| 1 | 1 | | 89R15512 DRS-D |
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| 2 | 2 | | By: Pierson H.B. No. 4060 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to a local option exemption from ad valorem taxation by a |
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| 10 | 10 | | taxing unit of all or part of the appraised value of the residence |
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| 11 | 11 | | homestead of a peace officer employed by the taxing unit. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 11.13(i), Tax Code, is amended to read as |
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| 14 | 14 | | follows: |
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| 15 | 15 | | (i) The assessor and collector for a taxing unit may |
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| 16 | 16 | | disregard the exemptions authorized by Subsection (b), (c), (d), |
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| 17 | 17 | | [or] (n), or (s) [of this section] and assess and collect a tax |
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| 18 | 18 | | pledged for payment of debt without deducting the amount of the |
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| 19 | 19 | | exemption if: |
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| 20 | 20 | | (1) prior to adoption of the exemption, the taxing |
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| 21 | 21 | | unit pledged the taxes for the payment of a debt; and |
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| 22 | 22 | | (2) granting the exemption would impair the obligation |
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| 23 | 23 | | of the contract creating the debt. |
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| 24 | 24 | | SECTION 2. Section 11.13(m), Tax Code, is amended by adding |
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| 25 | 25 | | Subdivision (1-a) to read as follows: |
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| 26 | 26 | | (1-a) "Peace officer" means a peace officer described |
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| 27 | 27 | | by Article 2A.001, Code of Criminal Procedure. |
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| 28 | 28 | | SECTION 3. Section 11.13, Tax Code, is amended by adding |
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| 29 | 29 | | Subsection (s) to read as follows: |
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| 30 | 30 | | (s) In addition to any other exemptions provided by this |
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| 31 | 31 | | section, a peace officer who is employed by a taxing unit is |
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| 32 | 32 | | entitled to an exemption from taxation by the taxing unit of a |
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| 33 | 33 | | percentage of the appraised value of the individual's residence |
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| 34 | 34 | | homestead if the governing body of the taxing unit adopts the |
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| 35 | 35 | | exemption in the manner required by law for official action by the |
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| 36 | 36 | | governing body. An exemption authorized by this subsection exempts |
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| 37 | 37 | | from taxation by the taxing unit a percentage of the appraised value |
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| 38 | 38 | | of an individual's residence homestead as follows: |
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| 39 | 39 | | (1) 20 percent, if the individual has been employed by |
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| 40 | 40 | | the taxing unit as a peace officer for at least five years and less |
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| 41 | 41 | | than 10 years; |
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| 42 | 42 | | (2) 40 percent, if the individual has been employed by |
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| 43 | 43 | | the taxing unit as a peace officer for at least 10 years and less |
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| 44 | 44 | | than 15 years; |
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| 45 | 45 | | (3) 60 percent, if the individual has been employed by |
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| 46 | 46 | | the taxing unit as a peace officer for at least 15 years and less |
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| 47 | 47 | | than 20 years; |
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| 48 | 48 | | (4) 80 percent, if the individual has been employed by |
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| 49 | 49 | | the taxing unit as a peace officer for at least 20 years and less |
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| 50 | 50 | | than 25 years; or |
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| 51 | 51 | | (5) 100 percent, if the individual has been employed |
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| 52 | 52 | | by the taxing unit as a peace officer for 25 years or more. |
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| 53 | 53 | | SECTION 4. Section 403.302(d), Government Code, as |
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| 54 | 54 | | effective until January 1, 2027, is amended to read as follows: |
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| 55 | 55 | | (d) For the purposes of this section, "taxable value" means |
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| 56 | 56 | | the market value of all taxable property less: |
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| 57 | 57 | | (1) the total dollar amount of any residence homestead |
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| 58 | 58 | | exemptions lawfully granted under Section 11.13(b), [or] (c), or |
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| 59 | 59 | | (s), Tax Code, in the year that is the subject of the study for each |
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| 60 | 60 | | school district; |
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| 61 | 61 | | (2) one-half of the total dollar amount of any |
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| 62 | 62 | | residence homestead exemptions granted under Section 11.13(n), Tax |
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| 63 | 63 | | Code, in the year that is the subject of the study for each school |
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| 64 | 64 | | district; |
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| 65 | 65 | | (3) the total dollar amount of any exemptions granted |
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| 66 | 66 | | before May 31, 1993, within a reinvestment zone under agreements |
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| 67 | 67 | | authorized by Chapter 312, Tax Code; |
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| 68 | 68 | | (4) subject to Subsection (e), the total dollar amount |
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| 69 | 69 | | of any captured appraised value of property that: |
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| 70 | 70 | | (A) is within a reinvestment zone created on or |
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| 71 | 71 | | before May 31, 1999, or is proposed to be included within the |
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| 72 | 72 | | boundaries of a reinvestment zone as the boundaries of the zone and |
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| 73 | 73 | | the proposed portion of tax increment paid into the tax increment |
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| 74 | 74 | | fund by a school district are described in a written notification |
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| 75 | 75 | | provided by the municipality or the board of directors of the zone |
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| 76 | 76 | | to the governing bodies of the other taxing units in the manner |
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| 77 | 77 | | provided by former Section 311.003(e), Tax Code, before May 31, |
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| 78 | 78 | | 1999, and within the boundaries of the zone as those boundaries |
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| 79 | 79 | | existed on September 1, 1999, including subsequent improvements to |
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| 80 | 80 | | the property regardless of when made; |
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| 81 | 81 | | (B) generates taxes paid into a tax increment |
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| 82 | 82 | | fund created under Chapter 311, Tax Code, under a reinvestment zone |
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| 83 | 83 | | financing plan approved under Section 311.011(d), Tax Code, on or |
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| 84 | 84 | | before September 1, 1999; and |
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| 85 | 85 | | (C) is eligible for tax increment financing under |
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| 86 | 86 | | Chapter 311, Tax Code; |
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| 87 | 87 | | (5) the total dollar amount of any captured appraised |
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| 88 | 88 | | value of property that: |
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| 89 | 89 | | (A) is within a reinvestment zone: |
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| 90 | 90 | | (i) created on or before December 31, 2008, |
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| 91 | 91 | | by a municipality with a population of less than 18,000; and |
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| 92 | 92 | | (ii) the project plan for which includes |
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| 93 | 93 | | the alteration, remodeling, repair, or reconstruction of a |
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| 94 | 94 | | structure that is included on the National Register of Historic |
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| 95 | 95 | | Places and requires that a portion of the tax increment of the zone |
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| 96 | 96 | | be used for the improvement or construction of related facilities |
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| 97 | 97 | | or for affordable housing; |
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| 98 | 98 | | (B) generates school district taxes that are paid |
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| 99 | 99 | | into a tax increment fund created under Chapter 311, Tax Code; and |
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| 100 | 100 | | (C) is eligible for tax increment financing under |
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| 101 | 101 | | Chapter 311, Tax Code; |
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| 102 | 102 | | (6) the total dollar amount of any exemptions granted |
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| 103 | 103 | | under Section 11.251 or 11.253, Tax Code; |
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| 104 | 104 | | (7) the difference between the comptroller's estimate |
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| 105 | 105 | | of the market value and the productivity value of land that |
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| 106 | 106 | | qualifies for appraisal on the basis of its productive capacity, |
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| 107 | 107 | | except that the productivity value estimated by the comptroller may |
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| 108 | 108 | | not exceed the fair market value of the land; |
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| 109 | 109 | | (8) the portion of the appraised value of residence |
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| 110 | 110 | | homesteads of individuals who receive a tax limitation under |
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| 111 | 111 | | Section 11.26, Tax Code, on which school district taxes are not |
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| 112 | 112 | | imposed in the year that is the subject of the study, calculated as |
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| 113 | 113 | | if the residence homesteads were appraised at the full value |
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| 114 | 114 | | required by law; |
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| 115 | 115 | | (9) a portion of the market value of property not |
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| 116 | 116 | | otherwise fully taxable by the district at market value because of |
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| 117 | 117 | | action required by statute or the constitution of this state, other |
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| 118 | 118 | | than Section 11.311, Tax Code, that, if the tax rate adopted by the |
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| 119 | 119 | | district is applied to it, produces an amount equal to the |
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| 120 | 120 | | difference between the tax that the district would have imposed on |
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| 121 | 121 | | the property if the property were fully taxable at market value and |
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| 122 | 122 | | the tax that the district is actually authorized to impose on the |
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| 123 | 123 | | property, if this subsection does not otherwise require that |
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| 124 | 124 | | portion to be deducted; |
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| 125 | 125 | | (10) the market value of all tangible personal |
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| 126 | 126 | | property, other than manufactured homes, owned by a family or |
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| 127 | 127 | | individual and not held or used for the production of income; |
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| 128 | 128 | | (11) the appraised value of property the collection of |
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| 129 | 129 | | delinquent taxes on which is deferred under Section 33.06, Tax |
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| 130 | 130 | | Code; |
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| 131 | 131 | | (12) the portion of the appraised value of property |
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| 132 | 132 | | the collection of delinquent taxes on which is deferred under |
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| 133 | 133 | | Section 33.065, Tax Code; |
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| 134 | 134 | | (13) the amount by which the market value of property |
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| 135 | 135 | | to which Section 23.23 or 23.231, Tax Code, applies exceeds the |
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| 136 | 136 | | appraised value of that property as calculated under Section 23.23 |
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| 137 | 137 | | or 23.231, Tax Code, as applicable; and |
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| 138 | 138 | | (14) the total dollar amount of any exemptions granted |
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| 139 | 139 | | under Section 11.35, Tax Code. |
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| 140 | 140 | | SECTION 5. Section 403.302(d), Government Code, as |
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| 141 | 141 | | effective January 1, 2027, is amended to read as follows: |
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| 142 | 142 | | (d) For the purposes of this section, "taxable value" means |
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| 143 | 143 | | the market value of all taxable property less: |
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| 144 | 144 | | (1) the total dollar amount of any residence homestead |
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| 145 | 145 | | exemptions lawfully granted under Section 11.13(b), [or] (c), or |
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| 146 | 146 | | (s), Tax Code, in the year that is the subject of the study for each |
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| 147 | 147 | | school district; |
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| 148 | 148 | | (2) one-half of the total dollar amount of any |
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| 149 | 149 | | residence homestead exemptions granted under Section 11.13(n), Tax |
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| 150 | 150 | | Code, in the year that is the subject of the study for each school |
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| 151 | 151 | | district; |
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| 152 | 152 | | (3) the total dollar amount of any exemptions granted |
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| 153 | 153 | | before May 31, 1993, within a reinvestment zone under agreements |
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| 154 | 154 | | authorized by Chapter 312, Tax Code; |
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| 155 | 155 | | (4) subject to Subsection (e), the total dollar amount |
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| 156 | 156 | | of any captured appraised value of property that: |
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| 157 | 157 | | (A) is within a reinvestment zone created on or |
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| 158 | 158 | | before May 31, 1999, or is proposed to be included within the |
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| 159 | 159 | | boundaries of a reinvestment zone as the boundaries of the zone and |
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| 160 | 160 | | the proposed portion of tax increment paid into the tax increment |
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| 161 | 161 | | fund by a school district are described in a written notification |
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| 162 | 162 | | provided by the municipality or the board of directors of the zone |
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| 163 | 163 | | to the governing bodies of the other taxing units in the manner |
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| 164 | 164 | | provided by former Section 311.003(e), Tax Code, before May 31, |
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| 165 | 165 | | 1999, and within the boundaries of the zone as those boundaries |
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| 166 | 166 | | existed on September 1, 1999, including subsequent improvements to |
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| 167 | 167 | | the property regardless of when made; |
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| 168 | 168 | | (B) generates taxes paid into a tax increment |
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| 169 | 169 | | fund created under Chapter 311, Tax Code, under a reinvestment zone |
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| 170 | 170 | | financing plan approved under Section 311.011(d), Tax Code, on or |
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| 171 | 171 | | before September 1, 1999; and |
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| 172 | 172 | | (C) is eligible for tax increment financing under |
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| 173 | 173 | | Chapter 311, Tax Code; |
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| 174 | 174 | | (5) the total dollar amount of any captured appraised |
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| 175 | 175 | | value of property that: |
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| 176 | 176 | | (A) is within a reinvestment zone: |
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| 177 | 177 | | (i) created on or before December 31, 2008, |
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| 178 | 178 | | by a municipality with a population of less than 18,000; and |
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| 179 | 179 | | (ii) the project plan for which includes |
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| 180 | 180 | | the alteration, remodeling, repair, or reconstruction of a |
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| 181 | 181 | | structure that is included on the National Register of Historic |
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| 182 | 182 | | Places and requires that a portion of the tax increment of the zone |
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| 183 | 183 | | be used for the improvement or construction of related facilities |
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| 184 | 184 | | or for affordable housing; |
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| 185 | 185 | | (B) generates school district taxes that are paid |
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| 186 | 186 | | into a tax increment fund created under Chapter 311, Tax Code; and |
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| 187 | 187 | | (C) is eligible for tax increment financing under |
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| 188 | 188 | | Chapter 311, Tax Code; |
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| 189 | 189 | | (6) the total dollar amount of any exemptions granted |
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| 190 | 190 | | under Section 11.251 or 11.253, Tax Code; |
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| 191 | 191 | | (7) the difference between the comptroller's estimate |
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| 192 | 192 | | of the market value and the productivity value of land that |
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| 193 | 193 | | qualifies for appraisal on the basis of its productive capacity, |
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| 194 | 194 | | except that the productivity value estimated by the comptroller may |
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| 195 | 195 | | not exceed the fair market value of the land; |
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| 196 | 196 | | (8) the portion of the appraised value of residence |
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| 197 | 197 | | homesteads of individuals who receive a tax limitation under |
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| 198 | 198 | | Section 11.26, Tax Code, on which school district taxes are not |
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| 199 | 199 | | imposed in the year that is the subject of the study, calculated as |
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| 200 | 200 | | if the residence homesteads were appraised at the full value |
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| 201 | 201 | | required by law; |
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| 202 | 202 | | (9) a portion of the market value of property not |
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| 203 | 203 | | otherwise fully taxable by the district at market value because of |
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| 204 | 204 | | action required by statute or the constitution of this state, other |
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| 205 | 205 | | than Section 11.311, Tax Code, that, if the tax rate adopted by the |
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| 206 | 206 | | district is applied to it, produces an amount equal to the |
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| 207 | 207 | | difference between the tax that the district would have imposed on |
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| 208 | 208 | | the property if the property were fully taxable at market value and |
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| 209 | 209 | | the tax that the district is actually authorized to impose on the |
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| 210 | 210 | | property, if this subsection does not otherwise require that |
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| 211 | 211 | | portion to be deducted; |
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| 212 | 212 | | (10) the market value of all tangible personal |
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| 213 | 213 | | property, other than manufactured homes, owned by a family or |
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| 214 | 214 | | individual and not held or used for the production of income; |
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| 215 | 215 | | (11) the appraised value of property the collection of |
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| 216 | 216 | | delinquent taxes on which is deferred under Section 33.06, Tax |
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| 217 | 217 | | Code; |
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| 218 | 218 | | (12) the portion of the appraised value of property |
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| 219 | 219 | | the collection of delinquent taxes on which is deferred under |
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| 220 | 220 | | Section 33.065, Tax Code; |
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| 221 | 221 | | (13) the amount by which the market value of a |
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| 222 | 222 | | residence homestead to which Section 23.23, Tax Code, applies |
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| 223 | 223 | | exceeds the appraised value of that property as calculated under |
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| 224 | 224 | | that section; and |
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| 225 | 225 | | (14) the total dollar amount of any exemptions granted |
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| 226 | 226 | | under Section 11.35, Tax Code. |
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| 227 | 227 | | SECTION 6. This Act applies only to ad valorem taxes imposed |
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| 228 | 228 | | for a tax year that begins on or after the effective date of this |
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| 229 | 229 | | Act. |
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| 230 | 230 | | SECTION 7. This Act takes effect January 1, 2026, but only |
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| 231 | 231 | | if the constitutional amendment proposed by the 89th Legislature, |
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| 232 | 232 | | Regular Session, 2025, authorizing a local option exemption from ad |
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| 233 | 233 | | valorem taxation by a political subdivision of all or part of the |
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| 234 | 234 | | appraised value of the residence homestead of a peace officer |
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| 235 | 235 | | employed by the political subdivision is approved by the voters. If |
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| 236 | 236 | | that amendment is not approved by the voters, this Act has no |
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| 237 | 237 | | effect. |
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