Texas 2025 - 89th Regular

Texas House Bill HB642 Compare Versions

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1	1	89R3419 TJB-F
2	2	By: Bernal H.B. No. 642
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a limitation on the total amount of ad valorem taxes
10	10	that a school district may impose on certain residence homesteads
11	11	following a substantial school tax increase.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
14	14	adding Section 11.262 to read as follows:
15	15	Sec. 11.262. LIMITATION OF SCHOOL TAXES ON CERTAIN
16	16	HOMESTEADS FOLLOWING SUBSTANTIAL TAX INCREASE. (a) In this
17	17	section, "residence homestead" has the meaning assigned by Section
18	18	11.13.
19	19	(b) The chief appraiser shall appraise, and the tax assessor
20	20	for each school district shall calculate the taxes on, each
21	21	residence homestead in the manner provided by law for other
22	22	property.
23	23	(c) Except as provided by Subsection (g), if an individual
24	24	qualifies property as the individual's residence homestead for at
25	25	least 15 consecutive tax years and the total amount of school
26	26	district taxes imposed on the property in that 15th tax year is at
27	27	least 120 percent greater than the total amount of those taxes
28	28	imposed in the first of those tax years, not including taxes imposed
29	29	on the appraised value of all improvements made to the property
30	30	during that period, a school district may not impose taxes on that
31	31	residence homestead in a subsequent tax year in an amount that
32	32	exceeds the least of the following amounts:
33	33	(1) the amount of school taxes calculated for the
34	34	current tax year under Subsection (b);
35	35	(2) the amount of school taxes imposed for that 15th
36	36	tax year; or
37	37	(3) the amount of school taxes as limited under
38	38	Section 11.26, if applicable.
39	39	(c-1) An individual may not receive a limitation on taxes
40	40	under Subsection (c) based on an increase in taxes for any period
41	41	that began before the 2012 tax year.
42	42	(d) If an individual who qualifies for a limitation under
43	43	this section dies, the surviving spouse of the individual is
44	44	entitled to continue receiving the limitation on school taxes
45	45	imposed by a school district on the residence homestead of the
46	46	individual if the property:
47	47	(1) is the residence homestead of the surviving spouse
48	48	on the date that the individual dies; and
49	49	(2) remains the residence homestead of the surviving
50	50	spouse.
51	51	(e) Except as provided by Subsection (d) or (f), a
52	52	limitation under this section expires on January 1 if the property
53	53	is not the residence homestead of the individual entitled to the
54	54	limitation for the preceding tax year.
55	55	(f) A limitation under this section does not expire if:
56	56	(1) an owner of an interest in the residence homestead
57	57	conveys the interest to a qualifying trust as defined by Section
58	58	11.13(j) and the owner or the owner's spouse is:
59	59	(A) a trustor of the trust; and
60	60	(B) entitled to occupy the property; or
61	61	(2) the owner of the structure qualifies for an
62	62	exemption under Section 11.13 under the circumstances described by
63	63	Section 11.135(a).
64	64	(g) Except as provided by Subsection (h), a school district
65	65	may increase the tax on a residence homestead subject to a
66	66	limitation under this section in the first year the appraised value
67	67	of the property is increased as the result of an improvement made to
68	68	the property in the preceding tax year. The amount of the tax
69	69	increase is determined by applying the current tax rate of the
70	70	school district to the difference in the taxable value of the
71	71	property with the improvement and the taxable value the property
72	72	would have had without the improvement. A limitation imposed by
73	73	this section then applies to the increased amount of tax until
74	74	another improvement is made to the property.
75	75	(h) An improvement to a residence homestead is not treated
76	76	as an improvement under Subsection (g) if the improvement is:
77	77	(1) a repair;
78	78	(2) required to be made to comply with a governmental
79	79	requirement; or
80	80	(3) subject to Subsection (i), a replacement structure
81	81	for a structure that was rendered uninhabitable or unusable by a
82	82	casualty or by wind or water damage.
83	83	(i) A replacement structure described by Subsection (h)(3)
84	84	is considered to be an improvement under Subsection (g) only if:
85	85	(1) the square footage of the replacement structure
86	86	exceeds the square footage of the replaced structure as the
87	87	replaced structure existed before the casualty or damage occurred;
88	88	or
89	89	(2) the exterior of the replacement structure is of
90	90	higher quality construction and composition than that of the
91	91	replaced structure.
92	92	(j) If the appraisal roll provides for taxation of appraised
93	93	value for a prior year because a limitation under this section was
94	94	erroneously allowed, the tax assessor for the school district shall
95	95	add as back taxes due, as provided by Section 26.09(d), the positive
96	96	difference, if any, between the tax that should have been imposed
97	97	for that tax year and the tax that was imposed because of the
98	98	provisions of this section.
99	99	(k) For each school district in an appraisal district, the
100	100	chief appraiser shall determine the portion of the appraised value
101	101	of residence homesteads of individuals on which school district
102	102	taxes are not imposed in a tax year because of the limitation under
103	103	this section. That portion is calculated by determining the
104	104	taxable value that, if multiplied by the tax rate adopted by the
105	105	school district for the tax year, would produce an amount equal to
106	106	the amount of tax that would have been imposed by the school
107	107	district on those properties if the limitation under this section
108	108	were not in effect, but that was not imposed because of that
109	109	limitation. The chief appraiser shall determine that taxable value
110	110	and certify it to the comptroller as soon as practicable for each
111	111	tax year.
112	112	SECTION 2. Sections 23.19(b) and (g), Tax Code, are amended
113	113	to read as follows:
114	114	(b) If an appraisal district receives a written request for
115	115	the appraisal of real property and improvements of a cooperative
116	116	housing corporation according to the separate interests of the
117	117	corporation's stockholders, the chief appraiser shall separately
118	118	appraise the interests described by Subsection (d) if the
119	119	conditions required by Subsections (e) and (f) have been met.
120	120	Separate appraisal under this section is for the purposes of
121	121	administration of tax exemptions, determination of applicable
122	122	limitations of taxes under Section 11.26, [or] 11.261, or 11.262,
123	123	and apportionment by a cooperative housing corporation of property
124	124	taxes among its stockholders but is not the basis for determining
125	125	value on which a tax is imposed under this title. A stockholder
126	126	whose interest is separately appraised under this section may
127	127	protest and appeal the appraised value in the manner provided by
128	128	this title for protest and appeal of the appraised value of other
129	129	property.
130	130	(g) A tax bill or a separate statement accompanying the tax
131	131	bill to a cooperative housing corporation for which interests of
132	132	stockholders are separately appraised under this section must
133	133	state, in addition to the information required by Section 31.01,
134	134	the appraised value and taxable value of each interest separately
135	135	appraised. Each exemption claimed as provided by this title by a
136	136	person entitled to the exemption shall also be deducted from the
137	137	total appraised value of the property of the corporation. The total
138	138	tax imposed by a school district, county, municipality, or junior
139	139	college district shall be reduced by any amount that represents an
140	140	increase in taxes attributable to separately appraised interests of
141	141	the real property and improvements that are subject to the
142	142	limitation of taxes prescribed by Section 11.26, [or] 11.261, or
143	143	11.262. The corporation shall apportion among its stockholders
144	144	liability for reimbursing the corporation for property taxes
145	145	according to the relative taxable values of their interests.
146	146	SECTION 3. Sections 26.012(6), (13), and (14), Tax Code,
147	147	are amended to read as follows:
148	148	(6) "Current total value" means the total taxable
149	149	value of property listed on the appraisal roll for the current year,
150	150	including all appraisal roll supplements and corrections as of the
151	151	date of the calculation, less the taxable value of property
152	152	exempted for the current tax year for the first time under Section
153	153	11.31 or 11.315, except that:
154	154	(A) the current total value for a school district
155	155	excludes:
156	156	(i) the total value of homesteads that
157	157	qualify for a tax limitation as provided by Sections [Section]
158	158	11.26 and 11.262;
159	159	(ii) new property value of property that is
160	160	subject to an agreement entered into under former Subchapter B or C,
161	161	Chapter 313; and
162	162	(iii) new property value of property that
163	163	is subject to an agreement entered into under Subchapter T, Chapter
164	164	403, Government Code; and
165	165	(B) the current total value for a county,
166	166	municipality, or junior college district excludes the total value
167	167	of homesteads that qualify for a tax limitation provided by Section
168	168	11.261.
169	169	(13) "Last year's levy" means the total of:
170	170	(A) the amount of taxes that would be generated
171	171	by multiplying the total tax rate adopted by the governing body in
172	172	the preceding year by the total taxable value of property on the
173	173	appraisal roll for the preceding year, including:
174	174	(i) taxable value that was reduced in an
175	175	appeal under Chapter 42;
176	176	(ii) all appraisal roll supplements and
177	177	corrections other than corrections made pursuant to Section
178	178	25.25(d), as of the date of the calculation, except that last year's
179	179	taxable value for a school district excludes the total value of
180	180	homesteads that qualified for a tax limitation as provided by
181	181	Sections [Section] 11.26 and 11.262 and last year's taxable value
182	182	for a county, municipality, or junior college district excludes the
183	183	total value of homesteads that qualified for a tax limitation as
184	184	provided by Section 11.261; and
185	185	(iii) the portion of taxable value of
186	186	property that is the subject of an appeal under Chapter 42 on July
187	187	25 that is not in dispute; and
188	188	(B) the amount of taxes refunded by the taxing
189	189	unit in the preceding year for tax years before that year.
190	190	(14) "Last year's total value" means the total taxable
191	191	value of property listed on the appraisal roll for the preceding
192	192	year, including all appraisal roll supplements and corrections,
193	193	other than corrections made pursuant to Section 25.25(d), as of the
194	194	date of the calculation, except that:
195	195	(A) last year's taxable value for a school
196	196	district excludes the total value of homesteads that qualified for
197	197	a tax limitation as provided by Sections [Section] 11.26 and
198	198	11.262; and
199	199	(B) last year's taxable value for a county,
200	200	municipality, or junior college district excludes the total value
201	201	of homesteads that qualified for a tax limitation as provided by
202	202	Section 11.261.
203	203	SECTION 4. Section 44.004(c), Education Code, is amended to
204	204	read as follows:
205	205	(c) The notice of public meeting to discuss and adopt the
206	206	budget and the proposed tax rate may not be smaller than one-quarter
207	207	page of a standard-size or a tabloid-size newspaper, and the
208	208	headline on the notice must be in 18-point or larger type. Subject
209	209	to Subsection (d), the notice must:
210	210	(1) contain a statement in the following form:
211	211	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
212	212	"The (name of school district) will hold a public meeting at
213	213	(time, date, year) in (name of room, building, physical location,
214	214	city, state). The purpose of this meeting is to discuss the school
215	215	district's budget that will determine the tax rate that will be
216	216	adopted. Public participation in the discussion is invited." The
217	217	statement of the purpose of the meeting must be in bold type. In
218	218	reduced type, the notice must state: "The tax rate that is
219	219	ultimately adopted at this meeting or at a separate meeting at a
220	220	later date may not exceed the proposed rate shown below unless the
221	221	district publishes a revised notice containing the same information
222	222	and comparisons set out below and holds another public meeting to
223	223	discuss the revised notice." In addition, in reduced type, the
224	224	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
225	225	your local property tax database on which you can easily access
226	226	information regarding your property taxes, including information
227	227	about proposed tax rates and scheduled public hearings of each
228	228	entity that taxes your property.";
229	229	(2) contain a section entitled "Comparison of Proposed
230	230	Budget with Last Year's Budget," which must show the difference,
231	231	expressed as a percent increase or decrease, as applicable, in the
232	232	amounts budgeted for the preceding fiscal year and the amount
233	233	budgeted for the fiscal year that begins in the current tax year for
234	234	each of the following:
235	235	(A) maintenance and operations;
236	236	(B) debt service; and
237	237	(C) total expenditures;
238	238	(3) contain a section entitled "Total Appraised Value
239	239	and Total Taxable Value," which must show the total appraised value
240	240	and the total taxable value of all property and the total appraised
241	241	value and the total taxable value of new property taxable by the
242	242	district in the preceding tax year and the current tax year as
243	243	calculated under Section 26.04, Tax Code;
244	244	(4) contain a statement of the total amount of the
245	245	outstanding and unpaid bonded indebtedness of the school district;
246	246	(5) contain a section entitled "Comparison of Proposed
247	247	Rates with Last Year's Rates," which must:
248	248	(A) show in rows the tax rates described by
249	249	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
250	250	property, for columns entitled "Maintenance & Operations,"
251	251	"Interest & Sinking Fund," and "Total," which is the sum of
252	252	"Maintenance & Operations" and "Interest & Sinking Fund":
253	253	(i) the school district's "Last Year's
254	254	Rate";
255	255	(ii) the "Rate to Maintain Same Level of
256	256	Maintenance & Operations Revenue & Pay Debt Service," which:
257	257	(a) in the case of "Maintenance &
258	258	Operations," is the tax rate that, when applied to the current
259	259	taxable value for the district, as certified by the chief appraiser
260	260	under Section 26.01, Tax Code, and as adjusted to reflect changes
261	261	made by the chief appraiser as of the time the notice is prepared,
262	262	would impose taxes in an amount that, when added to state funds to
263	263	be distributed to the district under Chapter 48, would provide the
264	264	same amount of maintenance and operations taxes and state funds
265	265	distributed under Chapter 48 per student in average daily
266	266	attendance for the applicable school year that was available to the
267	267	district in the preceding school year; and
268	268	(b) in the case of "Interest & Sinking
269	269	Fund," is the tax rate that, when applied to the current taxable
270	270	value for the district, as certified by the chief appraiser under
271	271	Section 26.01, Tax Code, and as adjusted to reflect changes made by
272	272	the chief appraiser as of the time the notice is prepared, and when
273	273	multiplied by the district's anticipated collection rate, would
274	274	impose taxes in an amount that, when added to state funds to be
275	275	distributed to the district under Chapter 46 and any excess taxes
276	276	collected to service the district's debt during the preceding tax
277	277	year but not used for that purpose during that year, would provide
278	278	the amount required to service the district's debt; and
279	279	(iii) the "Proposed Rate";
280	280	(B) contain fourth and fifth columns aligned with
281	281	the columns required by Paragraph (A) that show, for each row
282	282	required by Paragraph (A):
283	283	(i) the "Local Revenue per Student," which
284	284	is computed by multiplying the district's total taxable value of
285	285	property, as certified by the chief appraiser for the applicable
286	286	school year under Section 26.01, Tax Code, and as adjusted to
287	287	reflect changes made by the chief appraiser as of the time the
288	288	notice is prepared, by the total tax rate, and dividing the product
289	289	by the number of students in average daily attendance in the
290	290	district for the applicable school year; and
291	291	(ii) the "State Revenue per Student," which
292	292	is computed by determining the amount of state aid received or to be
293	293	received by the district under Chapters 43, 46, and 48 and dividing
294	294	that amount by the number of students in average daily attendance in
295	295	the district for the applicable school year; and
296	296	(C) contain an asterisk after each calculation
297	297	for "Interest & Sinking Fund" and a footnote to the section that, in
298	298	reduced type, states "The Interest & Sinking Fund tax revenue is
299	299	used to pay for bonded indebtedness on construction, equipment, or
300	300	both. The bonds, and the tax rate necessary to pay those bonds,
301	301	were approved by the voters of this district.";
302	302	(6) contain a section entitled "Comparison of Proposed
303	303	Levy with Last Year's Levy on Average Residence," which must:
304	304	(A) show in rows the information described by
305	305	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
306	306	entitled "Last Year" and "This Year":
307	307	(i) "Average Market Value of Residences,"
308	308	determined using the same group of residences for each year;
309	309	(ii) "Average Taxable Value of Residences,"
310	310	determined after taking into account the limitation on the
311	311	appraised value of residences under Section 23.23, Tax Code, and
312	312	after subtracting all homestead exemptions applicable in each year,
313	313	other than exemptions available only to disabled persons or persons
314	314	65 years of age or older or their surviving spouses, and using the
315	315	same group of residences for each year;
316	316	(iii) "Last Year's Rate Versus Proposed
317	317	Rate per $100 Value"; and
318	318	(iv) "Taxes Due on Average Residence,"
319	319	determined using the same group of residences for each year; and
320	320	(B) contain the following information: "Increase
321	321	(Decrease) in Taxes" expressed in dollars and cents, which is
322	322	computed by subtracting the "Taxes Due on Average Residence" for
323	323	the preceding tax year from the "Taxes Due on Average Residence" for
324	324	the current tax year;
325	325	(7) contain the following statement in bold print:
326	326	"Under state law, the dollar amount of school taxes imposed on the
327	327	residence of a person 65 years of age or older or of the surviving
328	328	spouse of such a person, if the surviving spouse was 55 years of age
329	329	or older when the person died, may not be increased above the amount
330	330	paid in the first year after the person turned 65, regardless of
331	331	changes in tax rate or property value.";
332	332	(8) contain the following statement in bold print:
333	333	"Notice of Voter-Approval Rate: The highest tax rate the district
334	334	can adopt before requiring voter approval at an election is (the
335	335	school district voter-approval rate determined under Section
336	336	26.08, Tax Code). This election will be automatically held if the
337	337	district adopts a rate in excess of the voter-approval rate of (the
338	338	school district voter-approval rate)."; [and]
339	339	(9) contain a section entitled "Fund Balances," which
340	340	must include the estimated amount of interest and sinking fund
341	341	balances and the estimated amount of maintenance and operation or
342	342	general fund balances remaining at the end of the current fiscal
343	343	year that are not encumbered with or by corresponding debt
344	344	obligation, less estimated funds necessary for the operation of the
345	345	district before the receipt of the first payment under Chapter 48 in
346	346	the succeeding school year; and
347	347	(10) contain the following statement in bold print:
348	348	"Under state law, the dollar amount of school taxes imposed on a
349	349	residence homestead that qualifies as the owner's residence
350	350	homestead for at least 15 consecutive years, during which time the
351	351	total amount of school district taxes imposed on the property has
352	352	increased by at least 120 percent, may not be increased above the
353	353	amount of school taxes imposed on the property in that 15th
354	354	consecutive year, regardless of changes in tax rate or property
355	355	value.".
356	356	SECTION 5. Section 403.302(d), Government Code, effective
357	357	until January 1, 2027, is amended to read as follows:
358	358	(d) For the purposes of this section, "taxable value" means
359	359	the market value of all taxable property less:
360	360	(1) the total dollar amount of any residence homestead
361	361	exemptions lawfully granted under Section 11.13(b) or (c), Tax
362	362	Code, in the year that is the subject of the study for each school
363	363	district;
364	364	(2) one-half of the total dollar amount of any
365	365	residence homestead exemptions granted under Section 11.13(n), Tax
366	366	Code, in the year that is the subject of the study for each school
367	367	district;
368	368	(3) the total dollar amount of any exemptions granted
369	369	before May 31, 1993, within a reinvestment zone under agreements
370	370	authorized by Chapter 312, Tax Code;
371	371	(4) subject to Subsection (e), the total dollar amount
372	372	of any captured appraised value of property that:
373	373	(A) is within a reinvestment zone created on or
374	374	before May 31, 1999, or is proposed to be included within the
375	375	boundaries of a reinvestment zone as the boundaries of the zone and
376	376	the proposed portion of tax increment paid into the tax increment
377	377	fund by a school district are described in a written notification
378	378	provided by the municipality or the board of directors of the zone
379	379	to the governing bodies of the other taxing units in the manner
380	380	provided by former Section 311.003(e), Tax Code, before May 31,
381	381	1999, and within the boundaries of the zone as those boundaries
382	382	existed on September 1, 1999, including subsequent improvements to
383	383	the property regardless of when made;
384	384	(B) generates taxes paid into a tax increment
385	385	fund created under Chapter 311, Tax Code, under a reinvestment zone
386	386	financing plan approved under Section 311.011(d), Tax Code, on or
387	387	before September 1, 1999; and
388	388	(C) is eligible for tax increment financing under
389	389	Chapter 311, Tax Code;
390	390	(5) the total dollar amount of any captured appraised
391	391	value of property that:
392	392	(A) is within a reinvestment zone:
393	393	(i) created on or before December 31, 2008,
394	394	by a municipality with a population of less than 18,000; and
395	395	(ii) the project plan for which includes
396	396	the alteration, remodeling, repair, or reconstruction of a
397	397	structure that is included on the National Register of Historic
398	398	Places and requires that a portion of the tax increment of the zone
399	399	be used for the improvement or construction of related facilities
400	400	or for affordable housing;
401	401	(B) generates school district taxes that are paid
402	402	into a tax increment fund created under Chapter 311, Tax Code; and
403	403	(C) is eligible for tax increment financing under
404	404	Chapter 311, Tax Code;
405	405	(6) the total dollar amount of any exemptions granted
406	406	under Section 11.251 or 11.253, Tax Code;
407	407	(7) the difference between the comptroller's estimate
408	408	of the market value and the productivity value of land that
409	409	qualifies for appraisal on the basis of its productive capacity,
410	410	except that the productivity value estimated by the comptroller may
411	411	not exceed the fair market value of the land;
412	412	(8) the portion of the appraised value of residence
413	413	homesteads of individuals who receive a tax limitation under
414	414	Section 11.26 or 11.262, Tax Code, on which school district taxes
415	415	are not imposed in the year that is the subject of the study,
416	416	calculated as if the residence homesteads were appraised at the
417	417	full value required by law;
418	418	(9) a portion of the market value of property not
419	419	otherwise fully taxable by the district at market value because of
420	420	action required by statute or the constitution of this state, other
421	421	than Section 11.311, Tax Code, that, if the tax rate adopted by the
422	422	district is applied to it, produces an amount equal to the
423	423	difference between the tax that the district would have imposed on
424	424	the property if the property were fully taxable at market value and
425	425	the tax that the district is actually authorized to impose on the
426	426	property, if this subsection does not otherwise require that
427	427	portion to be deducted;
428	428	(10) the market value of all tangible personal
429	429	property, other than manufactured homes, owned by a family or
430	430	individual and not held or used for the production of income;
431	431	(11) the appraised value of property the collection of
432	432	delinquent taxes on which is deferred under Section 33.06, Tax
433	433	Code;
434	434	(12) the portion of the appraised value of property
435	435	the collection of delinquent taxes on which is deferred under
436	436	Section 33.065, Tax Code;
437	437	(13) the amount by which the market value of property
438	438	to which Section 23.23 or 23.231, Tax Code, applies exceeds the
439	439	appraised value of that property as calculated under Section 23.23
440	440	or 23.231, Tax Code, as applicable; and
441	441	(14) the total dollar amount of any exemptions granted
442	442	under Section 11.35, Tax Code.
443	443	SECTION 6. Section 403.302(d), Government Code, effective
444	444	on January 1, 2027, is amended to read as follows:
445	445	(d) For the purposes of this section, "taxable value" means
446	446	the market value of all taxable property less:
447	447	(1) the total dollar amount of any residence homestead
448	448	exemptions lawfully granted under Section 11.13(b) or (c), Tax
449	449	Code, in the year that is the subject of the study for each school
450	450	district;
451	451	(2) one-half of the total dollar amount of any
452	452	residence homestead exemptions granted under Section 11.13(n), Tax
453	453	Code, in the year that is the subject of the study for each school
454	454	district;
455	455	(3) the total dollar amount of any exemptions granted
456	456	before May 31, 1993, within a reinvestment zone under agreements
457	457	authorized by Chapter 312, Tax Code;
458	458	(4) subject to Subsection (e), the total dollar amount
459	459	of any captured appraised value of property that:
460	460	(A) is within a reinvestment zone created on or
461	461	before May 31, 1999, or is proposed to be included within the
462	462	boundaries of a reinvestment zone as the boundaries of the zone and
463	463	the proposed portion of tax increment paid into the tax increment
464	464	fund by a school district are described in a written notification
465	465	provided by the municipality or the board of directors of the zone
466	466	to the governing bodies of the other taxing units in the manner
467	467	provided by former Section 311.003(e), Tax Code, before May 31,
468	468	1999, and within the boundaries of the zone as those boundaries
469	469	existed on September 1, 1999, including subsequent improvements to
470	470	the property regardless of when made;
471	471	(B) generates taxes paid into a tax increment
472	472	fund created under Chapter 311, Tax Code, under a reinvestment zone
473	473	financing plan approved under Section 311.011(d), Tax Code, on or
474	474	before September 1, 1999; and
475	475	(C) is eligible for tax increment financing under
476	476	Chapter 311, Tax Code;
477	477	(5) the total dollar amount of any captured appraised
478	478	value of property that:
479	479	(A) is within a reinvestment zone:
480	480	(i) created on or before December 31, 2008,
481	481	by a municipality with a population of less than 18,000; and
482	482	(ii) the project plan for which includes
483	483	the alteration, remodeling, repair, or reconstruction of a
484	484	structure that is included on the National Register of Historic
485	485	Places and requires that a portion of the tax increment of the zone
486	486	be used for the improvement or construction of related facilities
487	487	or for affordable housing;
488	488	(B) generates school district taxes that are paid
489	489	into a tax increment fund created under Chapter 311, Tax Code; and
490	490	(C) is eligible for tax increment financing under
491	491	Chapter 311, Tax Code;
492	492	(6) the total dollar amount of any exemptions granted
493	493	under Section 11.251 or 11.253, Tax Code;
494	494	(7) the difference between the comptroller's estimate
495	495	of the market value and the productivity value of land that
496	496	qualifies for appraisal on the basis of its productive capacity,
497	497	except that the productivity value estimated by the comptroller may
498	498	not exceed the fair market value of the land;
499	499	(8) the portion of the appraised value of residence
500	500	homesteads of individuals who receive a tax limitation under
501	501	Section 11.26 or 11.262, Tax Code, on which school district taxes
502	502	are not imposed in the year that is the subject of the study,
503	503	calculated as if the residence homesteads were appraised at the
504	504	full value required by law;
505	505	(9) a portion of the market value of property not
506	506	otherwise fully taxable by the district at market value because of
507	507	action required by statute or the constitution of this state, other
508	508	than Section 11.311, Tax Code, that, if the tax rate adopted by the
509	509	district is applied to it, produces an amount equal to the
510	510	difference between the tax that the district would have imposed on
511	511	the property if the property were fully taxable at market value and
512	512	the tax that the district is actually authorized to impose on the
513	513	property, if this subsection does not otherwise require that
514	514	portion to be deducted;
515	515	(10) the market value of all tangible personal
516	516	property, other than manufactured homes, owned by a family or
517	517	individual and not held or used for the production of income;
518	518	(11) the appraised value of property the collection of
519	519	delinquent taxes on which is deferred under Section 33.06, Tax
520	520	Code;
521	521	(12) the portion of the appraised value of property
522	522	the collection of delinquent taxes on which is deferred under
523	523	Section 33.065, Tax Code;
524	524	(13) the amount by which the market value of a
525	525	residence homestead to which Section 23.23, Tax Code, applies
526	526	exceeds the appraised value of that property as calculated under
527	527	that section; and
528	528	(14) the total dollar amount of any exemptions granted
529	529	under Section 11.35, Tax Code.
530	530	SECTION 7. The limitation on school taxes provided by
531	531	Section 11.262, Tax Code, as added by this Act, applies only to ad
532	532	valorem taxes imposed for an ad valorem tax year that begins on or
533	533	after the effective date of this Act.
534	534	SECTION 8. This Act takes effect January 1, 2026, but only
535	535	if the constitutional amendment proposed by the 89th Legislature,
536	536	Regular Session, 2025, authorizing the legislature to limit the
537	537	total amount of ad valorem taxes that a school district may impose
538	538	on certain residence homesteads following a substantial school tax
539	539	increase is approved by the voters. If that amendment is not
540	540	approved by the voters, this Act has no effect.