| 1 | 1 | | 89R4787 LHC-F |
|---|
| 2 | 2 | | By: Bhojani H.B. No. 2133 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to a one-time credit against the ad valorem taxes imposed |
|---|
| 10 | 10 | | by a taxing unit on the first property that a person purchases and |
|---|
| 11 | 11 | | qualifies as the person's residence homestead and to the effect of |
|---|
| 12 | 12 | | the credit on the determination of the taxable value of a school |
|---|
| 13 | 13 | | district. |
|---|
| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 15 | 15 | | SECTION 1. Chapter 31, Tax Code, is amended by adding |
|---|
| 16 | 16 | | Section 31.039 to read as follows: |
|---|
| 17 | 17 | | Sec. 31.039. TAX CREDIT FOR FIRST RESIDENCE HOMESTEAD. (a) |
|---|
| 18 | 18 | | In this section, "residence homestead" has the meaning assigned by |
|---|
| 19 | 19 | | Section 11.13. |
|---|
| 20 | 20 | | (b) A person is entitled to a credit against the taxes |
|---|
| 21 | 21 | | imposed by a taxing unit on the residence homestead of the person in |
|---|
| 22 | 22 | | the first tax year following the year in which the person purchased |
|---|
| 23 | 23 | | the property if the person has not previously qualified a property |
|---|
| 24 | 24 | | as the person's residence homestead. |
|---|
| 25 | 25 | | (c) The amount of the credit is equal to the lesser of: |
|---|
| 26 | 26 | | (1) the amount computed by multiplying $3,000 by a |
|---|
| 27 | 27 | | fraction, the numerator of which is the amount of taxes imposed on |
|---|
| 28 | 28 | | the residence homestead by the taxing unit and the denominator of |
|---|
| 29 | 29 | | which is the total amount of taxes imposed on the residence |
|---|
| 30 | 30 | | homestead by all of the taxing units that impose taxes on the |
|---|
| 31 | 31 | | residence homestead; or |
|---|
| 32 | 32 | | (2) one-half of the amount of taxes imposed on the |
|---|
| 33 | 33 | | residence homestead by the taxing unit. |
|---|
| 34 | 34 | | (d) To receive a credit under this section, a person must |
|---|
| 35 | 35 | | file an application with the chief appraiser of the appraisal |
|---|
| 36 | 36 | | district in which the property is located. The application must |
|---|
| 37 | 37 | | include an affidavit affirming that the applicant is qualified for |
|---|
| 38 | 38 | | the credit. The application must be filed not later than the |
|---|
| 39 | 39 | | deadline for filing an application for a residence homestead |
|---|
| 40 | 40 | | exemption on the property for the tax year, including any provision |
|---|
| 41 | 41 | | authorizing the filing of a late application. |
|---|
| 42 | 42 | | (e) The chief appraiser shall approve or deny an application |
|---|
| 43 | 43 | | under this section for each taxing unit for which the appraisal |
|---|
| 44 | 44 | | district appraises the property. A determination of the chief |
|---|
| 45 | 45 | | appraiser is subject to protest and appeal in the same manner as a |
|---|
| 46 | 46 | | determination to approve or deny an application for a residence |
|---|
| 47 | 47 | | homestead exemption. |
|---|
| 48 | 48 | | (f) The chief appraiser shall forward a copy of the |
|---|
| 49 | 49 | | application to the assessor for each taxing unit that imposes taxes |
|---|
| 50 | 50 | | on the residence homestead and certify to the assessor whether the |
|---|
| 51 | 51 | | chief appraiser has approved or denied the application. |
|---|
| 52 | 52 | | (g) The comptroller shall adopt rules for the |
|---|
| 53 | 53 | | administration of this section, including rules prescribing the |
|---|
| 54 | 54 | | documentation required to establish qualification for the credit. |
|---|
| 55 | 55 | | (h) A person who has previously received a credit under this |
|---|
| 56 | 56 | | section may not receive a credit under this section in a subsequent |
|---|
| 57 | 57 | | tax year. |
|---|
| 58 | 58 | | SECTION 2. Section 403.302, Government Code, is amended by |
|---|
| 59 | 59 | | adding Subsection (d-2) to read as follows: |
|---|
| 60 | 60 | | (d-2) For purposes of Subsection (d), taxable value does not |
|---|
| 61 | 61 | | include an amount equal to the taxable value required to generate |
|---|
| 62 | 62 | | revenue, when taxed at the school district's tax rate in the year |
|---|
| 63 | 63 | | that is the subject of the study, in an amount that is equal to the |
|---|
| 64 | 64 | | total amount of the credits provided by the district under Section |
|---|
| 65 | 65 | | 31.039, Tax Code, in that year. |
|---|
| 66 | 66 | | SECTION 3. This Act applies only to ad valorem taxes imposed |
|---|
| 67 | 67 | | for a tax year beginning on or after the effective date of this Act. |
|---|
| 68 | 68 | | SECTION 4. This Act takes effect January 1, 2026, but only |
|---|
| 69 | 69 | | if the constitutional amendment proposed by the 89th Legislature, |
|---|
| 70 | 70 | | Regular Session, 2025, to authorize the legislature to provide for |
|---|
| 71 | 71 | | a one-time credit against the ad valorem taxes imposed by a |
|---|
| 72 | 72 | | political subdivision on the first property that a person purchases |
|---|
| 73 | 73 | | and qualifies as the person's residence homestead and to provide |
|---|
| 74 | 74 | | for the reimbursement of political subdivisions for the revenue |
|---|
| 75 | 75 | | loss incurred as a result of the credit is approved by the voters. |
|---|
| 76 | 76 | | If that amendment is not approved by the voters, this Act has no |
|---|
| 77 | 77 | | effect. |
|---|