By: Bettencourt, et al. S.B. No. 1
A BILL TO BE ENTITLED
AN ACT
relating to providing property tax relief through the public school
finance system, exemptions, and limitations on taxes and providing
franchise tax relief.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. SHORT TITLE
SECTION 1.01. This Act may be cited as the Property Tax and
Franchise Tax Relief Act.
ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
SECTION 2.01. Section 48.255(b), Education Code, is amended
to read as follows:
(b) The state compression percentage is the lower of:
(1) 93 percent, or a lower percentage set by
appropriation for a school year;
(2) the percentage determined by the following
formula:
SCP = PYCP X 1.0175 [1.025]/(1 + ECPV); or
(3) the percentage determined under this section for
the preceding school year.
SECTION 2.02. Section 48.2551(b), Education Code, is
amended to read as follows:
(b) Except as provided by Subsection (c), a district's
maximum compressed rate ("MCR") is the lesser of:
(1) the rate determined by the following applicable
formula:
(A) if "DPV" exceeds "PYDPV" by an amount equal
to or greater than 1.75 [2.5] percent:
MCR = (1.0175 [1.025]((PYDPV+E) X PYMCR))/DPV; or
(B) if Paragraph (A) does not apply:
MCR = PYMCR; or
(2) the product of the state compression percentage,
as determined under Section 48.255, for the current tax year,
multiplied by $1.00.
SECTION 2.03. Subchapter F, Chapter 48, Education Code, is
amended by adding Sections 48.2555 and 48.283 to read as follows:
Sec. 48.2555. MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
SCHOOL YEAR. (a) Notwithstanding any other provision of this title
or Chapter 26, Tax Code, for the 2023-2024 school year, the
commissioner shall calculate the value of a school district's
maximum compressed tax rate by determining the district's maximum
compressed rate under Section 48.2551 or 48.2552(b), if applicable,
and reducing the tax rate determined under the applicable section
by $0.10.
(b) If a school district's maximum compressed tax rate as
calculated under Subsection (a) would be less than 90 percent of
another school district's maximum compressed tax rate under
Subsection (a), the district's maximum compressed tax rate is the
value at which the district's maximum compressed tax rate would be
equal to 90 percent of the other district's maximum compressed tax
rate.
(c) Notwithstanding any other provision of this title or
Chapter 26, Tax Code, for purposes of determining funding for
school districts for the 2023-2024 school year, a reference in any
of the following provisions of law to a school district's maximum
compressed tax rate or maximum compressed rate as determined under
Section 48.2551 means the maximum compressed tax rate determined
for the district under this section:
(1) Section 13.054(f);
(2) Section 45.003(d);
(3) Section 45.0032(a);
(4) Section 48.051(a);
(5) Sections 48.2553(a) and (e); and
(6) Section 26.08(n), Tax Code.
(d) For purposes of Section 30.003(f-1), a reference in that
section to Section 48.2551 includes this section.
(e) Notwithstanding any other provision of this title, for
purposes of determining a school district's maximum compressed tax
rate under Section 48.2551 for the 2024-2025 school year, the value
of the district's "PYMCR" is the maximum compressed tax rate
determined for the district under this section for the preceding
school year.
(f) This section expires September 1, 2025.
Sec. 48.283. ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
IMPACTED BY COMPRESSION. (a) For the 2023-2024 and 2024-2025
school years, a school district that received an adjustment under
Section 48.257(b) for the 2022-2023 school year is entitled to
additional state aid in an amount equal to the difference, if the
difference is greater than zero, between:
(1) the amount of state and local revenue that would
have been available to the district under this chapter and Chapter
49 for the current school year if the district's maximum compressed
tax rate had not been reduced under Section 48.2555, as added by
S.B. 1, Acts of the 88th Legislature, 2nd Called Session, 2023; and
(2) the amount of state and local revenue available to
the district under this chapter and Chapter 49 for the current
school year.
(b) This section expires September 1, 2026.
ARTICLE 3. RESIDENCE HOMESTEAD EXEMPTIONS
SECTION 3.01. Section 11.13, Tax Code, is amended by
amending Subsection (b) and adding Subsection (n-1) to read as
follows:
(b) An adult is entitled to exemption from taxation by a
school district of $100,000 [$40,000] of the appraised value of the
adult's residence homestead, except that only $5,000 of the
exemption applies to an entity operating under former Chapter 17,
18, 25, 26, 27, or 28, Education Code, as those chapters existed on
May 1, 1995, as permitted by Section 11.301, Education Code.
(n-1) The governing body of a school district,
municipality, or county that adopted an exemption under Subsection
(n) for the 2022 tax year may not reduce the amount of or repeal the
exemption. This subsection expires December 31, 2027.
SECTION 3.02. Section 11.26, Tax Code, is amended by
amending Subsections (a), (a-10), and (o) and adding Subsections
(a-11) and (a-12) to read as follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). [If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older or disabled was a tax year before the 2015 tax year, the
amount of the limitation provided by this section is the amount of
tax the school district imposed for the 2014 tax year less an amount
equal to the amount determined by multiplying $10,000 times the tax
rate of the school district for the 2015 tax year, plus any 2015 tax
attributable to improvements made in 2014, other than improvements
made to comply with governmental regulations or repairs.]
(a-10) Notwithstanding the other provisions of this
section, if in the 2024 or a subsequent tax year an individual
qualifies for a limitation on tax increases provided by this
section on the individual's residence homestead, the amount of the
limitation provided by this section on the homestead is equal to the
amount computed by:
(1) multiplying the taxable value of the homestead in
the preceding tax year by a tax rate equal to the difference between
the school district's maximum compressed rate for the preceding tax
year and the district's maximum compressed rate for the current tax
year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the preceding tax year; [and]
(3) adding any tax imposed in the current tax year
attributable to improvements made in the preceding tax year as
provided by Subsection (b) to the amount computed under Subdivision
(2);
(4) multiplying the amount of any increase in the
current tax year as compared to the preceding tax year in the
aggregate amount of the exemptions to which the individual is
entitled under Sections 11.13(b) and (c) by the school district's
tax rate for the current tax year; and
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3).
(a-11) This subsection applies only to an individual who in
the 2023 tax year qualifies for a limitation under this section and
for whom the 2022 tax year or an earlier tax year was the first tax
year the individual or the individual's spouse qualified for an
exemption under Section 11.13(c). The amount of the limitation
provided by this section on the residence homestead of an
individual to which this subsection applies for the 2023 tax year is
the amount of the limitation as computed under Subsection (a-5),
(a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less
an amount equal to the product of $60,000 and the tax rate of the
school district for the 2023 tax year. This subsection expires
January 1, 2025.
(a-12) This subsection applies only to an individual who in
the 2023 tax year qualifies for a limitation under this section and
for whom the 2021 tax year or an earlier tax year was the first tax
year the individual or the individual's spouse qualified for an
exemption under Section 11.13(c). The amount of the limitation
provided by this section on the residence homestead of an
individual to which this subsection applies for the 2023 tax year is
the amount of the limitation as computed under Subsection (a-11) of
this section less an amount equal to the product of $15,000 and the
tax rate of the school district for the 2022 tax year. This
subsection expires January 1, 2025.
(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
improvement to property that would otherwise constitute an
improvement under Subsection (b) is not treated as an improvement
under that subsection if the improvement is a replacement structure
for a structure that was rendered uninhabitable or unusable by a
casualty or by wind or water damage. For purposes of appraising the
property in the tax year in which the structure would have
constituted an improvement under Subsection (b), the replacement
structure is considered to be an improvement under that subsection
only if:
(1) the square footage of the replacement structure
exceeds that of the replaced structure as that structure existed
before the casualty or damage occurred; or
(2) the exterior of the replacement structure is of
higher quality construction and composition than that of the
replaced structure.
SECTION 3.03. Section 46.071, Education Code, is amended by
amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
(b-2), and (c-2) to read as follows:
(a-1) For [Beginning with] the 2022-2023 school year, a
school district is entitled to additional state aid under this
subchapter to the extent that state and local revenue used to
service debt eligible under this chapter is less than the state and
local revenue that would have been available to the district under
this chapter as it existed on September 1, 2021, if any increase in
the residence homestead exemption under Section 1-b(c), Article
VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd
Called Session, 2021, had not occurred.
(a-2) Beginning with the 2023-2024 school year, a school
district is entitled to additional state aid under this subchapter
to the extent that state and local revenue used to service debt
eligible under this chapter is less than the state and local revenue
that would have been available to the district under this chapter as
it existed on September 1, 2022, if any increase in a residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, and any additional limitation on tax increases under
Section 1-b(d) of that article as proposed by the 88th Legislature,
2nd Called Session, 2023, had not occurred.
(b-1) Subject to Subsections (c-1), (d), and (e),
additional state aid under this section for [beginning with] the
2022-2023 school year is equal to the amount by which the loss of
local interest and sinking revenue for debt service attributable to
any increase in the residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
Legislature, 3rd Called Session, 2021, is not offset by a gain in
state aid under this chapter.
(b-2) Subject to Subsections (c-2), (d), and (e),
additional state aid under this section beginning with the
2023-2024 school year is equal to the amount by which the loss of
local interest and sinking revenue for debt service attributable to
any increase in a residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, and any additional
limitation on tax increases under Section 1-b(d) of that article as
proposed by the 88th Legislature, 2nd Called Session, 2023, is not
offset by a gain in state aid under this chapter.
(c-2) For the purpose of determining state aid under
Subsections (a-2) and (b-2), local interest and sinking revenue for
debt service is limited to revenue required to service debt
eligible under this chapter as of September 1, 2023, including
refunding of that debt, subject to Section 46.061. The limitation
imposed by Section 46.034(a) does not apply for the purpose of
determining state aid under this section.
SECTION 3.04. Section 48.2542, Education Code, is amended
to read as follows:
Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
Notwithstanding any other provision of this chapter, if a school
district is not fully compensated through state aid or the
calculation of excess local revenue under this chapter based on the
determination of the district's taxable value of property under
Subchapter M, Chapter 403, Government Code, the district is
entitled to additional state aid in the amount necessary to fully
compensate the district for the amount of ad valorem tax revenue
lost due to a reduction of the amount of the limitation on tax
increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
(a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as
applicable.
SECTION 3.05. Effective January 1, 2025, Section 48.2542,
Education Code, is amended to read as follows:
Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
Notwithstanding any other provision of this chapter, if a school
district is not fully compensated through state aid or the
calculation of excess local revenue under this chapter based on the
determination of the district's taxable value of property under
Subchapter M, Chapter 403, Government Code, the district is
entitled to additional state aid in the amount necessary to fully
compensate the district for the amount of ad valorem tax revenue
lost due to a reduction of the amount of the limitation on tax
increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
applicable].
SECTION 3.06. Section 48.2543, Education Code, is amended
to read as follows:
Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
(a) For [Beginning with] the 2022-2023 school year, a school
district is entitled to additional state aid to the extent that
state and local revenue under this chapter and Chapter 49 is less
than the state and local revenue that would have been available to
the district under this chapter and Chapter 49 as those chapters
existed on September 1, 2021, if any increase in the residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, as proposed by the 87th Legislature, 3rd Called
Session, 2021, had not occurred.
(a-1) Beginning with the 2023-2024 school year, a school
district is entitled to additional state aid to the extent that
state and local revenue under this chapter and Chapter 49 is less
than the state and local revenue that would have been available to
the district under this chapter and Chapter 49 as those chapters
existed on September 1, 2022, if any increase in a residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, and any additional limitation on tax increases under
Section 1-b(d) of that article as proposed by the 88th Legislature,
2nd Called Session, 2023, had not occurred.
(b) The lesser of the school district's currently adopted
maintenance and operations tax rate or the adopted maintenance and
operations tax rate for:
(1) the 2021 tax year is used for the purpose of
determining additional state aid under Subsection (a); and
(2) the 2022 tax year is used for the purpose of
determining additional state aid under Subsection (a-1).
SECTION 3.07. Section 48.2556(a), Education Code, is
amended to read as follows:
(a) The agency shall post the following information on the
agency's Internet website for purposes of allowing the chief
appraiser of each appraisal district and the assessor for each
school district to make the calculations required by Sections
11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and
(a-12), Tax Code:
(1) each school district's maximum compressed rate, as
determined under Section 48.2551, for each tax year beginning with
the 2019 tax year; and
(2) each school district's tier one maintenance and
operations tax rate, as provided by Section 45.0032(a), for the
2018 tax year.
SECTION 3.08. Effective January 1, 2025, Section
48.2556(a), Education Code, is amended to read as follows:
(a) For purposes of allowing the chief appraiser of each
appraisal district and the assessor for each school district to
make the calculations required by Section 11.26(a-10), Tax Code,
the [The] agency shall post [the following information] on the
agency's Internet website [for purposes of allowing the chief
appraiser of each appraisal district and the assessor for each
school district to make the calculations required by Sections
11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
[(1)] each school district's maximum compressed rate,
as determined under Section 48.2551, for the current [each] tax
year and the preceding [beginning with the 2019] tax year[; and
[(2) each school district's tier one maintenance and
operations tax rate, as provided by Section 45.0032(a), for the
2018 tax year].
SECTION 3.09. Section 49.004, Education Code, is amended by
adding Subsections (a-1), (b-1), and (c-1) to read as follows:
(a-1) This subsection applies only if the constitutional
amendment proposed by S.J.R. 1, 88th Legislature, 2nd Called
Session, 2023, is approved by the voters in an election held for
that purpose. As soon as practicable after receiving revised
property values that reflect adoption of the constitutional
amendment, the commissioner shall review the local revenue level of
districts in the state and revise as necessary the notifications
provided under Subsection (a) for the 2023-2024 school year. This
subsection expires September 1, 2024.
(b-1) This subsection applies only to a district that has
not previously held an election under this chapter. Notwithstanding
Subsection (b), a district that enters into an agreement to
exercise an option to reduce the district's local revenue level in
excess of entitlement under Section 49.002(3), (4), or (5) for the
2023-2024 school year may request and, as provided by Section
49.0042(a), receive approval from the commissioner to delay the
date of the election otherwise required to be ordered before
September 1. This subsection expires September 1, 2024.
(c-1) Notwithstanding Subsection (c), a district that
receives approval from the commissioner to delay an election as
provided by Subsection (b-1) may adopt a tax rate for the 2023 tax
year before the commissioner certifies that the district has
reduced its local revenue level to the level established by Section
48.257. This subsection expires September 1, 2024.
SECTION 3.10. Subchapter A, Chapter 49, Education Code, is
amended by adding Section 49.0042 to read as follows:
Sec. 49.0042. TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD
EXEMPTIONS AND LIMITATION ON TAX INCREASES. (a) The commissioner
shall approve a district's request under Section 49.004(b-1) to
delay the date of an election required under this chapter if the
commissioner determines that the district would not have a local
revenue level in excess of entitlement if the constitutional
amendment proposed by S.J.R. 1, 88th Legislature, 2nd Called
Session, 2023, were approved by the voters.
(b) The commissioner shall set a date by which each district
that receives approval under this section must order the election.
(c) Not later than the 2024-2025 school year, the
commissioner shall order detachment and annexation of property
under Subchapter G or consolidation under Subchapter H as necessary
to reduce the district's local revenue level to the level
established by Section 48.257 for a district that receives approval
under this section and subsequently:
(1) fails to hold the election; or
(2) does not receive voter approval at the election.
(d) This section expires September 1, 2025.
SECTION 3.11. Subchapter A, Chapter 49, Education Code, is
amended by adding Section 49.0121 to read as follows:
Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This
section applies only to an election under this chapter that occurs
during the 2023-2024 school year.
(b) Section 49.012 does not apply to a district that
receives approval of a request under Section 49.0042. The district
shall hold the election on a Tuesday or Saturday on or before a date
specified by the commissioner. Section 41.001, Election Code, does
not apply to the election.
(c) This section expires September 1, 2024.
SECTION 3.12. Section 49.154, Education Code, is amended by
adding Subsections (a-2) and (a-3) to read as follows:
(a-2) Notwithstanding Subsections (a) and (a-1), a district
that receives approval of a request under Section 49.0042 shall pay
for credit purchased:
(1) in equal monthly payments as determined by the
commissioner beginning March 15, 2024, and ending August 15, 2024;
or
(2) in the manner provided by Subsection (a)(2),
provided that the district notifies the commissioner of the
district's election to pay in that manner not later than March 15,
2024.
(a-3) Subsection (a-2) and this subsection expire September
1, 2024.
SECTION 3.13. Section 49.308, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Notwithstanding Subsection (a), for the 2023-2024
school year, the commissioner shall order any detachments and
annexations of property under this subchapter as soon as
practicable after the canvass of the votes on the constitutional
amendment proposed by S.J.R. 1, 88th Legislature, 2nd Called
Session, 2023. This subsection expires September 1, 2024.
SECTION 3.14. Section 403.302, Government Code, is amended
by amending Subsection (j-1) and adding Subsection (j-2) to read as
follows:
(j-1) In the final certification of the study under
Subsection (j), the comptroller shall separately identify the final
taxable value for each school district as adjusted to account for
the reduction of the amount of the limitation on tax increases
provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
(j-2) In the final certification of the study under
Subsection (j), the comptroller shall separately identify the final
taxable value for each school district as adjusted to account for
the reduction of the amount of the limitation on tax increases
provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9),
(a-10), (a-11), and (a-12), Tax Code. This subsection expires
January 1, 2025.
SECTION 3.15. Section 25.23, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) This subsection applies only to the appraisal records
for the 2023 tax year. The chief appraiser shall prepare
supplemental appraisal records to account for the changes in law
made by S.B. 1, Acts of the 88th Legislature, 2nd Called Session,
2023. This subsection expires December 31, 2024.
SECTION 3.16. Section 26.04, Tax Code, is amended by adding
Subsections (a-1) and (c-1) to read as follows:
(a-1) On receipt of the appraisal roll for the 2023 tax
year, the assessor for a school district shall determine the total
taxable value of property taxable by the district and the taxable
value of new property as if the changes in law made by S.B. 1, Acts
of the 88th Legislature, 2nd Called Session, 2023, were in effect
for that tax year. This subsection expires December 31, 2024.
(c-1) An officer or employee designated by the governing
body of a school district shall calculate the no-new-revenue tax
rate and the voter-approval tax rate of the district for the 2023
tax year as if the changes in law made by S.B. 1, Acts of the 88th
Legislature, 2nd Called Session, 2023, were in effect for that tax
year. This subsection expires December 31, 2024.
SECTION 3.17. Section 26.08, Tax Code, is amended by adding
Subsection (q) to read as follows:
(q) For purposes of this section, the voter-approval tax
rate of a school district for the 2023 tax year shall be calculated
as if the changes in law made by S.B. 1, Acts of the 88th
Legislature, 2nd Called Session, 2023, were in effect for that tax
year. This subsection expires December 31, 2024.
SECTION 3.18. Section 26.09, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) The assessor for a school district shall calculate the
amount of tax imposed by the district on a residence homestead for
the 2023 tax year as if the changes in law made by S.B. 1, Acts of
the 88th Legislature, 2nd Called Session, 2023, were in effect for
that tax year and also as if the changes in law made by that Act were
not in effect for that tax year. This subsection expires December
31, 2024.
SECTION 3.19. Section 26.15, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) The assessor for a school district shall correct the tax
roll for the district for the 2023 tax year to reflect the results
of the election to approve the constitutional amendment proposed by
S.J.R. 1, 88th Legislature, 2nd Called Session, 2023. This
subsection expires December 31, 2024.
SECTION 3.20. Section 31.01, Tax Code, is amended by adding
Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
(d-2) This subsection and Subsections (d-3) and (d-4) apply
only to taxes imposed by a school district on a residence homestead
for the 2023 tax year and only if the changes in law made by S.B. 1,
Acts of the 88th Legislature, 2nd Called Session, 2023, would lower
the taxes imposed by the district on the property for that tax year.
The assessor for the district shall compute the amount of taxes
imposed and the other information required by this section as if the
changes in law made by S.B. 1, Acts of the 88th Legislature, 2nd
Called Session, 2023, were in effect for that tax year. The tax
bill or the separate statement must indicate that the bill is a
provisional tax bill and include a statement in substantially the
following form:
"If the Texas Legislature had not enacted property tax relief
legislation during the 2023 legislative session, your tax bill
would have been $____ (insert amount of tax bill if the changes in
law made by S.B. 1, Acts of the 88th Legislature, 2nd Called
Session, 2023, were not in effect for that tax year). Because of
action by the Texas Legislature, your tax bill has been lowered by
$____ (insert difference between amount of tax bill if the changes
in law made by S.B. 1, Acts of the 88th Legislature, 2nd Called
Session, 2023, were not in effect for that tax year and amount of
tax bill if that Act were in effect for that tax year), resulting in
a lower tax bill of $____ (insert amount of tax bill if the changes
in law made by S.B. 1, Acts of the 88th Legislature, 2nd Called
Session, 2023, were in effect for that tax year), contingent on the
approval by the voters at an election to be held November 7, 2023,
of the constitutional amendment proposed by S.J.R. 1, 88th
Legislature, 2nd Called Session, 2023. If that constitutional
amendment is not approved by the voters at the election, a
supplemental tax bill in the amount of $____ (insert difference
between amount of tax bill if the changes in law made by S.B. 1, Acts
of the 88th Legislature, 2nd Called Session, 2023, were not in
effect for that tax year and amount of tax bill if that Act were in
effect for that tax year) will be mailed to you."
(d-3) A tax bill prepared by the assessor for a school
district as provided by Subsection (d-2) and mailed as provided by
Subsection (a) is considered to be a provisional tax bill until the
canvass of the votes on the constitutional amendment proposed by
S.J.R. 1, 88th Legislature, 2nd Called Session, 2023. If the
constitutional amendment is approved by the voters, the tax bill is
considered to be a final tax bill for the taxes imposed on the
property for the 2023 tax year, and no additional tax bill is
required to be mailed unless another provision of this title
requires the mailing of a corrected tax bill. If the constitutional
amendment is not approved by the voters:
(1) a tax bill prepared by the assessor as provided by
Subsection (d-2) is considered to be a final tax bill but only as to
the portion of the taxes imposed on the property for the 2023 tax
year that are included in the bill;
(2) the amount of taxes imposed by each school
district on a residence homestead for the 2023 tax year is
calculated as if the changes in law made by S.B. 1, Acts of the 88th
Legislature, 2nd Called Session, 2023, were not in effect for that
tax year; and
(3) except as provided by Subsections (f), (i-1), and
(k), the assessor for each school district shall prepare and mail a
supplemental tax bill, by December 1 or as soon thereafter as
practicable, in an amount equal to the difference between the
amount of the tax bill if the changes in law made by S.B. 1, Acts of
the 88th Legislature, 2nd Called Session, 2023, were not in effect
for that tax year and the amount of the tax bill if that Act were in
effect for that tax year.
(d-4) Except as otherwise provided by Subsection (d-3), the
provisions of this section other than Subsection (d-2) apply to a
supplemental tax bill mailed under Subsection (d-3).
(d-5) This subsection and Subsections (d-2), (d-3), and
(d-4) expire December 31, 2024.
SECTION 3.21. Section 31.02, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) Except as provided by Subsection (b) of this section
and Sections 31.03 and 31.04, taxes for which a supplemental tax
bill is mailed under Section 31.01(d-3) are due on receipt of the
tax bill and are delinquent if not paid before March 1 of the year
following the year in which imposed. This subsection expires
December 31, 2024.
SECTION 3.22. (a) Sections 11.26(a-1), (a-2), and (a-3),
Tax Code, are repealed.
(b) Effective January 1, 2025, Sections 11.26(a-5), (a-6),
(a-7), (a-8), and (a-9), Tax Code, are repealed.
SECTION 3.23. The changes in law made by this article to
Sections 11.13 and 11.26, Tax Code, apply beginning with the ad
valorem tax year that begins January 1, 2023.
ARTICLE 4. DETERMINATION AND REPORTING OF FRANCHISE TAX LIABILITY
SECTION 4.01. Section 171.002(d), Tax Code, is amended to
read as follows:
(d) A taxable entity is not required to pay any tax and is
not considered to owe any tax for a period if:
(1) the amount of tax computed for the taxable entity
is less than $1,000; or
(2) the amount of the taxable entity's total revenue
from its entire business is less than or equal to $2.47 [$1] million
or the amount determined under Section 171.006 per 12-month period
on which margin is based.
SECTION 4.02. Section 171.204(b), Tax Code, is amended to
read as follows:
(b) The comptroller may not require a taxable entity that
does not owe any tax because of the application of Section
171.002(d)(2) to file an [abbreviated] information report with the
comptroller [stating the amount of the taxable entity's total
revenue from its entire business. The comptroller may not require
a taxable entity described by this subsection to file an
information report that requires the taxable entity to report or
compute its margin].
SECTION 4.03. Section 171.204(d), Tax Code, is repealed.
SECTION 4.04. The changes in law made by this article apply
only to a report originally due on or after January 1, 2024.
ARTICLE 5. EFFECTIVE DATES
SECTION 5.01. Except as otherwise provided by this article,
this Act takes effect on the 91st day after the last day of the
legislative session.
SECTION 5.02. (a) Except as provided by Subsection (b) of
this section or as otherwise provided by Article 3 of this Act:
(1) Article 3 of this Act takes effect on the date on
which the constitutional amendment proposed by S.J.R. 1, 88th
Legislature, 2nd Called Session, 2023, takes effect; and
(2) if that amendment is not approved by the voters,
Article 3 of this Act has no effect.
(b) Sections 49.004(a-1), (b-1), and (c-1), 49.0042,
49.0121, 49.154(a-2) and (a-3), and 49.308(a-1), Education Code,
and Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q),
26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and
31.02(a-1), Tax Code, as added by Article 3 of this Act, take effect
immediately if this Act receives a vote of two-thirds of all the
members elected to each house, as provided by Section 39, Article
III, Texas Constitution. If this Act does not receive the vote
necessary for those sections to have immediate effect, those
sections take effect on the 91st day after the last day of the
legislative session.
SECTION 5.03. Article 4 of this Act takes effect January 1,
2024.