Texas 2023 - 88th 2nd C.S.

Texas Senate Bill SB2 Compare Versions

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1	1	S.B. No. 2
2	2
3	3
4	4	AN ACT
5	5	relating to providing property tax relief through the public school
6	6	finance system, exemptions, limitations on appraisals and taxes,
7	7	and property tax administration; authorizing the imposition of a
8	8	fee.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	ARTICLE 1. SHORT TITLE
11	11	SECTION 1.01. This Act may be cited as the Property Tax
12	12	Relief Act.
13	13	ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
14	14	SECTION 2.01. Subchapter F, Chapter 48, Education Code, is
15	15	amended by adding Sections 48.2555 and 48.283 to read as follows:
16	16	Sec. 48.2555. MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
17	17	SCHOOL YEAR. (a) Notwithstanding any other provision of this
18	18	title or Chapter 26, Tax Code, for the 2023-2024 school year, the
19	19	commissioner shall calculate the value of a school district's
20	20	maximum compressed tax rate by determining the district's maximum
21	21	compressed rate under Section 48.2551 or 48.2552(b), if applicable,
22	22	and reducing the tax rate determined under the applicable section
23	23	by $0.107.
24	24	(b) If a school district's maximum compressed tax rate as
25	25	calculated under Subsection (a) would be less than 90 percent of
26	26	another school district's maximum compressed tax rate under
27	27	Subsection (a), the district's maximum compressed tax rate is the
28	28	value at which the district's maximum compressed tax rate would be
29	29	equal to 90 percent of the other district's maximum compressed tax
30	30	rate.
31	31	(c) Notwithstanding any other provision of this title or
32	32	Chapter 26, Tax Code, for purposes of determining funding for
33	33	school districts for the 2023-2024 school year, a reference in any
34	34	of the following provisions of law to a school district's maximum
35	35	compressed tax rate or maximum compressed rate as determined under
36	36	Section 48.2551 means the maximum compressed tax rate determined
37	37	for the district under this section:
38	38	(1) Section 13.054(f);
39	39	(2) Section 45.003(d);
40	40	(3) Section 45.0032(a);
41	41	(4) Section 48.051(a);
42	42	(5) Sections 48.2553(a) and (e);
43	43	(6) Section 48.2556; and
44	44	(7) Section 26.08(n), Tax Code.
45	45	(d) For purposes of Section 30.003(f-1), a reference in that
46	46	section to Section 48.2551 includes this section.
47	47	(e) Notwithstanding any other provision of this title, for
48	48	purposes of determining a school district's maximum compressed tax
49	49	rate under Section 48.2551 for the 2024-2025 school year, the value
50	50	of the district's "PYMCR" is the maximum compressed tax rate
51	51	determined for the district under this section for the preceding
52	52	school year.
53	53	(f) This section expires September 1, 2025.
54	54	Sec. 48.283. ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
55	55	IMPACTED BY COMPRESSION. A school district that received an
56	56	adjustment under Section 48.257(b) for the 2022-2023 school year is
57	57	entitled to additional state aid for each school year in an amount
58	58	equal to the amount of that adjustment for the 2022-2023 school year
59	59	less the difference, if the difference is greater than zero,
60	60	between:
61	61	(1) the amount to which the district is entitled under
62	62	this chapter for the current school year; and
63	63	(2) the amount to which the district would be entitled
64	64	under this chapter for the current school year if the district's
65	65	maximum compressed tax rate had not been reduced under Section
66	66	48.2555, as added by S.B. 2, Acts of the 88th Legislature, 2nd
67	67	Called Session, 2023.
68	68	ARTICLE 3. SCHOOL DISTRICT RESIDENCE HOMESTEAD EXEMPTION
69	69	SECTION 3.01. Section 11.13, Tax Code, is amended by
70	70	amending Subsection (b) and adding Subsection (n-1) to read as
71	71	follows:
72	72	(b) An adult is entitled to exemption from taxation by a
73	73	school district of $100,000 [$40,000] of the appraised value of the
74	74	adult's residence homestead, except that only $5,000 of the
75	75	exemption applies to an entity operating under former Chapter 17,
76	76	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
77	77	May 1, 1995, as permitted by Section 11.301, Education Code.
78	78	(n-1) The governing body of a school district,
79	79	municipality, or county that adopted an exemption under Subsection
80	80	(n) for the 2022 tax year may not reduce the amount of or repeal the
81	81	exemption. This subsection expires December 31, 2027.
82	82	SECTION 3.02. Section 11.26, Tax Code, is amended by
83	83	amending Subsections (a), (a-10), and (o) and adding Subsections
84	84	(a-11) and (a-12) to read as follows:
85	85	(a) The tax officials shall appraise the property to which
86	86	this section applies and calculate taxes as on other property, but
87	87	if the tax so calculated exceeds the limitation imposed by this
88	88	section, the tax imposed is the amount of the tax as limited by this
89	89	section, except as otherwise provided by this section. A school
90	90	district may not increase the total annual amount of ad valorem tax
91	91	it imposes on the residence homestead of an individual 65 years of
92	92	age or older or on the residence homestead of an individual who is
93	93	disabled, as defined by Section 11.13, above the amount of the tax
94	94	it imposed in the first tax year in which the individual qualified
95	95	that residence homestead for the applicable exemption provided by
96	96	Section 11.13(c) for an individual who is 65 years of age or older
97	97	or is disabled. If the individual qualified that residence
98	98	homestead for the exemption after the beginning of that first year
99	99	and the residence homestead remains eligible for the same exemption
100	100	for the next year, and if the school district taxes imposed on the
101	101	residence homestead in the next year are less than the amount of
102	102	taxes imposed in that first year, a school district may not
103	103	subsequently increase the total annual amount of ad valorem taxes
104	104	it imposes on the residence homestead above the amount it imposed in
105	105	the year immediately following the first year for which the
106	106	individual qualified that residence homestead for the same
107	107	exemption, except as provided by Subsection (b). [If the first tax
108	108	year the individual qualified the residence homestead for the
109	109	exemption provided by Section 11.13(c) for individuals 65 years of
110	110	age or older or disabled was a tax year before the 2015 tax year, the
111	111	amount of the limitation provided by this section is the amount of
112	112	tax the school district imposed for the 2014 tax year less an amount
113	113	equal to the amount determined by multiplying $10,000 times the tax
114	114	rate of the school district for the 2015 tax year, plus any 2015 tax
115	115	attributable to improvements made in 2014, other than improvements
116	116	made to comply with governmental regulations or repairs.]
117	117	(a-10) Notwithstanding the other provisions of this
118	118	section, if in the 2024 or a subsequent tax year an individual
119	119	qualifies for a limitation on tax increases provided by this
120	120	section on the individual's residence homestead, the amount of the
121	121	limitation provided by this section on the homestead is equal to the
122	122	amount computed by:
123	123	(1) multiplying the taxable value of the homestead in
124	124	the preceding tax year by a tax rate equal to the difference between
125	125	the school district's maximum compressed rate for the preceding tax
126	126	year and the district's maximum compressed rate for the current tax
127	127	year;
128	128	(2) subtracting the amount computed under Subdivision
129	129	(1) from the amount of tax the district imposed on the homestead in
130	130	the preceding tax year; [and]
131	131	(3) adding any tax imposed in the current tax year
132	132	attributable to improvements made in the preceding tax year as
133	133	provided by Subsection (b) to the amount computed under Subdivision
134	134	(2);
135	135	(4) multiplying the amount of any increase in the
136	136	current tax year as compared to the preceding tax year in the
137	137	aggregate amount of the exemptions to which the individual is
138	138	entitled under Sections 11.13(b) and (c) by the school district's
139	139	tax rate for the current tax year; and
140	140	(5) subtracting the amount computed under Subdivision
141	141	(4) from the amount computed under Subdivision (3).
142	142	(a-11) This subsection applies only to an individual who in
143	143	the 2023 tax year qualifies for a limitation under this section and
144	144	for whom the 2022 tax year or an earlier tax year was the first tax
145	145	year the individual or the individual's spouse qualified for an
146	146	exemption under Section 11.13(c). The amount of the limitation
147	147	provided by this section on the residence homestead of an
148	148	individual to which this subsection applies for the 2023 tax year is
149	149	the amount of the limitation as computed under Subsection (a-5),
150	150	(a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less
151	151	an amount equal to the product of $60,000 and the tax rate of the
152	152	school district for the 2023 tax year. This subsection expires
153	153	January 1, 2025.
154	154	(a-12) This subsection applies only to an individual who in
155	155	the 2023 tax year qualifies for a limitation under this section and
156	156	for whom the 2021 tax year or an earlier tax year was the first tax
157	157	year the individual or the individual's spouse qualified for an
158	158	exemption under Section 11.13(c). The amount of the limitation
159	159	provided by this section on the residence homestead of an
160	160	individual to which this subsection applies for the 2023 tax year is
161	161	the amount of the limitation as computed under Subsection (a-11) of
162	162	this section less an amount equal to the product of $15,000 and the
163	163	tax rate of the school district for the 2022 tax year. This
164	164	subsection expires January 1, 2025.
165	165	(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
166	166	improvement to property that would otherwise constitute an
167	167	improvement under Subsection (b) is not treated as an improvement
168	168	under that subsection if the improvement is a replacement structure
169	169	for a structure that was rendered uninhabitable or unusable by a
170	170	casualty or by wind or water damage. For purposes of appraising the
171	171	property in the tax year in which the structure would have
172	172	constituted an improvement under Subsection (b), the replacement
173	173	structure is considered to be an improvement under that subsection
174	174	only if:
175	175	(1) the square footage of the replacement structure
176	176	exceeds that of the replaced structure as that structure existed
177	177	before the casualty or damage occurred; or
178	178	(2) the exterior of the replacement structure is of
179	179	higher quality construction and composition than that of the
180	180	replaced structure.
181	181	SECTION 3.03. Section 46.071, Education Code, is amended by
182	182	amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
183	183	(b-2), and (c-2) to read as follows:
184	184	(a-1) For [Beginning with] the 2022-2023 school year, a
185	185	school district is entitled to additional state aid under this
186	186	subchapter to the extent that state and local revenue used to
187	187	service debt eligible under this chapter is less than the state and
188	188	local revenue that would have been available to the district under
189	189	this chapter as it existed on September 1, 2021, if any increase in
190	190	the residence homestead exemption under Section 1-b(c), Article
191	191	VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd
192	192	Called Session, 2021, had not occurred.
193	193	(a-2) Beginning with the 2023-2024 school year, a school
194	194	district is entitled to additional state aid under this subchapter
195	195	to the extent that state and local revenue used to service debt
196	196	eligible under this chapter is less than the state and local revenue
197	197	that would have been available to the district under this chapter as
198	198	it existed on September 1, 2022, if any increase in a residence
199	199	homestead exemption under Section 1-b(c), Article VIII, Texas
200	200	Constitution, and any additional limitation on tax increases under
201	201	Section 1-b(d) of that article as proposed by the 88th Legislature,
202	202	2nd Called Session, 2023, had not occurred.
203	203	(b-1) Subject to Subsections (c-1), (d), and (e),
204	204	additional state aid under this section for [beginning with] the
205	205	2022-2023 school year is equal to the amount by which the loss of
206	206	local interest and sinking revenue for debt service attributable to
207	207	any increase in the residence homestead exemption under Section
208	208	1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
209	209	Legislature, 3rd Called Session, 2021, is not offset by a gain in
210	210	state aid under this chapter.
211	211	(b-2) Subject to Subsections (c-2), (d), and (e),
212	212	additional state aid under this section beginning with the
213	213	2023-2024 school year is equal to the amount by which the loss of
214	214	local interest and sinking revenue for debt service attributable to
215	215	any increase in a residence homestead exemption under Section
216	216	1-b(c), Article VIII, Texas Constitution, and any additional
217	217	limitation on tax increases under Section 1-b(d) of that article as
218	218	proposed by the 88th Legislature, 2nd Called Session, 2023, is not
219	219	offset by a gain in state aid under this chapter.
220	220	(c-2) For the purpose of determining state aid under
221	221	Subsections (a-2) and (b-2), local interest and sinking revenue for
222	222	debt service is limited to revenue required to service debt
223	223	eligible under this chapter as of September 1, 2023, or authorized
224	224	by the voters but not yet issued as of September 1, 2023, that later
225	225	becomes eligible under this chapter, including refunding of that
226	226	debt, subject to Section 46.061. The limitation imposed by Section
227	227	46.034(a) does not apply for the purpose of determining state aid
228	228	under this section.
229	229	SECTION 3.04. Section 48.2542, Education Code, is amended
230	230	to read as follows:
231	231	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
232	232	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
233	233	Notwithstanding any other provision of this chapter, if a school
234	234	district is not fully compensated through state aid or the
235	235	calculation of excess local revenue under this chapter based on the
236	236	determination of the district's taxable value of property under
237	237	Subchapter M, Chapter 403, Government Code, the district is
238	238	entitled to additional state aid in the amount necessary to fully
239	239	compensate the district for the amount of ad valorem tax revenue
240	240	lost due to a reduction of the amount of the limitation on tax
241	241	increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
242	242	(a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as
243	243	applicable.
244	244	SECTION 3.05. Effective January 1, 2025, Section 48.2542,
245	245	Education Code, is amended to read as follows:
246	246	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
247	247	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
248	248	Notwithstanding any other provision of this chapter, if a school
249	249	district is not fully compensated through state aid or the
250	250	calculation of excess local revenue under this chapter based on the
251	251	determination of the district's taxable value of property under
252	252	Subchapter M, Chapter 403, Government Code, the district is
253	253	entitled to additional state aid in the amount necessary to fully
254	254	compensate the district for the amount of ad valorem tax revenue
255	255	lost due to a reduction of the amount of the limitation on tax
256	256	increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
257	257	(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
258	258	applicable].
259	259	SECTION 3.06. Section 48.2543, Education Code, is amended
260	260	to read as follows:
261	261	Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
262	262	(a) For [Beginning with] the 2022-2023 school year, a school
263	263	district is entitled to additional state aid to the extent that
264	264	state and local revenue under this chapter and Chapter 49 is less
265	265	than the state and local revenue that would have been available to
266	266	the district under this chapter and Chapter 49 as those chapters
267	267	existed on September 1, 2021, if any increase in the residence
268	268	homestead exemption under Section 1-b(c), Article VIII, Texas
269	269	Constitution, as proposed by the 87th Legislature, 3rd Called
270	270	Session, 2021, had not occurred.
271	271	(a-1) Beginning with the 2023-2024 school year, a school
272	272	district is entitled to additional state aid to the extent that
273	273	state and local revenue under this chapter and Chapter 49 is less
274	274	than the state and local revenue that would have been available to
275	275	the district under this chapter and Chapter 49 as those chapters
276	276	existed on September 1, 2022, if any increase in a residence
277	277	homestead exemption under Section 1-b(c), Article VIII, Texas
278	278	Constitution, and any additional limitation on tax increases under
279	279	Section 1-b(d) of that article as proposed by the 88th Legislature,
280	280	2nd Called Session, 2023, had not occurred.
281	281	(b) The lesser of the school district's currently adopted
282	282	maintenance and operations tax rate or the adopted maintenance and
283	283	operations tax rate for:
284	284	(1) the 2021 tax year is used for the purpose of
285	285	determining additional state aid under Subsection (a); and
286	286	(2) the 2022 tax year is used for the purpose of
287	287	determining additional state aid under Subsection (a-1).
288	288	SECTION 3.07. Section 48.2556(a), Education Code, is
289	289	amended to read as follows:
290	290	(a) The agency shall post the following information on the
291	291	agency's Internet website for purposes of allowing the chief
292	292	appraiser of each appraisal district and the assessor for each
293	293	school district to make the calculations required by Sections
294	294	11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and
295	295	(a-12), Tax Code:
296	296	(1) each school district's maximum compressed rate, as
297	297	determined under Section 48.2551, for each tax year beginning with
298	298	the 2019 tax year; and
299	299	(2) each school district's tier one maintenance and
300	300	operations tax rate, as provided by Section 45.0032(a), for the
301	301	2018 tax year.
302	302	SECTION 3.08. Effective January 1, 2025, Section
303	303	48.2556(a), Education Code, is amended to read as follows:
304	304	(a) For purposes of allowing the chief appraiser of each
305	305	appraisal district and the assessor for each school district to
306	306	make the calculations required by Section 11.26(a-10), Tax Code,
307	307	the [The] agency shall post [the following information] on the
308	308	agency's Internet website [for purposes of allowing the chief
309	309	appraiser of each appraisal district and the assessor for each
310	310	school district to make the calculations required by Sections
311	311	11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
312	312	[(1)] each school district's maximum compressed rate,
313	313	as determined under Section 48.2551, for the current [each] tax
314	314	year and the preceding [beginning with the 2019] tax year[; and
315	315	[(2) each school district's tier one maintenance and
316	316	operations tax rate, as provided by Section 45.0032(a), for the
317	317	2018 tax year].
318	318	SECTION 3.09. Section 49.004, Education Code, is amended by
319	319	adding Subsections (a-1), (b-1), and (c-1) to read as follows:
320	320	(a-1) This subsection applies only if the constitutional
321	321	amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called
322	322	Session, 2023, is approved by the voters in an election held for
323	323	that purpose. As soon as practicable after receiving revised
324	324	property values that reflect adoption of the constitutional
325	325	amendment, the commissioner shall review the local revenue level of
326	326	districts in the state and revise as necessary the notifications
327	327	provided under Subsection (a) for the 2023-2024 school year. This
328	328	subsection expires September 1, 2024.
329	329	(b-1) This subsection applies only to a district that has
330	330	not previously held an election under this chapter. Notwithstanding
331	331	Subsection (b), a district that enters into an agreement to
332	332	exercise an option to reduce the district's local revenue level in
333	333	excess of entitlement under Section 49.002(3), (4), or (5) for the
334	334	2023-2024 school year may request and, as provided by Section
335	335	49.0042(a), receive approval from the commissioner to delay the
336	336	date of the election otherwise required to be ordered before
337	337	September 1. This subsection expires September 1, 2024.
338	338	(c-1) Notwithstanding Subsection (c), a district that
339	339	receives approval from the commissioner to delay an election as
340	340	provided by Subsection (b-1) may adopt a tax rate for the 2023 tax
341	341	year before the commissioner certifies that the district has
342	342	reduced its local revenue level to the level established by Section
343	343	48.257. This subsection expires September 1, 2024.
344	344	SECTION 3.10. Subchapter A, Chapter 49, Education Code, is
345	345	amended by adding Section 49.0042 to read as follows:
346	346	Sec. 49.0042. TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD
347	347	EXEMPTION AND LIMITATION ON TAX INCREASES. (a) The commissioner
348	348	shall approve a district's request under Section 49.004(b-1) to
349	349	delay the date of an election required under this chapter if the
350	350	commissioner determines that the district would not have a local
351	351	revenue level in excess of entitlement if the constitutional
352	352	amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called
353	353	Session, 2023, were approved by the voters.
354	354	(b) The commissioner shall set a date by which each district
355	355	that receives approval under this section must order the election.
356	356	(c) Not later than the 2024-2025 school year, the
357	357	commissioner shall order detachment and annexation of property
358	358	under Subchapter G or consolidation under Subchapter H as necessary
359	359	to reduce the district's local revenue level to the level
360	360	established by Section 48.257 for a district that receives approval
361	361	under this section and subsequently:
362	362	(1) fails to hold the election; or
363	363	(2) does not receive voter approval at the election.
364	364	(d) This section expires September 1, 2025.
365	365	SECTION 3.11. Subchapter A, Chapter 49, Education Code, is
366	366	amended by adding Section 49.0121 to read as follows:
367	367	Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This
368	368	section applies only to an election under this chapter that occurs
369	369	during the 2023-2024 school year.
370	370	(b) Section 49.012 does not apply to a district that
371	371	receives approval of a request under Section 49.0042. The district
372	372	shall hold the election on a Tuesday or Saturday on or before a date
373	373	specified by the commissioner. Section 41.001, Election Code, does
374	374	not apply to the election.
375	375	(c) This section expires September 1, 2024.
376	376	SECTION 3.12. Section 49.154, Education Code, is amended by
377	377	adding Subsections (a-2) and (a-3) to read as follows:
378	378	(a-2) Notwithstanding Subsections (a) and (a-1), a district
379	379	that receives approval of a request under Section 49.0042 shall pay
380	380	for credit purchased:
381	381	(1) in equal monthly payments as determined by the
382	382	commissioner beginning March 15, 2024, and ending August 15, 2024;
383	383	or
384	384	(2) in the manner provided by Subsection (a)(2),
385	385	provided that the district notifies the commissioner of the
386	386	district's election to pay in that manner not later than March 15,
387	387	2024.
388	388	(a-3) Subsection (a-2) and this subsection expire September
389	389	1, 2024.
390	390	SECTION 3.13. Section 49.308, Education Code, is amended by
391	391	adding Subsection (a-1) to read as follows:
392	392	(a-1) Notwithstanding Subsection (a), for the 2023-2024
393	393	school year, the commissioner shall order any detachments and
394	394	annexations of property under this subchapter as soon as
395	395	practicable after the canvass of the votes on the constitutional
396	396	amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called
397	397	Session, 2023. This subsection expires September 1, 2024.
398	398	SECTION 3.14. Section 403.302, Government Code, is amended
399	399	by amending Subsection (j-1) and adding Subsection (j-2) to read as
400	400	follows:
401	401	(j-1) In the final certification of the study under
402	402	Subsection (j), the comptroller shall separately identify the final
403	403	taxable value for each school district as adjusted to account for
404	404	the reduction of the amount of the limitation on tax increases
405	405	provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
406	406	(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
407	407	(j-2) In the final certification of the study under
408	408	Subsection (j), the comptroller shall separately identify the final
409	409	taxable value for each school district as adjusted to account for
410	410	the reduction of the amount of the limitation on tax increases
411	411	provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9),
412	412	(a-10), (a-11), and (a-12), Tax Code. This subsection expires
413	413	January 1, 2025.
414	414	SECTION 3.15. (a) Sections 11.26(a-1), (a-2), and (a-3),
415	415	Tax Code, are repealed.
416	416	(b) Effective January 1, 2025, Sections 11.26(a-5), (a-6),
417	417	(a-7), (a-8), and (a-9), Tax Code, are repealed.
418	418	SECTION 3.16. Sections 11.13 and 11.26, Tax Code, as
419	419	amended by this article, apply only to an ad valorem tax year that
420	420	begins on or after January 1, 2023.
421	421	ARTICLE 4. CIRCUIT BREAKER LIMITATION ON INCREASES IN VALUE OF REAL
422	422	PROPERTY OTHER THAN RESIDENCE HOMESTEAD
423	423	SECTION 4.01. Section 1.12(d), Tax Code, is amended to read
424	424	as follows:
425	425	(d) For purposes of this section, the appraisal ratio of
426	426	property [a homestead] to which Section 23.23 or 23.231 applies is
427	427	the ratio of the property's market value as determined by the
428	428	appraisal district or appraisal review board, as applicable, to the
429	429	market value of the property according to law. The appraisal ratio
430	430	is not calculated according to the appraised value of the property
431	431	as limited by Section 23.23 or 23.231.
432	432	SECTION 4.02. Effective January 1, 2027, Section 1.12(d),
433	433	Tax Code, is amended to read as follows:
434	434	(d) For purposes of this section, the appraisal ratio of a
435	435	homestead to which Section 23.23 applies is the ratio of the
436	436	property's market value as determined by the appraisal district or
437	437	appraisal review board, as applicable, to the market value of the
438	438	property according to law. The appraisal ratio is not calculated
439	439	according to the appraised value of the property as limited by
440	440	Section 23.23.
441	441	SECTION 4.03. Subchapter B, Chapter 23, Tax Code, is
442	442	amended by adding Section 23.231 to read as follows:
443	443	Sec. 23.231. CIRCUIT BREAKER LIMITATION ON APPRAISED VALUE
444	444	OF REAL PROPERTY OTHER THAN RESIDENCE HOMESTEAD. (a) In this
445	445	section:
446	446	(1) "Consumer price index" means the average over a
447	447	state fiscal year of the Consumer Price Index for All Urban
448	448	Consumers (CPI-U), U.S. City Average, published monthly by the
449	449	United States Bureau of Labor Statistics, or its successor in
450	450	function.
451	451	(2) "Disaster recovery program" means a disaster
452	452	recovery program funded with community development block grant
453	453	disaster recovery money authorized by federal law.
454	454	(3) "New improvement" means an improvement to real
455	455	property made after the most recent appraisal of the property that
456	456	increases the market value of the property and the value of which is
457	457	not included in the appraised value of the property for the
458	458	preceding tax year. The term does not include repairs to or
459	459	ordinary maintenance of an existing structure or the grounds or
460	460	another feature of the property.
461	461	(b) This section applies only to real property with an
462	462	appraised value of not more than the amount determined under
463	463	Subsection (j) for the tax year in which the property first
464	464	qualifies for the circuit breaker limitation authorized by this
465	465	section.
466	466	(c) This section does not apply to:
467	467	(1) a residence homestead that qualifies for an
468	468	exemption under Section 11.13; or
469	469	(2) property appraised under Subchapter C, D, E, F, G,
470	470	or H.
471	471	(d) Notwithstanding the requirements of Section 25.18 and
472	472	regardless of whether the appraisal office has appraised the
473	473	property and determined the market value of the property for the tax
474	474	year, an appraisal office may increase the appraised value of real
475	475	property to which this section applies for a tax year to an amount
476	476	not to exceed the lesser of:
477	477	(1) the market value of the property for the most
478	478	recent tax year that the market value was determined by the
479	479	appraisal office; or
480	480	(2) the sum of:
481	481	(A) 20 percent of the appraised value of the
482	482	property for the preceding tax year;
483	483	(B) the appraised value of the property for the
484	484	preceding tax year; and
485	485	(C) the market value of all new improvements to
486	486	the property.
487	487	(e) When appraising real property to which this section
488	488	applies, the chief appraiser shall:
489	489	(1) appraise the property at its market value; and
490	490	(2) include in the appraisal records both the market
491	491	value of the property and the amount computed under Subsection
492	492	(d)(2).
493	493	(f) The circuit breaker limitation provided by Subsection
494	494	(d) takes effect as to a parcel of real property on January 1 of the
495	495	tax year following the first tax year in which the owner owns the
496	496	property on January 1. The circuit breaker limitation expires on
497	497	January 1 of the tax year following the tax year in which the owner
498	498	of the property ceases to own the property.
499	499	(g) For purposes of Subsection (f), a person who acquired
500	500	real property to which this section applies before the 2023 tax year
501	501	is considered to have acquired the property on January 1, 2023.
502	502	(h) Notwithstanding Subsections (a) and (d) and except as
503	503	provided by Subdivision (2) of this subsection, an improvement to
504	504	real property that would otherwise constitute a new improvement is
505	505	not treated as a new improvement if the improvement is a replacement
506	506	structure for a structure that was rendered uninhabitable or
507	507	unusable by a casualty or by wind or water damage. For purposes of
508	508	appraising the property under Subsection (d) in the tax year in
509	509	which the structure would have constituted a new improvement:
510	510	(1) the appraised value the property would have had in
511	511	the preceding tax year if the casualty or damage had not occurred is
512	512	considered to be the appraised value of the property for that year,
513	513	regardless of whether that appraised value exceeds the actual
514	514	appraised value of the property for that year as limited by
515	515	Subsection (d); and
516	516	(2) the replacement structure is considered to be a
517	517	new improvement only if:
518	518	(A) the square footage of the replacement
519	519	structure exceeds that of the replaced structure as that structure
520	520	existed before the casualty or damage occurred; or
521	521	(B) the exterior of the replacement structure is
522	522	of higher quality construction and composition than that of the
523	523	replaced structure.
524	524	(i) Notwithstanding Subsection (h)(2), and only to the
525	525	extent necessary to satisfy the requirements of a disaster recovery
526	526	program, a replacement structure described by that subdivision is
527	527	not considered to be a new improvement if to satisfy the
528	528	requirements of the disaster recovery program it was necessary
529	529	that:
530	530	(1) the square footage of the replacement structure
531	531	exceed that of the replaced structure as that structure existed
532	532	before the casualty or damage occurred; or
533	533	(2) the exterior of the replacement structure be of
534	534	higher quality construction and composition than that of the
535	535	replaced structure.
536	536	(j) For the purpose of Subsection (b), for the 2024 tax
537	537	year, the amount is $5 million. For the 2025 tax year, the
538	538	comptroller shall determine the amount for purposes of Subsection
539	539	(b) by increasing or decreasing, as applicable, the amount in
540	540	effect for the 2024 tax year by an amount equal to $5 million
541	541	multiplied by the percentage increase or decrease during the
542	542	preceding state fiscal year in the consumer price index. For each
543	543	subsequent tax year, the comptroller shall determine the amount for
544	544	purposes of Subsection (b) by increasing or decreasing, as
545	545	applicable, the amount in effect for the preceding tax year by an
546	546	amount equal to that amount multiplied by the percentage increase
547	547	or decrease during the preceding state fiscal year in the consumer
548	548	price index, rounded to the nearest $10,000. The comptroller shall
549	549	publish the amount in effect for a tax year under this subsection as
550	550	soon as practicable after January 1 of the tax year.
551	551	(k) This section expires December 31, 2026.
552	552	SECTION 4.04. Sections 25.19(b) and (g), Tax Code, are
553	553	amended to read as follows:
554	554	(b) The chief appraiser shall separate real from personal
555	555	property and include in the notice for each:
556	556	(1) a list of the taxing units in which the property is
557	557	taxable;
558	558	(2) the appraised value of the property in the
559	559	preceding year;
560	560	(3) the taxable value of the property in the preceding
561	561	year for each taxing unit taxing the property;
562	562	(4) the appraised value of the property for the
563	563	current year, the kind and amount of each exemption and partial
564	564	exemption, if any, approved for the property for the current year
565	565	and for the preceding year, and, if an exemption or partial
566	566	exemption that was approved for the preceding year was canceled or
567	567	reduced for the current year, the amount of the exemption or partial
568	568	exemption canceled or reduced;
569	569	(4-a) a statement of whether the property qualifies
570	570	for the circuit breaker limitation on appraised value provided by
571	571	Section 23.231;
572	572	(5) in italic typeface, the following statement: "The
573	573	Texas Legislature does not set the amount of your local taxes. Your
574	574	property tax burden is decided by your locally elected officials,
575	575	and all inquiries concerning your taxes should be directed to those
576	576	officials";
577	577	(6) a detailed explanation of the time and procedure
578	578	for protesting the value;
579	579	(7) the date and place the appraisal review board will
580	580	begin hearing protests;
581	581	(8) an explanation of the availability and purpose of
582	582	an informal conference with the appraisal office before a hearing
583	583	on a protest; and
584	584	(9) a brief explanation that the governing body of
585	585	each taxing unit decides whether or not taxes on the property will
586	586	increase and the appraisal district only determines the value of
587	587	the property.
588	588	(g) By April 1 or as soon thereafter as practicable if the
589	589	property is a single-family residence that qualifies for an
590	590	exemption under Section 11.13, or by May 1 or as soon thereafter as
591	591	practicable in connection with any other property, the chief
592	592	appraiser shall deliver a written notice to the owner of each
593	593	property not included in a notice required to be delivered under
594	594	Subsection (a), if the property was reappraised in the current tax
595	595	year, if the ownership of the property changed during the preceding
596	596	year, or if the property owner or the agent of a property owner
597	597	authorized under Section 1.111 makes a written request for the
598	598	notice. The chief appraiser shall separate real from personal
599	599	property and include in the notice for each property:
600	600	(1) the appraised value of the property in the
601	601	preceding year;
602	602	(2) the appraised value of the property for the
603	603	current year and the kind of each partial exemption, if any,
604	604	approved for the current year;
605	605	(2-a) a statement of whether the property qualifies
606	606	for the circuit breaker limitation on appraised value provided by
607	607	Section 23.231;
608	608	(3) a detailed explanation of the time and procedure
609	609	for protesting the value; and
610	610	(4) the date and place the appraisal review board will
611	611	begin hearing protests.
612	612	SECTION 4.05. Effective January 1, 2027, Sections 25.19(b)
613	613	and (g), Tax Code, are amended to read as follows:
614	614	(b) The chief appraiser shall separate real from personal
615	615	property and include in the notice for each:
616	616	(1) a list of the taxing units in which the property is
617	617	taxable;
618	618	(2) the appraised value of the property in the
619	619	preceding year;
620	620	(3) the taxable value of the property in the preceding
621	621	year for each taxing unit taxing the property;
622	622	(4) the appraised value of the property for the
623	623	current year, the kind and amount of each exemption and partial
624	624	exemption, if any, approved for the property for the current year
625	625	and for the preceding year, and, if an exemption or partial
626	626	exemption that was approved for the preceding year was canceled or
627	627	reduced for the current year, the amount of the exemption or partial
628	628	exemption canceled or reduced;
629	629	(5) in italic typeface, the following statement: "The
630	630	Texas Legislature does not set the amount of your local taxes. Your
631	631	property tax burden is decided by your locally elected officials,
632	632	and all inquiries concerning your taxes should be directed to those
633	633	officials";
634	634	(6) a detailed explanation of the time and procedure
635	635	for protesting the value;
636	636	(7) the date and place the appraisal review board will
637	637	begin hearing protests;
638	638	(8) an explanation of the availability and purpose of
639	639	an informal conference with the appraisal office before a hearing
640	640	on a protest; and
641	641	(9) a brief explanation that the governing body of
642	642	each taxing unit decides whether or not taxes on the property will
643	643	increase and the appraisal district only determines the value of
644	644	the property.
645	645	(g) By April 1 or as soon thereafter as practicable if the
646	646	property is a single-family residence that qualifies for an
647	647	exemption under Section 11.13, or by May 1 or as soon thereafter as
648	648	practicable in connection with any other property, the chief
649	649	appraiser shall deliver a written notice to the owner of each
650	650	property not included in a notice required to be delivered under
651	651	Subsection (a), if the property was reappraised in the current tax
652	652	year, if the ownership of the property changed during the preceding
653	653	year, or if the property owner or the agent of a property owner
654	654	authorized under Section 1.111 makes a written request for the
655	655	notice. The chief appraiser shall separate real from personal
656	656	property and include in the notice for each property:
657	657	(1) the appraised value of the property in the
658	658	preceding year;
659	659	(2) the appraised value of the property for the
660	660	current year and the kind of each partial exemption, if any,
661	661	approved for the current year;
662	662	(3) a detailed explanation of the time and procedure
663	663	for protesting the value; and
664	664	(4) the date and place the appraisal review board will
665	665	begin hearing protests.
666	666	SECTION 4.06. Section 25.19, Tax Code, is amended by adding
667	667	Subsection (o) to read as follows:
668	668	(o) A notice required under Subsection (a) or (g) to be
669	669	delivered to the owner of real property other than a single-family
670	670	residence that qualifies for an exemption under Section 11.13 must
671	671	include the following statement: "Under Section 23.231, Tax Code,
672	672	for the 2024, 2025, and 2026 tax years, the appraised value of real
673	673	property other than a residence homestead for ad valorem tax
674	674	purposes may not be increased by more than 20 percent each year,
675	675	with certain exceptions. The circuit breaker limitation provided
676	676	under Section 23.231, Tax Code, expires December 31, 2026. Unless
677	677	this expiration date is extended by the Texas Legislature,
678	678	beginning in the 2027 tax year, the circuit breaker limitation
679	679	provided under Section 23.231, Tax Code, will no longer be in effect
680	680	and may result in an increase in ad valorem taxes imposed on real
681	681	property previously subject to the limitation." This subsection
682	682	expires December 31, 2027.
683	683	SECTION 4.07. Section 41.41(a), Tax Code, is amended to
684	684	read as follows:
685	685	(a) A property owner is entitled to protest before the
686	686	appraisal review board the following actions:
687	687	(1) determination of the appraised value of the
688	688	owner's property or, in the case of land appraised as provided by
689	689	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
690	690	or market value;
691	691	(2) unequal appraisal of the owner's property;
692	692	(3) inclusion of the owner's property on the appraisal
693	693	records;
694	694	(4) denial to the property owner in whole or in part of
695	695	a partial exemption;
696	696	(4-a) determination that the owner's property does not
697	697	qualify for the circuit breaker limitation on appraised value
698	698	provided by Section 23.231;
699	699	(5) determination that the owner's land does not
700	700	qualify for appraisal as provided by Subchapter C, D, E, or H,
701	701	Chapter 23;
702	702	(6) identification of the taxing units in which the
703	703	owner's property is taxable in the case of the appraisal district's
704	704	appraisal roll;
705	705	(7) determination that the property owner is the owner
706	706	of property;
707	707	(8) a determination that a change in use of land
708	708	appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
709	709	or
710	710	(9) any other action of the chief appraiser, appraisal
711	711	district, or appraisal review board that applies to and adversely
712	712	affects the property owner.
713	713	SECTION 4.08. Effective January 1, 2027, Section 41.41(a),
714	714	Tax Code, is amended to read as follows:
715	715	(a) A property owner is entitled to protest before the
716	716	appraisal review board the following actions:
717	717	(1) determination of the appraised value of the
718	718	owner's property or, in the case of land appraised as provided by
719	719	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
720	720	or market value;
721	721	(2) unequal appraisal of the owner's property;
722	722	(3) inclusion of the owner's property on the appraisal
723	723	records;
724	724	(4) denial to the property owner in whole or in part of
725	725	a partial exemption;
726	726	(5) determination that the owner's land does not
727	727	qualify for appraisal as provided by Subchapter C, D, E, or H,
728	728	Chapter 23;
729	729	(6) identification of the taxing units in which the
730	730	owner's property is taxable in the case of the appraisal district's
731	731	appraisal roll;
732	732	(7) determination that the property owner is the owner
733	733	of property;
734	734	(8) a determination that a change in use of land
735	735	appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
736	736	or
737	737	(9) any other action of the chief appraiser, appraisal
738	738	district, or appraisal review board that applies to and adversely
739	739	affects the property owner.
740	740	SECTION 4.09. Section 42.26(d), Tax Code, is amended to
741	741	read as follows:
742	742	(d) For purposes of this section, the value of the property
743	743	subject to the suit and the value of a comparable property or sample
744	744	property that is used for comparison must be the market value
745	745	determined by the appraisal district when the property is [a
746	746	residence homestead] subject to the limitation on appraised value
747	747	imposed by Section 23.23 or 23.231.
748	748	SECTION 4.10. Effective January 1, 2027, Section 42.26(d),
749	749	Tax Code, is amended to read as follows:
750	750	(d) For purposes of this section, the value of the property
751	751	subject to the suit and the value of a comparable property or sample
752	752	property that is used for comparison must be the market value
753	753	determined by the appraisal district when the property is a
754	754	residence homestead subject to the limitation on appraised value
755	755	imposed by Section 23.23.
756	756	SECTION 4.11. Sections 403.302(d) and (i), Government Code,
757	757	are amended to read as follows:
758	758	(d) For the purposes of this section, "taxable value" means
759	759	the market value of all taxable property less:
760	760	(1) the total dollar amount of any residence homestead
761	761	exemptions lawfully granted under Section 11.13(b) or (c), Tax
762	762	Code, in the year that is the subject of the study for each school
763	763	district;
764	764	(2) one-half of the total dollar amount of any
765	765	residence homestead exemptions granted under Section 11.13(n), Tax
766	766	Code, in the year that is the subject of the study for each school
767	767	district;
768	768	(3) the total dollar amount of any exemptions granted
769	769	before May 31, 1993, within a reinvestment zone under agreements
770	770	authorized by Chapter 312, Tax Code;
771	771	(4) subject to Subsection (e), the total dollar amount
772	772	of any captured appraised value of property that:
773	773	(A) is within a reinvestment zone created on or
774	774	before May 31, 1999, or is proposed to be included within the
775	775	boundaries of a reinvestment zone as the boundaries of the zone and
776	776	the proposed portion of tax increment paid into the tax increment
777	777	fund by a school district are described in a written notification
778	778	provided by the municipality or the board of directors of the zone
779	779	to the governing bodies of the other taxing units in the manner
780	780	provided by former Section 311.003(e), Tax Code, before May 31,
781	781	1999, and within the boundaries of the zone as those boundaries
782	782	existed on September 1, 1999, including subsequent improvements to
783	783	the property regardless of when made;
784	784	(B) generates taxes paid into a tax increment
785	785	fund created under Chapter 311, Tax Code, under a reinvestment zone
786	786	financing plan approved under Section 311.011(d), Tax Code, on or
787	787	before September 1, 1999; and
788	788	(C) is eligible for tax increment financing under
789	789	Chapter 311, Tax Code;
790	790	(5) the total dollar amount of any captured appraised
791	791	value of property that:
792	792	(A) is within a reinvestment zone:
793	793	(i) created on or before December 31, 2008,
794	794	by a municipality with a population of less than 18,000; and
795	795	(ii) the project plan for which includes
796	796	the alteration, remodeling, repair, or reconstruction of a
797	797	structure that is included on the National Register of Historic
798	798	Places and requires that a portion of the tax increment of the zone
799	799	be used for the improvement or construction of related facilities
800	800	or for affordable housing;
801	801	(B) generates school district taxes that are paid
802	802	into a tax increment fund created under Chapter 311, Tax Code; and
803	803	(C) is eligible for tax increment financing under
804	804	Chapter 311, Tax Code;
805	805	(6) the total dollar amount of any exemptions granted
806	806	under Section 11.251 or 11.253, Tax Code;
807	807	(7) the difference between the comptroller's estimate
808	808	of the market value and the productivity value of land that
809	809	qualifies for appraisal on the basis of its productive capacity,
810	810	except that the productivity value estimated by the comptroller may
811	811	not exceed the fair market value of the land;
812	812	(8) the portion of the appraised value of residence
813	813	homesteads of individuals who receive a tax limitation under
814	814	Section 11.26, Tax Code, on which school district taxes are not
815	815	imposed in the year that is the subject of the study, calculated as
816	816	if the residence homesteads were appraised at the full value
817	817	required by law;
818	818	(9) a portion of the market value of property not
819	819	otherwise fully taxable by the district at market value because of
820	820	action required by statute or the constitution of this state, other
821	821	than Section 11.311, Tax Code, that, if the tax rate adopted by the
822	822	district is applied to it, produces an amount equal to the
823	823	difference between the tax that the district would have imposed on
824	824	the property if the property were fully taxable at market value and
825	825	the tax that the district is actually authorized to impose on the
826	826	property, if this subsection does not otherwise require that
827	827	portion to be deducted;
828	828	(10) the market value of all tangible personal
829	829	property, other than manufactured homes, owned by a family or
830	830	individual and not held or used for the production of income;
831	831	(11) the appraised value of property the collection of
832	832	delinquent taxes on which is deferred under Section 33.06, Tax
833	833	Code;
834	834	(12) the portion of the appraised value of property
835	835	the collection of delinquent taxes on which is deferred under
836	836	Section 33.065, Tax Code;
837	837	(13) the amount by which the market value of property
838	838	[a residence homestead] to which Section 23.23 or 23.231, Tax Code,
839	839	applies exceeds the appraised value of that property as calculated
840	840	under Section 23.23 or 23.231, Tax Code, as applicable [that
841	841	section]; and
842	842	(14) the total dollar amount of any exemptions granted
843	843	under Section 11.35, Tax Code.
844	844	(i) If the comptroller determines in the study that the
845	845	market value of property in a school district as determined by the
846	846	appraisal district that appraises property for the school district,
847	847	less the total of the amounts and values listed in Subsection (d) as
848	848	determined by that appraisal district, is valid, the comptroller,
849	849	in determining the taxable value of property in the school district
850	850	under Subsection (d), shall for purposes of Subsection (d)(13)
851	851	subtract from the market value as determined by the appraisal
852	852	district of properties [residence homesteads] to which Section
853	853	23.23 or 23.231, Tax Code, applies the amount by which that amount
854	854	exceeds the appraised value of those properties as calculated by
855	855	the appraisal district under Section 23.23 or 23.231, Tax Code, as
856	856	applicable. If the comptroller determines in the study that the
857	857	market value of property in a school district as determined by the
858	858	appraisal district that appraises property for the school district,
859	859	less the total of the amounts and values listed in Subsection (d) as
860	860	determined by that appraisal district, is not valid, the
861	861	comptroller, in determining the taxable value of property in the
862	862	school district under Subsection (d), shall for purposes of
863	863	Subsection (d)(13) subtract from the market value as estimated by
864	864	the comptroller of properties [residence homesteads] to which
865	865	Section 23.23 or 23.231, Tax Code, applies the amount by which that
866	866	amount exceeds the appraised value of those properties as
867	867	calculated by the appraisal district under Section 23.23 or 23.231,
868	868	Tax Code, as applicable.
869	869	SECTION 4.12. Effective January 1, 2027, Sections
870	870	403.302(d) and (i), Government Code, are amended to read as
871	871	follows:
872	872	(d) For the purposes of this section, "taxable value" means
873	873	the market value of all taxable property less:
874	874	(1) the total dollar amount of any residence homestead
875	875	exemptions lawfully granted under Section 11.13(b) or (c), Tax
876	876	Code, in the year that is the subject of the study for each school
877	877	district;
878	878	(2) one-half of the total dollar amount of any
879	879	residence homestead exemptions granted under Section 11.13(n), Tax
880	880	Code, in the year that is the subject of the study for each school
881	881	district;
882	882	(3) the total dollar amount of any exemptions granted
883	883	before May 31, 1993, within a reinvestment zone under agreements
884	884	authorized by Chapter 312, Tax Code;
885	885	(4) subject to Subsection (e), the total dollar amount
886	886	of any captured appraised value of property that:
887	887	(A) is within a reinvestment zone created on or
888	888	before May 31, 1999, or is proposed to be included within the
889	889	boundaries of a reinvestment zone as the boundaries of the zone and
890	890	the proposed portion of tax increment paid into the tax increment
891	891	fund by a school district are described in a written notification
892	892	provided by the municipality or the board of directors of the zone
893	893	to the governing bodies of the other taxing units in the manner
894	894	provided by former Section 311.003(e), Tax Code, before May 31,
895	895	1999, and within the boundaries of the zone as those boundaries
896	896	existed on September 1, 1999, including subsequent improvements to
897	897	the property regardless of when made;
898	898	(B) generates taxes paid into a tax increment
899	899	fund created under Chapter 311, Tax Code, under a reinvestment zone
900	900	financing plan approved under Section 311.011(d), Tax Code, on or
901	901	before September 1, 1999; and
902	902	(C) is eligible for tax increment financing under
903	903	Chapter 311, Tax Code;
904	904	(5) the total dollar amount of any captured appraised
905	905	value of property that:
906	906	(A) is within a reinvestment zone:
907	907	(i) created on or before December 31, 2008,
908	908	by a municipality with a population of less than 18,000; and
909	909	(ii) the project plan for which includes
910	910	the alteration, remodeling, repair, or reconstruction of a
911	911	structure that is included on the National Register of Historic
912	912	Places and requires that a portion of the tax increment of the zone
913	913	be used for the improvement or construction of related facilities
914	914	or for affordable housing;
915	915	(B) generates school district taxes that are paid
916	916	into a tax increment fund created under Chapter 311, Tax Code; and
917	917	(C) is eligible for tax increment financing under
918	918	Chapter 311, Tax Code;
919	919	(6) the total dollar amount of any exemptions granted
920	920	under Section 11.251 or 11.253, Tax Code;
921	921	(7) the difference between the comptroller's estimate
922	922	of the market value and the productivity value of land that
923	923	qualifies for appraisal on the basis of its productive capacity,
924	924	except that the productivity value estimated by the comptroller may
925	925	not exceed the fair market value of the land;
926	926	(8) the portion of the appraised value of residence
927	927	homesteads of individuals who receive a tax limitation under
928	928	Section 11.26, Tax Code, on which school district taxes are not
929	929	imposed in the year that is the subject of the study, calculated as
930	930	if the residence homesteads were appraised at the full value
931	931	required by law;
932	932	(9) a portion of the market value of property not
933	933	otherwise fully taxable by the district at market value because of
934	934	action required by statute or the constitution of this state, other
935	935	than Section 11.311, Tax Code, that, if the tax rate adopted by the
936	936	district is applied to it, produces an amount equal to the
937	937	difference between the tax that the district would have imposed on
938	938	the property if the property were fully taxable at market value and
939	939	the tax that the district is actually authorized to impose on the
940	940	property, if this subsection does not otherwise require that
941	941	portion to be deducted;
942	942	(10) the market value of all tangible personal
943	943	property, other than manufactured homes, owned by a family or
944	944	individual and not held or used for the production of income;
945	945	(11) the appraised value of property the collection of
946	946	delinquent taxes on which is deferred under Section 33.06, Tax
947	947	Code;
948	948	(12) the portion of the appraised value of property
949	949	the collection of delinquent taxes on which is deferred under
950	950	Section 33.065, Tax Code;
951	951	(13) the amount by which the market value of a
952	952	residence homestead to which Section 23.23, Tax Code, applies
953	953	exceeds the appraised value of that property as calculated under
954	954	that section; and
955	955	(14) the total dollar amount of any exemptions granted
956	956	under Section 11.35, Tax Code.
957	957	(i) If the comptroller determines in the study that the
958	958	market value of property in a school district as determined by the
959	959	appraisal district that appraises property for the school district,
960	960	less the total of the amounts and values listed in Subsection (d) as
961	961	determined by that appraisal district, is valid, the comptroller,
962	962	in determining the taxable value of property in the school district
963	963	under Subsection (d), shall for purposes of Subsection (d)(13)
964	964	subtract from the market value as determined by the appraisal
965	965	district of residence homesteads to which Section 23.23, Tax Code,
966	966	applies the amount by which that amount exceeds the appraised value
967	967	of those properties as calculated by the appraisal district under
968	968	Section 23.23, Tax Code. If the comptroller determines in the
969	969	study that the market value of property in a school district as
970	970	determined by the appraisal district that appraises property for
971	971	the school district, less the total of the amounts and values listed
972	972	in Subsection (d) as determined by that appraisal district, is not
973	973	valid, the comptroller, in determining the taxable value of
974	974	property in the school district under Subsection (d), shall for
975	975	purposes of Subsection (d)(13) subtract from the market value as
976	976	estimated by the comptroller of residence homesteads to which
977	977	Section 23.23, Tax Code, applies the amount by which that amount
978	978	exceeds the appraised value of those properties as calculated by
979	979	the appraisal district under Section 23.23, Tax Code.
980	980	SECTION 4.13. Section 23.231, Tax Code, as added by this
981	981	article, applies only to the appraisal of real property other than a
982	982	residence homestead for ad valorem tax purposes for a tax year that
983	983	begins on or after the effective date of this article.
984	984	ARTICLE 5. BOARDS OF DIRECTORS OF APPRAISAL DISTRICTS
985	985	SECTION 5.01. The heading to Section 6.03, Tax Code, is
986	986	amended to read as follows:
987	987	Sec. 6.03. BOARD OF DIRECTORS IN LESS POPULOUS COUNTIES.
988	988	SECTION 5.02. Section 6.03, Tax Code, is amended by
989	989	amending Subsection (a) and adding Subsection (a-1) to read as
990	990	follows:
991	991	(a) This section applies only to an appraisal district
992	992	established in a county with a population of less than 75,000.
993	993	(a-1) The appraisal district is governed by a board of
994	994	directors. Five directors are appointed by the taxing units that
995	995	participate in the district as provided by this section. If the
996	996	county assessor-collector is not appointed to the board, the county
997	997	assessor-collector serves as a nonvoting director. The county
998	998	assessor-collector is ineligible to serve if the board enters into
999	999	a contract under Section 6.05(b) or if the commissioners court of
1000	1000	the county enters into a contract under Section 6.24(b). To be
1001	1001	eligible to serve on the board of directors, an individual other
1002	1002	than a county assessor-collector serving as a nonvoting director
1003	1003	must be a resident of the district and must have resided in the
1004	1004	district for at least two years immediately preceding the date the
1005	1005	individual takes office. An individual who is otherwise eligible
1006	1006	to serve on the board is not ineligible because of membership on the
1007	1007	governing body of a taxing unit. An employee of a taxing unit that
1008	1008	participates in the district is not eligible to serve on the board
1009	1009	unless the individual is also a member of the governing body or an
1010	1010	elected official of a taxing unit that participates in the
1011	1011	district.
1012	1012	SECTION 5.03. Subchapter A, Chapter 6, Tax Code, is amended
1013	1013	by adding Section 6.0301 to read as follows:
1014	1014	Sec. 6.0301. BOARD OF DIRECTORS IN POPULOUS COUNTIES.
1015	1015	(a) This section applies only to an appraisal district established
1016	1016	in a county with a population of 75,000 or more.
1017	1017	(b) Sections 6.031, 6.034, and 6.10 do not apply to an
1018	1018	appraisal district to which this section applies.
1019	1019	(c) The appraisal district is governed by a board of nine
1020	1020	directors. Five directors are appointed by the taxing units that
1021	1021	participate in the district in the manner prescribed by Section
1022	1022	6.03. Three directors are elected by majority vote at the general
1023	1023	election for state and county officers by the voters of the county
1024	1024	in which the district is established. The county
1025	1025	assessor-collector serves as an ex officio director.
1026	1026	(d) To be eligible to serve on the board of directors, an
1027	1027	individual other than the county assessor-collector must be a
1028	1028	resident of the district and must have resided in the district for
1029	1029	at least two years immediately preceding the date the individual
1030	1030	takes office. An individual who is otherwise eligible to serve on
1031	1031	the board is not ineligible because of membership on the governing
1032	1032	body of a taxing unit. An employee of a taxing unit that
1033	1033	participates in the district is not eligible to serve on the board
1034	1034	unless the individual is also a member of the governing body or an
1035	1035	elected official of a taxing unit that participates in the
1036	1036	district.
1037	1037	(e) Members of the board of directors appointed by the
1038	1038	taxing units participating in the district serve staggered
1039	1039	four-year terms beginning on January 1 of every other even-numbered
1040	1040	year. Elected members of the board of directors serve staggered
1041	1041	four-year terms beginning on January 1 of every other odd-numbered
1042	1042	year.
1043	1043	(f) If a vacancy occurs in an appointive position on the
1044	1044	board of directors, each taxing unit that is entitled to vote under
1045	1045	Section 6.03 may nominate by resolution adopted by its governing
1046	1046	body a candidate to fill the vacancy. The taxing unit shall submit
1047	1047	the name of its nominee to the chief appraiser within 45 days after
1048	1048	notification from the board of directors of the existence of the
1049	1049	vacancy, and the chief appraiser shall prepare and deliver to the
1050	1050	board of directors within the next five days a list of the nominees.
1051	1051	The board of directors shall appoint by majority vote of its members
1052	1052	one of the nominees to fill the vacancy.
1053	1053	(g) If a vacancy occurs in an elective position on the board
1054	1054	of directors, the board of directors shall appoint by majority vote
1055	1055	of its members a person to fill the vacancy. A person appointed to
1056	1056	fill a vacancy in an elective position must have the qualifications
1057	1057	required of a director elected at a general election.
1058	1058	SECTION 5.04. Subchapter A, Chapter 6, Tax Code, is amended
1059	1059	by adding Section 6.032 to read as follows:
1060	1060	Sec. 6.032. BALLOT PROCEDURES FOR ELECTED DIRECTORS; FILING
1061	1061	FEE OR PETITION. (a) Except as provided by this section, Chapter
1062	1062	144, Election Code, applies to a candidate for an elective position
1063	1063	on an appraisal district board of directors.
1064	1064	(b) An application for a place on the ballot must be filed
1065	1065	with the county judge of the county in which the appraisal district
1066	1066	is established and be accompanied by a filing fee prescribed by
1067	1067	Subsection (c) of this section or a petition in lieu of the filing
1068	1068	fee that satisfies the requirements prescribed by Section 141.062,
1069	1069	Election Code, and Subsection (d) of this section.
1070	1070	(c) The filing fee for a place on the ballot is:
1071	1071	(1) $400 for a county with a population of 200,000 or
1072	1072	more; or
1073	1073	(2) $200 for a county with a population of less than
1074	1074	200,000.
1075	1075	(d) The minimum number of signatures that must appear on the
1076	1076	petition authorized by Subsection (b) is the lesser of:
1077	1077	(1) 500; or
1078	1078	(2) two percent of the total vote received in the
1079	1079	county by all the candidates for governor in the most recent
1080	1080	gubernatorial general election, unless that number is less than 50,
1081	1081	in which case the required number of signatures is the lesser of:
1082	1082	(A) 50; or
1083	1083	(B) 20 percent of that total vote.
1084	1084	(e) A filing fee received under this section shall be
1085	1085	deposited in the county treasury to the credit of the county general
1086	1086	fund.
1087	1087	(f) The secretary of state shall adopt rules as necessary to
1088	1088	implement this section.
1089	1089	SECTION 5.05. The heading to Section 6.033, Tax Code, is
1090	1090	amended to read as follows:
1091	1091	Sec. 6.033. RECALL OF APPOINTED DIRECTOR.
1092	1092	SECTION 5.06. Section 6.033(a), Tax Code, is amended to
1093	1093	read as follows:
1094	1094	(a) The governing body of a taxing unit may call for the
1095	1095	recall of an appointed [a] member of the board of directors of an
1096	1096	appraisal district [appointed under Section 6.03 of this code] for
1097	1097	whom the taxing unit cast any of its votes in the appointment of the
1098	1098	board. The call must be in the form of a resolution, be filed with
1099	1099	the chief appraiser of the appraisal district, and state that the
1100	1100	taxing unit is calling for the recall of the member. If a
1101	1101	resolution calling for the recall of a board member is filed under
1102	1102	this subsection, the chief appraiser, not later than the 10th day
1103	1103	after the date of filing, shall deliver a written notice of the
1104	1104	filing of the resolution and the date of its filing to the presiding
1105	1105	officer of the governing body of each taxing unit entitled to vote
1106	1106	in the appointment of board members.
1107	1107	SECTION 5.07. Section 6.036(a), Tax Code, is amended to
1108	1108	read as follows:
1109	1109	(a) An individual is not eligible to be a candidate for, to
1110	1110	be appointed to, or to serve on the board of directors of an
1111	1111	appraisal district if the individual or a business entity in which
1112	1112	the individual has a substantial interest is a party to a contract
1113	1113	with:
1114	1114	(1) the appraisal district; or
1115	1115	(2) a taxing unit that participates in the appraisal
1116	1116	district, if the contract relates to the performance of an activity
1117	1117	governed by this title.
1118	1118	SECTION 5.08. Section 6.052(f), Tax Code, as effective
1119	1119	January 1, 2024, is amended to read as follows:
1120	1120	(f) The taxpayer liaison officer is responsible for
1121	1121	providing clerical assistance to the applicable appointing
1122	1122	authority prescribed by Section 6.41(d) [local administrative
1123	1123	district judge] in the selection of appraisal review board members
1124	1124	and for publicizing the availability of positions on the appraisal
1125	1125	review board. The officer shall deliver to the applicable
1126	1126	appointing authority [local administrative district judge] any
1127	1127	applications to serve on the board that are submitted to the officer
1128	1128	and shall perform other duties as requested by the applicable
1129	1129	appointing authority [local administrative district judge]. The
1130	1130	officer may not influence the process for selecting appraisal
1131	1131	review board members.
1132	1132	SECTION 5.09. Section 6.41, Tax Code, is amended by
1133	1133	amending Subsections (d), (d-1), (d-2), (d-3), (d-5), (d-9),
1134	1134	(d-10), (e), (g), (i), and (j) and adding Subsection (d-2-1) to read
1135	1135	as follows:
1136	1136	(d) Members of the board are appointed by the applicable
1137	1137	appointing authority. For an appraisal district to which Section
1138	1138	6.03 applies, the appointing authority is the local administrative
1139	1139	district judge under Subchapter D, Chapter 74, Government Code, in
1140	1140	the county in which the appraisal district is established. For an
1141	1141	appraisal district to which Section 6.0301 applies, the appointing
1142	1142	authority is the board of directors of the district. A vacancy on
1143	1143	the board is filled in the same manner for the unexpired portion of
1144	1144	the term.
1145	1145	(d-1) All applications submitted to the appraisal district
1146	1146	or to the appraisal review board from persons seeking appointment
1147	1147	as a member of the appraisal review board shall be delivered to the
1148	1148	applicable appointing authority [local administrative district
1149	1149	judge]. The appraisal district may provide the appointing
1150	1150	authority [local administrative district judge] with information
1151	1151	regarding whether an applicant for appointment to or a member of the
1152	1152	board owes any delinquent ad valorem taxes to a taxing unit
1153	1153	participating in the appraisal district.
1154	1154	(d-2) A local administrative district judge acting as an
1155	1155	appointing authority may make appointments to the board directly or
1156	1156	may, by written order, appoint from three to five persons to perform
1157	1157	the duties of appraisal review board commissioner. If the local
1158	1158	administrative district judge chooses to appoint appraisal review
1159	1159	board commissioners, each commissioner shall possess the same
1160	1160	qualifications as those required of an appraisal review board
1161	1161	member.
1162	1162	(d-2-1) A board of directors acting as an appointing
1163	1163	authority must make appointments to the appraisal review board by
1164	1164	majority vote, with at least two members of the majority being
1165	1165	elected members of the board of directors.
1166	1166	(d-3) The applicable appointing authority [local
1167	1167	administrative judge] shall cause the proper officer to notify
1168	1168	appointees to the board of their appointment, and when and where
1169	1169	they are to appear.
1170	1170	(d-5) The appraisal district of the county shall provide to
1171	1171	the applicable appointing authority [local administrative district
1172	1172	judge], or to the appraisal review board commissioners, as the case
1173	1173	may be, the number of appraisal review board positions that require
1174	1174	appointment and shall provide whatever reasonable assistance is
1175	1175	requested by the applicable appointing authority [local
1176	1176	administrative district judge] or the commissioners.
1177	1177	(d-9) In selecting individuals who are to serve as members
1178	1178	of the appraisal review board for an appraisal district described
1179	1179	by Subsection (b-2), the board of directors of the district [local
1180	1180	administrative district judge] shall select an adequate number of
1181	1181	qualified individuals to permit the chairman of the appraisal
1182	1182	review board to fill the positions on each special panel
1183	1183	established under Section 6.425.
1184	1184	(d-10) Upon selection of the individuals who are to serve as
1185	1185	members of the appraisal review board, the applicable appointing
1186	1186	authority [local administrative district judge] shall enter an
1187	1187	appropriate order designating such members and setting each
1188	1188	member's respective term of office, as provided elsewhere in this
1189	1189	section.
1190	1190	(e) Members of the board hold office for terms of two years
1191	1191	beginning January 1. The appraisal district board of directors by
1192	1192	resolution shall provide for staggered terms, so that the terms of
1193	1193	as close to one-half of the members as possible expire each
1194	1194	year. In making the initial or subsequent appointments, the
1195	1195	applicable appointing authority, or the local administrative
1196	1196	district [judge or the] judge's designee if the appointing
1197	1197	authority is the judge, shall designate those members who serve
1198	1198	terms of one year as needed to comply with this subsection.
1199	1199	(g) Subsection (a) does not preclude the boards of directors
1200	1200	of two or more adjoining appraisal districts from providing for the
1201	1201	operation of a consolidated appraisal review board by interlocal
1202	1202	contract. Members of a consolidated appraisal review board are
1203	1203	appointed jointly by the applicable appointing authorities [local
1204	1204	administrative district judges] in the counties in which the
1205	1205	appraisal districts that are parties to the contract are
1206	1206	established.
1207	1207	(i) A chief appraiser or another employee or agent of the
1208	1208	appraisal district, a member of the appraisal review board for the
1209	1209	appraisal district, a member of the board of directors of the
1210	1210	appraisal district if the board is established for a district to
1211	1211	which Section 6.03 applies, a property tax consultant, or an agent
1212	1212	of a property owner commits an offense if the person communicates
1213	1213	with the applicable appointing authority [local administrative
1214	1214	district judge] regarding the appointment of appraisal review board
1215	1215	members. This subsection does not apply to:
1216	1216	(1) a communication between a member of the appraisal
1217	1217	review board and the applicable appointing authority [local
1218	1218	administrative district judge] regarding the member's
1219	1219	reappointment to the board;
1220	1220	(2) a communication between the taxpayer liaison
1221	1221	officer for the appraisal district and the applicable appointing
1222	1222	authority [local administrative district judge] in the course of
1223	1223	the performance of the officer's clerical duties so long as the
1224	1224	officer does not offer an opinion or comment regarding the
1225	1225	appointment of appraisal review board members;
1226	1226	(3) a communication between a chief appraiser or
1227	1227	another employee or agent of the appraisal district, a member of the
1228	1228	appraisal review board for the appraisal district, or a member of
1229	1229	the board of directors of the appraisal district if the board is
1230	1230	established for a district to which Section 6.03 applies and the
1231	1231	applicable appointing authority [local administrative district
1232	1232	judge] regarding information relating to or described by Subsection
1233	1233	(d-1), (d-5), or (f) of this section or Section 411.1296,
1234	1234	Government Code;
1235	1235	(4) a communication between a property tax consultant
1236	1236	or a property owner or an agent of the property owner and the
1237	1237	taxpayer liaison officer for the appraisal district regarding
1238	1238	information relating to or described by Subsection (f). The
1239	1239	taxpayer liaison officer for the appraisal district shall report
1240	1240	the contents of the communication relating to or described by
1241	1241	Subsection (f) to the applicable appointing authority [local
1242	1242	administrative district judge]; or
1243	1243	(5) a communication between a property tax consultant
1244	1244	or a property owner or an agent of the property owner and the
1245	1245	applicable appointing authority [local administrative district
1246	1246	judge] regarding information relating to or described by Subsection
1247	1247	(f).
1248	1248	(j) A chief appraiser or another employee or agent of an
1249	1249	appraisal district commits an offense if the person communicates
1250	1250	with a member of the appraisal review board for the appraisal
1251	1251	district, a member of the board of directors of the appraisal
1252	1252	district, or the local administrative district judge, if the judge
1253	1253	is the appointing authority for the district, regarding a ranking,
1254	1254	scoring, or reporting of the percentage by which the appraisal
1255	1255	review board or a panel of the board reduces the appraised value of
1256	1256	property.
1257	1257	SECTION 5.10. Section 6.41(f), Tax Code, as amended by
1258	1258	Chapters 354 (H.B. 2941) and 533 (S.B. 63), Acts of the 87th
1259	1259	Legislature, Regular Session, 2021, is reenacted and amended to
1260	1260	read as follows:
1261	1261	(f) A member of the appraisal review board may be removed
1262	1262	from the board by the applicable appointing authority, or the local
1263	1263	administrative district [judge or the] judge's designee if the
1264	1264	appointing authority is the judge. Not later than the 90th day
1265	1265	after the date the board of directors, local administrative
1266	1266	district judge, or judge's designee that appointed a member of the
1267	1267	appraisal review board learns of a potential ground for removal of
1268	1268	the member, the board of directors, local administrative district
1269	1269	judge, or judge's designee, as applicable, shall remove the member
1270	1270	or find by official action that the member's removal is not
1271	1271	warranted. Grounds for removal are:
1272	1272	(1) a violation of Section 6.412, 6.413, 41.66(f), or
1273	1273	41.69;
1274	1274	(2) good cause relating to the attendance of members
1275	1275	at called meetings of the board as established by written policy
1276	1276	adopted by a majority of the appraisal district board of directors;
1277	1277	or
1278	1278	(3) evidence of repeated bias or misconduct.
1279	1279	SECTION 5.11. Section 6.42(a), Tax Code, is amended to read
1280	1280	as follows:
1281	1281	(a) A majority of the appraisal review board constitutes a
1282	1282	quorum. The applicable appointing authority prescribed by Section
1283	1283	6.41(d) [local administrative district judge under Subchapter D,
1284	1284	Chapter 74, Government Code,] in the county in which the appraisal
1285	1285	district is established shall select a chairman and a secretary
1286	1286	from among the members of the appraisal review board. The
1287	1287	applicable appointing authority [judge] is encouraged to select as
1288	1288	chairman a member of the appraisal review board, if any, who has a
1289	1289	background in law and property appraisal.
1290	1290	SECTION 5.12. Section 6.425(e), Tax Code, is amended to
1291	1291	read as follows:
1292	1292	(e) Notwithstanding Subsection (d), the chairman of the
1293	1293	appraisal review board may appoint to a special panel described by
1294	1294	this section a member of the appraisal review board who does not
1295	1295	meet the qualifications prescribed by that subsection if:
1296	1296	(1) the number of persons appointed to the board [by
1297	1297	the local administrative district judge] who meet those
1298	1298	qualifications is not sufficient to fill the positions on each
1299	1299	special panel; and
1300	1300	(2) the board member being appointed to the panel
1301	1301	holds a bachelor's degree in any field.
1302	1302	SECTION 5.13. (a) Appraisal district directors shall be
1303	1303	elected to the elective positions as provided by Section 6.0301,
1304	1304	Tax Code, as added by this article, beginning with the election
1305	1305	conducted on the uniform election date in May 2024. The directors
1306	1306	then elected take office on July 1, 2024, and serve a term that
1307	1307	expires on December 31, 2026.
1308	1308	(b) Following the election of the initial elected directors
1309	1309	of an appraisal district as provided by Subsection (a) of this
1310	1310	section, directors shall be elected as provided by Section 6.0301,
1311	1311	Tax Code, as added by this article, beginning with the general
1312	1312	election conducted in November 2026. Directors then elected take
1313	1313	office January 1, 2027.
1314	1314	(c) At the first meeting of the board of directors of an
1315	1315	appraisal district described by Section 6.0301, Tax Code, as added
1316	1316	by this article, that follows the November 2026 general election of
1317	1317	directors under that section, the three elected directors shall
1318	1318	draw lots to determine which director shall serve a term of two
1319	1319	years and which two directors shall serve a term of four years.
1320	1320	Thereafter, all elected directors serve four-year terms.
1321	1321	(d) The term of an appraisal district director serving on
1322	1322	December 31, 2024, on the board of directors of an appraisal
1323	1323	district described by Section 6.0301, Tax Code, as added by this
1324	1324	article, expires on January 1, 2025. Not later than December 31,
1325	1325	2024, the taxing units participating in the appraisal district that
1326	1326	are entitled to appoint directors shall appoint five directors to
1327	1327	serve terms that begin on January 1, 2025. Two directors shall be
1328	1328	appointed to serve a term of one year, and three directors shall be
1329	1329	appointed to serve a term of three years. Thereafter, all appointed
1330	1330	directors serve four-year terms.
1331	1331	ARTICLE 6. TRANSITIONAL TAX YEAR PROVISIONS
1332	1332	SECTION 6.01. Section 25.23, Tax Code, is amended by adding
1333	1333	Subsection (a-1) to read as follows:
1334	1334	(a-1) This subsection applies only to the appraisal records
1335	1335	for the 2023 tax year. The chief appraiser shall prepare
1336	1336	supplemental appraisal records to account for the changes in law
1337	1337	made by S.B. 2, Acts of the 88th Legislature, 2nd Called Session,
1338	1338	2023. This subsection expires December 31, 2024.
1339	1339	SECTION 6.02. Section 26.04, Tax Code, is amended by adding
1340	1340	Subsections (a-1) and (c-1) to read as follows:
1341	1341	(a-1) On receipt of the appraisal roll for the 2023 tax
1342	1342	year, the assessor for a taxing unit shall determine the total
1343	1343	taxable value of property taxable by the taxing unit and the taxable
1344	1344	value of new property as if the changes in law made by S.B. 2, Acts
1345	1345	of the 88th Legislature, 2nd Called Session, 2023, were in effect
1346	1346	for that tax year. This subsection expires December 31, 2024.
1347	1347	(c-1) An officer or employee designated by the governing
1348	1348	body of a taxing unit shall calculate the no-new-revenue tax rate
1349	1349	and the voter-approval tax rate of the taxing unit for the 2023 tax
1350	1350	year as if the changes in law made by S.B. 2, Acts of the 88th
1351	1351	Legislature, 2nd Called Session, 2023, were in effect for that tax
1352	1352	year. This subsection expires December 31, 2024.
1353	1353	SECTION 6.03. Chapter 26, Tax Code, is amended by adding
1354	1354	Section 26.0401 to read as follows:
1355	1355	Sec. 26.0401. CALCULATION OF CERTAIN TAX RATES FOR 2023 TAX
1356	1356	YEAR. (a) For the purposes of calculating the no-new-revenue tax
1357	1357	rate, the voter-approval tax rate, and any related tax rate for the
1358	1358	2023 tax year, a taxing unit that calculates those rates under a
1359	1359	provision of law other than Section 26.04 or 26.08 shall calculate
1360	1360	those rates as if the changes in law made by S.B. 2, Acts of the 88th
1361	1361	Legislature, 2nd Called Session, 2023, were in effect for that tax
1362	1362	year.
1363	1363	(b) This section expires December 31, 2024.
1364	1364	SECTION 6.04. Section 26.08, Tax Code, is amended by adding
1365	1365	Subsection (q) to read as follows:
1366	1366	(q) For purposes of this section, the voter-approval tax
1367	1367	rate of a school district for the 2023 tax year shall be calculated
1368	1368	as if the changes in law made by S.B. 2, Acts of the 88th
1369	1369	Legislature, 2nd Called Session, 2023, were in effect for that tax
1370	1370	year. This subsection expires December 31, 2024.
1371	1371	SECTION 6.05. Section 26.09, Tax Code, is amended by adding
1372	1372	Subsection (c-1) to read as follows:
1373	1373	(c-1) The assessor for a taxing unit shall calculate the
1374	1374	amount of tax imposed by the taxing unit on property for the 2023
1375	1375	tax year as if the changes in law made by S.B. 2, Acts of the 88th
1376	1376	Legislature, 2nd Called Session, 2023, were in effect for that tax
1377	1377	year and also as if the changes in law made by that Act were not in
1378	1378	effect for that tax year. This subsection expires December 31,
1379	1379	2024.
1380	1380	SECTION 6.06. Section 26.15, Tax Code, is amended by adding
1381	1381	Subsection (h) to read as follows:
1382	1382	(h) The assessor for a taxing unit shall correct the tax
1383	1383	roll for the taxing unit for the 2023 tax year to reflect the
1384	1384	results of the election to approve the constitutional amendment
1385	1385	proposed by H.J.R. 2, 88th Legislature, 2nd Called Session, 2023.
1386	1386	This subsection expires December 31, 2024.
1387	1387	SECTION 6.07. Section 31.01, Tax Code, is amended by adding
1388	1388	Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
1389	1389	(d-2) This subsection and Subsections (d-3) and (d-4) apply
1390	1390	only to taxes imposed by a taxing unit on property for the 2023 tax
1391	1391	year and only if the changes in law made by S.B. 2, Acts of the 88th
1392	1392	Legislature, 2nd Called Session, 2023, would lower the taxes
1393	1393	imposed by the taxing unit on the property for that tax year. The
1394	1394	assessor for the taxing unit shall compute the amount of taxes
1395	1395	imposed and the other information required by this section as if the
1396	1396	changes in law made by S.B. 2, Acts of the 88th Legislature, 2nd
1397	1397	Called Session, 2023, were in effect for that tax year. The tax
1398	1398	bill or the separate statement must indicate that the bill is a
1399	1399	provisional tax bill and include a statement in substantially the
1400	1400	following form:
1401	1401	"If the Texas Legislature had not enacted property tax relief
1402	1402	legislation during the 2023 legislative session, your tax bill
1403	1403	would have been $____ (insert amount of tax bill if the changes in
1404	1404	law made by S.B. 2, Acts of the 88th Legislature, 2nd Called
1405	1405	Session, 2023, were not in effect for that tax year). Because of
1406	1406	action by the Texas Legislature, your tax bill has been lowered by
1407	1407	$____ (insert difference between amount of tax bill if the changes
1408	1408	in law made by S.B. 2, Acts of the 88th Legislature, 2nd Called
1409	1409	Session, 2023, were not in effect for that tax year and amount of
1410	1410	tax bill if that Act were in effect for that tax year), resulting in
1411	1411	a lower tax bill of $____ (insert amount of tax bill if the changes
1412	1412	in law made by S.B. 2, Acts of the 88th Legislature, 2nd Called
1413	1413	Session, 2023, were in effect for that tax year), contingent on the
1414	1414	approval by the voters at an election to be held November 7, 2023,
1415	1415	of the constitutional amendment proposed by H.J.R. 2, 88th
1416	1416	Legislature, 2nd Called Session, 2023. If that constitutional
1417	1417	amendment is not approved by the voters at the election, a
1418	1418	supplemental tax bill in the amount of $____ (insert difference
1419	1419	between amount of tax bill if the changes in law made by S.B. 2,
1420	1420	Acts of the 88th Legislature, 2nd Called Session, 2023, were not in
1421	1421	effect for that tax year and amount of tax bill if that Act were in
1422	1422	effect for that tax year) will be mailed to you."
1423	1423	(d-3) A tax bill prepared by the assessor for a taxing unit
1424	1424	as provided by Subsection (d-2) and mailed as provided by
1425	1425	Subsection (a) is considered to be a provisional tax bill until the
1426	1426	canvass of the votes on the constitutional amendment proposed by
1427	1427	H.J.R. 2, 88th Legislature, 2nd Called Session, 2023. If the
1428	1428	constitutional amendment is approved by the voters, the tax bill is
1429	1429	considered to be a final tax bill for the taxes imposed on the
1430	1430	property for the 2023 tax year, and no additional tax bill is
1431	1431	required to be mailed unless another provision of this title
1432	1432	requires the mailing of a corrected tax bill. If the constitutional
1433	1433	amendment is not approved by the voters:
1434	1434	(1) a tax bill prepared by the assessor as provided by
1435	1435	Subsection (d-2) is considered to be a final tax bill but only as to
1436	1436	the portion of the taxes imposed on the property for the 2023 tax
1437	1437	year that are included in the bill;
1438	1438	(2) the amount of taxes imposed by each taxing unit on
1439	1439	property for the 2023 tax year is calculated as if the changes in
1440	1440	law made by S.B. 2, Acts of the 88th Legislature, 2nd Called
1441	1441	Session, 2023, were not in effect for that tax year; and
1442	1442	(3) except as provided by Subsections (f), (i-1), and
1443	1443	(k), the assessor for each taxing unit shall prepare and mail a
1444	1444	supplemental tax bill, by December 1 or as soon thereafter as
1445	1445	practicable, in an amount equal to the difference between the
1446	1446	amount of the tax bill if the changes in law made by S.B. 2, Acts of
1447	1447	the 88th Legislature, 2nd Called Session, 2023, were not in effect
1448	1448	for that tax year and the amount of the tax bill if that Act were in
1449	1449	effect for that tax year.
1450	1450	(d-4) Except as otherwise provided by Subsection (d-3), the
1451	1451	provisions of this section other than Subsection (d-2) apply to a
1452	1452	supplemental tax bill mailed under Subsection (d-3).
1453	1453	(d-5) This subsection and Subsections (d-2), (d-3), and
1454	1454	(d-4) expire December 31, 2024.
1455	1455	SECTION 6.08. Section 31.02, Tax Code, is amended by adding
1456	1456	Subsection (a-1) to read as follows:
1457	1457	(a-1) Except as provided by Subsection (b) of this section
1458	1458	and Sections 31.03 and 31.04, taxes for which a supplemental tax
1459	1459	bill is mailed under Section 31.01(d-3) are due on receipt of the
1460	1460	tax bill and are delinquent if not paid before March 1 of the year
1461	1461	following the year in which imposed. This subsection expires
1462	1462	December 31, 2024.
1463	1463	ARTICLE 7. CONTINGENT ON PASSAGE OF FRANCHISE TAX REFORM
1464	1464	LEGISLATION
1465	1465	SECTION 7.01. This Act takes effect only if S.B. 3 or
1466	1466	similar legislation of the 88th Legislature, 2nd Called Session,
1467	1467	2023, relating to the amount of the total revenue exemption for the
1468	1468	franchise tax and the exclusion of certain taxable entities from
1469	1469	the requirement to file a franchise tax report becomes law in a
1470	1470	manner described by Section 2001.006(a)(2), Government Code. If
1471	1471	legislation described by this section does not become law in a
1472	1472	manner described by Section 2001.006(a)(2), Government Code, this
1473	1473	Act has no effect.
1474	1474	ARTICLE 8. EFFECTIVE DATES
1475	1475	SECTION 8.01. Except as provided by Article 7 of this Act,
1476	1476	this Act takes effect as provided by this article.
1477	1477	SECTION 8.02. Except as otherwise provided by this article,
1478	1478	this Act takes effect on the 91st day after the last day of the
1479	1479	legislative session.
1480	1480	SECTION 8.03. Article 2 of this Act takes effect on the date
1481	1481	on which the constitutional amendment proposed by H.J.R. 2, 88th
1482	1482	Legislature, 2nd Called Session, 2023, is approved by the voters.
1483	1483	If that amendment is not approved by the voters, Article 2 of this
1484	1484	Act has no effect.
1485	1485	SECTION 8.04. (a) Except as provided by Subsection (b) of
1486	1486	this section or as otherwise provided by Article 3 of this Act:
1487	1487	(1) Article 3 of this Act takes effect on the date on
1488	1488	which the constitutional amendment proposed by H.J.R. 2, 88th
1489	1489	Legislature, 2nd Called Session, 2023, takes effect; and
1490	1490	(2) if that amendment is not approved by the voters,
1491	1491	Article 3 of this Act has no effect.
1492	1492	(b) Sections 49.004(a-1), (b-1), and (c-1), 49.0042,
1493	1493	49.0121, 49.154(a-2) and (a-3), and 49.308(a-1), Education Code, as
1494	1494	added by Article 3 of this Act, take effect immediately if this Act
1495	1495	receives a vote of two-thirds of all the members elected to each
1496	1496	house, as provided by Section 39, Article III, Texas Constitution.
1497	1497	If this Act does not receive the vote necessary for those sections
1498	1498	to have immediate effect, those sections take effect on the 91st day
1499	1499	after the last day of the legislative session.
1500	1500	SECTION 8.05. Article 4 of this Act takes effect January 1,
1501	1501	2024, but only if the constitutional amendment proposed by
1502	1502	H.J.R. 2, 88th Legislature, 2nd Called Session, 2023, is approved
1503	1503	by the voters. If that amendment is not approved by the voters,
1504	1504	Article 4 of this Act has no effect.
1505	1505	SECTION 8.06. (a) Article 5 of this Act takes effect as
1506	1506	provided by Subsections (b) and (c) of this section, but only if the
1507	1507	constitutional amendment proposed by H.J.R. 2, 88th Legislature,
1508	1508	2nd Called Session, 2023, is approved by the voters. If that
1509	1509	amendment is not approved by the voters, Article 5 of this Act has
1510	1510	no effect.
1511	1511	(b) Except as provided by Subsection (c) of this section,
1512	1512	Article 5 of this Act takes effect July 1, 2024.
1513	1513	(c) Sections 5.04 and 5.13 of this Act take effect on the
1514	1514	91st day after the last day of the legislative session.
1515	1515	SECTION 8.07. Article 6 of this Act takes effect
1516	1516	immediately if this Act receives a vote of two-thirds of all the
1517	1517	members elected to each house, as provided by Section 39, Article
1518	1518	III, Texas Constitution. If this Act does not receive the vote
1519	1519	necessary for that article to have immediate effect, Article 6 of
1520	1520	this Act takes effect on the 91st day after the last day of the
1521	1521	legislative session.
1522	1522	______________________________ ______________________________
1523	1523	President of the Senate Speaker of the House
1524	1524	I hereby certify that S.B. No. 2 passed the Senate on
1525	1525	July 12, 2023, by the following vote: Yeas 31, Nays 0.
1526	1526	______________________________
1527	1527	Secretary of the Senate
1528	1528	I hereby certify that S.B. No. 2 passed the House on
1529	1529	July 13, 2023, by the following vote: Yeas 133, Nays 4, zero
1530	1530	present not voting.
1531	1531	______________________________
1532	1532	Chief Clerk of the House
1533	1533	Approved:
1534	1534	______________________________
1535	1535	Date
1536	1536	______________________________
1537	1537	Governor