Texas 2023 - 88th 3rd C.S.

Texas Senate Bill SB42 Compare Versions

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1	1	88S30057 TJB-F
2	2	By: Hinojosa S.B. No. 42
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the calculation of certain ad valorem tax rates of a
8	8	taxing unit for a year in which a property owner provides notice
9	9	that the owner intends to appeal an order of an appraisal review
10	10	board determining a protest by the owner regarding the appraisal of
11	11	the owner's property.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. (a) Section 26.012, Tax Code, is amended by
14	14	adding Subdivisions (1-a), (1-b), (1-c), (2-a), and (20) to read as
15	15	follows:
16	16	(1-a) "Affected taxing unit" means a taxing unit:
17	17	(A) that is wholly or partly located in a county
18	18	that:
19	19	(i) has a population of less than 500,000;
20	20	and
21	21	(ii) is located on the Gulf of Mexico; and
22	22	(B) in which one or more parcels of property are
23	23	located that are included as part of anticipated substantial
24	24	litigation.
25	25	(1-b) "Anticipated substantial litigation" means one
26	26	or more appeals filed or intended to be filed under Chapter 42 for a
27	27	tax year by a single property owner or by one or more associated
28	28	business entities of a single property owner of one or more orders
29	29	of an appraisal review board determining one or more protests by the
30	30	owner or entities of the taxable value of one or more parcels of
31	31	property located in an affected taxing unit that have an aggregate
32	32	contested taxable value of more than $1 billion.
33	33	(1-c) "Associated business entity" means a subsidiary
34	34	or other associated business entity of a property owner.
35	35	(2-a) "Contested taxable value" means the portion of
36	36	the taxable value of property that is in dispute.
37	37	(20) "Uncontested taxable value" means the portion of
38	38	the taxable value of property that is not in dispute.
39	39	(b) Sections 26.012(1-a), (1-b), (1-c), (2-a), and (20),
40	40	Tax Code, as added by this Act, expire December 31, 2025.
41	41	SECTION 2. Section 26.012(6), Tax Code, as effective
42	42	January 1, 2024, is amended to read as follows:
43	43	(6) "Current total value" means the total taxable
44	44	value of property listed on the appraisal roll for the current year,
45	45	including all appraisal roll supplements and corrections as of the
46	46	date of the calculation, less the taxable value of property
47	47	exempted for the current tax year for the first time under Section
48	48	11.31 or 11.315, except that:
49	49	(A) the current total value for a school district
50	50	excludes:
51	51	(i) the total value of homesteads that
52	52	qualify for a tax limitation as provided by Section 11.26;
53	53	(ii) new property value of property that is
54	54	subject to an agreement entered into under former Subchapter B or C,
55	55	Chapter 313; and
56	56	(iii) new property value of property that
57	57	is subject to an agreement entered into under Subchapter T, Chapter
58	58	403, Government Code; [and]
59	59	(B) the current total value for a county,
60	60	municipality, or junior college district excludes the total value
61	61	of homesteads that qualify for a tax limitation provided by Section
62	62	11.261; and
63	63	(C) the current total value of an affected taxing
64	64	unit excludes the portion of the aggregate taxable value of all of
65	65	the property located in the taxing unit that is included as part of
66	66	anticipated substantial litigation that consists of contested
67	67	taxable value.
68	68	SECTION 3. Effective January 1, 2026, Section 26.012(6),
69	69	Tax Code, as effective January 1, 2024, is amended to read as
70	70	follows:
71	71	(6) "Current total value" means the total taxable
72	72	value of property listed on the appraisal roll for the current year,
73	73	including all appraisal roll supplements and corrections as of the
74	74	date of the calculation, less the taxable value of property
75	75	exempted for the current tax year for the first time under Section
76	76	11.31 or 11.315, except that:
77	77	(A) the current total value for a school district
78	78	excludes:
79	79	(i) the total value of homesteads that
80	80	qualify for a tax limitation as provided by Section 11.26;
81	81	(ii) new property value of property that is
82	82	subject to an agreement entered into under former Subchapter B or C,
83	83	Chapter 313; and
84	84	(iii) new property value of property that
85	85	is subject to an agreement entered into under Subchapter T, Chapter
86	86	403, Government Code; and
87	87	(B) the current total value for a county,
88	88	municipality, or junior college district excludes the total value
89	89	of homesteads that qualify for a tax limitation provided by Section
90	90	11.261.
91	91	SECTION 4. Section 26.04(d-3), Tax Code, is amended to read
92	92	as follows:
93	93	(d-3) As soon as practicable after the designated officer or
94	94	employee calculates the no-new-revenue tax rate and the
95	95	voter-approval tax rate of the taxing unit, the designated officer
96	96	or employee shall submit the tax rate calculation forms used in
97	97	calculating the rates to the county assessor-collector for each
98	98	county in which all or part of the territory of the taxing unit is
99	99	located. If an amount described by Section 26.012(6)(C) is excluded
100	100	from the current total value of an affected taxing unit for a tax
101	101	year, the designated officer or employee for the taxing unit shall
102	102	include as an addendum to the tax rate calculation forms for that
103	103	tax year documentation that supports the exclusion.
104	104	SECTION 5. Effective January 1, 2026, Section 26.04(d-3),
105	105	Tax Code, is amended to read as follows:
106	106	(d-3) As soon as practicable after the designated officer or
107	107	employee calculates the no-new-revenue tax rate and the
108	108	voter-approval tax rate of the taxing unit, the designated officer
109	109	or employee shall submit the tax rate calculation forms used in
110	110	calculating the rates to the county assessor-collector for each
111	111	county in which all or part of the territory of the taxing unit is
112	112	located.
113	113	SECTION 6. Section 26.16(d-1), Tax Code, is amended to read
114	114	as follows:
115	115	(d-1) In addition to posting the information described by
116	116	Subsection (a), the county assessor-collector shall post on the
117	117	Internet website of the county for each taxing unit all or part of
118	118	the territory of which is located in the county:
119	119	(1) the tax rate calculation forms used by the
120	120	designated officer or employee of each taxing unit to calculate the
121	121	no-new-revenue and voter-approval tax rates of the taxing unit for
122	122	the most recent five tax years beginning with the 2020 tax year, as
123	123	certified by the designated officer or employee under Section
124	124	26.04(d-2), along with the addendum to those forms required by
125	125	Section 26.04(d-3), if applicable; and
126	126	(2) the name and official contact information for each
127	127	member of the governing body of the taxing unit.
128	128	SECTION 7. Effective January 1, 2026, Section 26.16(d-1),
129	129	Tax Code, is amended to read as follows:
130	130	(d-1) In addition to posting the information described by
131	131	Subsection (a), the county assessor-collector shall post on the
132	132	Internet website of the county for each taxing unit all or part of
133	133	the territory of which is located in the county:
134	134	(1) the tax rate calculation forms used by the
135	135	designated officer or employee of each taxing unit to calculate the
136	136	no-new-revenue and voter-approval tax rates of the taxing unit for
137	137	the most recent five tax years beginning with the 2020 tax year, as
138	138	certified by the designated officer or employee under Section
139	139	26.04(d-2); and
140	140	(2) the name and official contact information for each
141	141	member of the governing body of the taxing unit.
142	142	SECTION 8. Sections 26.17(e) and (f), Tax Code, are amended
143	143	to read as follows:
144	144	(e) The officer or employee designated by the governing body
145	145	of each taxing unit in which the property is located to calculate
146	146	the no-new-revenue tax rate and the voter-approval tax rate for the
147	147	taxing unit must electronically incorporate into the database:
148	148	(1) the information described by Subsections (b)(5),
149	149	(6), (7), (12), and (13), as applicable, as the information becomes
150	150	available; and
151	151	(2) the tax rate calculation forms prepared under
152	152	Section 26.04(d-1), along with the addendum to those forms required
153	153	by Section 26.04(d-3), if applicable, at the same time the
154	154	designated officer or employee submits the tax rates to the
155	155	governing body of the taxing unit under Section 26.04(e).
156	156	(f) The chief appraiser shall make the information
157	157	described by Subsection (e)(1) and the tax rate calculation forms,
158	158	along with the addendum to those forms required by Section
159	159	26.04(d-3), if applicable, described by Subsection (e)(2)
160	160	available to the public not later than the third business day after
161	161	the date the information and forms are incorporated into the
162	162	database.
163	163	SECTION 9. Effective January 1, 2026, Sections 26.17(e) and
164	164	(f), Tax Code, are amended to read as follows:
165	165	(e) The officer or employee designated by the governing body
166	166	of each taxing unit in which the property is located to calculate
167	167	the no-new-revenue tax rate and the voter-approval tax rate for the
168	168	taxing unit must electronically incorporate into the database:
169	169	(1) the information described by Subsections (b)(5),
170	170	(6), (7), (12), and (13), as applicable, as the information becomes
171	171	available; and
172	172	(2) the tax rate calculation forms prepared under
173	173	Section 26.04(d-1) at the same time the designated officer or
174	174	employee submits the tax rates to the governing body of the taxing
175	175	unit under Section 26.04(e).
176	176	(f) The chief appraiser shall make the information
177	177	described by Subsection (e)(1) and the tax rate calculation forms
178	178	described by Subsection (e)(2) available to the public not later
179	179	than the third business day after the date the information and forms
180	180	are incorporated into the database.
181	181	SECTION 10. Subchapter C, Chapter 41, Tax Code, is amended
182	182	by adding Section 41.48 to read as follows:
183	183	Sec. 41.48. NOTICE OF CERTAIN APPEALS. (a) In this section,
184	184	"affected taxing unit," "anticipated substantial litigation,"
185	185	"associated business entity," and "uncontested taxable value" have
186	186	the meanings assigned by Section 26.012.
187	187	(b) A property owner or associated business entity of the
188	188	owner that intends to file an appeal under Chapter 42 that is part
189	189	of anticipated substantial litigation shall submit to the collector
190	190	for each affected taxing unit in which the property included in the
191	191	litigation is located the total amount of uncontested taxable value
192	192	of all property located in the taxing unit that may be the subject
193	193	of an appeal by the property owner or entity and that is part of the
194	194	litigation.
195	195	(c) A property owner or associated business entity of the
196	196	property owner must submit the information required to be submitted
197	197	under this section not later than the earlier of August 7 or the
198	198	21st day after the date the first hearing regarding a protest of the
199	199	value of any property included in the anticipated substantial
200	200	litigation is conducted under this chapter.
201	201	(d) This section expires December 31, 2025.
202	202	SECTION 11. (a) This section takes effect only if the
203	203	constitutional amendment proposed by H.J.R. 2, 88th Legislature,
204	204	2nd Called Session, 2023, is approved by the voters.
205	205	(b) Section 403.302(d), Government Code, is amended to read
206	206	as follows:
207	207	(d) For the purposes of this section, "taxable value" means
208	208	the market value of all taxable property less:
209	209	(1) the total dollar amount of any residence homestead
210	210	exemptions lawfully granted under Section 11.13(b) or (c), Tax
211	211	Code, in the year that is the subject of the study for each school
212	212	district;
213	213	(2) one-half of the total dollar amount of any
214	214	residence homestead exemptions granted under Section 11.13(n), Tax
215	215	Code, in the year that is the subject of the study for each school
216	216	district;
217	217	(3) the total dollar amount of any exemptions granted
218	218	before May 31, 1993, within a reinvestment zone under agreements
219	219	authorized by Chapter 312, Tax Code;
220	220	(4) subject to Subsection (e), the total dollar amount
221	221	of any captured appraised value of property that:
222	222	(A) is within a reinvestment zone created on or
223	223	before May 31, 1999, or is proposed to be included within the
224	224	boundaries of a reinvestment zone as the boundaries of the zone and
225	225	the proposed portion of tax increment paid into the tax increment
226	226	fund by a school district are described in a written notification
227	227	provided by the municipality or the board of directors of the zone
228	228	to the governing bodies of the other taxing units in the manner
229	229	provided by former Section 311.003(e), Tax Code, before May 31,
230	230	1999, and within the boundaries of the zone as those boundaries
231	231	existed on September 1, 1999, including subsequent improvements to
232	232	the property regardless of when made;
233	233	(B) generates taxes paid into a tax increment
234	234	fund created under Chapter 311, Tax Code, under a reinvestment zone
235	235	financing plan approved under Section 311.011(d), Tax Code, on or
236	236	before September 1, 1999; and
237	237	(C) is eligible for tax increment financing under
238	238	Chapter 311, Tax Code;
239	239	(5) the total dollar amount of any captured appraised
240	240	value of property that:
241	241	(A) is within a reinvestment zone:
242	242	(i) created on or before December 31, 2008,
243	243	by a municipality with a population of less than 18,000; and
244	244	(ii) the project plan for which includes
245	245	the alteration, remodeling, repair, or reconstruction of a
246	246	structure that is included on the National Register of Historic
247	247	Places and requires that a portion of the tax increment of the zone
248	248	be used for the improvement or construction of related facilities
249	249	or for affordable housing;
250	250	(B) generates school district taxes that are paid
251	251	into a tax increment fund created under Chapter 311, Tax Code; and
252	252	(C) is eligible for tax increment financing under
253	253	Chapter 311, Tax Code;
254	254	(6) the total dollar amount of any exemptions granted
255	255	under Section 11.251 or 11.253, Tax Code;
256	256	(7) the difference between the comptroller's estimate
257	257	of the market value and the productivity value of land that
258	258	qualifies for appraisal on the basis of its productive capacity,
259	259	except that the productivity value estimated by the comptroller may
260	260	not exceed the fair market value of the land;
261	261	(8) the portion of the appraised value of residence
262	262	homesteads of individuals who receive a tax limitation under
263	263	Section 11.26, Tax Code, on which school district taxes are not
264	264	imposed in the year that is the subject of the study, calculated as
265	265	if the residence homesteads were appraised at the full value
266	266	required by law;
267	267	(9) a portion of the market value of property not
268	268	otherwise fully taxable by the district at market value because of
269	269	action required by statute or the constitution of this state, other
270	270	than Section 11.311, Tax Code, that, if the tax rate adopted by the
271	271	district is applied to it, produces an amount equal to the
272	272	difference between the tax that the district would have imposed on
273	273	the property if the property were fully taxable at market value and
274	274	the tax that the district is actually authorized to impose on the
275	275	property, if this subsection does not otherwise require that
276	276	portion to be deducted;
277	277	(10) the market value of all tangible personal
278	278	property, other than manufactured homes, owned by a family or
279	279	individual and not held or used for the production of income;
280	280	(11) the appraised value of property the collection of
281	281	delinquent taxes on which is deferred under Section 33.06, Tax
282	282	Code;
283	283	(12) the portion of the appraised value of property
284	284	the collection of delinquent taxes on which is deferred under
285	285	Section 33.065, Tax Code;
286	286	(13) the amount by which the market value of property
287	287	to which Section 23.23 or 23.231, Tax Code, applies exceeds the
288	288	appraised value of that property as calculated under Section 23.23
289	289	or 23.231, Tax Code, as applicable; [and]
290	290	(14) the total dollar amount of any exemptions granted
291	291	under Section 11.35, Tax Code; and
292	292	(15) the amount excluded from the current total value
293	293	of the district under Section 26.012(6)(C), Tax Code.
294	294	(c) Effective January 1, 2026, Section 403.302(d),
295	295	Government Code, is amended to read as follows:
296	296	(d) For the purposes of this section, "taxable value" means
297	297	the market value of all taxable property less:
298	298	(1) the total dollar amount of any residence homestead
299	299	exemptions lawfully granted under Section 11.13(b) or (c), Tax
300	300	Code, in the year that is the subject of the study for each school
301	301	district;
302	302	(2) one-half of the total dollar amount of any
303	303	residence homestead exemptions granted under Section 11.13(n), Tax
304	304	Code, in the year that is the subject of the study for each school
305	305	district;
306	306	(3) the total dollar amount of any exemptions granted
307	307	before May 31, 1993, within a reinvestment zone under agreements
308	308	authorized by Chapter 312, Tax Code;
309	309	(4) subject to Subsection (e), the total dollar amount
310	310	of any captured appraised value of property that:
311	311	(A) is within a reinvestment zone created on or
312	312	before May 31, 1999, or is proposed to be included within the
313	313	boundaries of a reinvestment zone as the boundaries of the zone and
314	314	the proposed portion of tax increment paid into the tax increment
315	315	fund by a school district are described in a written notification
316	316	provided by the municipality or the board of directors of the zone
317	317	to the governing bodies of the other taxing units in the manner
318	318	provided by former Section 311.003(e), Tax Code, before May 31,
319	319	1999, and within the boundaries of the zone as those boundaries
320	320	existed on September 1, 1999, including subsequent improvements to
321	321	the property regardless of when made;
322	322	(B) generates taxes paid into a tax increment
323	323	fund created under Chapter 311, Tax Code, under a reinvestment zone
324	324	financing plan approved under Section 311.011(d), Tax Code, on or
325	325	before September 1, 1999; and
326	326	(C) is eligible for tax increment financing under
327	327	Chapter 311, Tax Code;
328	328	(5) the total dollar amount of any captured appraised
329	329	value of property that:
330	330	(A) is within a reinvestment zone:
331	331	(i) created on or before December 31, 2008,
332	332	by a municipality with a population of less than 18,000; and
333	333	(ii) the project plan for which includes
334	334	the alteration, remodeling, repair, or reconstruction of a
335	335	structure that is included on the National Register of Historic
336	336	Places and requires that a portion of the tax increment of the zone
337	337	be used for the improvement or construction of related facilities
338	338	or for affordable housing;
339	339	(B) generates school district taxes that are paid
340	340	into a tax increment fund created under Chapter 311, Tax Code; and
341	341	(C) is eligible for tax increment financing under
342	342	Chapter 311, Tax Code;
343	343	(6) the total dollar amount of any exemptions granted
344	344	under Section 11.251 or 11.253, Tax Code;
345	345	(7) the difference between the comptroller's estimate
346	346	of the market value and the productivity value of land that
347	347	qualifies for appraisal on the basis of its productive capacity,
348	348	except that the productivity value estimated by the comptroller may
349	349	not exceed the fair market value of the land;
350	350	(8) the portion of the appraised value of residence
351	351	homesteads of individuals who receive a tax limitation under
352	352	Section 11.26, Tax Code, on which school district taxes are not
353	353	imposed in the year that is the subject of the study, calculated as
354	354	if the residence homesteads were appraised at the full value
355	355	required by law;
356	356	(9) a portion of the market value of property not
357	357	otherwise fully taxable by the district at market value because of
358	358	action required by statute or the constitution of this state, other
359	359	than Section 11.311, Tax Code, that, if the tax rate adopted by the
360	360	district is applied to it, produces an amount equal to the
361	361	difference between the tax that the district would have imposed on
362	362	the property if the property were fully taxable at market value and
363	363	the tax that the district is actually authorized to impose on the
364	364	property, if this subsection does not otherwise require that
365	365	portion to be deducted;
366	366	(10) the market value of all tangible personal
367	367	property, other than manufactured homes, owned by a family or
368	368	individual and not held or used for the production of income;
369	369	(11) the appraised value of property the collection of
370	370	delinquent taxes on which is deferred under Section 33.06, Tax
371	371	Code;
372	372	(12) the portion of the appraised value of property
373	373	the collection of delinquent taxes on which is deferred under
374	374	Section 33.065, Tax Code;
375	375	(13) the amount by which the market value of property
376	376	to which Section 23.23 or 23.231, Tax Code, applies exceeds the
377	377	appraised value of that property as calculated under Section 23.23
378	378	or 23.231, Tax Code, as applicable; and
379	379	(14) the total dollar amount of any exemptions granted
380	380	under Section 11.35, Tax Code.
381	381	(d) Effective January 1, 2027, Section 403.302(d),
382	382	Government Code, is amended to read as follows:
383	383	(d) For the purposes of this section, "taxable value" means
384	384	the market value of all taxable property less:
385	385	(1) the total dollar amount of any residence homestead
386	386	exemptions lawfully granted under Section 11.13(b) or (c), Tax
387	387	Code, in the year that is the subject of the study for each school
388	388	district;
389	389	(2) one-half of the total dollar amount of any
390	390	residence homestead exemptions granted under Section 11.13(n), Tax
391	391	Code, in the year that is the subject of the study for each school
392	392	district;
393	393	(3) the total dollar amount of any exemptions granted
394	394	before May 31, 1993, within a reinvestment zone under agreements
395	395	authorized by Chapter 312, Tax Code;
396	396	(4) subject to Subsection (e), the total dollar amount
397	397	of any captured appraised value of property that:
398	398	(A) is within a reinvestment zone created on or
399	399	before May 31, 1999, or is proposed to be included within the
400	400	boundaries of a reinvestment zone as the boundaries of the zone and
401	401	the proposed portion of tax increment paid into the tax increment
402	402	fund by a school district are described in a written notification
403	403	provided by the municipality or the board of directors of the zone
404	404	to the governing bodies of the other taxing units in the manner
405	405	provided by former Section 311.003(e), Tax Code, before May 31,
406	406	1999, and within the boundaries of the zone as those boundaries
407	407	existed on September 1, 1999, including subsequent improvements to
408	408	the property regardless of when made;
409	409	(B) generates taxes paid into a tax increment
410	410	fund created under Chapter 311, Tax Code, under a reinvestment zone
411	411	financing plan approved under Section 311.011(d), Tax Code, on or
412	412	before September 1, 1999; and
413	413	(C) is eligible for tax increment financing under
414	414	Chapter 311, Tax Code;
415	415	(5) the total dollar amount of any captured appraised
416	416	value of property that:
417	417	(A) is within a reinvestment zone:
418	418	(i) created on or before December 31, 2008,
419	419	by a municipality with a population of less than 18,000; and
420	420	(ii) the project plan for which includes
421	421	the alteration, remodeling, repair, or reconstruction of a
422	422	structure that is included on the National Register of Historic
423	423	Places and requires that a portion of the tax increment of the zone
424	424	be used for the improvement or construction of related facilities
425	425	or for affordable housing;
426	426	(B) generates school district taxes that are paid
427	427	into a tax increment fund created under Chapter 311, Tax Code; and
428	428	(C) is eligible for tax increment financing under
429	429	Chapter 311, Tax Code;
430	430	(6) the total dollar amount of any exemptions granted
431	431	under Section 11.251 or 11.253, Tax Code;
432	432	(7) the difference between the comptroller's estimate
433	433	of the market value and the productivity value of land that
434	434	qualifies for appraisal on the basis of its productive capacity,
435	435	except that the productivity value estimated by the comptroller may
436	436	not exceed the fair market value of the land;
437	437	(8) the portion of the appraised value of residence
438	438	homesteads of individuals who receive a tax limitation under
439	439	Section 11.26, Tax Code, on which school district taxes are not
440	440	imposed in the year that is the subject of the study, calculated as
441	441	if the residence homesteads were appraised at the full value
442	442	required by law;
443	443	(9) a portion of the market value of property not
444	444	otherwise fully taxable by the district at market value because of
445	445	action required by statute or the constitution of this state, other
446	446	than Section 11.311, Tax Code, that, if the tax rate adopted by the
447	447	district is applied to it, produces an amount equal to the
448	448	difference between the tax that the district would have imposed on
449	449	the property if the property were fully taxable at market value and
450	450	the tax that the district is actually authorized to impose on the
451	451	property, if this subsection does not otherwise require that
452	452	portion to be deducted;
453	453	(10) the market value of all tangible personal
454	454	property, other than manufactured homes, owned by a family or
455	455	individual and not held or used for the production of income;
456	456	(11) the appraised value of property the collection of
457	457	delinquent taxes on which is deferred under Section 33.06, Tax
458	458	Code;
459	459	(12) the portion of the appraised value of property
460	460	the collection of delinquent taxes on which is deferred under
461	461	Section 33.065, Tax Code;
462	462	(13) the amount by which the market value of a
463	463	residence homestead to which Section 23.23, Tax Code, applies
464	464	exceeds the appraised value of that property as calculated under
465	465	that section; and
466	466	(14) the total dollar amount of any exemptions granted
467	467	under Section 11.35, Tax Code.
468	468	SECTION 12. (a) This section takes effect only if the
469	469	constitutional amendment proposed by H.J.R. 2, 88th Legislature,
470	470	2nd Called Session, 2023, is not approved by the voters.
471	471	(b) Section 403.302(d), Government Code, is amended to read
472	472	as follows:
473	473	(d) For the purposes of this section, "taxable value" means
474	474	the market value of all taxable property less:
475	475	(1) the total dollar amount of any residence homestead
476	476	exemptions lawfully granted under Section 11.13(b) or (c), Tax
477	477	Code, in the year that is the subject of the study for each school
478	478	district;
479	479	(2) one-half of the total dollar amount of any
480	480	residence homestead exemptions granted under Section 11.13(n), Tax
481	481	Code, in the year that is the subject of the study for each school
482	482	district;
483	483	(3) the total dollar amount of any exemptions granted
484	484	before May 31, 1993, within a reinvestment zone under agreements
485	485	authorized by Chapter 312, Tax Code;
486	486	(4) subject to Subsection (e), the total dollar amount
487	487	of any captured appraised value of property that:
488	488	(A) is within a reinvestment zone created on or
489	489	before May 31, 1999, or is proposed to be included within the
490	490	boundaries of a reinvestment zone as the boundaries of the zone and
491	491	the proposed portion of tax increment paid into the tax increment
492	492	fund by a school district are described in a written notification
493	493	provided by the municipality or the board of directors of the zone
494	494	to the governing bodies of the other taxing units in the manner
495	495	provided by former Section 311.003(e), Tax Code, before May 31,
496	496	1999, and within the boundaries of the zone as those boundaries
497	497	existed on September 1, 1999, including subsequent improvements to
498	498	the property regardless of when made;
499	499	(B) generates taxes paid into a tax increment
500	500	fund created under Chapter 311, Tax Code, under a reinvestment zone
501	501	financing plan approved under Section 311.011(d), Tax Code, on or
502	502	before September 1, 1999; and
503	503	(C) is eligible for tax increment financing under
504	504	Chapter 311, Tax Code;
505	505	(5) the total dollar amount of any captured appraised
506	506	value of property that:
507	507	(A) is within a reinvestment zone:
508	508	(i) created on or before December 31, 2008,
509	509	by a municipality with a population of less than 18,000; and
510	510	(ii) the project plan for which includes
511	511	the alteration, remodeling, repair, or reconstruction of a
512	512	structure that is included on the National Register of Historic
513	513	Places and requires that a portion of the tax increment of the zone
514	514	be used for the improvement or construction of related facilities
515	515	or for affordable housing;
516	516	(B) generates school district taxes that are paid
517	517	into a tax increment fund created under Chapter 311, Tax Code; and
518	518	(C) is eligible for tax increment financing under
519	519	Chapter 311, Tax Code;
520	520	(6) the total dollar amount of any exemptions granted
521	521	under Section 11.251 or 11.253, Tax Code;
522	522	(7) the difference between the comptroller's estimate
523	523	of the market value and the productivity value of land that
524	524	qualifies for appraisal on the basis of its productive capacity,
525	525	except that the productivity value estimated by the comptroller may
526	526	not exceed the fair market value of the land;
527	527	(8) the portion of the appraised value of residence
528	528	homesteads of individuals who receive a tax limitation under
529	529	Section 11.26, Tax Code, on which school district taxes are not
530	530	imposed in the year that is the subject of the study, calculated as
531	531	if the residence homesteads were appraised at the full value
532	532	required by law;
533	533	(9) a portion of the market value of property not
534	534	otherwise fully taxable by the district at market value because of
535	535	action required by statute or the constitution of this state, other
536	536	than Section 11.311, Tax Code, that, if the tax rate adopted by the
537	537	district is applied to it, produces an amount equal to the
538	538	difference between the tax that the district would have imposed on
539	539	the property if the property were fully taxable at market value and
540	540	the tax that the district is actually authorized to impose on the
541	541	property, if this subsection does not otherwise require that
542	542	portion to be deducted;
543	543	(10) the market value of all tangible personal
544	544	property, other than manufactured homes, owned by a family or
545	545	individual and not held or used for the production of income;
546	546	(11) the appraised value of property the collection of
547	547	delinquent taxes on which is deferred under Section 33.06, Tax
548	548	Code;
549	549	(12) the portion of the appraised value of property
550	550	the collection of delinquent taxes on which is deferred under
551	551	Section 33.065, Tax Code;
552	552	(13) the amount by which the market value of a
553	553	residence homestead to which Section 23.23, Tax Code, applies
554	554	exceeds the appraised value of that property as calculated under
555	555	that section; [and]
556	556	(14) the total dollar amount of any exemptions granted
557	557	under Section 11.35, Tax Code; and
558	558	(15) the amount excluded from the current total value
559	559	of the district under Section 26.012(6)(C), Tax Code.
560	560	(c) Effective January 1, 2026, Section 403.302(d),
561	561	Government Code, is amended to read as follows:
562	562	(d) For the purposes of this section, "taxable value" means
563	563	the market value of all taxable property less:
564	564	(1) the total dollar amount of any residence homestead
565	565	exemptions lawfully granted under Section 11.13(b) or (c), Tax
566	566	Code, in the year that is the subject of the study for each school
567	567	district;
568	568	(2) one-half of the total dollar amount of any
569	569	residence homestead exemptions granted under Section 11.13(n), Tax
570	570	Code, in the year that is the subject of the study for each school
571	571	district;
572	572	(3) the total dollar amount of any exemptions granted
573	573	before May 31, 1993, within a reinvestment zone under agreements
574	574	authorized by Chapter 312, Tax Code;
575	575	(4) subject to Subsection (e), the total dollar amount
576	576	of any captured appraised value of property that:
577	577	(A) is within a reinvestment zone created on or
578	578	before May 31, 1999, or is proposed to be included within the
579	579	boundaries of a reinvestment zone as the boundaries of the zone and
580	580	the proposed portion of tax increment paid into the tax increment
581	581	fund by a school district are described in a written notification
582	582	provided by the municipality or the board of directors of the zone
583	583	to the governing bodies of the other taxing units in the manner
584	584	provided by former Section 311.003(e), Tax Code, before May 31,
585	585	1999, and within the boundaries of the zone as those boundaries
586	586	existed on September 1, 1999, including subsequent improvements to
587	587	the property regardless of when made;
588	588	(B) generates taxes paid into a tax increment
589	589	fund created under Chapter 311, Tax Code, under a reinvestment zone
590	590	financing plan approved under Section 311.011(d), Tax Code, on or
591	591	before September 1, 1999; and
592	592	(C) is eligible for tax increment financing under
593	593	Chapter 311, Tax Code;
594	594	(5) the total dollar amount of any captured appraised
595	595	value of property that:
596	596	(A) is within a reinvestment zone:
597	597	(i) created on or before December 31, 2008,
598	598	by a municipality with a population of less than 18,000; and
599	599	(ii) the project plan for which includes
600	600	the alteration, remodeling, repair, or reconstruction of a
601	601	structure that is included on the National Register of Historic
602	602	Places and requires that a portion of the tax increment of the zone
603	603	be used for the improvement or construction of related facilities
604	604	or for affordable housing;
605	605	(B) generates school district taxes that are paid
606	606	into a tax increment fund created under Chapter 311, Tax Code; and
607	607	(C) is eligible for tax increment financing under
608	608	Chapter 311, Tax Code;
609	609	(6) the total dollar amount of any exemptions granted
610	610	under Section 11.251 or 11.253, Tax Code;
611	611	(7) the difference between the comptroller's estimate
612	612	of the market value and the productivity value of land that
613	613	qualifies for appraisal on the basis of its productive capacity,
614	614	except that the productivity value estimated by the comptroller may
615	615	not exceed the fair market value of the land;
616	616	(8) the portion of the appraised value of residence
617	617	homesteads of individuals who receive a tax limitation under
618	618	Section 11.26, Tax Code, on which school district taxes are not
619	619	imposed in the year that is the subject of the study, calculated as
620	620	if the residence homesteads were appraised at the full value
621	621	required by law;
622	622	(9) a portion of the market value of property not
623	623	otherwise fully taxable by the district at market value because of
624	624	action required by statute or the constitution of this state, other
625	625	than Section 11.311, Tax Code, that, if the tax rate adopted by the
626	626	district is applied to it, produces an amount equal to the
627	627	difference between the tax that the district would have imposed on
628	628	the property if the property were fully taxable at market value and
629	629	the tax that the district is actually authorized to impose on the
630	630	property, if this subsection does not otherwise require that
631	631	portion to be deducted;
632	632	(10) the market value of all tangible personal
633	633	property, other than manufactured homes, owned by a family or
634	634	individual and not held or used for the production of income;
635	635	(11) the appraised value of property the collection of
636	636	delinquent taxes on which is deferred under Section 33.06, Tax
637	637	Code;
638	638	(12) the portion of the appraised value of property
639	639	the collection of delinquent taxes on which is deferred under
640	640	Section 33.065, Tax Code;
641	641	(13) the amount by which the market value of a
642	642	residence homestead to which Section 23.23, Tax Code, applies
643	643	exceeds the appraised value of that property as calculated under
644	644	that section; and
645	645	(14) the total dollar amount of any exemptions granted
646	646	under Section 11.35, Tax Code.
647	647	SECTION 13. The changes in law made by this Act apply only
648	648	to an ad valorem tax year that begins on or after the effective date
649	649	of this Act.
650	650	SECTION 14. Except as otherwise provided by this Act, this
651	651	Act takes effect January 1, 2024.