Texas 2023 - 88th 2nd C.S.

Texas House Bill HB68 Compare Versions

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1	1	88S20042 MLH/MEW-D
2	2	By: Bell of Montgomery H.B. No. 68
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an exemption from ad valorem taxation of the total
8	8	appraised value of the residence homesteads of certain elderly
9	9	persons and their surviving spouses.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 11.13, Tax Code, is amended by amending
12	12	Subsection (i) and adding Subsections (s) and (t) to read as
13	13	follows:
14	14	(i) The assessor and collector for a taxing unit may
15	15	disregard the exemptions authorized by Subsection (b), (c), (d),
16	16	[or] (n), (s), or (t) [of this section] and assess and collect a tax
17	17	pledged for payment of debt without deducting the amount of the
18	18	exemption if:
19	19	(1) prior to adoption of the exemption, the taxing
20	20	unit pledged the taxes for the payment of a debt; and
21	21	(2) granting the exemption would impair the obligation
22	22	of the contract creating the debt.
23	23	(s) In addition to any other exemptions provided by this
24	24	section, an individual is entitled to an exemption from taxation of
25	25	the total appraised value of the individual's residence homestead
26	26	if:
27	27	(1) the individual is 72 years of age or older; and
28	28	(2) the individual has received an exemption under
29	29	this section for the residence homestead for at least the preceding
30	30	10 years.
31	31	(t) The surviving spouse of an individual who qualified for
32	32	an exemption under Subsection (s) is entitled to an exemption from
33	33	taxation of the total appraised value of the same property to which
34	34	the deceased spouse's exemption applied if:
35	35	(1) the deceased spouse died in a year in which the
36	36	deceased spouse qualified for the exemption;
37	37	(2) the surviving spouse was 55 years of age or older
38	38	when the deceased spouse died; and
39	39	(3) the property was the residence homestead of the
40	40	surviving spouse when the deceased spouse died and remains the
41	41	residence homestead of the surviving spouse.
42	42	SECTION 2. Section 11.42(c), Tax Code, is amended to read as
43	43	follows:
44	44	(c) An exemption authorized by Section 11.13(c), [or] (d),
45	45	or (s), 11.132, 11.133, or 11.134 is effective as of January 1 of
46	46	the tax year in which the person qualifies for the exemption and
47	47	applies to the entire tax year.
48	48	SECTION 3. Sections 11.43(k), (l), (m), (m-2), and (q), Tax
49	49	Code, as effective January 1, 2024, are amended to read as follows:
50	50	(k) A person who qualifies for an exemption authorized by
51	51	Section 11.13(c), [or] (d), or (s) or 11.132 must apply for the
52	52	exemption no later than the first anniversary of the date the person
53	53	qualified for the exemption.
54	54	(l) The form for an application under Section 11.13 must
55	55	include a space for the applicant to state the applicant's date of
56	56	birth and, if applicable, the date of birth of the applicant's
57	57	spouse. Failure to provide the applicant's date of birth does not
58	58	affect the applicant's eligibility for an exemption under that
59	59	section, other than an exemption under Section 11.13(c) or (d) for
60	60	an individual 65 years of age or older or an exemption under Section
61	61	11.13(s) for an individual 72 years of age or older. Failure to
62	62	provide the date of birth of the applicant's spouse does not affect
63	63	the applicant's eligibility for an exemption under Section 11.13 or
64	64	the applicant's spouse's eligibility for an exemption under that
65	65	section, other than an exemption under Section 11.13(q) for the
66	66	surviving spouse of an individual 65 years of age or older or an
67	67	exemption under Section 11.13(t) for the surviving spouse of an
68	68	individual 72 years of age or older.
69	69	(m) Notwithstanding Subsections (a) and (k), if a person who
70	70	receives an exemption under Section 11.13, other than an exemption
71	71	under Section 11.13(c) or (d) for an individual 65 years of age or
72	72	older or an exemption under Section 11.13(s) for an individual 72
73	73	years of age or older, in a tax year becomes 65 or 72 years of age in
74	74	the next tax year, as applicable, the person is entitled to receive
75	75	and the chief appraiser shall allow an exemption under Section
76	76	11.13(c) or (d) for an individual 65 years of age or older or an
77	77	exemption under Section 11.13(s) for an individual 72 years of age
78	78	or older, as applicable, in that next tax year on the same property
79	79	without requiring the person to apply for or otherwise request the
80	80	exemption if the person's age is shown by:
81	81	(1) information in the records of the appraisal
82	82	district that was provided to the appraisal district by the
83	83	individual in an application for an exemption under Section 11.13
84	84	on the property or in correspondence relating to the property; or
85	85	(2) the information provided by the Texas Department
86	86	of Public Safety to the appraisal district under Section 521.049,
87	87	Transportation Code.
88	88	(m-2) Notwithstanding Subsection (a), if a person who
89	89	receives an exemption under Section 11.13(d) for an individual 65
90	90	years of age or older or an exemption under Section 11.13(s) for an
91	91	individual 72 years of age or older dies in a tax year, that
92	92	person's surviving spouse is entitled to receive an exemption under
93	93	Section 11.13(q) or (t), as applicable, in the next tax year on the
94	94	same property without applying for the exemption if:
95	95	(1) the appraisal district learns of the person's
96	96	death from any source, including the death records maintained by
97	97	the vital statistics unit of the Department of State Health
98	98	Services or a local registration official; and
99	99	(2) the surviving spouse is otherwise eligible to
100	100	receive the exemption as shown by:
101	101	(A) information in the records of the appraisal
102	102	district that was provided to the appraisal district in an
103	103	application for an exemption under Section 11.13 on the property or
104	104	in correspondence relating to the property; or
105	105	(B) information provided by the Texas Department
106	106	of Public Safety to the appraisal district under Section 521.049,
107	107	Transportation Code.
108	108	(q) A chief appraiser may not cancel an exemption under
109	109	Section 11.13 that is received by an individual who is 65 years of
110	110	age or older without first providing written notice of the
111	111	cancellation to the individual receiving the exemption. The notice
112	112	must include a form on which the individual may indicate whether the
113	113	individual is qualified to receive the exemption and a
114	114	self-addressed postage prepaid envelope with instructions for
115	115	returning the form to the chief appraiser. The chief appraiser
116	116	shall consider the individual's response on the form in determining
117	117	whether to continue to allow the exemption. If the chief appraiser
118	118	does not receive a response on or before the 60th day after the date
119	119	the notice is mailed, the chief appraiser may cancel the exemption
120	120	on or after the 30th day after the expiration of the 60-day period,
121	121	but only after making a reasonable effort to locate the individual
122	122	and determine whether the individual is qualified to receive the
123	123	exemption. For purposes of this subsection, sending an additional
124	124	notice of cancellation that includes, in bold font equal to or
125	125	greater in size than the surrounding text, the date on which the
126	126	chief appraiser is authorized to cancel the exemption to the
127	127	individual receiving the exemption immediately after the
128	128	expiration of the 60-day period by first class mail in an envelope
129	129	on which is written, in all capital letters, "RETURN SERVICE
130	130	REQUESTED," or another appropriate statement directing the United
131	131	States Postal Service to return the notice if it is not deliverable
132	132	as addressed, or providing the additional notice in another manner
133	133	that the chief appraiser determines is appropriate, constitutes a
134	134	reasonable effort on the part of the chief appraiser. This
135	135	subsection does not apply to an exemption under Section 11.13(c) or
136	136	(d) for an individual 65 years of age or older or an exemption under
137	137	Section 11.13(s) for an individual 72 years of age or older that is
138	138	canceled because the chief appraiser determines that the individual
139	139	receiving the exemption no longer owns the property subject to the
140	140	exemption.
141	141	SECTION 4. Section 26.10(b), Tax Code, is amended to read as
142	142	follows:
143	143	(b) If the appraisal roll shows that a residence homestead
144	144	exemption under Section 11.13(c), [or] (d), or (s), 11.132, 11.133,
145	145	or 11.134 applicable to a property on January 1 of a year terminated
146	146	during the year and if the owner of the property qualifies a
147	147	different property for one of those residence homestead exemptions
148	148	during the same year, the tax due against the former residence
149	149	homestead is calculated by:
150	150	(1) subtracting:
151	151	(A) the amount of the taxes that otherwise would
152	152	be imposed on the former residence homestead for the entire year had
153	153	the owner qualified for the residence homestead exemption for the
154	154	entire year; from
155	155	(B) the amount of the taxes that otherwise would
156	156	be imposed on the former residence homestead for the entire year had
157	157	the owner not qualified for the residence homestead exemption
158	158	during the year;
159	159	(2) multiplying the remainder determined under
160	160	Subdivision (1) by a fraction, the denominator of which is 365 and
161	161	the numerator of which is the number of days that elapsed after the
162	162	date the exemption terminated; and
163	163	(3) adding the product determined under Subdivision
164	164	(2) and the amount described by Subdivision (1)(A).
165	165	SECTION 5. Section 26.112, Tax Code, is amended to read as
166	166	follows:
167	167	Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
168	168	CERTAIN PERSONS. (a) Except as provided by Section 26.10(b), if at
169	169	any time during a tax year property is owned by an individual who
170	170	qualifies for an exemption under Section 11.13(c), [or] (d), or
171	171	(s), 11.133, or 11.134, the amount of the tax due on the property
172	172	for the tax year is calculated as if the individual qualified for
173	173	the exemption on January 1 and continued to qualify for the
174	174	exemption for the remainder of the tax year.
175	175	(b) If an individual qualifies for an exemption under
176	176	Section 11.13(c), [or] (d), or (s), 11.133, or 11.134 with respect
177	177	to the property after the amount of the tax due on the property is
178	178	calculated and the effect of the qualification is to reduce the
179	179	amount of the tax due on the property, the assessor for each taxing
180	180	unit shall recalculate the amount of the tax due on the property and
181	181	correct the tax roll. If the tax bill has been mailed and the tax on
182	182	the property has not been paid, the assessor shall mail a corrected
183	183	tax bill to the person in whose name the property is listed on the
184	184	tax roll or to the person's authorized agent. If the tax on the
185	185	property has been paid, the tax collector for the taxing unit shall
186	186	refund to the person who was the owner of the property on the date
187	187	the tax was paid the amount by which the payment exceeded the tax
188	188	due.
189	189	SECTION 6. Section 33.01(d), Tax Code, is amended to read as
190	190	follows:
191	191	(d) In lieu of the penalty imposed under Subsection (a), a
192	192	delinquent tax incurs a penalty of 50 percent of the amount of the
193	193	tax without regard to the number of months the tax has been
194	194	delinquent if the tax is delinquent because the property owner
195	195	received an exemption under:
196	196	(1) Section 11.13 and the chief appraiser subsequently
197	197	cancels the exemption because the residence was not the principal
198	198	residence of the property owner and the property owner received an
199	199	exemption for two or more additional residence homesteads for the
200	200	tax year in which the tax was imposed;
201	201	(2) Section 11.13(c) or (d) for a person who is 65
202	202	years of age or older and the chief appraiser subsequently cancels
203	203	the exemption because the property owner was younger than 65 years
204	204	of age; [or]
205	205	(3) Section 11.13(s) for a person who is 72 years of
206	206	age or older and the chief appraiser subsequently cancels the
207	207	exemption because the property owner was younger than 72 years of
208	208	age; or
209	209	(4) Section 11.13(q) or (t) and the chief appraiser
210	210	subsequently cancels the exemption because the property owner was
211	211	younger than 55 years of age when the property owner's spouse died.
212	212	SECTION 7. Section 44.004(c), Education Code, is amended to
213	213	read as follows:
214	214	(c) The notice of public meeting to discuss and adopt the
215	215	budget and the proposed tax rate may not be smaller than one-quarter
216	216	page of a standard-size or a tabloid-size newspaper, and the
217	217	headline on the notice must be in 18-point or larger type. Subject
218	218	to Subsection (d), the notice must:
219	219	(1) contain a statement in the following form:
220	220	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
221	221	"The (name of school district) will hold a public meeting at
222	222	(time, date, year) in (name of room, building, physical location,
223	223	city, state). The purpose of this meeting is to discuss the school
224	224	district's budget that will determine the tax rate that will be
225	225	adopted. Public participation in the discussion is invited." The
226	226	statement of the purpose of the meeting must be in bold type. In
227	227	reduced type, the notice must state: "The tax rate that is
228	228	ultimately adopted at this meeting or at a separate meeting at a
229	229	later date may not exceed the proposed rate shown below unless the
230	230	district publishes a revised notice containing the same information
231	231	and comparisons set out below and holds another public meeting to
232	232	discuss the revised notice." In addition, in reduced type, the
233	233	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
234	234	your local property tax database on which you can easily access
235	235	information regarding your property taxes, including information
236	236	about proposed tax rates and scheduled public hearings of each
237	237	entity that taxes your property.";
238	238	(2) contain a section entitled "Comparison of Proposed
239	239	Budget with Last Year's Budget," which must show the difference,
240	240	expressed as a percent increase or decrease, as applicable, in the
241	241	amounts budgeted for the preceding fiscal year and the amount
242	242	budgeted for the fiscal year that begins in the current tax year for
243	243	each of the following:
244	244	(A) maintenance and operations;
245	245	(B) debt service; and
246	246	(C) total expenditures;
247	247	(3) contain a section entitled "Total Appraised Value
248	248	and Total Taxable Value," which must show the total appraised value
249	249	and the total taxable value of all property and the total appraised
250	250	value and the total taxable value of new property taxable by the
251	251	district in the preceding tax year and the current tax year as
252	252	calculated under Section 26.04, Tax Code;
253	253	(4) contain a statement of the total amount of the
254	254	outstanding and unpaid bonded indebtedness of the school district;
255	255	(5) contain a section entitled "Comparison of Proposed
256	256	Rates with Last Year's Rates," which must:
257	257	(A) show in rows the tax rates described by
258	258	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
259	259	property, for columns entitled "Maintenance & Operations,"
260	260	"Interest & Sinking Fund," and "Total," which is the sum of
261	261	"Maintenance & Operations" and "Interest & Sinking Fund":
262	262	(i) the school district's "Last Year's
263	263	Rate";
264	264	(ii) the "Rate to Maintain Same Level of
265	265	Maintenance & Operations Revenue & Pay Debt Service," which:
266	266	(a) in the case of "Maintenance &
267	267	Operations," is the tax rate that, when applied to the current
268	268	taxable value for the district, as certified by the chief appraiser
269	269	under Section 26.01, Tax Code, and as adjusted to reflect changes
270	270	made by the chief appraiser as of the time the notice is prepared,
271	271	would impose taxes in an amount that, when added to state funds to
272	272	be distributed to the district under Chapter 48, would provide the
273	273	same amount of maintenance and operations taxes and state funds
274	274	distributed under Chapter 48 per student in average daily
275	275	attendance for the applicable school year that was available to the
276	276	district in the preceding school year; and
277	277	(b) in the case of "Interest & Sinking
278	278	Fund," is the tax rate that, when applied to the current taxable
279	279	value for the district, as certified by the chief appraiser under
280	280	Section 26.01, Tax Code, and as adjusted to reflect changes made by
281	281	the chief appraiser as of the time the notice is prepared, and when
282	282	multiplied by the district's anticipated collection rate, would
283	283	impose taxes in an amount that, when added to state funds to be
284	284	distributed to the district under Chapter 46 and any excess taxes
285	285	collected to service the district's debt during the preceding tax
286	286	year but not used for that purpose during that year, would provide
287	287	the amount required to service the district's debt; and
288	288	(iii) the "Proposed Rate";
289	289	(B) contain fourth and fifth columns aligned with
290	290	the columns required by Paragraph (A) that show, for each row
291	291	required by Paragraph (A):
292	292	(i) the "Local Revenue per Student," which
293	293	is computed by multiplying the district's total taxable value of
294	294	property, as certified by the chief appraiser for the applicable
295	295	school year under Section 26.01, Tax Code, and as adjusted to
296	296	reflect changes made by the chief appraiser as of the time the
297	297	notice is prepared, by the total tax rate, and dividing the product
298	298	by the number of students in average daily attendance in the
299	299	district for the applicable school year; and
300	300	(ii) the "State Revenue per Student," which
301	301	is computed by determining the amount of state aid received or to be
302	302	received by the district under Chapters 43, 46, and 48 and dividing
303	303	that amount by the number of students in average daily attendance in
304	304	the district for the applicable school year; and
305	305	(C) contain an asterisk after each calculation
306	306	for "Interest & Sinking Fund" and a footnote to the section that, in
307	307	reduced type, states "The Interest & Sinking Fund tax revenue is
308	308	used to pay for bonded indebtedness on construction, equipment, or
309	309	both. The bonds, and the tax rate necessary to pay those bonds, were
310	310	approved by the voters of this district.";
311	311	(6) contain a section entitled "Comparison of Proposed
312	312	Levy with Last Year's Levy on Average Residence," which must:
313	313	(A) show in rows the information described by
314	314	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
315	315	entitled "Last Year" and "This Year":
316	316	(i) "Average Market Value of Residences,"
317	317	determined using the same group of residences for each year;
318	318	(ii) "Average Taxable Value of Residences,"
319	319	determined after taking into account the limitation on the
320	320	appraised value of residences under Section 23.23, Tax Code, and
321	321	after subtracting all homestead exemptions applicable in each year,
322	322	other than exemptions available only to disabled persons, [or]
323	323	persons 65 years of age or older or their surviving spouses, or
324	324	persons 72 years of age or older or their surviving spouses, and
325	325	using the same group of residences for each year;
326	326	(iii) "Last Year's Rate Versus Proposed
327	327	Rate per $100 Value"; and
328	328	(iv) "Taxes Due on Average Residence,"
329	329	determined using the same group of residences for each year; and
330	330	(B) contain the following information: "Increase
331	331	(Decrease) in Taxes" expressed in dollars and cents, which is
332	332	computed by subtracting the "Taxes Due on Average Residence" for
333	333	the preceding tax year from the "Taxes Due on Average Residence" for
334	334	the current tax year;
335	335	(7) contain the following statement in bold print:
336	336	"Under state law, the dollar amount of school taxes imposed on the
337	337	residence of a person 65 years of age or older or of the surviving
338	338	spouse of such a person, if the surviving spouse was 55 years of age
339	339	or older when the person died, may not be increased above the amount
340	340	paid in the first year after the person turned 65, regardless of
341	341	changes in tax rate or property value.";
342	342	(8) contain the following statement in bold print:
343	343	"Notice of Voter-Approval Rate: The highest tax rate the district
344	344	can adopt before requiring voter approval at an election is (the
345	345	school district voter-approval rate determined under Section
346	346	26.08, Tax Code). This election will be automatically held if the
347	347	district adopts a rate in excess of the voter-approval rate of (the
348	348	school district voter-approval rate)."; [and]
349	349	(9) contain a section entitled "Fund Balances," which
350	350	must include the estimated amount of interest and sinking fund
351	351	balances and the estimated amount of maintenance and operation or
352	352	general fund balances remaining at the end of the current fiscal
353	353	year that are not encumbered with or by corresponding debt
354	354	obligation, less estimated funds necessary for the operation of the
355	355	district before the receipt of the first payment under Chapter 48 in
356	356	the succeeding school year; and
357	357	(10) contain the following statement in bold print:
358	358	"Under state law, the residence of a person 72 years of age or older
359	359	or of the surviving spouse of such a person, if the surviving spouse
360	360	was 55 years of age or older when the person died, is exempt from
361	361	taxes."
362	362	SECTION 8. Section 46.071, Education Code, is amended by
363	363	adding Subsection (a-2) and amending Subsections (b-1) and (c-1) to
364	364	read as follows:
365	365	(a-2) Beginning with the 2024-2025 school year, in addition
366	366	to state aid a school district is entitled to under Subsection
367	367	(a-1), a school district is also entitled to additional state aid
368	368	under this subchapter to the extent that state and local revenue
369	369	used to service debt eligible under this chapter is less than the
370	370	state and local revenue that would have been available to the
371	371	district under this chapter as it existed on September 1, 2023, if
372	372	the residence homestead exemption for a person 72 years of age or
373	373	older or the person's surviving spouse under Section 1-b(v),
374	374	Article VIII, Texas Constitution, as proposed by the 88th
375	375	Legislature, 2nd Called Session, 2023, had not been adopted.
376	376	(b-1) Subject to Subsections (c-1), (d), and (e),
377	377	additional state aid under this section beginning with the
378	378	2022-2023 school year is equal to the amount by which the loss of
379	379	local interest and sinking revenue for debt service attributable to
380	380	any increase in the residence homestead exemption under Section
381	381	1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
382	382	Legislature, 3rd Called Session, 2021, and the residence homestead
383	383	exemption under Section 1-b(v), Article VIII, Texas Constitution,
384	384	as proposed by the 88th Legislature, 2nd Called Session, 2023, is
385	385	not offset by a gain in state aid under this chapter.
386	386	(c-1) For the purpose of determining state aid under
387	387	Subsection [Subsections] (a-1) or (a-2) [and (b-1)], local interest
388	388	and sinking revenue for debt service is limited to revenue required
389	389	to service debt eligible under this chapter as of September 1, 2021,
390	390	or as of September 1, 2023, respectively, including refunding of
391	391	the applicable [that] debt, subject to Section 46.061. The
392	392	limitation imposed by Section 46.034(a) does not apply for the
393	393	purpose of determining state aid under Subsection (a-1) or (a-2)
394	394	[this section].
395	395	SECTION 9. Section 48.2543, Education Code, is amended by
396	396	adding Subsection (a-1) and amending Subsection (b) to read as
397	397	follows:
398	398	(a-1) Beginning with the 2024-2025 school year, in addition
399	399	to state aid a school district is entitled to under Subsection (a),
400	400	a school district is entitled to additional state aid to the extent
401	401	that state and local revenue under this chapter and Chapter 49 is
402	402	less than the state and local revenue that would have been available
403	403	to the district under this chapter and Chapter 49 as those chapters
404	404	existed on September 1, 2023, if the residence homestead exemption
405	405	for a person 72 years of age or older or the person's surviving
406	406	spouse under Section 1-b(v), Article VIII, Texas Constitution, as
407	407	proposed by the joint resolution to add that subsection adopted by
408	408	the 88th Legislature, 2nd Called Session, 2023, had not been
409	409	adopted.
410	410	(b) The lesser of the school district's currently adopted
411	411	maintenance and operations tax rate or the adopted maintenance and
412	412	operations tax rate for:
413	413	(1) the 2021 tax year is used for the purpose of
414	414	determining additional state aid under Subsection (a); and
415	415	(2) the 2023 tax year is used for the purpose of
416	416	determining additional state aid under Subsection (a-1).
417	417	SECTION 10. Section 403.302(d-1), Government Code, is
418	418	amended to read as follows:
419	419	(d-1) For purposes of Subsection (d), a residence homestead
420	420	that receives an exemption under Section 11.13(s) or (t), 11.131,
421	421	11.133, or 11.134, Tax Code, in the year that is the subject of the
422	422	study is not considered to be taxable property.
423	423	SECTION 11. The exemptions from ad valorem taxation of a
424	424	residence homestead authorized by Sections 11.13(s) and (t), Tax
425	425	Code, as added by this Act, apply only to taxes imposed beginning
426	426	with the 2024 tax year.
427	427	SECTION 12. This Act takes effect January 1, 2024, but only
428	428	if the constitutional amendment proposed by the 88th Legislature,
429	429	2nd Called Session, 2023, to exempt from ad valorem taxation the
430	430	total market value of the residence homesteads of certain elderly
431	431	persons and their surviving spouses is approved by the voters. If
432	432	that constitutional amendment is not approved by the voters, this
433	433	Act has no effect.