Texas 2023 - 88th 2nd C.S.

Texas House Bill HB62 Compare Versions

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1	1	By: Bryant H.B. No. 62
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to providing school district property tax relief through
7	7	rent-relief and through adjusting entitlements, compression, and
8	8	exemptions under the public school finance system.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	ARTICLE 1. PUBLIC SCHOOL FINANCE SYSTEM
11	11	SECTION 1.01. Section 48.051(a), Education Code, is amended
12	12	to read as follows:
13	13	(a) For each student in average daily attendance, not
14	14	including the time students spend each day in special education
15	15	programs in an instructional arrangement other than mainstream or
16	16	career and technology education programs, for which an additional
17	17	allotment is made under Subchapter C, a district is entitled to an
18	18	allotment equal to the lesser of $7,160 [$6,160] or the amount that
19	19	results from the following formula:
20	20	A = $7,160 [$6,160] X TR/MCR
21	21	where:
22	22	"A" is the allotment to which a district is entitled;
23	23	"TR" is the district's tier one maintenance and operations
24	24	tax rate, as provided by Section 45.0032; and
25	25	"MCR" is the district's maximum compressed tax rate, as
26	26	determined under Section 48.2551.
27	27	SECTION 1.02. Effective September 1, 2025, Section 48.051,
28	28	Education Code, is amended by adding Subsection (a-1) to read as
29	29	follows:
30	30	(a-1) Notwithstanding Subsection (a), for the second year
31	31	of each state fiscal biennium, the commissioner shall adjust the
32	32	basic allotment provided under Subsection (a) or (b) for the
33	33	preceding state fiscal year by a factor equal to the average annual
34	34	percentage increase, if any, in the Texas Consumer Price Index for
35	35	the preceding 10 years.
36	36	SECTION 1.03. Subchapter F, Chapter 48, Education Code, is
37	37	amended by adding Sections 48.2555 and 48.283 to read as follows:
38	38	Sec. 48.2555. MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
39	39	SCHOOL YEAR. (a) Notwithstanding any other provision of this title
40	40	or Chapter 26, Tax Code, for the 2023-2024 school year the
41	41	commissioner shall calculate the value of a school district's
42	42	maximum compressed tax rate by determining the district's maximum
43	43	compressed rate under Section 48.2551 or 48.2552(b), if applicable,
44	44	and reducing the tax rate determined under the applicable section
45	45	by $0.06.
46	46	(b) If a school district's maximum compressed tax rate as
47	47	calculated under Subsection (a) would be less than 90 percent of
48	48	another school district's maximum compressed tax rate under
49	49	Subsection (a), the district's maximum compressed tax rate is the
50	50	value at which the district's maximum compressed tax rate would be
51	51	equal to 90 percent of the other district's maximum compressed tax
52	52	rate.
53	53	(c) Notwithstanding any other provision of this title or
54	54	Chapter 26, Tax Code, for purposes of determining funding for
55	55	school districts for the 2023-2024 school year, a reference in any
56	56	of the following provisions of law to a school district's maximum
57	57	compressed tax rate or maximum compressed rate as determined under
58	58	Section 48.2551 means the maximum compressed tax rate determined
59	59	for the district under this section:
60	60	(1) Section 13.054(f);
61	61	(2) Section 45.003(d);
62	62	(3) Section 45.0032(a);
63	63	(4) Section 48.051(a);
64	64	(5) Sections 48.2553(a) and (e);
65	65	(6) Section 48.2556; and
66	66	(7) Section 26.08(n), Tax Code.
67	67	(d) For purposes of Section 30.003(f-1), a reference in that
68	68	section to Section 48.2551 includes this section.
69	69	(e) Notwithstanding any other provision of this title, for
70	70	purposes of determining a school district's maximum compressed tax
71	71	rate under Section 48.2551 for the 2024-2025 school year, the value
72	72	of the district's "PYMCR" is the maximum compressed tax rate
73	73	determined for the district under this section for the preceding
74	74	school year.
75	75	(f) This section expires September 1, 2025.
76	76	Sec. 48.283. ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
77	77	IMPACTED BY COMPRESSION. (a) For the 2023-2024 and 2024-2025
78	78	school years, a school district that received an adjustment under
79	79	Section 48.257(b) for the 2022-2023 school year is entitled to
80	80	additional state aid in an amount equal to the difference, if the
81	81	difference is greater than zero, between:
82	82	(1) the amount of state and local revenue that would
83	83	have been available to the district under this chapter and Chapter
84	84	49 for the current school year if the district's maximum compressed
85	85	tax rate had not been reduced under Section 48.2555, as added by
86	86	H.B. __, Acts of the 88th Legislature, 2nd Called Session, 2023; and
87	87	(2) the amount of state and local revenue available to
88	88	the district under this chapter and Chapter 49 for the current
89	89	school year.
90	90	(b) This section expires September 1, 2026.
91	91	ARTICLE 2. SCHOOL DISTRICT RESIDENCE HOMESTEAD EXEMPTION
92	92	SECTION 2.01. Section 11.13, Tax Code, is amended by
93	93	amending Subsection (b) and adding Subsections (b-1) and (n-1) to
94	94	read as follows:
95	95	(b) Subject to Subsection (b-1), an adult is entitled to
96	96	exemption from taxation by a school district of the greater of
97	97	$100,000 or 25 percent [$40,000] of the appraised value of the
98	98	adult's residence homestead, except that only $5,000 of the
99	99	exemption applies to an entity operating under former Chapter 17,
100	100	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
101	101	May 1, 1995, as permitted by Section 11.301, Education Code.
102	102	(b-1) An exemption of 25 percent of the appraised value of
103	103	the adult's residence homestead may not exceed $200,000 of the
104	104	appraised value of the adult's residence homestead.
105	105	(n-1) The governing body of a school district,
106	106	municipality, or county that adopted an exemption under Subsection
107	107	(n) for the 2022 tax year may not reduce the amount of or repeal the
108	108	exemption. This subsection expires December 31, 2027.
109	109	SECTION 2.02. Section 11.26, Tax Code, is amended by
110	110	amending Subsections (a), (a-10), and (o) and adding Subsections
111	111	(a-11) and (a-12) to read as follows:
112	112	(a) The tax officials shall appraise the property to which
113	113	this section applies and calculate taxes as on other property, but
114	114	if the tax so calculated exceeds the limitation imposed by this
115	115	section, the tax imposed is the amount of the tax as limited by this
116	116	section, except as otherwise provided by this section. A school
117	117	district may not increase the total annual amount of ad valorem tax
118	118	it imposes on the residence homestead of an individual 65 years of
119	119	age or older or on the residence homestead of an individual who is
120	120	disabled, as defined by Section 11.13, above the amount of the tax
121	121	it imposed in the first tax year in which the individual qualified
122	122	that residence homestead for the applicable exemption provided by
123	123	Section 11.13(c) for an individual who is 65 years of age or older
124	124	or is disabled. If the individual qualified that residence
125	125	homestead for the exemption after the beginning of that first year
126	126	and the residence homestead remains eligible for the same exemption
127	127	for the next year, and if the school district taxes imposed on the
128	128	residence homestead in the next year are less than the amount of
129	129	taxes imposed in that first year, a school district may not
130	130	subsequently increase the total annual amount of ad valorem taxes
131	131	it imposes on the residence homestead above the amount it imposed in
132	132	the year immediately following the first year for which the
133	133	individual qualified that residence homestead for the same
134	134	exemption, except as provided by Subsection (b). [If the first tax
135	135	year the individual qualified the residence homestead for the
136	136	exemption provided by Section 11.13(c) for individuals 65 years of
137	137	age or older or disabled was a tax year before the 2015 tax year, the
138	138	amount of the limitation provided by this section is the amount of
139	139	tax the school district imposed for the 2014 tax year less an amount
140	140	equal to the amount determined by multiplying $10,000 times the tax
141	141	rate of the school district for the 2015 tax year, plus any 2015 tax
142	142	attributable to improvements made in 2014, other than improvements
143	143	made to comply with governmental regulations or repairs.]
144	144	(a-10) Notwithstanding the other provisions of this
145	145	section, if in the 2024 or a subsequent tax year an individual
146	146	qualifies for a limitation on tax increases provided by this
147	147	section on the individual's residence homestead, the amount of the
148	148	limitation provided by this section on the homestead is equal to the
149	149	amount computed by:
150	150	(1) multiplying the taxable value of the homestead in
151	151	the preceding tax year by a tax rate equal to the difference between
152	152	the school district's maximum compressed rate for the preceding tax
153	153	year and the district's maximum compressed rate for the current tax
154	154	year;
155	155	(2) subtracting the amount computed under Subdivision
156	156	(1) from the amount of tax the district imposed on the homestead in
157	157	the preceding tax year; [and]
158	158	(3) adding any tax imposed in the current tax year
159	159	attributable to improvements made in the preceding tax year as
160	160	provided by Subsection (b) to the amount computed under Subdivision
161	161	(2);
162	162	(4) multiplying the amount of any increase in the
163	163	current tax year as compared to the preceding tax year in the
164	164	aggregate amount of the exemptions to which the individual is
165	165	entitled under Sections 11.13(b) and (c) by the school district's
166	166	tax rate for the current tax year; and
167	167	(5) subtracting the amount computed under Subdivision
168	168	(4) from the amount computed under Subdivision (3).
169	169	(a-11) This subsection applies only to an individual who in
170	170	the 2023 tax year qualifies for a limitation under this section and
171	171	for whom the 2022 tax year or an earlier tax year was the first tax
172	172	year the individual or the individual's spouse qualified for an
173	173	exemption under Section 11.13(c). The amount of the limitation
174	174	provided by this section on the residence homestead of an
175	175	individual to which this subsection applies for the 2023 tax year is
176	176	the amount of the limitation as computed under Subsection (a-5),
177	177	(a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less
178	178	an amount equal to the product of the tax rate of the school
179	179	district for the 2023 tax year and the difference between the amount
180	180	of the exemption provided by Section 11.13(b) for the property for
181	181	that tax year and $40,000. This subsection expires January 1, 2025.
182	182	(a-12) This subsection applies only to an individual who in
183	183	the 2023 tax year qualifies for a limitation under this section and
184	184	for whom the 2021 tax year or an earlier tax year was the first tax
185	185	year the individual or the individual's spouse qualified for an
186	186	exemption under Section 11.13(c). The amount of the limitation
187	187	provided by this section on the residence homestead of an
188	188	individual to which this subsection applies for the 2023 tax year is
189	189	the amount of the limitation as computed under Subsection (a-11) of
190	190	this section less an amount equal to the product of $15,000 and the
191	191	tax rate of the school district for the 2022 tax year. This
192	192	subsection expires January 1, 2025.
193	193	(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
194	194	improvement to property that would otherwise constitute an
195	195	improvement under Subsection (b) is not treated as an improvement
196	196	under that subsection if the improvement is a replacement structure
197	197	for a structure that was rendered uninhabitable or unusable by a
198	198	casualty or by wind or water damage. For purposes of appraising the
199	199	property in the tax year in which the structure would have
200	200	constituted an improvement under Subsection (b), the replacement
201	201	structure is considered to be an improvement under that subsection
202	202	only if:
203	203	(1) the square footage of the replacement structure
204	204	exceeds that of the replaced structure as that structure existed
205	205	before the casualty or damage occurred; or
206	206	(2) the exterior of the replacement structure is of
207	207	higher quality construction and composition than that of the
208	208	replaced structure.
209	209	SECTION 2.03. Section 46.071, Education Code, is amended by
210	210	amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
211	211	(b-2), and (c-2) to read as follows:
212	212	(a-1) For [Beginning with] the 2022-2023 school year, a
213	213	school district is entitled to additional state aid under this
214	214	subchapter to the extent that state and local revenue used to
215	215	service debt eligible under this chapter is less than the state and
216	216	local revenue that would have been available to the district under
217	217	this chapter as it existed on September 1, 2021, if any increase in
218	218	the residence homestead exemption under Section 1-b(c), Article
219	219	VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd
220	220	Called Session, 2021, had not occurred.
221	221	(a-2) Beginning with the 2023-2024 school year, a school
222	222	district is entitled to additional state aid under this subchapter
223	223	to the extent that state and local revenue used to service debt
224	224	eligible under this chapter is less than the state and local revenue
225	225	that would have been available to the district under this chapter as
226	226	it existed on September 1, 2022, if any increase in a residence
227	227	homestead exemption under Section 1-b(c), Article VIII, Texas
228	228	Constitution, and any additional limitation on tax increases under
229	229	Section 1-b(d) of that article as proposed by the 88th Legislature,
230	230	2nd Called Session, 2023, had not occurred.
231	231	(b-1) Subject to Subsections (c-1), (d), and (e),
232	232	additional state aid under this section for [beginning with] the
233	233	2022-2023 school year is equal to the amount by which the loss of
234	234	local interest and sinking revenue for debt service attributable to
235	235	any increase in the residence homestead exemption under Section
236	236	1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
237	237	Legislature, 3rd Called Session, 2021, is not offset by a gain in
238	238	state aid under this chapter.
239	239	(b-2) Subject to Subsections (c-2), (d), and (e),
240	240	additional state aid under this section beginning with the
241	241	2023-2024 school year is equal to the amount by which the loss of
242	242	local interest and sinking revenue for debt service attributable to
243	243	any increase in a residence homestead exemption under Section
244	244	1-b(c), Article VIII, Texas Constitution, and any additional
245	245	limitation on tax increases under Section 1-b(d) of that article as
246	246	proposed by the 88th Legislature, 2nd Called Session, 2023, is not
247	247	offset by a gain in state aid under this chapter.
248	248	(c-2) For the purpose of determining state aid under
249	249	Subsections (a-2) and (b-2), local interest and sinking revenue for
250	250	debt service is limited to revenue required to service debt
251	251	eligible under this chapter as of September 1, 2023, including
252	252	refunding of that debt, subject to Section 46.061. The limitation
253	253	imposed by Section 46.034(a) does not apply for the purpose of
254	254	determining state aid under this section.
255	255	SECTION 2.04. Section 48.2542, Education Code, is amended
256	256	to read as follows:
257	257	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
258	258	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
259	259	Notwithstanding any other provision of this chapter, if a school
260	260	district is not fully compensated through state aid or the
261	261	calculation of excess local revenue under this chapter based on the
262	262	determination of the district's taxable value of property under
263	263	Subchapter M, Chapter 403, Government Code, the district is
264	264	entitled to additional state aid in the amount necessary to fully
265	265	compensate the district for the amount of ad valorem tax revenue
266	266	lost due to a reduction of the amount of the limitation on tax
267	267	increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
268	268	(a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as
269	269	applicable.
270	270	SECTION 2.05. Effective January 1, 2025, Section 48.2542,
271	271	Education Code, is amended to read as follows:
272	272	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
273	273	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
274	274	Notwithstanding any other provision of this chapter, if a school
275	275	district is not fully compensated through state aid or the
276	276	calculation of excess local revenue under this chapter based on the
277	277	determination of the district's taxable value of property under
278	278	Subchapter M, Chapter 403, Government Code, the district is
279	279	entitled to additional state aid in the amount necessary to fully
280	280	compensate the district for the amount of ad valorem tax revenue
281	281	lost due to a reduction of the amount of the limitation on tax
282	282	increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
283	283	(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
284	284	applicable].
285	285	SECTION 2.06. Section 48.2543, Education Code, is amended
286	286	to read as follows:
287	287	Sec. 48.2543. ADDITIONAL STATE AID FOR RESIDENTIAL REAL
288	288	PROPERTY EXEMPTIONS [HOMESTEAD EXEMPTION]. (a) For [Beginning
289	289	with] the 2022-2023 school year, a school district is entitled to
290	290	additional state aid to the extent that state and local revenue
291	291	under this chapter and Chapter 49 is less than the state and local
292	292	revenue that would have been available to the district under this
293	293	chapter and Chapter 49 as those chapters existed on September 1,
294	294	2021, if any increase in the residence homestead exemption under
295	295	Section 1-b(c), Article VIII, Texas Constitution, as proposed by
296	296	the 87th Legislature, 3rd Called Session, 2021, had not occurred.
297	297	(a-1) Beginning with the 2023-2024 school year, a school
298	298	district is entitled to additional state aid to the extent that
299	299	state and local revenue under this chapter and Chapter 49 is less
300	300	than the state and local revenue that would have been available to
301	301	the district under this chapter and Chapter 49 as those chapters
302	302	existed on September 1, 2022, if any increase in a residence
303	303	homestead exemption under Section 1-b(c), Article VIII, Texas
304	304	Constitution, and any additional limitation on tax increases under
305	305	Section 1-b(d) of that article as proposed by the 88th Legislature,
306	306	2nd Called Session, 2023, had not occurred.
307	307	(b) The lesser of the school district's currently adopted
308	308	maintenance and operations tax rate or the adopted maintenance and
309	309	operations tax rate for:
310	310	(1) the 2021 tax year is used for the purpose of
311	311	determining additional state aid under Subsection (a); and
312	312	(2) the 2022 tax year is used for the purpose of
313	313	determining additional state aid under Subsection (a-1).
314	314	SECTION 2.07. Section 48.2556(a), Education Code, is
315	315	amended to read as follows:
316	316	(a) The agency shall post the following information on the
317	317	agency's Internet website for purposes of allowing the chief
318	318	appraiser of each appraisal district and the assessor for each
319	319	school district to make the calculations required by Sections
320	320	11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and
321	321	(a-12), Tax Code:
322	322	(1) each school district's maximum compressed rate, as
323	323	determined under Section 48.2551, for each tax year beginning with
324	324	the 2019 tax year; and
325	325	(2) each school district's tier one maintenance and
326	326	operations tax rate, as provided by Section 45.0032(a), for the
327	327	2018 tax year.
328	328	SECTION 2.08. Effective January 1, 2025, Section
329	329	48.2556(a), Education Code, is amended to read as follows:
330	330	(a) For purposes of allowing the chief appraiser of each
331	331	appraisal district and the assessor for each school district to
332	332	make the calculations required by Section 11.26(a-10), Tax Code,
333	333	the [The] agency shall post [the following information] on the
334	334	agency's Internet website [for purposes of allowing the chief
335	335	appraiser of each appraisal district and the assessor for each
336	336	school district to make the calculations required by Sections
337	337	11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
338	338	[(1)] each school district's maximum compressed rate,
339	339	as determined under Section 48.2551, for the current [each] tax
340	340	year and the preceding [beginning with the 2019] tax year[; and
341	341	[(2) each school district's tier one maintenance and
342	342	operations tax rate, as provided by Section 45.0032(a), for the
343	343	2018 tax year].
344	344	SECTION 2.09. Section 49.004, Education Code, is amended by
345	345	adding Subsections (a-1), (b-1), and (c-1) to read as follows:
346	346	(a-1) This subsection applies only if the constitutional
347	347	amendment proposed by H.J.R. __, 88th Legislature, 2nd Called
348	348	Session, 2023, is approved by the voters in an election held for
349	349	that purpose. As soon as practicable after receiving revised
350	350	property values that reflect adoption of the constitutional
351	351	amendment, the commissioner shall review the local revenue level of
352	352	districts in the state and revise as necessary the notifications
353	353	provided under Subsection (a) for the 2023-2024 school year. This
354	354	subsection expires September 1, 2024.
355	355	(b-1) This subsection applies only to a district that has
356	356	not previously held an election under this chapter.
357	357	Notwithstanding Subsection (b), a district that enters into an
358	358	agreement to exercise an option to reduce the district's local
359	359	revenue level in excess of entitlement under Section 49.002(3),
360	360	(4), or (5) for the 2023-2024 school year may request and, as
361	361	provided by Section 49.0042(a), receive approval from the
362	362	commissioner to delay the date of the election otherwise required
363	363	to be ordered before September 1. This subsection expires
364	364	September 1, 2024.
365	365	(c-1) Notwithstanding Subsection (c), a district that
366	366	receives approval from the commissioner to delay an election as
367	367	provided by Subsection (b-1) may adopt a tax rate for the 2023 tax
368	368	year before the commissioner certifies that the district has
369	369	reduced its local revenue level to the level established by Section
370	370	48.257. This subsection expires September 1, 2024.
371	371	SECTION 2.10. Subchapter A, Chapter 49, Education Code, is
372	372	amended by adding Section 49.0042 to read as follows:
373	373	Sec. 49.0042. TRANSITIONAL PROVISIONS: RESIDENTIAL REAL
374	374	PROPERTY EXEMPTIONS AND LIMITATION ON TAX INCREASES. (a) The
375	375	commissioner shall approve a district's request under Section
376	376	49.004(b-1) to delay the date of an election required under this
377	377	chapter if the commissioner determines that the district would not
378	378	have a local revenue level in excess of entitlement if the
379	379	constitutional amendment proposed by H.J.R., 88th Legislature, 2nd
380	380	Called Session, 2023, were approved by the voters.
381	381	(b) The commissioner shall set a date by which each district
382	382	that receives approval under this section must order the election.
383	383	(c) Not later than the 2024-2025 school year, the
384	384	commissioner shall order detachment and annexation of property
385	385	under Subchapter G or consolidation under Subchapter H as necessary
386	386	to reduce the district's local revenue level to the level
387	387	established by Section 48.257 for a district that receives approval
388	388	under this section and subsequently:
389	389	(1) fails to hold the election; or
390	390	(2) does not receive voter approval at the election.
391	391	(d) This section expires September 1, 2025.
392	392	SECTION 2.11. Subchapter A, Chapter 49, Education Code, is
393	393	amended by adding Section 49.0121 to read as follows:
394	394	Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This
395	395	section applies only to an election under this chapter that occurs
396	396	during the 2023-2024 school year.
397	397	(b) Section 49.012 does not apply to a district that
398	398	receives approval of a request under Section 49.0042. The district
399	399	shall hold the election on a Tuesday or Saturday on or before a date
400	400	specified by the commissioner. Section 41.001, Election Code, does
401	401	not apply to the election.
402	402	(c) This section expires September 1, 2024.
403	403	SECTION 2.12. Section 49.154, Education Code, is amended by
404	404	adding Subsections (a-2) and (a-3) to read as follows:
405	405	(a-2) Notwithstanding Subsections (a) and (a-1), a district
406	406	that receives approval of a request under Section 49.0042 shall pay
407	407	for credit purchased:
408	408	(1) in equal monthly payments as determined by the
409	409	commissioner beginning March 15, 2024, and ending August 15, 2024;
410	410	or
411	411	(2) in the manner provided by Subsection (a)(2),
412	412	provided that the district notifies the commissioner of the
413	413	district's election to pay in that manner not later than March 15,
414	414	2024.
415	415	(a-3) Subsection (a-2) and this subsection expire September
416	416	1, 2024.
417	417	SECTION 2.13. Section 49.308, Education Code, is amended by
418	418	adding Subsection (a-1) to read as follows:
419	419	(a-1) Notwithstanding Subsection (a), for the 2023-2024
420	420	school year, the commissioner shall order any detachments and
421	421	annexations of property under this subchapter as soon as
422	422	practicable after the canvass of the votes on the constitutional
423	423	amendment proposed by H.J.R. __, 88th Legislature, 2nd Called
424	424	Session, 2023. This subsection expires September 1, 2024.
425	425	SECTION 2.14. Section 403.302, Government Code, is amended
426	426	by amending Subsection (j-1) and adding Subsection (j-2) to read as
427	427	follows:
428	428	(j-1) In the final certification of the study under
429	429	Subsection (j), the comptroller shall separately identify the final
430	430	taxable value for each school district as adjusted to account for
431	431	the reduction of the amount of the limitation on tax increases
432	432	provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
433	433	(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
434	434	(j-2) In the final certification of the study under
435	435	Subsection (j), the comptroller shall separately identify the final
436	436	taxable value for each school district as adjusted to account for
437	437	the reduction of the amount of the limitation on tax increases
438	438	provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9),
439	439	(a-10), (a-11), and (a-12), Tax Code. This subsection expires
440	440	January 1, 2025.
441	441	SECTION 2.15. Section 25.23, Tax Code, is amended by adding
442	442	Subsection (a-1) to read as follows:
443	443	(a-1) This subsection applies only to the appraisal records
444	444	for the 2023 tax year. The chief appraiser shall prepare
445	445	supplemental appraisal records to account for the changes in law
446	446	made by H.B. __, Acts of the 88th Legislature, 2nd Called Session,
447	447	2023. This subsection expires December 31, 2024.
448	448	SECTION 2.16. Section 26.04, Tax Code, is amended by adding
449	449	Subsections (a-1) and (c-1) to read as follows:
450	450	(a-1) On receipt of the appraisal roll for the 2023 tax
451	451	year, the assessor for a school district shall determine the total
452	452	taxable value of property taxable by the district and the taxable
453	453	value of new property as if the changes in law made by H.B. __, Acts
454	454	of the 88th Legislature, 2nd Called Session, 2023, to apply to the
455	455	2023 tax year were in effect for that tax year. This subsection
456	456	expires December 31, 2024.
457	457	(c-1) An officer or employee designated by the governing
458	458	body of a school district shall calculate the no-new-revenue tax
459	459	rate and the voter-approval tax rate of the district for the 2023
460	460	tax year as if the changes in law made by H.B. __, Acts of the 88th
461	461	Legislature, 2nd Called Session, 2023, to apply to the 2023 tax year
462	462	were in effect for that tax year. This subsection expires December
463	463	31, 2024.
464	464	SECTION 2.17. Section 26.08, Tax Code, is amended by adding
465	465	Subsection (q) to read as follows:
466	466	(q) For purposes of this section, the voter-approval tax
467	467	rate of a school district for the 2023 tax year shall be calculated
468	468	as if the changes in law made by H.B. __, Acts of the 88th
469	469	Legislature, 2nd Called Session, 2023, to apply to the 2023 tax year
470	470	were in effect for that tax year. This subsection expires December
471	471	31, 2024.
472	472	SECTION 2.18. Section 26.09, Tax Code, is amended by adding
473	473	Subsection (c-1) to read as follows:
474	474	(c-1) The assessor for a school district shall calculate the
475	475	amount of tax imposed by the district on a residence homestead for
476	476	the 2023 tax year as if the changes in law made by H.B. __, Acts of
477	477	the 88th Legislature, 2nd Called Session, 2023, to apply to the 2023
478	478	tax year were in effect for that tax year and also as if the changes
479	479	in law made by that Act were not in effect for that tax year. This
480	480	subsection expires December 31, 2024.
481	481	SECTION 2.19. Section 26.15, Tax Code, is amended by adding
482	482	Subsection (h) to read as follows:
483	483	(h) The assessor for a school district shall correct the tax
484	484	roll for the district for the 2023 tax year to reflect the results
485	485	of the election to approve the constitutional amendment proposed by
486	486	H.J.R. __, 88th Legislature, 2nd Called Session, 2023. This
487	487	subsection expires December 31, 2024.
488	488	SECTION 2.20. Section 31.01, Tax Code, is amended by adding
489	489	Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
490	490	(d-2) This subsection and Subsections (d-3) and (d-4) apply
491	491	only to taxes imposed by a school district on a residence homestead
492	492	for the 2023 tax year and only if the changes in law made by H.B. __,
493	493	Acts of the 88th Legislature, 2nd Called Session, 2023, would lower
494	494	the taxes imposed by the district on the property for that tax year.
495	495	The assessor for the district shall compute the amount of taxes
496	496	imposed and the other information required by this section as if the
497	497	changes in law made by H.B. __, Acts of the 88th Legislature, 2nd
498	498	Called Session, 2023, to apply to the 2023 tax year were in effect
499	499	for that tax year. The tax bill or the separate statement must
500	500	indicate that the bill is a provisional tax bill and include a
501	501	statement in substantially the following form:
502	502	"If the Texas Legislature had not enacted property tax relief
503	503	legislation during the 2023 legislative session, your tax bill
504	504	would have been $____ (insert amount of tax bill if the changes in
505	505	law made by H.B. __, Acts of the 88th Legislature, 2nd Called
506	506	Session, 2023, were not in effect for that tax year). Because of
507	507	action by the Texas Legislature, your tax bill has been lowered by
508	508	$____ (insert difference between amount of tax bill if the changes
509	509	in law made by H.B. __, Acts of the 88th Legislature, 2nd Called
510	510	Session, 2023, were not in effect for that tax year and amount of
511	511	tax bill if that Act were in effect for that tax year), resulting in
512	512	a lower tax bill of $____ (insert amount of tax bill if the changes
513	513	in law made by H.B. __, Acts of the 88th Legislature, 2nd Called
514	514	Session, 2023, were in effect for that tax year), contingent on the
515	515	approval by the voters at an election to be held November 7, 2023,
516	516	of the constitutional amendment proposed by H.J.R. __, 88th
517	517	Legislature, 2nd Called Session, 2023. If that constitutional
518	518	amendment is not approved by the voters at the election, a
519	519	supplemental tax bill in the amount of $____ (insert difference
520	520	between amount of tax bill if the changes in law made by H.B. __,
521	521	Acts of the 88th Legislature, 2nd Called Session, 2023, were not in
522	522	effect for that tax year and amount of tax bill if that Act were in
523	523	effect for that tax year) will be mailed to you."
524	524	(d-3) A tax bill prepared by the assessor for a school
525	525	district as provided by Subsection (d-2) and mailed as provided by
526	526	Subsection (a) is considered to be a provisional tax bill until the
527	527	canvass of the votes on the constitutional amendment proposed by
528	528	H.J.R. __, 88th Legislature, 2nd Called Session, 2023. If the
529	529	constitutional amendment is approved by the voters, the tax bill is
530	530	considered to be a final tax bill for the taxes imposed on the
531	531	property for the 2023 tax year, and no additional tax bill is
532	532	required to be mailed unless another provision of this title
533	533	requires the mailing of a corrected tax bill. If the constitutional
534	534	amendment is not approved by the voters:
535	535	(1) a tax bill prepared by the assessor as provided by
536	536	Subsection (d-2) is considered to be a final tax bill but only as to
537	537	the portion of the taxes imposed on the property for the 2023 tax
538	538	year that are included in the bill;
539	539	(2) the amount of taxes imposed by each school
540	540	district on a residence homestead for the 2023 tax year is
541	541	calculated as if the changes in law made by H.B. __, Acts of the
542	542	88th Legislature, 2nd Called Session, 2023, were not in effect for
543	543	that tax year; and
544	544	(3) except as provided by Subsections (f), (i-1), and
545	545	(k), the assessor for each school district shall prepare and mail a
546	546	supplemental tax bill, by December 1 or as soon thereafter as
547	547	practicable, in an amount equal to the difference between the
548	548	amount of the tax bill if the changes in law made by H.B. __, Acts of
549	549	the 88th Legislature, 2nd Called Session, 2023, were not in effect
550	550	for that tax year and the amount of the tax bill if that Act were in
551	551	effect for that tax year.
552	552	(d-4) Except as otherwise provided by Subsection (d-3), the
553	553	provisions of this section other than Subsection (d-2) apply to a
554	554	supplemental tax bill mailed under Subsection (d-3).
555	555	(d-5) This subsection and Subsections (d-2), (d-3), and
556	556	(d-4) expire December 31, 2024.
557	557	SECTION 2.21. Section 31.02, Tax Code, is amended by adding
558	558	Subsection (a-1) to read as follows:
559	559	(a-1) Except as provided by Subsection (b) of this section
560	560	and Sections 31.03 and 31.04, taxes for which a supplemental tax
561	561	bill is mailed under Section 31.01(d-3) are due on receipt of the
562	562	tax bill and are delinquent if not paid before March 1 of the year
563	563	following the year in which imposed. This subsection expires
564	564	December 31, 2024.
565	565	SECTION 2.22. (a) Sections 11.26(a-1), (a-2), and (a-3),
566	566	Tax Code, are repealed.
567	567	(b) Effective January 1, 2025, Sections 11.26(a-5), (a-6),
568	568	(a-7), (a-8), and (a-9), Tax Code, are repealed.
569	569	SECTION 2.23. The changes in law made by this article to
570	570	Sections 11.13 and 11.26, Tax Code, apply beginning with the ad
571	571	valorem tax year that begins January 1, 2023.
572	572	ARTICLE 3. PROPERTY TAX RELIEF FOR RENTERS
573	573	SECTION 3.01. Chapter 5, Tax Code, is amended by adding
574	574	Section 5.17 to read as follows:
575	575	Sec. 5.17. PROPERTY TAX RELIEF TO RENTAL HOUSEHOLDS. (a)
576	576	In addition to the additional state aid to which a school district
577	577	is entitled resulting from property tax reduction legislation
578	578	enacted by the 88th Legislature, Second Called Session, the
579	579	comptroller shall administer the application and distribution of
580	580	the amount dedicated by the Texas Constitution for the purpose of a
581	581	property tax rebate for eligible rental households.
582	582	(b) Subject to the requirements in subsections (c)-(h),
583	583	each rental household shall receive a payment from the property tax
584	584	relief to rental households fund established in Section 30, Article
585	585	VIII, Texas Constitution, of up to ten percent of the rent paid
586	586	during the previous tax year. The total annual payments to rental
587	587	households from the property tax relief to rental households fund
588	588	shall not exceed an amount equal to half of the balance of the fund.
589	589	If the total payments applied for in a tax year exceeds half of the
590	590	balance of the fund, each rental household's payment from the
591	591	property tax relief to rental households fund shall be reduced
592	592	proportionately until the total annual payments to rental
593	593	households equals half of the balance in the fund.
594	594	(c) A rental household is defined as a person or persons who
595	595	pay rent to live in their primary residence.
596	596	(d) A rental household is eligible for a payment from the
597	597	property tax relief for rental households fund if they have paid
598	598	rent to the same landlord for the twelve calendar months of the year
599	599	for which they have applied for a payment.
600	600	(e) Landlords are required to file with the comptroller a
601	601	certificate of rent paid, in a form prescribed by the comptroller,
602	602	on February 1 stating the amount each rental household paid in rent
603	603	in the previous tax year.
604	604	(f) To be eligible for a payment, a rental household must
605	605	apply for a payment from the property tax relief for rental
606	606	households fund by a date set by the comptroller, using a form
607	607	prescribed by the comptroller.
608	608	(g) Upon the expiration of the application deadline, the
609	609	comptroller shall determine the total tax payments from the
610	610	property tax relief for rental households fund applied for. The
611	611	total annual payments to rental households from the property tax
612	612	relief to rental households fund shall not exceed an amount equal to
613	613	half of the balance of the fund. If the total payments applied for
614	614	in a tax year exceeds half of the balance of the fund, each rental
615	615	household's payment from the property tax relief to rental
616	616	households fund shall be reduced proportionately until the total
617	617	annual payments to rental households equals half of the balance in
618	618	the fund.
619	619	(h) The comptroller shall make additional rules necessary
620	620	to administer the payments from the property tax relief to rental
621	621	households fund to eligible rental households to achieve the
622	622	purposes of this section.
623	623	ARTICLE 4. EFFECTIVE DATES
624	624	SECTION 4.01. Except as otherwise provided by this Act,
625	625	this Act takes effect on the 91st day after the last day of the
626	626	legislative session.
627	627	SECTION 4.02. Section 48.051(a), Education Code, as amended
628	628	by this Act, and Sections 48.102(a-1) and 48.2555, Education Code,
629	629	as added by this Act, take effect September 1, 2023, if this Act
630	630	receives a vote of two-thirds of all the members elected to each
631	631	house, as provided by Section 39, Article III, Texas Constitution.
632	632	If this Act does not receive the vote necessary for effect on that
633	633	date, those sections take effect on the 91st day after the last day
634	634	of the legislative session.
635	635	SECTION 4.03. (a) Except as provided by Subsection (b) of
636	636	this section or as otherwise provided by Article 2 of this Act:
637	637	(1) Article 2 of this Act takes effect on the date on
638	638	which the constitutional amendment proposed by the 88th
639	639	Legislature, 2nd Called Session, 2023, to increase the amount of
640	640	the exemption from ad valorem taxation by a school district
641	641	applicable to residence homesteads, to adjust the amount of the
642	642	limitation on school district ad valorem taxes imposed on the
643	643	residence homesteads of the elderly or disabled to reflect
644	644	increases in certain exemption amounts, to establish the property
645	645	tax relief to rental households fund and authorize the legislature
646	646	to provide payments to rental households from that fund based on a
647	647	proportion of rent paid, and to except certain appropriations to
648	648	pay for school district ad valorem tax relief and property tax
649	649	relief payments to rental households from the constitutional
650	650	limitation on the rate of growth of appropriations takes effect;
651	651	and
652	652	(2) if that amendment is not approved by the voters,
653	653	Article 2 of this Act has no effect.
654	654	(b) Sections 49.004(a-1), (b-1), and (c-1), 49.0042,
655	655	49.0121, 49.154(a-2) and (a-3), and 49.308(a-1), Education Code,
656	656	and Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q),
657	657	26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and
658	658	31.02(a-1), Tax Code, as added by Article 2 of this Act, take effect
659	659	immediately if this Act receives a vote of two-thirds of all the
660	660	members elected to each house, as provided by Section 39, Article
661	661	III, Texas Constitution. If this Act does not receive the vote
662	662	necessary for those sections to have immediate effect, those
663	663	sections take effect on the 91st day after the last day of the
664	664	legislative session.
665	665	SECTION 4.04. Article 3 of this Act takes effect on the date
666	666	on which the constitutional amendment proposed by the 88th
667	667	Legislature, 2nd Called Session, 2023, to increase the amount of
668	668	the exemption from ad valorem taxation by a school district
669	669	applicable to residence homesteads, to adjust the amount of the
670	670	limitation on school district ad valorem taxes imposed on the
671	671	residence homesteads of the elderly or disabled to reflect
672	672	increases in certain exemption amounts, to establish the property
673	673	tax relief to rental households fund and authorize the legislature
674	674	to provide payments to rental households from that fund based on a
675	675	proportion of rent paid, and to except certain appropriations to
676	676	pay for school district ad valorem tax relief and property tax
677	677	relief payments to rental households from the constitutional
678	678	limitation on the rate of growth of appropriations takes effect;
679	679	and if that amendment is not approved by the voters, Article 3 of
680	680	this Act has no effect.