Texas 2025 - 89th Regular

Texas House Bill HB1548 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R202 TJB-D
2	2	By: Raymond H.B. No. 1548
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to an exemption from ad valorem taxation by certain taxing
10	10	units of a portion of the appraised value of the residence homestead
11	11	of the parent or guardian of a person who is disabled and who
12	12	resides with the parent or guardian.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 11.13, Tax Code, is amended by amending
15	15	Subsections (c), (d), and (h) and adding Subsection (d-1) to read as
16	16	follows:
17	17	(c) In addition to the exemption provided by Subsection (b)
18	18	[of this section], an individual [adult] who is disabled, is the
19	19	parent or guardian of a person who is disabled and who resides with
20	20	the parent or guardian, or is 65 years of age or older is entitled to
21	21	an exemption from taxation by a school district of $10,000 of the
22	22	appraised value of the individual's [his] residence homestead.
23	23	(d) In addition to the exemptions provided by Subsections
24	24	(b) and (c) [of this section], an individual who is disabled, is the
25	25	parent or guardian of a person who is disabled and who resides with
26	26	the parent or guardian, or is 65 years of age or older is entitled to
27	27	an exemption from taxation by a taxing unit of the [a] portion
28	28	determined [(the amount of which is fixed] as provided by
29	29	Subsection (e) [of this section)] of the appraised value of the
30	30	individual's [his] residence homestead if the exemption is adopted
31	31	by [either]:
32	32	(1) [by] the governing body of the taxing unit; or
33	33	(2) [by] a favorable vote of a majority of the
34	34	qualified voters of the taxing unit at an election called by the
35	35	governing body of the [a] taxing unit.
36	36	(d-1) The [, and the] governing body of a taxing unit shall
37	37	call an [the] election described by Subsection (d)(2) on the
38	38	petition of at least 20 percent of the number of qualified voters
39	39	who voted in the preceding election of the taxing unit.
40	40	(h) Joint, community, or successive owners may not each
41	41	receive the same exemption provided by or pursuant to this section
42	42	for the same residence homestead in the same tax year. An individual
43	43	who is eligible for more than one [disabled person who is 65 or
44	44	older may not receive both a disabled and an elderly residence
45	45	homestead] exemption under Subsection (c) or more than one
46	46	exemption under Subsection (d) from the same taxing unit in the same
47	47	tax year is entitled to [but may] choose and receive from that
48	48	taxing unit in that tax year only one exemption under each of those
49	49	subsections [either if a taxing unit has adopted both]. An
50	50	individual who is eligible for more than one [disabled person who is
51	51	65 or older may receive both a disabled and an elderly residence
52	52	homestead] exemption under Subsection (c) or (d) in the same tax
53	53	year is entitled to receive each of those exemptions if the person
54	54	receives the exemptions with respect to taxes levied by different
55	55	taxing units. A person may not receive an exemption under this
56	56	section for more than one residence homestead in the same tax year.
57	57	An heir property owner who qualifies heir property as the owner's
58	58	residence homestead under this chapter is considered the sole
59	59	recipient of any exemption granted to the owner for the residence
60	60	homestead by or pursuant to this section.
61	61	SECTION 2. Section 25.19(l), Tax Code, is amended to read as
62	62	follows:
63	63	(l) In addition to the information required by Subsection
64	64	(b), the chief appraiser shall include with a notice required by
65	65	Subsection (a) a brief explanation of each total or partial
66	66	exemption of property from taxation required or authorized by this
67	67	title that is available to:
68	68	(1) a disabled veteran or the veteran's surviving
69	69	spouse or child;
70	70	(2) an individual who is 65 years of age or older or
71	71	the individual's surviving spouse;
72	72	(3) an individual who is disabled or the individual's
73	73	surviving spouse;
74	74	(4) an individual who is the parent or guardian of a
75	75	person who is disabled and who resides with the parent or guardian;
76	76	(5) the surviving spouse of a member of the armed
77	77	services of the United States who is killed in action; or
78	78	(6) [(5)] the surviving spouse of a first responder
79	79	who is killed or fatally injured in the line of duty.
80	80	SECTION 3. Section 26.062(h), Tax Code, is amended to read
81	81	as follows:
82	82	(h) In calculating the average taxable value of a residence
83	83	homestead in the taxing unit for the preceding tax year and the
84	84	current tax year for purposes of Subsections (e) and (f), any
85	85	residence homestead exemption available only to individuals who are
86	86	disabled [persons], are the parents or guardians of persons who are
87	87	disabled and who reside with the parents or guardians, or are
88	88	[persons] 65 years of age or older[,] or their surviving spouses
89	89	must be disregarded.
90	90	SECTION 4. Section 44.004(c), Education Code, is amended to
91	91	read as follows:
92	92	(c) The notice of public meeting to discuss and adopt the
93	93	budget and the proposed tax rate may not be smaller than one-quarter
94	94	page of a standard-size or a tabloid-size newspaper, and the
95	95	headline on the notice must be in 18-point or larger type. Subject
96	96	to Subsection (d), the notice must:
97	97	(1) contain a statement in the following form:
98	98	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
99	99	"The (name of school district) will hold a public meeting at
100	100	(time, date, year) in (name of room, building, physical location,
101	101	city, state). The purpose of this meeting is to discuss the school
102	102	district's budget that will determine the tax rate that will be
103	103	adopted. Public participation in the discussion is invited." The
104	104	statement of the purpose of the meeting must be in bold type. In
105	105	reduced type, the notice must state: "The tax rate that is
106	106	ultimately adopted at this meeting or at a separate meeting at a
107	107	later date may not exceed the proposed rate shown below unless the
108	108	district publishes a revised notice containing the same information
109	109	and comparisons set out below and holds another public meeting to
110	110	discuss the revised notice." In addition, in reduced type, the
111	111	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
112	112	your local property tax database on which you can easily access
113	113	information regarding your property taxes, including information
114	114	about proposed tax rates and scheduled public hearings of each
115	115	entity that taxes your property.";
116	116	(2) contain a section entitled "Comparison of Proposed
117	117	Budget with Last Year's Budget," which must show the difference,
118	118	expressed as a percent increase or decrease, as applicable, in the
119	119	amounts budgeted for the preceding fiscal year and the amount
120	120	budgeted for the fiscal year that begins in the current tax year for
121	121	each of the following:
122	122	(A) maintenance and operations;
123	123	(B) debt service; and
124	124	(C) total expenditures;
125	125	(3) contain a section entitled "Total Appraised Value
126	126	and Total Taxable Value," which must show the total appraised value
127	127	and the total taxable value of all property and the total appraised
128	128	value and the total taxable value of new property taxable by the
129	129	district in the preceding tax year and the current tax year as
130	130	calculated under Section 26.04, Tax Code;
131	131	(4) contain a statement of the total amount of the
132	132	outstanding and unpaid bonded indebtedness of the school district;
133	133	(5) contain a section entitled "Comparison of Proposed
134	134	Rates with Last Year's Rates," which must:
135	135	(A) show in rows the tax rates described by
136	136	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
137	137	property, for columns entitled "Maintenance & Operations,"
138	138	"Interest & Sinking Fund," and "Total," which is the sum of
139	139	"Maintenance & Operations" and "Interest & Sinking Fund":
140	140	(i) the school district's "Last Year's
141	141	Rate";
142	142	(ii) the "Rate to Maintain Same Level of
143	143	Maintenance & Operations Revenue & Pay Debt Service," which:
144	144	(a) in the case of "Maintenance &
145	145	Operations," is the tax rate that, when applied to the current
146	146	taxable value for the district, as certified by the chief appraiser
147	147	under Section 26.01, Tax Code, and as adjusted to reflect changes
148	148	made by the chief appraiser as of the time the notice is prepared,
149	149	would impose taxes in an amount that, when added to state funds to
150	150	be distributed to the district under Chapter 48, would provide the
151	151	same amount of maintenance and operations taxes and state funds
152	152	distributed under Chapter 48 per student in average daily
153	153	attendance for the applicable school year that was available to the
154	154	district in the preceding school year; and
155	155	(b) in the case of "Interest & Sinking
156	156	Fund," is the tax rate that, when applied to the current taxable
157	157	value for the district, as certified by the chief appraiser under
158	158	Section 26.01, Tax Code, and as adjusted to reflect changes made by
159	159	the chief appraiser as of the time the notice is prepared, and when
160	160	multiplied by the district's anticipated collection rate, would
161	161	impose taxes in an amount that, when added to state funds to be
162	162	distributed to the district under Chapter 46 and any excess taxes
163	163	collected to service the district's debt during the preceding tax
164	164	year but not used for that purpose during that year, would provide
165	165	the amount required to service the district's debt; and
166	166	(iii) the "Proposed Rate";
167	167	(B) contain fourth and fifth columns aligned with
168	168	the columns required by Paragraph (A) that show, for each row
169	169	required by Paragraph (A):
170	170	(i) the "Local Revenue per Student," which
171	171	is computed by multiplying the district's total taxable value of
172	172	property, as certified by the chief appraiser for the applicable
173	173	school year under Section 26.01, Tax Code, and as adjusted to
174	174	reflect changes made by the chief appraiser as of the time the
175	175	notice is prepared, by the total tax rate, and dividing the product
176	176	by the number of students in average daily attendance in the
177	177	district for the applicable school year; and
178	178	(ii) the "State Revenue per Student," which
179	179	is computed by determining the amount of state aid received or to be
180	180	received by the district under Chapters 43, 46, and 48 and dividing
181	181	that amount by the number of students in average daily attendance in
182	182	the district for the applicable school year; and
183	183	(C) contain an asterisk after each calculation
184	184	for "Interest & Sinking Fund" and a footnote to the section that, in
185	185	reduced type, states "The Interest & Sinking Fund tax revenue is
186	186	used to pay for bonded indebtedness on construction, equipment, or
187	187	both. The bonds, and the tax rate necessary to pay those bonds, were
188	188	approved by the voters of this district.";
189	189	(6) contain a section entitled "Comparison of Proposed
190	190	Levy with Last Year's Levy on Average Residence," which must:
191	191	(A) show in rows the information described by
192	192	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
193	193	entitled "Last Year" and "This Year":
194	194	(i) "Average Market Value of Residences,"
195	195	determined using the same group of residences for each year;
196	196	(ii) "Average Taxable Value of Residences,"
197	197	determined after taking into account the limitation on the
198	198	appraised value of residences under Section 23.23, Tax Code, and
199	199	after subtracting all homestead exemptions applicable in each year,
200	200	other than exemptions available only to individuals who are
201	201	disabled, are the parents or guardians of persons who are disabled
202	202	and who reside with the parents or guardians, [persons] or are
203	203	[persons] 65 years of age or older or their surviving spouses, and
204	204	using the same group of residences for each year;
205	205	(iii) "Last Year's Rate Versus Proposed
206	206	Rate per $100 Value"; and
207	207	(iv) "Taxes Due on Average Residence,"
208	208	determined using the same group of residences for each year; and
209	209	(B) contain the following information: "Increase
210	210	(Decrease) in Taxes" expressed in dollars and cents, which is
211	211	computed by subtracting the "Taxes Due on Average Residence" for
212	212	the preceding tax year from the "Taxes Due on Average Residence" for
213	213	the current tax year;
214	214	(7) contain the following statement in bold print:
215	215	"Under state law, the dollar amount of school taxes imposed on the
216	216	residence of a person 65 years of age or older or of the surviving
217	217	spouse of such a person, if the surviving spouse was 55 years of age
218	218	or older when the person died, may not be increased above the amount
219	219	paid in the first year after the person turned 65, regardless of
220	220	changes in tax rate or property value.";
221	221	(8) contain the following statement in bold print:
222	222	"Notice of Voter-Approval Rate: The highest tax rate the district
223	223	can adopt before requiring voter approval at an election is (the
224	224	school district voter-approval rate determined under Section
225	225	26.08, Tax Code). This election will be automatically held if the
226	226	district adopts a rate in excess of the voter-approval rate of (the
227	227	school district voter-approval rate)."; and
228	228	(9) contain a section entitled "Fund Balances," which
229	229	must include the estimated amount of interest and sinking fund
230	230	balances and the estimated amount of maintenance and operation or
231	231	general fund balances remaining at the end of the current fiscal
232	232	year that are not encumbered with or by corresponding debt
233	233	obligation, less estimated funds necessary for the operation of the
234	234	district before the receipt of the first payment under Chapter 48 in
235	235	the succeeding school year.
236	236	SECTION 5. Section 49.236(a), Water Code, is amended to
237	237	read as follows:
238	238	(a) Before the board adopts an ad valorem tax rate for the
239	239	district for debt service, operation and maintenance purposes, or
240	240	contract purposes, the board shall give notice of each meeting of
241	241	the board at which the adoption of a tax rate will be considered.
242	242	The notice must:
243	243	(1) contain a statement in substantially the following
244	244	form:
245	245	"NOTICE OF PUBLIC HEARING ON TAX RATE
246	246	"The (name of the district) will hold a public hearing on a
247	247	proposed tax rate for the tax year (year of tax levy) on (date and
248	248	time) at (meeting place). Your individual taxes may increase at a
249	249	greater or lesser rate, or even decrease, depending on the tax rate
250	250	that is adopted and on the change in the taxable value of your
251	251	property in relation to the change in taxable value of all other
252	252	property. The change in the taxable value of your property in
253	253	relation to the change in the taxable value of all other property
254	254	determines the distribution of the tax burden among all property
255	255	owners.
256	256	"Visit Texas.gov/PropertyTaxes to find a link to your local
257	257	property tax database on which you can easily access information
258	258	regarding your property taxes, including information about
259	259	proposed tax rates and scheduled public hearings of each entity
260	260	that taxes your property.
261	261	"(Names of all board members and, if a vote was taken, an
262	262	indication of how each voted on the proposed tax rate and an
263	263	indication of any absences.)";
264	264	(2) contain the following information:
265	265	(A) the district's total adopted tax rate for the
266	266	preceding year and the proposed tax rate, expressed as an amount per
267	267	$100;
268	268	(B) the difference, expressed as an amount per
269	269	$100 and as a percent increase or decrease, as applicable, in the
270	270	proposed tax rate compared to the adopted tax rate for the preceding
271	271	year;
272	272	(C) the average appraised value of a residence
273	273	homestead in the district in the preceding year and in the current
274	274	year; the district's total homestead exemption, other than an
275	275	exemption available only to individuals who are disabled, are the
276	276	parents or guardians of persons who are disabled and who reside with
277	277	the parents or guardians, [persons] or are [persons] 65 years of age
278	278	or older, applicable to that appraised value in each of those years;
279	279	and the average taxable value of a residence homestead in the
280	280	district in each of those years, disregarding any homestead
281	281	exemption available only to individuals who are disabled, are the
282	282	parents or guardians of persons who are disabled and who reside with
283	283	the parents or guardians, [persons] or are [persons] 65 years of age
284	284	or older;
285	285	(D) the amount of tax that would have been
286	286	imposed by the district in the preceding year on a residence
287	287	homestead appraised at the average appraised value of a residence
288	288	homestead in that year, disregarding any homestead exemption
289	289	available only to individuals who are disabled, are the parents or
290	290	guardians of persons who are disabled and who reside with the
291	291	parents or guardians, [persons] or are [persons] 65 years of age or
292	292	older;
293	293	(E) the amount of tax that would be imposed by the
294	294	district in the current year on a residence homestead appraised at
295	295	the average appraised value of a residence homestead in that year,
296	296	disregarding any homestead exemption available only to individuals
297	297	who are disabled, are the parents or guardians of persons who are
298	298	disabled and who reside with the parents or guardians, [persons] or
299	299	are [persons] 65 years of age or older, if the proposed tax rate is
300	300	adopted;
301	301	(F) the difference between the amounts of tax
302	302	calculated under Paragraphs (D) and (E), expressed in dollars and
303	303	cents and described as the annual percentage increase or decrease,
304	304	as applicable, in the tax to be imposed by the district on the
305	305	average residence homestead in the district in the current year if
306	306	the proposed tax rate is adopted; and
307	307	(G) if the proposed combined debt service,
308	308	operation and maintenance, and contract tax rate requires or
309	309	authorizes an election to approve or reduce the tax rate, as
310	310	applicable, a description of the purpose of the proposed tax
311	311	increase;
312	312	(3) contain a statement in substantially the following
313	313	form, as applicable:
314	314	(A) if the district is a district described by
315	315	Section 49.23601:
316	316	"NOTICE OF VOTE ON TAX RATE
317	317	"If the district adopts a combined debt service, operation
318	318	and maintenance, and contract tax rate that would result in the
319	319	taxes on the average residence homestead increasing by more than
320	320	eight percent, an election must be held to determine whether to
321	321	approve the operation and maintenance tax rate under Section
322	322	49.23601, Water Code.";
323	323	(B) if the district is a district described by
324	324	Section 49.23602:
325	325	"NOTICE OF VOTE ON TAX RATE
326	326	"If the district adopts a combined debt service, operation
327	327	and maintenance, and contract tax rate that would result in the
328	328	taxes on the average residence homestead increasing by more than
329	329	3.5 percent, an election must be held to determine whether to
330	330	approve the operation and maintenance tax rate under Section
331	331	49.23602, Water Code."; or
332	332	(C) if the district is a district described by
333	333	Section 49.23603:
334	334	"NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE TAX RATE
335	335	"If the district adopts a combined debt service, operation
336	336	and maintenance, and contract tax rate that would result in the
337	337	taxes on the average residence homestead increasing by more than
338	338	eight percent, the qualified voters of the district by petition may
339	339	require that an election be held to determine whether to reduce the
340	340	operation and maintenance tax rate to the voter-approval tax rate
341	341	under Section 49.23603, Water Code."; and
342	342	(4) include the following statement: "The 86th Texas
343	343	Legislature modified the manner in which the voter-approval tax
344	344	rate is calculated to limit the rate of growth of property taxes in
345	345	the state.".
346	346	SECTION 6. Sections 49.23601(a) and (c), Water Code, are
347	347	amended to read as follows:
348	348	(a) In this section, "voter-approval tax rate" means the
349	349	rate equal to the sum of the following tax rates for the district:
350	350	(1) the current year's debt service tax rate;
351	351	(2) the current year's contract tax rate; and
352	352	(3) the operation and maintenance tax rate that would
353	353	impose 1.08 times the amount of the operation and maintenance tax
354	354	imposed by the district in the preceding year on a residence
355	355	homestead appraised at the average appraised value of a residence
356	356	homestead in the district in that year, disregarding any homestead
357	357	exemption available only to individuals who are disabled, are the
358	358	parents or guardians of persons who are disabled and who reside with
359	359	the parents or guardians, [persons] or are [persons] 65 years of age
360	360	or older.
361	361	(c) If the board of a district adopts a combined debt
362	362	service, contract, and operation and maintenance tax rate that
363	363	would impose more than 1.08 times the amount of tax imposed by the
364	364	district in the preceding year on a residence homestead appraised
365	365	at the average appraised value of a residence homestead in the
366	366	district in that year, disregarding any homestead exemption
367	367	available only to individuals who are disabled, are the parents or
368	368	guardians of persons who are disabled and who reside with the
369	369	parents or guardians, [persons] or are [persons] 65 years of age or
370	370	older, an election must be held in accordance with the procedures
371	371	provided by Sections 26.07(c)-(g), Tax Code, to determine whether
372	372	to approve the adopted tax rate. If the adopted tax rate is not
373	373	approved at the election, the district's tax rate is the
374	374	voter-approval tax rate.
375	375	SECTION 7. Sections 49.23602(a)(2) and (4), Water Code, are
376	376	amended to read as follows:
377	377	(2) "Mandatory tax election rate" means the rate equal
378	378	to the sum of the following tax rates for the district:
379	379	(A) the rate that would impose 1.035 times the
380	380	amount of tax imposed by the district in the preceding year on a
381	381	residence homestead appraised at the average appraised value of a
382	382	residence homestead in the district in that year, disregarding any
383	383	homestead exemption available only to individuals who are disabled,
384	384	are the parents or guardians of persons who are disabled and who
385	385	reside with the parents or guardians, [persons] or are [persons] 65
386	386	years of age or older; and
387	387	(B) the unused increment rate.
388	388	(4) "Voter-approval tax rate" means the rate equal to
389	389	the sum of the following tax rates for the district:
390	390	(A) the current year's debt service tax rate;
391	391	(B) the current year's contract tax rate;
392	392	(C) the operation and maintenance tax rate that
393	393	would impose 1.035 times the amount of the operation and
394	394	maintenance tax imposed by the district in the preceding year on a
395	395	residence homestead appraised at the average appraised value of a
396	396	residence homestead in the district in that year, disregarding any
397	397	homestead exemption available only to individuals who are disabled,
398	398	are the parents or guardians of persons who are disabled and who
399	399	reside with the parents or guardians, [persons] or are [persons] 65
400	400	years of age or older; and
401	401	(D) the unused increment rate.
402	402	SECTION 8. Sections 49.23603(a) and (c), Water Code, are
403	403	amended to read as follows:
404	404	(a) In this section, "voter-approval tax rate" means the
405	405	rate equal to the sum of the following tax rates for the district:
406	406	(1) the current year's debt service tax rate;
407	407	(2) the current year's contract tax rate; and
408	408	(3) the operation and maintenance tax rate that would
409	409	impose 1.08 times the amount of the operation and maintenance tax
410	410	imposed by the district in the preceding year on a residence
411	411	homestead appraised at the average appraised value of a residence
412	412	homestead in the district in that year, disregarding any homestead
413	413	exemption available only to individuals who are disabled, are the
414	414	parents or guardians of persons who are disabled and who reside with
415	415	the parents or guardians, [persons] or are [persons] 65 years of age
416	416	or older.
417	417	(c) If the board of a district adopts a combined debt
418	418	service, contract, and operation and maintenance tax rate that
419	419	would impose more than 1.08 times the amount of tax imposed by the
420	420	district in the preceding year on a residence homestead appraised
421	421	at the average appraised value of a residence homestead in the
422	422	district in that year, disregarding any homestead exemption
423	423	available only to individuals who are disabled, are the parents or
424	424	guardians of persons who are disabled and who reside with the
425	425	parents or guardians, [persons] or are [persons] 65 years of age or
426	426	older, the qualified voters of the district by petition may require
427	427	that an election be held to determine whether to reduce the tax rate
428	428	adopted for the current year to the voter-approval tax rate in
429	429	accordance with the procedures provided by Sections 26.075 and
430	430	26.081, Tax Code.
431	431	SECTION 9. This Act applies only to ad valorem taxes imposed
432	432	for a tax year that begins on or after the effective date of this
433	433	Act.
434	434	SECTION 10. This Act takes effect January 1, 2026, but only
435	435	if the constitutional amendment proposed by the 89th Legislature,
436	436	Regular Session, 2025, to provide for an exemption from ad valorem
437	437	taxation by certain political subdivisions of a portion of the
438	438	market value of the residence homestead of the parent or guardian of
439	439	a person who is disabled and who resides with the parent or guardian
440	440	is approved by the voters. If that amendment is not approved by the
441	441	voters, this Act has no effect.