Texas 2023 - 88th 1st C.S.

Texas Senate Bill SB26 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Bettencourt, et al. S.B. No. 26
	1	+	88S10213 CJC/KJE-D
	2	+	By: Bettencourt S.B. No. 26
2	3
3	4
4	5		A BILL TO BE ENTITLED
5	6		AN ACT
6	7		relating to providing property tax relief through the public school
7	8		finance system, exemptions, and limitations on taxes and providing
8	9		franchise tax relief.
9	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	11		ARTICLE 1. SHORT TITLE
11	12		SECTION 1.01. This Act may be cited as the Property Tax and
12	13		Franchise Tax Relief Act.
13	14		ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
14	15		SECTION 2.01. Section 48.255(b), Education Code, is amended
15	16		to read as follows:
16	17		(b) The state compression percentage is the lower of:
17	18		(1) 93 percent, or a lower percentage set by
18	19		appropriation for a school year;
19	20		(2) the percentage determined by the following
20	21		formula:
21	22		SCP = PYCP X 1.0175 [1.025]/(1 + ECPV); or
22	23		(3) the percentage determined under this section for
23	24		the preceding school year.
24	25		SECTION 2.02. Section 48.2551(b), Education Code, is
25	26		amended to read as follows:
26	27		(b) Except as provided by Subsection (c), a district's
27	28		maximum compressed rate ("MCR") is the lesser of:
28	29		(1) the rate determined by the following applicable
29	30		formula:
30	31		(A) if "DPV" exceeds "PYDPV" by an amount equal
31	32		to or greater than 1.75 [2.5] percent:
32	33		MCR = (1.0175 [1.025]((PYDPV+E) X PYMCR))/DPV; or
33	34		(B) if Paragraph (A) does not apply:
34	35		MCR = PYMCR; or
35	36		(2) the product of the state compression percentage,
36	37		as determined under Section 48.255, for the current tax year,
37	38		multiplied by $1.00.
38	39		SECTION 2.03. Subchapter F, Chapter 48, Education Code, is
39	40		amended by adding Sections 48.2555 and 48.283 to read as follows:
40	41		Sec. 48.2555. MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
41	42		SCHOOL YEAR. (a) Notwithstanding any other provision of this title
42	43		or Chapter 26, Tax Code, for the 2023-2024 school year, the
43	44		commissioner shall calculate the value of a school district's
44	45		maximum compressed tax rate by determining the district's maximum
45	46		compressed rate under Section 48.2551 or 48.2552(b), if applicable,
46	47		and reducing the tax rate determined under the applicable section
47	48		by $0.10.
48	49		(b) If a school district's maximum compressed tax rate as
49	50		calculated under Subsection (a) would be less than 90 percent of
50	51		another school district's maximum compressed tax rate under
51	52		Subsection (a), the district's maximum compressed tax rate is the
52	53		value at which the district's maximum compressed tax rate would be
53	54		equal to 90 percent of the other district's maximum compressed tax
54	55		rate.
55	56		(c) Notwithstanding any other provision of this title or
56	57		Chapter 26, Tax Code, for purposes of determining funding for
57	58		school districts for the 2023-2024 school year, a reference in any
58	59		of the following provisions of law to a school district's maximum
59	60		compressed tax rate or maximum compressed rate as determined under
60	61		Section 48.2551 means the maximum compressed tax rate determined
61	62		for the district under this section:
62	63		(1) Section 13.054(f);
63	64		(2) Section 45.003(d);
64	65		(3) Section 45.0032(a);
65	66		(4) Section 48.051(a);
66	67		(5) Sections 48.2553(a) and (e); and
67	68		(6) Section 26.08(n), Tax Code.
68	69		(d) For purposes of Section 30.003(f-1), a reference in that
69	70		section to Section 48.2551 includes this section.
70	71		(e) Notwithstanding any other provision of this title, for
71	72		purposes of determining a school district's maximum compressed tax
72	73		rate under Section 48.2551 for the 2024-2025 school year, the value
73	74		of the district's "PYMCR" is the maximum compressed tax rate
74	75		determined for the district under this section for the preceding
75	76		school year.
76	77		(f) This section expires September 1, 2025.
77	78		Sec. 48.283. ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
78	79		IMPACTED BY COMPRESSION. (a) For the 2023-2024 and 2024-2025
79	80		school years, a school district that received an adjustment under
80	81		Section 48.257(b) for the 2022-2023 school year is entitled to
81	82		additional state aid in an amount equal to the difference, if the
82	83		difference is greater than zero, between:
83	84		(1) the amount of state and local revenue that would
84	85		have been available to the district under this chapter and Chapter
85	86		49 for the current school year if the district's maximum compressed
86	87		tax rate had not been reduced under Section 48.2555, as added by
87		-	S.B. 26, Acts of the 88th Legislature, 1st Called Session, 2023; and
	88	+	S.B. _, Acts of the 88th Legislature, 1st Called Session, 2023; and
88	89		(2) the amount of state and local revenue available to
89	90		the district under this chapter and Chapter 49 for the current
90	91		school year.
91	92		(b) This section expires September 1, 2026.
92	93		ARTICLE 3. SCHOOL DISTRICT RESIDENCE HOMESTEAD EXEMPTION
93	94		SECTION 3.01. Section 11.13(b), Tax Code, is amended to
94	95		read as follows:
95	96		(b) An adult is entitled to exemption from taxation by a
96	97		school district of $100,000 [$40,000] of the appraised value of the
97	98		adult's residence homestead, except that only $5,000 of the
98	99		exemption applies to an entity operating under former Chapter 17,
99	100		18, 25, 26, 27, or 28, Education Code, as those chapters existed on
100	101		May 1, 1995, as permitted by Section 11.301, Education Code.
101	102		SECTION 3.02. Section 11.26, Tax Code, is amended by
102	103		amending Subsections (a), (a-10), and (o) and adding Subsections
103	104		(a-11) and (a-12) to read as follows:
104	105		(a) The tax officials shall appraise the property to which
105	106		this section applies and calculate taxes as on other property, but
106	107		if the tax so calculated exceeds the limitation imposed by this
107	108		section, the tax imposed is the amount of the tax as limited by this
108	109		section, except as otherwise provided by this section. A school
109	110		district may not increase the total annual amount of ad valorem tax
110	111		it imposes on the residence homestead of an individual 65 years of
111	112		age or older or on the residence homestead of an individual who is
112	113		disabled, as defined by Section 11.13, above the amount of the tax
113	114		it imposed in the first tax year in which the individual qualified
114	115		that residence homestead for the applicable exemption provided by
115	116		Section 11.13(c) for an individual who is 65 years of age or older
116	117		or is disabled. If the individual qualified that residence
117	118		homestead for the exemption after the beginning of that first year
118	119		and the residence homestead remains eligible for the same exemption
119	120		for the next year, and if the school district taxes imposed on the
120	121		residence homestead in the next year are less than the amount of
121	122		taxes imposed in that first year, a school district may not
122	123		subsequently increase the total annual amount of ad valorem taxes
123	124		it imposes on the residence homestead above the amount it imposed in
124	125		the year immediately following the first year for which the
125	126		individual qualified that residence homestead for the same
126	127		exemption, except as provided by Subsection (b). [If the first tax
127	128		year the individual qualified the residence homestead for the
128	129		exemption provided by Section 11.13(c) for individuals 65 years of
129	130		age or older or disabled was a tax year before the 2015 tax year, the
130	131		amount of the limitation provided by this section is the amount of
131	132		tax the school district imposed for the 2014 tax year less an amount
132	133		equal to the amount determined by multiplying $10,000 times the tax
133	134		rate of the school district for the 2015 tax year, plus any 2015 tax
134	135		attributable to improvements made in 2014, other than improvements
135	136		made to comply with governmental regulations or repairs.]
136	137		(a-10) Notwithstanding the other provisions of this
137	138		section, if in the 2024 or a subsequent tax year an individual
138	139		qualifies for a limitation on tax increases provided by this
139	140		section on the individual's residence homestead, the amount of the
140	141		limitation provided by this section on the homestead is equal to the
141	142		amount computed by:
142	143		(1) multiplying the taxable value of the homestead in
143	144		the preceding tax year by a tax rate equal to the difference between
144	145		the school district's maximum compressed rate for the preceding tax
145	146		year and the district's maximum compressed rate for the current tax
146	147		year;
147	148		(2) subtracting the amount computed under Subdivision
148	149		(1) from the amount of tax the district imposed on the homestead in
149	150		the preceding tax year; [and]
150	151		(3) adding any tax imposed in the current tax year
151	152		attributable to improvements made in the preceding tax year as
152	153		provided by Subsection (b) to the amount computed under Subdivision
153	154		(2);
154	155		(4) multiplying the amount of any increase in the
155	156		current tax year as compared to the preceding tax year in the
156	157		aggregate amount of the exemptions to which the individual is
157	158		entitled under Sections 11.13(b) and (c) by the school district's
158	159		tax rate for the current tax year; and
159	160		(5) subtracting the amount computed under Subdivision
160	161		(4) from the amount computed under Subdivision (3).
161	162		(a-11) This subsection applies only to an individual who in
162	163		the 2023 tax year qualifies for a limitation under this section and
163	164		for whom the 2022 tax year or an earlier tax year was the first tax
164	165		year the individual or the individual's spouse qualified for an
165	166		exemption under Section 11.13(c). The amount of the limitation
166	167		provided by this section on the residence homestead of an
167	168		individual to which this subsection applies for the 2023 tax year is
168	169		the amount of the limitation as computed under Subsection (a-5),
169	170		(a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less
170	171		an amount equal to the product of $60,000 and the tax rate of the
171	172		school district for the 2023 tax year. This subsection expires
172	173		January 1, 2025.
173	174		(a-12) This subsection applies only to an individual who in
174	175		the 2023 tax year qualifies for a limitation under this section and
175	176		for whom the 2021 tax year or an earlier tax year was the first tax
176	177		year the individual or the individual's spouse qualified for an
177	178		exemption under Section 11.13(c). The amount of the limitation
178	179		provided by this section on the residence homestead of an
179	180		individual to which this subsection applies for the 2023 tax year is
180	181		the amount of the limitation as computed under Subsection (a-11) of
181	182		this section less an amount equal to the product of $15,000 and the
182	183		tax rate of the school district for the 2022 tax year. This
183	184		subsection expires January 1, 2025.
184	185		(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
185	186		improvement to property that would otherwise constitute an
186	187		improvement under Subsection (b) is not treated as an improvement
187	188		under that subsection if the improvement is a replacement structure
188	189		for a structure that was rendered uninhabitable or unusable by a
189	190		casualty or by wind or water damage. For purposes of appraising the
190	191		property in the tax year in which the structure would have
191	192		constituted an improvement under Subsection (b), the replacement
192	193		structure is considered to be an improvement under that subsection
193	194		only if:
194	195		(1) the square footage of the replacement structure
195	196		exceeds that of the replaced structure as that structure existed
196	197		before the casualty or damage occurred; or
197	198		(2) the exterior of the replacement structure is of
198	199		higher quality construction and composition than that of the
199	200		replaced structure.
200	201		SECTION 3.03. Section 46.071, Education Code, is amended by
201	202		amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
202	203		(b-2), and (c-2) to read as follows:
203	204		(a-1) For [Beginning with] the 2022-2023 school year, a
204	205		school district is entitled to additional state aid under this
205	206		subchapter to the extent that state and local revenue used to
206	207		service debt eligible under this chapter is less than the state and
207	208		local revenue that would have been available to the district under
208	209		this chapter as it existed on September 1, 2021, if any increase in
209	210		the residence homestead exemption under Section 1-b(c), Article
210	211		VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd
211	212		Called Session, 2021, had not occurred.
212	213		(a-2) Beginning with the 2023-2024 school year, a school
213	214		district is entitled to additional state aid under this subchapter
214	215		to the extent that state and local revenue used to service debt
215	216		eligible under this chapter is less than the state and local revenue
216	217		that would have been available to the district under this chapter as
217	218		it existed on September 1, 2022, if any increase in a residence
218	219		homestead exemption under Section 1-b(c), Article VIII, Texas
219	220		Constitution, and any additional limitation on tax increases under
220	221		Section 1-b(d) of that article as proposed by the 88th Legislature,
221	222		1st Called Session, 2023, had not occurred.
222	223		(b-1) Subject to Subsections (c-1), (d), and (e),
223	224		additional state aid under this section for [beginning with] the
224	225		2022-2023 school year is equal to the amount by which the loss of
225	226		local interest and sinking revenue for debt service attributable to
226	227		any increase in the residence homestead exemption under Section
227	228		1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
228	229		Legislature, 3rd Called Session, 2021, is not offset by a gain in
229	230		state aid under this chapter.
230	231		(b-2) Subject to Subsections (c-2), (d), and (e),
231	232		additional state aid under this section beginning with the
232	233		2023-2024 school year is equal to the amount by which the loss of
233	234		local interest and sinking revenue for debt service attributable to
234	235		any increase in a residence homestead exemption under Section
235	236		1-b(c), Article VIII, Texas Constitution, and any additional
236	237		limitation on tax increases under Section 1-b(d) of that article as
237	238		proposed by the 88th Legislature, 1st Called Session, 2023, is not
238	239		offset by a gain in state aid under this chapter.
239	240		(c-2) For the purpose of determining state aid under
240	241		Subsections (a-2) and (b-2), local interest and sinking revenue for
241	242		debt service is limited to revenue required to service debt
242	243		eligible under this chapter as of September 1, 2023, including
243	244		refunding of that debt, subject to Section 46.061. The limitation
244	245		imposed by Section 46.034(a) does not apply for the purpose of
245	246		determining state aid under this section.
246	247		SECTION 3.04. Section 48.2542, Education Code, is amended
247	248		to read as follows:
248	249		Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
249	250		LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
250	251		Notwithstanding any other provision of this chapter, if a school
251	252		district is not fully compensated through state aid or the
252	253		calculation of excess local revenue under this chapter based on the
253	254		determination of the district's taxable value of property under
254	255		Subchapter M, Chapter 403, Government Code, the district is
255	256		entitled to additional state aid in the amount necessary to fully
256	257		compensate the district for the amount of ad valorem tax revenue
257	258		lost due to a reduction of the amount of the limitation on tax
258	259		increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
259	260		(a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as
260	261		applicable.
261	262		SECTION 3.05. Effective January 1, 2025, Section 48.2542,
262	263		Education Code, is amended to read as follows:
263	264		Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
264	265		LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
265	266		Notwithstanding any other provision of this chapter, if a school
266	267		district is not fully compensated through state aid or the
267	268		calculation of excess local revenue under this chapter based on the
268	269		determination of the district's taxable value of property under
269	270		Subchapter M, Chapter 403, Government Code, the district is
270	271		entitled to additional state aid in the amount necessary to fully
271	272		compensate the district for the amount of ad valorem tax revenue
272	273		lost due to a reduction of the amount of the limitation on tax
273	274		increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
274	275		(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
275	276		applicable].
276	277		SECTION 3.06. Section 48.2543, Education Code, is amended
277	278		to read as follows:
278	279		Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
279	280		(a) For [Beginning with] the 2022-2023 school year, a school
280	281		district is entitled to additional state aid to the extent that
281	282		state and local revenue under this chapter and Chapter 49 is less
282	283		than the state and local revenue that would have been available to
283	284		the district under this chapter and Chapter 49 as those chapters
284	285		existed on September 1, 2021, if any increase in the residence
285	286		homestead exemption under Section 1-b(c), Article VIII, Texas
286	287		Constitution, as proposed by the 87th Legislature, 3rd Called
287	288		Session, 2021, had not occurred.
288	289		(a-1) Beginning with the 2023-2024 school year, a school
289	290		district is entitled to additional state aid to the extent that
290	291		state and local revenue under this chapter and Chapter 49 is less
291	292		than the state and local revenue that would have been available to
292	293		the district under this chapter and Chapter 49 as those chapters
293	294		existed on September 1, 2022, if any increase in a residence
294	295		homestead exemption under Section 1-b(c), Article VIII, Texas
295	296		Constitution, and any additional limitation on tax increases under
296	297		Section 1-b(d) of that article as proposed by the 88th Legislature,
297	298		1st Called Session, 2023, had not occurred.
298	299		(b) The lesser of the school district's currently adopted
299	300		maintenance and operations tax rate or the adopted maintenance and
300	301		operations tax rate for:
301	302		(1) the 2021 tax year is used for the purpose of
302	303		determining additional state aid under Subsection (a); and
303	304		(2) the 2022 tax year is used for the purpose of
304	305		determining additional state aid under Subsection (a-1).
305	306		SECTION 3.07. Section 48.2556(a), Education Code, is
306	307		amended to read as follows:
307	308		(a) The agency shall post the following information on the
308	309		agency's Internet website for purposes of allowing the chief
309	310		appraiser of each appraisal district and the assessor for each
310	311		school district to make the calculations required by Sections
311	312		11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and
312	313		(a-12), Tax Code:
313	314		(1) each school district's maximum compressed rate, as
314	315		determined under Section 48.2551, for each tax year beginning with
315	316		the 2019 tax year; and
316	317		(2) each school district's tier one maintenance and
317	318		operations tax rate, as provided by Section 45.0032(a), for the
318	319		2018 tax year.
319	320		SECTION 3.08. Effective January 1, 2025, Section
320	321		48.2556(a), Education Code, is amended to read as follows:
321	322		(a) For purposes of allowing the chief appraiser of each
322	323		appraisal district and the assessor for each school district to
323	324		make the calculations required by Section 11.26(a-10), Tax Code,
324	325		the [The] agency shall post [the following information] on the
325	326		agency's Internet website [for purposes of allowing the chief
326	327		appraiser of each appraisal district and the assessor for each
327	328		school district to make the calculations required by Sections
328	329		11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
329	330		[(1)] each school district's maximum compressed rate,
330	331		as determined under Section 48.2551, for the current [each] tax
331	332		year and the preceding [beginning with the 2019] tax year[; and
332	333		[(2) each school district's tier one maintenance and
333	334		operations tax rate, as provided by Section 45.0032(a), for the
334	335		2018 tax year].
335	336		SECTION 3.09. Section 49.004, Education Code, is amended by
336	337		adding Subsections (a-1), (b-1), and (c-1) to read as follows:
337	338		(a-1) This subsection applies only if the constitutional
338		-	amendment proposed by S.J.R. 2, 88th Legislature, 1st Called
	339	+	amendment proposed by S.J.R. ___, 88th Legislature, 1st Called
339	340		Session, 2023, is approved by the voters in an election held for
340	341		that purpose. As soon as practicable after receiving revised
341	342		property values that reflect adoption of the constitutional
342	343		amendment, the commissioner shall review the local revenue level of
343	344		districts in the state and revise as necessary the notifications
344	345		provided under Subsection (a) for the 2023-2024 school year. This
345	346		subsection expires September 1, 2024.
346	347		(b-1) This subsection applies only to a district that has
347	348		not previously held an election under this chapter. Notwithstanding
348	349		Subsection (b), a district that enters into an agreement to
349	350		exercise an option to reduce the district's local revenue level in
350	351		excess of entitlement under Section 49.002(3), (4), or (5) for the
351	352		2023-2024 school year may request and, as provided by Section
352	353		49.0042(a), receive approval from the commissioner to delay the
353	354		date of the election otherwise required to be ordered before
354	355		September 1. This subsection expires September 1, 2024.
355	356		(c-1) Notwithstanding Subsection (c), a district that
356	357		receives approval from the commissioner to delay an election as
357	358		provided by Subsection (b-1) may adopt a tax rate for the 2023 tax
358	359		year before the commissioner certifies that the district has
359	360		reduced its local revenue level to the level established by Section
360	361		48.257. This subsection expires September 1, 2024.
361	362		SECTION 3.10. Subchapter A, Chapter 49, Education Code, is
362	363		amended by adding Section 49.0042 to read as follows:
363	364		Sec. 49.0042. TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD
364	365		EXEMPTIONS AND LIMITATION ON TAX INCREASES. (a) The commissioner
365	366		shall approve a district's request under Section 49.004(b-1) to
366	367		delay the date of an election required under this chapter if the
367	368		commissioner determines that the district would not have a local
368	369		revenue level in excess of entitlement if the constitutional
369		-	amendment proposed by S.J.R. 2, 88th Legislature, 1st Called
	370	+	amendment proposed by S.J.R. ___, 88th Legislature, 1st Called
370	371		Session, 2023, were approved by the voters.
371	372		(b) The commissioner shall set a date by which each district
372	373		that receives approval under this section must order the election.
373	374		(c) Not later than the 2024-2025 school year, the
374	375		commissioner shall order detachment and annexation of property
375	376		under Subchapter G or consolidation under Subchapter H as necessary
376	377		to reduce the district's local revenue level to the level
377	378		established by Section 48.257 for a district that receives approval
378	379		under this section and subsequently:
379	380		(1) fails to hold the election; or
380	381		(2) does not receive voter approval at the election.
381	382		(d) This section expires September 1, 2025.
382	383		SECTION 3.11. Subchapter A, Chapter 49, Education Code, is
383	384		amended by adding Section 49.0121 to read as follows:
384	385		Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This
385	386		section applies only to an election under this chapter that occurs
386	387		during the 2023-2024 school year.
387	388		(b) Section 49.012 does not apply to a district that
388	389		receives approval of a request under Section 49.0042. The district
389	390		shall hold the election on a Tuesday or Saturday on or before a date
390	391		specified by the commissioner. Section 41.001, Election Code, does
391	392		not apply to the election.
392	393		(c) This section expires September 1, 2024.
393	394		SECTION 3.12. Section 49.154, Education Code, is amended by
394	395		adding Subsections (a-2) and (a-3) to read as follows:
395	396		(a-2) Notwithstanding Subsections (a) and (a-1), a district
396	397		that receives approval of a request under Section 49.0042 shall pay
397	398		for credit purchased:
398	399		(1) in equal monthly payments as determined by the
399	400		commissioner beginning March 15, 2024, and ending August 15, 2024;
400	401		or
401	402		(2) in the manner provided by Subsection (a)(2),
402	403		provided that the district notifies the commissioner of the
403	404		district's election to pay in that manner not later than March 15,
404	405		2024.
405	406		(a-3) Subsection (a-2) and this subsection expire September
406	407		1, 2024.
407	408		SECTION 3.13. Section 49.308, Education Code, is amended by
408	409		adding Subsection (a-1) to read as follows:
409	410		(a-1) Notwithstanding Subsection (a), for the 2023-2024
410	411		school year, the commissioner shall order any detachments and
411	412		annexations of property under this subchapter as soon as
412	413		practicable after the canvass of the votes on the constitutional
413		-	amendment proposed by S.J.R. 2, 88th Legislature, 1st Called
	414	+	amendment proposed by S.J.R. ___, 88th Legislature, 1st Called
414	415		Session, 2023. This subsection expires September 1, 2024.
415	416		SECTION 3.14. Section 403.302, Government Code, is amended
416	417		by amending Subsection (j-1) and adding Subsection (j-2) to read as
417	418		follows:
418	419		(j-1) In the final certification of the study under
419	420		Subsection (j), the comptroller shall separately identify the final
420	421		taxable value for each school district as adjusted to account for
421	422		the reduction of the amount of the limitation on tax increases
422	423		provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
423	424		(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
424	425		(j-2) In the final certification of the study under
425	426		Subsection (j), the comptroller shall separately identify the final
426	427		taxable value for each school district as adjusted to account for
427	428		the reduction of the amount of the limitation on tax increases
428	429		provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9),
429	430		(a-10), (a-11), and (a-12), Tax Code. This subsection expires
430	431		January 1, 2025.
431	432		SECTION 3.15. Section 25.23, Tax Code, is amended by adding
432	433		Subsection (a-1) to read as follows:
433	434		(a-1) This subsection applies only to the appraisal records
434	435		for the 2023 tax year. The chief appraiser shall prepare
435	436		supplemental appraisal records to account for the changes in law
436		-	made by S.B. 26, Acts of the 88th Legislature, 1st Called Session,
	437	+	made by S.B. __, Acts of the 88th Legislature, 1st Called Session,
437	438		2023. This subsection expires December 31, 2024.
438	439		SECTION 3.16. Section 26.04, Tax Code, is amended by adding
439	440		Subsections (a-1) and (c-1) to read as follows:
440	441		(a-1) On receipt of the appraisal roll for the 2023 tax
441	442		year, the assessor for a school district shall determine the total
442	443		taxable value of property taxable by the district and the taxable
443		-	value of new property as if the changes in law made by S.B. 26, Acts
	444	+	value of new property as if the changes in law made by S.B. __, Acts
444	445		of the 88th Legislature, 1st Called Session, 2023, were in effect
445	446		for that tax year. This subsection expires December 31, 2024.
446	447		(c-1) An officer or employee designated by the governing
447	448		body of a school district shall calculate the no-new-revenue tax
448	449		rate and the voter-approval tax rate of the district for the 2023
449		-	tax year as if the changes in law made by S.B. 26, Acts of the 88th
	450	+	tax year as if the changes in law made by S.B. __, Acts of the 88th
450	451		Legislature, 1st Called Session, 2023, were in effect for that tax
451	452		year. This subsection expires December 31, 2024.
452	453		SECTION 3.17. Section 26.08, Tax Code, is amended by adding
453	454		Subsection (q) to read as follows:
454	455		(q) For purposes of this section, the voter-approval tax
455	456		rate of a school district for the 2023 tax year shall be calculated
456		-	as if the changes in law made by S.B. 26, Acts of the 88th
	457	+	as if the changes in law made by S.B. __, Acts of the 88th
457	458		Legislature, 1st Called Session, 2023, were in effect for that tax
458	459		year. This subsection expires December 31, 2024.
459	460		SECTION 3.18. Section 26.09, Tax Code, is amended by adding
460	461		Subsection (c-1) to read as follows:
461	462		(c-1) The assessor for a school district shall calculate the
462	463		amount of tax imposed by the district on a residence homestead for
463		-	the 2023 tax year as if the changes in law made by S.B. 26, Acts of
	464	+	the 2023 tax year as if the changes in law made by S.B. __, Acts of
464	465		the 88th Legislature, 1st Called Session, 2023, were in effect for
465	466		that tax year and also as if the changes in law made by that Act were
466	467		not in effect for that tax year. This subsection expires December
467	468		31, 2024.
468	469		SECTION 3.19. Section 26.15, Tax Code, is amended by adding
469	470		Subsection (h) to read as follows:
470	471		(h) The assessor for a school district shall correct the tax
471	472		roll for the district for the 2023 tax year to reflect the results
472	473		of the election to approve the constitutional amendment proposed by
473		-	S.J.R. 2, 88th Legislature, 1st Called Session, 2023. This
	474	+	S.J.R. ___, 88th Legislature, 1st Called Session, 2023. This
474	475		subsection expires December 31, 2024.
475	476		SECTION 3.20. Section 31.01, Tax Code, is amended by adding
476	477		Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
477	478		(d-2) This subsection and Subsections (d-3) and (d-4) apply
478	479		only to taxes imposed by a school district on a residence homestead
479		-	for the 2023 tax year and only if the changes in law made by S.B. 26,
	480	+	for the 2023 tax year and only if the changes in law made by S.B. __,
480	481		Acts of the 88th Legislature, 1st Called Session, 2023, would lower
481	482		the taxes imposed by the district on the property for that tax year.
482	483		The assessor for the district shall compute the amount of taxes
483	484		imposed and the other information required by this section as if the
484		-	changes in law made by S.B. 26, Acts of the 88th Legislature, 1st
	485	+	changes in law made by S.B. __, Acts of the 88th Legislature, 1st
485	486		Called Session, 2023, were in effect for that tax year. The tax
486	487		bill or the separate statement must indicate that the bill is a
487	488		provisional tax bill and include a statement in substantially the
488	489		following form:
489	490		"If the Texas Legislature had not enacted property tax relief
490	491		legislation during the 2023 legislative session, your tax bill
491	492		would have been $____ (insert amount of tax bill if the changes in
492		-	law made by S.B. 26, Acts of the 88th Legislature, 1st Called
	493	+	law made by S.B. __, Acts of the 88th Legislature, 1st Called
493	494		Session, 2023, were not in effect for that tax year). Because of
494	495		action by the Texas Legislature, your tax bill has been lowered by
495	496		$____ (insert difference between amount of tax bill if the changes
496		-	in law made by S.B. 26, Acts of the 88th Legislature, 1st Called
	497	+	in law made by S.B. __, Acts of the 88th Legislature, 1st Called
497	498		Session, 2023, were not in effect for that tax year and amount of
498	499		tax bill if that Act were in effect for that tax year), resulting in
499	500		a lower tax bill of $____ (insert amount of tax bill if the changes
500		-	in law made by S.B. 26, Acts of the 88th Legislature, 1st Called
	501	+	in law made by S.B. __, Acts of the 88th Legislature, 1st Called
501	502		Session, 2023, were in effect for that tax year), contingent on the
502	503		approval by the voters at an election to be held November 7, 2023,
503		-	of the constitutional amendment proposed by S.J.R. 2, 88th
	504	+	of the constitutional amendment proposed by S.J.R. ___, 88th
504	505		Legislature, 1st Called Session, 2023. If that constitutional
505	506		amendment is not approved by the voters at the election, a
506	507		supplemental tax bill in the amount of $____ (insert difference
507		-	between amount of tax bill if the changes in law made by S.B. 26,
	508	+	between amount of tax bill if the changes in law made by S.B. __,
508	509		Acts of the 88th Legislature, 1st Called Session, 2023, were not in
509	510		effect for that tax year and amount of tax bill if that Act were in
510	511		effect for that tax year) will be mailed to you."
511	512		(d-3) A tax bill prepared by the assessor for a school
512	513		district as provided by Subsection (d-2) and mailed as provided by
513	514		Subsection (a) is considered to be a provisional tax bill until the
514	515		canvass of the votes on the constitutional amendment proposed by
515		-	S.J.R. 2, 88th Legislature, 1st Called Session, 2023. If the
	516	+	S.J.R. ___, 88th Legislature, 1st Called Session, 2023. If the
516	517		constitutional amendment is approved by the voters, the tax bill is
517	518		considered to be a final tax bill for the taxes imposed on the
518	519		property for the 2023 tax year, and no additional tax bill is
519	520		required to be mailed unless another provision of this title
520	521		requires the mailing of a corrected tax bill. If the constitutional
521	522		amendment is not approved by the voters:
522	523		(1) a tax bill prepared by the assessor as provided by
523	524		Subsection (d-2) is considered to be a final tax bill but only as to
524	525		the portion of the taxes imposed on the property for the 2023 tax
525	526		year that are included in the bill;
526	527		(2) the amount of taxes imposed by each school
527	528		district on a residence homestead for the 2023 tax year is
528		-	calculated as if the changes in law made by S.B. 26, Acts of the 88th
	529	+	calculated as if the changes in law made by S.B. __, Acts of the 88th
529	530		Legislature, 1st Called Session, 2023, were not in effect for that
530	531		tax year; and
531	532		(3) except as provided by Subsections (f), (i-1), and
532	533		(k), the assessor for each school district shall prepare and mail a
533	534		supplemental tax bill, by December 1 or as soon thereafter as
534	535		practicable, in an amount equal to the difference between the
535		-	amount of the tax bill if the changes in law made by S.B. 26, Acts of
	536	+	amount of the tax bill if the changes in law made by S.B. __, Acts of
536	537		the 88th Legislature, 1st Called Session, 2023, were not in effect
537	538		for that tax year and the amount of the tax bill if that Act were in
538	539		effect for that tax year.
539	540		(d-4) Except as otherwise provided by Subsection (d-3), the
540	541		provisions of this section other than Subsection (d-2) apply to a
541	542		supplemental tax bill mailed under Subsection (d-3).
542	543		(d-5) This subsection and Subsections (d-2), (d-3), and
543	544		(d-4) expire December 31, 2024.
544	545		SECTION 3.21. Section 31.02, Tax Code, is amended by adding
545	546		Subsection (a-1) to read as follows:
546	547		(a-1) Except as provided by Subsection (b) of this section
547	548		and Sections 31.03 and 31.04, taxes for which a supplemental tax
548	549		bill is mailed under Section 31.01(d-3) are due on receipt of the
549	550		tax bill and are delinquent if not paid before March 1 of the year
550	551		following the year in which imposed. This subsection expires
551	552		December 31, 2024.
552	553		SECTION 3.22. (a) Sections 11.26(a-1), (a-2), and (a-3),
553	554		Tax Code, are repealed.
554	555		(b) Effective January 1, 2025, Sections 11.26(a-5), (a-6),
555	556		(a-7), (a-8), and (a-9), Tax Code, are repealed.
556	557		SECTION 3.23. The changes in law made by this article to
557	558		Sections 11.13 and 11.26, Tax Code, apply beginning with the ad
558	559		valorem tax year that begins January 1, 2023.
559	560		ARTICLE 4. DETERMINATION AND REPORTING OF FRANCHISE TAX LIABILITY
560	561		SECTION 4.01. Section 171.002(d), Tax Code, is amended to
561	562		read as follows:
562	563		(d) A taxable entity is not required to pay any tax and is
563	564		not considered to owe any tax for a period if:
564	565		(1) the amount of tax computed for the taxable entity
565	566		is less than $1,000; or
566	567		(2) the amount of the taxable entity's total revenue
567	568		from its entire business is less than or equal to $2.47 [$1] million
568	569		or the amount determined under Section 171.006 per 12-month period
569	570		on which margin is based.
570	571		SECTION 4.02. Section 171.204(b), Tax Code, is amended to
571	572		read as follows:
572	573		(b) The comptroller may not require a taxable entity that
573	574		does not owe any tax because of the application of Section
574	575		171.002(d)(2) to file an [abbreviated] information report with the
575	576		comptroller [stating the amount of the taxable entity's total
576	577		revenue from its entire business. The comptroller may not require
577	578		a taxable entity described by this subsection to file an
578	579		information report that requires the taxable entity to report or
579	580		compute its margin].
580	581		SECTION 4.03. Section 171.204(d), Tax Code, is repealed.
581	582		SECTION 4.04. The changes in law made by this article apply
582	583		only to a report originally due on or after January 1, 2024.
583	584		ARTICLE 5. EFFECTIVE DATES
584	585		SECTION 5.01. Except as otherwise provided by this article,
585	586		this Act takes effect on the 91st day after the last day of the
586	587		legislative session.
587	588		SECTION 5.02. (a) Except as provided by Subsection (b) of
588	589		this section or as otherwise provided by Article 3 of this Act:
589	590		(1) Article 3 of this Act takes effect on the date on
590		-	which the constitutional amendment proposed by S.J.R. 2, 88th
	591	+	which the constitutional amendment proposed by S.J.R. ___, 88th
591	592		Legislature, 1st Called Session, 2023, takes effect; and
592	593		(2) if that amendment is not approved by the voters,
593	594		Article 3 of this Act has no effect.
594	595		(b) Sections 49.004(a-1), (b-1), and (c-1), 49.0042,
595	596		49.0121, 49.154(a-2) and (a-3), and 49.308(a-1), Education Code,
596	597		and Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q),
597	598		26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and
598	599		31.02(a-1), Tax Code, as added by Article 3 of this Act, take effect
599	600		immediately if this Act receives a vote of two-thirds of all the
600	601		members elected to each house, as provided by Section 39, Article
601	602		III, Texas Constitution. If this Act does not receive the vote
602	603		necessary for those sections to have immediate effect, those
603	604		sections take effect on the 91st day after the last day of the
604	605		legislative session.
605	606		SECTION 5.03. Article 4 of this Act takes effect January 1,
606	607		2024.