Texas 2025 - 89th Regular

Texas House Bill HB455 Compare Versions

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

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1	1	89R1118 CJC-D
2	2	By: Schofield H.B. No. 455
3	3
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5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment of a limitation on the total amount of
10	10	ad valorem taxes that certain taxing units may impose on the
11	11	residence homesteads of individuals who are disabled or elderly and
12	12	their surviving spouses.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. The heading to Section 11.261, Tax Code, is
15	15	amended to read as follows:
16	16	Sec. 11.261. LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER
17	17	THAN SCHOOL DISTRICT [COUNTY, MUNICIPAL, OR JUNIOR COLLEGE DISTRICT
18	18	TAX] ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED OR [AND]
19	19	ELDERLY.
20	20	SECTION 2. Section 11.261, Tax Code, is amended by amending
21	21	Subsections (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k),
22	22	and (l) and adding Subsections (b-1) and (b-2) to read as follows:
23	23	(a) This section applies only to a taxing unit other than a
24	24	school district [county, municipality, or junior college district
25	25	that has established a limitation on the total amount of taxes that
26	26	may be imposed by the county, municipality, or junior college
27	27	district on the residence homestead of a disabled individual or an
28	28	individual 65 years of age or older under Section 1-b(h), Article
29	29	VIII, Texas Constitution].
30	30	(b) The tax officials shall appraise the property to which
31	31	this section [the limitation] applies and calculate taxes as on
32	32	other property, but if the tax so calculated exceeds the limitation
33	33	required [provided] by this section, the tax imposed by a taxing
34	34	unit is the amount of the tax as limited by this section, except as
35	35	otherwise provided by this section. A taxing unit [The county,
36	36	municipality, or junior college district] may not increase the
37	37	total annual amount of ad valorem taxes the taxing unit [county,
38	38	municipality, or junior college district] imposes on the residence
39	39	homestead of an individual who is [a] disabled [individual] or is
40	40	[an individual] 65 years of age or older above the amount of the
41	41	taxes the taxing unit [county, municipality, or junior college
42	42	district] imposed on the residence homestead in the first tax
43	43	year[, other than a tax year preceding the tax year in which the
44	44	county, municipality, or junior college district established the
45	45	limitation described by Subsection (a),] in which the individual
46	46	qualified that residence homestead for the exemption provided by
47	47	Section 11.13(c) for an individual who is [a] disabled [individual]
48	48	or is [an individual] 65 years of age or older. If the individual
49	49	qualified that residence homestead for the exemption after the
50	50	beginning of that first year and the residence homestead remains
51	51	eligible for the exemption for the next year, and if the [county,
52	52	municipal, or junior college district] taxes imposed by the taxing
53	53	unit on the residence homestead in the next year are less than the
54	54	amount of taxes imposed in that first year, the taxing unit [a
55	55	county, municipality, or junior college district] may not
56	56	subsequently increase the total annual amount of ad valorem taxes
57	57	it imposes on the residence homestead above the amount it imposed on
58	58	the residence homestead in the year immediately following the first
59	59	year[, other than a tax year preceding the tax year in which the
60	60	county, municipality, or junior college district established the
61	61	limitation described by Subsection (a),] for which the individual
62	62	qualified that residence homestead for the exemption.
63	63	(b-1) If the first tax year the individual qualified the
64	64	residence homestead for the exemption provided by Section 11.13(c)
65	65	for individuals who are disabled or are 65 years of age or older was
66	66	a tax year before the 2026 tax year and the homestead qualified for
67	67	a limitation on county, municipal, or junior college district taxes
68	68	under this section for that tax year, the amount of the limitation
69	69	on county, municipal, or junior college district taxes, as
70	70	applicable, required by this section is the amount of the tax
71	71	imposed by the applicable taxing unit for the 2025 tax year, plus
72	72	any 2026 tax attributable to improvements made in 2025, other than
73	73	improvements made to comply with governmental regulations or
74	74	repairs.
75	75	(b-2) Except as provided by Subsection (b-1), for the
76	76	purpose of calculating a limitation on tax increases by a taxing
77	77	unit under this section, an individual who qualified a residence
78	78	homestead before January 1, 2026, for an exemption under Section
79	79	11.13(c) for individuals who are disabled or are 65 years of age or
80	80	older is considered to have qualified the homestead for that
81	81	exemption on January 1, 2026.
82	82	(c) If an individual makes improvements to the individual's
83	83	residence homestead, other than repairs and other than improvements
84	84	required to comply with governmental requirements, the taxing unit
85	85	[county, municipality, or junior college district] may increase the
86	86	amount of taxes on the homestead in the first year the value of the
87	87	homestead is increased on the appraisal roll because of the
88	88	enhancement of value by the improvements. The amount of the tax
89	89	increase is determined by applying the current tax rate to the
90	90	difference between the appraised value of the homestead with the
91	91	improvements and the appraised value the homestead [it] would have
92	92	had without the improvements. The [A] limitation required
93	93	[provided] by this section then applies to the increased amount of
94	94	[county, municipal, or junior college district] taxes on the
95	95	residence homestead until more improvements, if any, are made.
96	96	(d) A limitation on [county, municipal, or junior college
97	97	district] tax increases by a taxing unit required [provided] by
98	98	this section expires if on January 1:
99	99	(1) none of the owners of the structure who qualify for
100	100	the exemption provided by Section 11.13(c) for an individual who is
101	101	[a] disabled [individual] or is [an individual] 65 years of age or
102	102	older and who owned the structure when the limitation [provided by
103	103	this section] first took effect is using the structure as a
104	104	residence homestead; or
105	105	(2) none of the owners of the structure qualifies for
106	106	the exemption provided by Section 11.13(c) for an individual who is
107	107	[a] disabled [individual] or is [an individual] 65 years of age or
108	108	older.
109	109	(e) If the appraisal roll provides for taxation of appraised
110	110	value for a prior year because a residence homestead exemption for
111	111	an individual who is disabled [individuals] or is [individuals] 65
112	112	years of age or older was erroneously allowed, the tax assessor for
113	113	the applicable taxing unit [county, municipality, or junior college
114	114	district] shall add, as back taxes due as provided by Section
115	115	26.09(d), the positive difference, if any, between the tax that
116	116	should have been imposed for that year and the tax that was imposed
117	117	because of the provisions of this section.
118	118	(f) A limitation on tax increases by a taxing unit required
119	119	[provided] by this section does not expire because the owner of an
120	120	interest in the structure conveys the interest to a qualifying
121	121	trust as defined by Section 11.13(j) if the owner or the owner's
122	122	spouse is a trustor of the trust and is entitled to occupy the
123	123	structure.
124	124	(g) Except as provided by Subsection (c), if an individual
125	125	who receives a limitation on [county, municipal, or junior college
126	126	district] tax increases by a taxing unit required [provided] by
127	127	this section subsequently qualifies a different residence
128	128	homestead [in the same county, municipality, or junior college
129	129	district] for an exemption under Section 11.13, a taxing unit [the
130	130	county, municipality, or junior college district] may not impose ad
131	131	valorem taxes on the subsequently qualified homestead in a year in
132	132	an amount that exceeds the amount of taxes the taxing unit [county,
133	133	municipality, or junior college district] would have imposed on the
134	134	subsequently qualified homestead in the first year in which the
135	135	individual receives that exemption for the subsequently qualified
136	136	homestead had the limitation on tax increases required [provided]
137	137	by this section not been in effect, multiplied by a fraction the
138	138	numerator of which is the total amount of taxes [the county,
139	139	municipality, or junior college district] imposed by a taxing unit
140	140	of the same type on the former homestead in the last year in which
141	141	the individual received that exemption for the former homestead and
142	142	the denominator of which is the total amount of taxes that [the
143	143	county, municipality, or junior college district] would have been
144	144	imposed by the taxing unit of the same type on the former homestead
145	145	in the last year in which the individual received that exemption for
146	146	the former homestead had the limitation on tax increases required
147	147	[provided] by this section not been in effect. A limitation under
148	148	this subsection does not apply to a taxing unit if the former
149	149	homestead was not subject to taxation by a taxing unit of the same
150	150	type in the last year in which the individual received the exemption
151	151	for the former homestead.
152	152	(h) An individual who receives a limitation on [county,
153	153	municipal, or junior college district] tax increases by a taxing
154	154	unit under this section and who subsequently qualifies a different
155	155	residence homestead [in the same county, municipality, or junior
156	156	college district] for an exemption under Section 11.13, or an agent
157	157	of the individual, is entitled to receive from the chief appraiser
158	158	of the appraisal district in which the former homestead was located
159	159	a written certificate providing the information necessary to
160	160	determine whether the individual may qualify for a limitation on
161	161	the subsequently qualified homestead under Subsection (g) and to
162	162	calculate the amount of taxes a taxing unit of the same type [the
163	163	county, municipality, or junior college district] may impose on the
164	164	subsequently qualified homestead.
165	165	(i) If an individual who receives [qualifies for] a
166	166	limitation on [county, municipal, or junior college district] tax
167	167	increases by a taxing unit under this section dies, the surviving
168	168	spouse of the individual is entitled to the limitation on taxes
169	169	imposed by the taxing unit [county, municipality, or junior college
170	170	district] on the residence homestead of the individual if:
171	171	(1) the surviving spouse is disabled or is 55 years of
172	172	age or older when the individual dies; and
173	173	(2) the residence homestead of the individual:
174	174	(A) is the residence homestead of the surviving
175	175	spouse on the date that the individual dies; and
176	176	(B) remains the residence homestead of the
177	177	surviving spouse.
178	178	(j) If an individual who is 65 years of age or older and
179	179	qualifies for a limitation on [county, municipal, or junior college
180	180	district] tax increases for the elderly under this section dies in
181	181	the first year in which the individual qualified for the limitation
182	182	and the individual first qualified for the limitation after the
183	183	beginning of that year, except as provided by Subsection (k), the
184	184	amount to which the surviving spouse's [county, municipal, or
185	185	junior college district] taxes are limited under Subsection (i) is
186	186	the amount of taxes imposed by the taxing unit to which the
187	187	limitation applies [county, municipality, or junior college
188	188	district, as applicable,] on the residence homestead in that year
189	189	determined as if the individual qualifying for the exemption had
190	190	lived for the entire year.
191	191	(k) If in the first tax year after the year in which an
192	192	individual who is 65 years of age or older dies under the
193	193	circumstances described by Subsection (j) the amount of taxes
194	194	imposed by a taxing unit [county, municipality, or junior college
195	195	district] on the residence homestead of the surviving spouse is
196	196	less than the amount of taxes imposed by the taxing unit [county,
197	197	municipality, or junior college district] in the preceding year as
198	198	limited by Subsection (j), in a subsequent tax year the surviving
199	199	spouse's taxes imposed by the taxing unit [county, municipality, or
200	200	junior college district] on that residence homestead are limited to
201	201	the amount of taxes imposed by the taxing unit [county,
202	202	municipality, or junior college district] in that first tax year
203	203	after the year in which the individual dies.
204	204	(l) Notwithstanding Subsection (d), a limitation on
205	205	[county, municipal, or junior college district] tax increases by a
206	206	taxing unit required [provided] by this section does not expire if
207	207	the owner of the structure qualifies for an exemption under Section
208	208	11.13 under the circumstances described by Section 11.135(a).
209	209	SECTION 3. Section 23.19(g), Tax Code, is amended to read as
210	210	follows:
211	211	(g) A tax bill or a separate statement accompanying the tax
212	212	bill to a cooperative housing corporation for which interests of
213	213	stockholders are separately appraised under this section must
214	214	state, in addition to the information required by Section 31.01,
215	215	the appraised value and taxable value of each interest separately
216	216	appraised. Each exemption claimed as provided by this title by a
217	217	person entitled to the exemption shall also be deducted from the
218	218	total appraised value of the property of the corporation. The total
219	219	tax imposed by a school district or other taxing unit [, county,
220	220	municipality, or junior college district] shall be reduced by any
221	221	amount that represents an increase in taxes attributable to
222	222	separately appraised interests of the real property and
223	223	improvements that are subject to the limitation of taxes prescribed
224	224	by Section 11.26 or 11.261. The corporation shall apportion among
225	225	its stockholders liability for reimbursing the corporation for
226	226	property taxes according to the relative taxable values of their
227	227	interests.
228	228	SECTION 4. Sections 26.012(6), (13), and (14), Tax Code,
229	229	are amended to read as follows:
230	230	(6) "Current total value" means the total taxable
231	231	value of property listed on the appraisal roll for the current year,
232	232	including all appraisal roll supplements and corrections as of the
233	233	date of the calculation, less the taxable value of property
234	234	exempted for the current tax year for the first time under Section
235	235	11.31 or 11.315, except that:
236	236	(A) the current total value for a school district
237	237	excludes:
238	238	(i) the total value of homesteads that
239	239	qualify for a tax limitation as provided by Section 11.26;
240	240	(ii) new property value of property that is
241	241	subject to an agreement entered into under former Subchapter B or C,
242	242	Chapter 313; and
243	243	(iii) new property value of property that
244	244	is subject to an agreement entered into under Subchapter T, Chapter
245	245	403, Government Code; and
246	246	(B) the current total value for a taxing unit
247	247	other than a school district [county, municipality, or junior
248	248	college district] excludes the total value of homesteads that
249	249	qualify for a tax limitation as provided by Section 11.261.
250	250	(13) "Last year's levy" means the total of:
251	251	(A) the amount of taxes that would be generated
252	252	by multiplying the total tax rate adopted by the governing body in
253	253	the preceding year by the total taxable value of property on the
254	254	appraisal roll for the preceding year, including:
255	255	(i) taxable value that was reduced in an
256	256	appeal under Chapter 42;
257	257	(ii) all appraisal roll supplements and
258	258	corrections other than corrections made pursuant to Section
259	259	25.25(d), as of the date of the calculation, except that last year's
260	260	taxable value for a school district excludes the total value of
261	261	homesteads that qualified for a tax limitation as provided by
262	262	Section 11.26 and last year's taxable value for a taxing unit other
263	263	than a school district [county, municipality, or junior college
264	264	district] excludes the total value of homesteads that qualified for
265	265	a tax limitation as provided by Section 11.261; and
266	266	(iii) the portion of taxable value of
267	267	property that is the subject of an appeal under Chapter 42 on July
268	268	25 that is not in dispute; and
269	269	(B) the amount of taxes refunded by the taxing
270	270	unit in the preceding year for tax years before that year.
271	271	(14) "Last year's total value" means the total taxable
272	272	value of property listed on the appraisal roll for the preceding
273	273	year, including all appraisal roll supplements and corrections,
274	274	other than corrections made pursuant to Section 25.25(d), as of the
275	275	date of the calculation, except that:
276	276	(A) last year's taxable value for a school
277	277	district excludes the total value of homesteads that qualified for
278	278	a tax limitation as provided by Section 11.26; and
279	279	(B) last year's taxable value for a taxing unit
280	280	other than a school district [county, municipality, or junior
281	281	college district] excludes the total value of homesteads that
282	282	qualified for a tax limitation as provided by Section 11.261.
283	283	SECTION 5. This Act applies only to ad valorem taxes imposed
284	284	for a tax year beginning on or after the effective date of this Act.
285	285	SECTION 6. This Act takes effect January 1, 2026, but only
286	286	if the constitutional amendment proposed by the 89th Legislature,
287	287	Regular Session, 2025, establishing a limitation on the total
288	288	amount of ad valorem taxes that certain political subdivisions may
289	289	impose on the residence homesteads of persons who are disabled or
290	290	elderly and their surviving spouses is approved by the voters. If
291	291	that amendment is not approved by the voters, this Act has no
292	292	effect.