rd Called Session, 2021, is not offset by a gain in
211	205		state aid under this chapter.
212	206		(b-2) Subject to Subsections (c-2), (d), and (e),
213	207		additional state aid under this section beginning with the
214	208		2023-2024 school year is equal to the amount by which the loss of
215	209		local interest and sinking revenue for debt service attributable to
216	210		any increase in a residence homestead exemption under Section
217	211		1-b(c), Article VIII, Texas Constitution, and any additional
218	212		limitation on tax increases under Section 1-b(d) of that article as
219	213		proposed by the 88th Legislature, 1st Called Session, 2023, is not
220	214		offset by a gain in state aid under this chapter.
221	215		(c-2) For the purpose of determining state aid under
222	216		Subsections (a-2) and (b-2), local interest and sinking revenue for
223	217		debt service is limited to revenue required to service debt
224	218		eligible under this chapter as of September 1, 2023, including
225	219		refunding of that debt, subject to Section 46.061. The limitation
226	220		imposed by Section 46.034(a) does not apply for the purpose of
227	221		determining state aid under this section.
228	222		SECTION 3.04. Section 48.2542, Education Code, is amended
229	223		to read as follows:
230	224		Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
231	225		LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
232	226		Notwithstanding any other provision of this chapter, if a school
233	227		district is not fully compensated through state aid or the
234	228		calculation of excess local revenue under this chapter based on the
235	229		determination of the district's taxable value of property under
236	230		Subchapter M, Chapter 403, Government Code, the district is
237	231		entitled to additional state aid in the amount necessary to fully
238	232		compensate the district for the amount of ad valorem tax revenue
239	233		lost due to a reduction of the amount of the limitation on tax
240	234		increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
241	235		(a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as
242	236		applicable.
243	237		SECTION 3.05. Effective January 1, 2025, Section 48.2542,
244	238		Education Code, is amended to read as follows:
245	239		Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
246	240		LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
247	241		Notwithstanding any other provision of this chapter, if a school
248	242		district is not fully compensated through state aid or the
249	243		calculation of excess local revenue under this chapter based on the
250	244		determination of the district's taxable value of property under
251	245		Subchapter M, Chapter 403, Government Code, the district is
252	246		entitled to additional state aid in the amount necessary to fully
253	247		compensate the district for the amount of ad valorem tax revenue
254	248		lost due to a reduction of the amount of the limitation on tax
255	249		increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
256	250		(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
257	251		applicable].
258	252		SECTION 3.06. Section 48.2543, Education Code, is amended
259	253		to read as follows:
260	254		Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
261	255		(a) For [Beginning with] the 2022-2023 school year, a school
262	256		district is entitled to additional state aid to the extent that
263	257		state and local revenue under this chapter and Chapter 49 is less
264	258		than the state and local revenue that would have been available to
265	259		the district under this chapter and Chapter 49 as those chapters
266	260		existed on September 1, 2021, if any increase in the residence
267	261		homestead exemption under Section 1-b(c), Article VIII, Texas
268	262		Constitution, as proposed by the 87th Legislature, 3rd Called
269	263		Session, 2021, had not occurred.
270	264		(a-1) Beginning with the 2023-2024 school year, a school
271	265		district is entitled to additional state aid to the extent that
272	266		state and local revenue under this chapter and Chapter 49 is less
273	267		than the state and local revenue that would have been available to
274	268		the district under this chapter and Chapter 49 as those chapters
275	269		existed on September 1, 2022, if any increase in a residence
276	270		homestead exemption under Section 1-b(c), Article VIII, Texas
277	271		Constitution, and any additional limitation on tax increases under
278	272		Section 1-b(d) of that article as proposed by the 88th Legislature,
279	273		1st Called Session, 2023, had not occurred.
280	274		(b) The lesser of the school district's currently adopted
281	275		maintenance and operations tax rate or the adopted maintenance and
282	276		operations tax rate for:
283	277		(1) the 2021 tax year is used for the purpose of
284	278		determining additional state aid under Subsection (a); and
285	279		(2) the 2022 tax year is used for the purpose of
286	280		determining additional state aid under Subsection (a-1).
287	281		SECTION 3.07. Section 48.2556(a), Education Code, is
288	282		amended to read as follows:
289	283		(a) The agency shall post the following information on the
290	284		agency's Internet website for purposes of allowing the chief
291	285		appraiser of each appraisal district and the assessor for each
292	286		school district to make the calculations required by Sections
293	287		11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and
294	288		(a-12), Tax Code:
295	289		(1) each school district's maximum compressed rate, as
296	290		determined under Section 48.2551, for each tax year beginning with
297	291		the 2019 tax year; and
298	292		(2) each school district's tier one maintenance and
299	293		operations tax rate, as provided by Section 45.0032(a), for the
300	294		2018 tax year.
301	295		SECTION 3.08. Effective January 1, 2025, Section
302	296		48.2556(a), Education Code, is amended to read as follows:
303	297		(a) For purposes of allowing the chief appraiser of each
304	298		appraisal district and the assessor for each school district to
305	299		make the calculations required by Section 11.26(a-10), Tax Code,
306	300		the [The] agency shall post [the following information] on the
307	301		agency's Internet website [for purposes of allowing the chief
308	302		appraiser of each appraisal district and the assessor for each
309	303		school district to make the calculations required by Sections
310	304		11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
311	305		[(1)] each school district's maximum compressed rate,
312	306		as determined under Section 48.2551, for the current [each] tax
313	307		year and the preceding [beginning with the 2019] tax year[; and
314	308		[(2) each school district's tier one maintenance and
315	309		operations tax rate, as provided by Section 45.0032(a), for the
316	310		2018 tax year].
317	311		SECTION 3.09. Section 49.004, Education Code, is amended by
318	312		adding Subsections (a-1), (b-1), and (c-1) to read as follows:
319	313		(a-1) This subsection applies only if the constitutional
320	314		amendment proposed by S.J.R. 1, 88th Legislature, 1st Called
321	315		Session, 2023, is approved by the voters in an election held for
322	316		that purpose. As soon as practicable after receiving revised
323	317		property values that reflect adoption of the constitutional
324	318		amendment, the commissioner shall review the local revenue level of
325	319		districts in the state and revise as necessary the notifications
326	320		provided under Subsection (a) for the 2023-2024 school year. This
327	321		subsection expires September 1, 2024.
328	322		(b-1) This subsection applies only to a district that has
329	323		not previously held an election under this chapter. Notwithstanding
330	324		Subsection (b), a district that enters into an agreement to
331	325		exercise an option to reduce the district's local revenue level in
332	326		excess of entitlement under Section 49.002(3), (4), or (5) for the
333	327		2023-2024 school year may request and, as provided by Section
334	328		49.0042(a), receive approval from the commissioner to delay the
335	329		date of the election otherwise required to be ordered before
336	330		September 1. This subsection expires September 1, 2024.
337	331		(c-1) Notwithstanding Subsection (c), a district that
338	332		receives approval from the commissioner to delay an election as
339	333		provided by Subsection (b-1) may adopt a tax rate for the 2023 tax
340	334		year before the commissioner certifies that the district has
341	335		reduced its local revenue level to the level established by Section
342	336		48.257. This subsection expires September 1, 2024.
343	337		SECTION 3.10. Subchapter A, Chapter 49, Education Code, is
344	338		amended by adding Section 49.0042 to read as follows:
345	339		Sec. 49.0042. TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD
346	340		EXEMPTIONS AND LIMITATION ON TAX INCREASES. (a) The commissioner
347	341		shall approve a district's request under Section 49.004(b-1) to
348	342		delay the date of an election required under this chapter if the
349	343		commissioner determines that the district would not have a local
350	344		revenue level in excess of entitlement if the constitutional
351	345		amendment proposed by S.J.R. 1, 88th Legislature, 1st Called
352	346		Session, 2023, were approved by the voters.
353	347		(b) The commissioner shall set a date by which each district
354	348		that receives approval under this section must order the election.
355	349		(c) Not later than the 2024-2025 school year, the
356	350		commissioner shall order detachment and annexation of property
357	351		under Subchapter G or consolidation under Subchapter H as necessary
358	352		to reduce the district's local revenue level to the level
359	353		established by Section 48.257 for a district that receives approval
360	354		under this section and subsequently:
361	355		(1) fails to hold the election; or
362	356		(2) does not receive voter approval at the election.
363	357		(d) This section expires September 1, 2025.
364	358		SECTION 3.11. Subchapter A, Chapter 49, Education Code, is
365	359		amended by adding Section 49.0121 to read as follows:
366	360		Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This
367	361		section applies only to an election under this chapter that occurs
368	362		during the 2023-2024 school year.
369	363		(b) Section 49.012 does not apply to a district that
370	364		receives approval of a request under Section 49.0042. The district
371	365		shall hold the election on a Tuesday or Saturday on or before a date
372	366		specified by the commissioner. Section 41.001, Election Code, does
373	367		not apply to the election.
374	368		(c) This section expires September 1, 2024.
375	369		SECTION 3.12. Section 49.154, Education Code, is amended by
376	370		adding Subsections (a-2) and (a-3) to read as follows:
377	371		(a-2) Notwithstanding Subsections (a) and (a-1), a district
378	372		that receives approval of a request under Section 49.0042 shall pay
379	373		for credit purchased:
380	374		(1) in equal monthly payments as determined by the
381	375		commissioner beginning March 15, 2024, and ending August 15, 2024;
382	376		or
383	377		(2) in the manner provided by Subsection (a)(2),
384	378		provided that the district notifies the commissioner of the
385	379		district's election to pay in that manner not later than March 15,
386	380		2024.
387	381		(a-3) Subsection (a-2) and this subsection expire September
388	382		1, 2024.
389	383		SECTION 3.13. Section 49.308, Education Code, is amended by
390	384		adding Subsection (a-1) to read as follows:
391	385		(a-1) Notwithstanding Subsection (a), for the 2023-2024
392	386		school year, the commissioner shall order any detachments and
393	387		annexations of property under this subchapter as soon as
394	388		practicable after the canvass of the votes on the constitutional
395	389		amendment proposed by S.J.R. 1, 88th Legislature, 1st Called
396	390		Session, 2023. This subsection expires September 1, 2024.
397	391		SECTION 3.14. Section 403.302, Government Code, is amended
398	392		by amending Subsection (j-1) and adding Subsection (j-2) to read as
399	393		follows:
400	394		(j-1) In the final certification of the study under
401	395		Subsection (j), the comptroller shall separately identify the final
402	396		taxable value for each school district as adjusted to account for
403	397		the reduction of the amount of the limitation on tax increases
404	398		provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
405	399		(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
406	400		(j-2) In the final certification of the study under
407	401		Subsection (j), the comptroller shall separately identify the final
408	402		taxable value for each school district as adjusted to account for
409	403		the reduction of the amount of the limitation on tax increases
410	404		provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9),
411	405		(a-10), (a-11), and (a-12), Tax Code. This subsection expires
412	406		January 1, 2025.
413	407		SECTION 3.15. Section 25.23, Tax Code, is amended by adding
414	408		Subsection (a-1) to read as follows:
415	409		(a-1) This subsection applies only to the appraisal records
416	410		for the 2023 tax year. The chief appraiser shall prepare
417	411		supplemental appraisal records to account for the changes in law
418	412		made by S.B. 1, Acts of the 88th Legislature, 1st Called Session,
419	413		2023. This subsection expires December 31, 2024.
420	414		SECTION 3.16. Section 26.04, Tax Code, is amended by adding
421	415		Subsections (a-1) and (c-1) to read as follows:
422	416		(a-1) On receipt of the appraisal roll for the 2023 tax
423	417		year, the assessor for a school district shall determine the total
424	418		taxable value of property taxable by the district and the taxable
425	419		value of new property as if the changes in law made by S.B. 1, Acts
426	420		of the 88th Legislature, 1st Called Session, 2023, were in effect
427	421		for that tax year. This subsection expires December 31, 2024.
428	422		(c-1) An officer or employee designated by the governing
429	423		body of a school district shall calculate the no-new-revenue tax
430	424		rate and the voter-approval tax rate of the district for the 2023
431	425		tax year as if the changes in law made by S.B. 1, Acts of the 88th
432	426		Legislature, 1st Called Session, 2023, were in effect for that tax
433	427		year. This subsection expires December 31, 2024.
434	428		SECTION 3.17. Section 26.08, Tax Code, is amended by adding
435	429		Subsection (q) to read as follows:
436	430		(q) For purposes of this section, the voter-approval tax
437	431		rate of a school district for the 2023 tax year shall be calculated
438	432		as if the changes in law made by S.B. 1, Acts of the 88th
439	433		Legislature, 1st Called Session, 2023, were in effect for that tax
440	434		year. This subsection expires December 31, 2024.
441	435		SECTION 3.18. Section 26.09, Tax Code, is amended by adding
442	436		Subsection (c-1) to read as follows:
443	437		(c-1) The assessor for a school district shall calculate the
444	438		amount of tax imposed by the district on a residence homestead for
445	439		the 2023 tax year as if the changes in law made by S.B. 1, Acts of
446	440		the 88th Legislature, 1st Called Session, 2023, were in effect for
447	441		that tax year and also as if the changes in law made by that Act were
448	442		not in effect for that tax year. This subsection expires December
449	443		31, 2024.
450	444		SECTION 3.19. Section 26.15, Tax Code, is amended by adding
451	445		Subsection (h) to read as follows:
452	446		(h) The assessor for a school district shall correct the tax
453	447		roll for the district for the 2023 tax year to reflect the results
454	448		of the election to approve the constitutional amendment proposed by
455	449		S.J.R. 1, 88th Legislature, 1st Called Session, 2023. This
456	450		subsection expires December 31, 2024.
457	451		SECTION 3.20. Section 31.01, Tax Code, is amended by adding
458	452		Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
459	453		(d-2) This subsection and Subsections (d-3) and (d-4) apply
460	454		only to taxes imposed by a school district on a residence homestead
461	455		for the 2023 tax year and only if the changes in law made by S.B. 1,
462	456		Acts of the 88th Legislature, 1st Called Session, 2023, would lower
463	457		the taxes imposed by the district on the property for that tax year.
464	458		The assessor for the district shall compute the amount of taxes
465	459		imposed and the other information required by this section as if the
466	460		changes in law made by S.B. 1, Acts of the 88th Legislature, 1st
467	461		Called Session, 2023, were in effect for that tax year. The tax
468	462		bill or the separate statement must indicate that the bill is a
469	463		provisional tax bill and include a statement in substantially the
470	464		following form:
471	465		"If the Texas Legislature had not enacted property tax relief
472	466		legislation during the 2023 legislative session, your tax bill
473	467		would have been $____ (insert amount of tax bill if the changes in
474	468		law made by S.B. 1, Acts of the 88th Legislature, 1st Called
475	469		Session, 2023, were not in effect for that tax year). Because of
476	470		action by the Texas Legislature, your tax bill has been lowered by
477	471		$____ (insert difference between amount of tax bill if the changes
478	472		in law made by S.B. 1, Acts of the 88th Legislature, 1st Called
479	473		Session, 2023, were not in effect for that tax year and amount of
480	474		tax bill if that Act were in effect for that tax year), resulting in
481	475		a lower tax bill of $____ (insert amount of tax bill if the changes
482	476		in law made by S.B. 1, Acts of the 88th Legislature, 1st Called
483	477		Session, 2023, were in effect for that tax year), contingent on
484	478		the approval by the voters at an election to be held November 7,
485	479		2023, of the constitutional amendment proposed by S.J.R. 1, 88th
486	480		Legislature, 1st Called Session, 2023. If that constitutional
487	481		amendment is not approved by the voters at the election, a
488	482		supplemental tax bill in the amount of $____ (insert difference
489	483		between amount of tax bill if the changes in law made by S.B. 1, Acts
490	484		of the 88th Legislature, 1st Called Session, 2023, were not in
491	485		effect for that tax year and amount of tax bill if that Act were in
492	486		effect for that tax year) will be mailed to you."
493	487		(d-3) A tax bill prepared by the assessor for a school
494	488		district as provided by Subsection (d-2) and mailed as provided by
495	489		Subsection (a) is considered to be a provisional tax bill until the
496	490		canvass of the votes on the constitutional amendment proposed by
497	491		S.J.R. 1, 88th Legislature, 1st Called Session, 2023. If the
498	492		constitutional amendment is approved by the voters, the tax bill is
499	493		considered to be a final tax bill for the taxes imposed on the
500	494		property for the 2023 tax year, and no additional tax bill is
501	495		required to be mailed unless another provision of this title
502	496		requires the mailing of a corrected tax bill. If the constitutional
503	497		amendment is not approved by the voters:
504	498		(1) a tax bill prepared by the assessor as provided by
505	499		Subsection (d-2) is considered to be a final tax bill but only as to
506	500		the portion of the taxes imposed on the property for the 2023 tax
507	501		year that are included in the bill;
508	502		(2) the amount of taxes imposed by each school
509	503		district on a residence homestead for the 2023 tax year is
510	504		calculated as if the changes in law made by S.B. 1, Acts of the 88th
511	505		Legislature, 1st Called Session, 2023, were not in effect for that
512	506		tax year; and
513	507		(3) except as provided by Subsections (f), (i-1), and
514	508		(k), the assessor for each school district shall prepare and mail a
515	509		supplemental tax bill, by December 1 or as soon thereafter as
516	510		practicable, in an amount equal to the difference between the
517	511		amount of the tax bill if the changes in law made by S.B. 1, Acts of
518	512		the 88th Legislature, 1st Called Session, 2023, were not in effect
519	513		for that tax year and the amount of the tax bill if that Act were in
520	514		effect for that tax year.
521	515		(d-4) Except as otherwise provided by Subsection (d-3), the
522	516		provisions of this section other than Subsection (d-2) apply to a
523	517		supplemental tax bill mailed under Subsection (d-3).
524	518		(d-5) This subsection and Subsections (d-2), (d-3), and
525	519		(d-4) expire December 31, 2024.
526	520		SECTION 3.21. Section 31.02, Tax Code, is amended by adding
527	521		Subsection (a-1) to read as follows:
528	522		(a-1) Except as provided by Subsection (b) of this section
529	523		and Sections 31.03 and 31.04, taxes for which a supplemental tax
530	524		bill is mailed under Section 31.01(d-3) are due on receipt of the
531	525		tax bill and are delinquent if not paid before March 1 of the year
532	526		following the year in which imposed. This subsection expires
533	527		December 31, 2024.
534	528		SECTION 3.22. (a) Sections 11.26(a-1), (a-2), and (a-3),
535	529		Tax Code, are repealed.
536	530		(b) Effective January 1, 2025, Sections 11.26(a-5), (a-6),
537	531		(a-7), (a-8), and (a-9), Tax Code, are repealed.
538	532		SECTION 3.23. The changes in law made by this article to
539	533		Sections 11.13 and 11.26, Tax Code, apply beginning with the ad
540	534		valorem tax year that begins January 1, 2023.
541	535		ARTICLE 4. EFFECTIVE DATES
542	536		SECTION 4.01. Except as otherwise provided by this article,
543	537		this Act takes effect on the 91st day after the last day of the
544	538		legislative session.
545	539		SECTION 4.02. (a) Except as provided by Subsection (b) of
546	540		this section or as otherwise provided by Article 3 of this Act:
547	541		(1) Article 3 of this Act takes effect on the date on
548	542		which the constitutional amendment proposed by S.J.R. 1, 88th
549	543		Legislature, 1st Called Session, 2023, takes effect; and
550	544		(2) if that amendment is not approved by the voters,
551	545		Article 3 of this Act has no effect.
552	546		(b) Sections 49.004(a-1), (b-1), and (c-1), 49.0042,
553	547		49.0121, 49.154(a-2) and (a-3), and 49.308(a-1), Education Code,
554	548		and Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q),
555	549		26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and
556	550		31.02(a-1), Tax Code, as added by Article 3 of this Act, take effect
557	551		immediately if this Act receives a vote of two-thirds of all the
558	552		members elected to each house, as provided by Section 39, Article
559	553		III, Texas Constitution. If this Act does not receive the vote
560	554		necessary for those sections to have immediate effect, those
561	555		sections take effect on the 91st day after the last day of the
562	556		legislative session.