Texas 2025 - 89th Regular

Texas Senate Bill SB488 Compare Versions

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

Old	New	Differences
1	1	89R358 SHH-D
2	2	By: Kolkhorst S.B. No. 488
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the authority of a taxing unit other than a school
10	10	district to establish a limitation on the amount of ad valorem taxes
11	11	that the taxing unit may impose on the residence homesteads of
12	12	individuals who are disabled or elderly and their surviving
13	13	spouses.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. The heading to Section 11.261, Tax Code, is
16	16	amended to read as follows:
17	17	Sec. 11.261. LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER
18	18	THAN SCHOOL DISTRICT [COUNTY, MUNICIPAL, OR JUNIOR COLLEGE DISTRICT
19	19	TAX] ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED OR [AND]
20	20	ELDERLY.
21	21	SECTION 2. Sections 11.261(a), (b), (c), (d), (e), (g),
22	22	(h), (i), (j), (k), and (l), Tax Code, are amended to read as
23	23	follows:
24	24	(a) This section applies only to a taxing unit that:
25	25	(1) is not a school [a county, municipality, or junior
26	26	college] district; and
27	27	(2) [that] has established a limitation on the total
28	28	amount of taxes that may be imposed by the taxing unit [county,
29	29	municipality, or junior college district] on the residence
30	30	homestead of an [a disabled] individual who is disabled or is [an
31	31	individual] 65 years of age or older under Section 1-b(h), Article
32	32	VIII, Texas Constitution.
33	33	(b) The tax officials shall appraise the property to which
34	34	the limitation applies and calculate taxes as on other property,
35	35	but if the tax so calculated exceeds the limitation provided by this
36	36	section, the tax imposed by a taxing unit is the amount of the tax as
37	37	limited by this section, except as otherwise provided by this
38	38	section. The taxing unit [county, municipality, or junior college
39	39	district] may not increase the total annual amount of ad valorem
40	40	taxes the taxing unit [county, municipality, or junior college
41	41	district] imposes on the residence homestead of an [a disabled]
42	42	individual who is disabled or is [an individual] 65 years of age or
43	43	older above the amount of the taxes the taxing unit [county,
44	44	municipality, or junior college district] imposed on the residence
45	45	homestead in the first tax year, other than a tax year preceding the
46	46	tax year in which the taxing unit [county, municipality, or junior
47	47	college district] established the limitation described by
48	48	Subsection (a), in which the individual qualified that residence
49	49	homestead for the exemption provided by Section 11.13(c) for an [a
50	50	disabled] individual who is disabled or is [an individual] 65 years
51	51	of age or older. If the individual qualified that residence
52	52	homestead for the exemption after the beginning of that first year
53	53	and the residence homestead remains eligible for the exemption for
54	54	the next year, and if the [county, municipal, or junior college
55	55	district] taxes imposed by the taxing unit on the residence
56	56	homestead in the next year are less than the amount of taxes imposed
57	57	in that first year, the taxing unit [a county, municipality, or
58	58	junior college district] may not subsequently increase the total
59	59	annual amount of ad valorem taxes it imposes on the residence
60	60	homestead above the amount it imposed on the residence homestead in
61	61	the year immediately following the first year, other than a tax year
62	62	preceding the tax year in which the taxing unit [county,
63	63	municipality, or junior college district] established the
64	64	limitation described by Subsection (a), for which the individual
65	65	qualified that residence homestead for the exemption.
66	66	(c) If an individual makes improvements to the individual's
67	67	residence homestead, other than repairs and other than improvements
68	68	required to comply with governmental requirements, the taxing unit
69	69	[county, municipality, or junior college district] may increase the
70	70	amount of taxes on the homestead in the first year the value of the
71	71	homestead is increased on the appraisal roll because of the
72	72	enhancement of value by the improvements. The amount of the tax
73	73	increase is determined by applying the current tax rate to the
74	74	difference between the appraised value of the homestead with the
75	75	improvements and the appraised value the homestead [it] would have
76	76	had without the improvements. A limitation provided by this
77	77	section then applies to the increased amount of [county, municipal,
78	78	or junior college district] taxes on the residence homestead until
79	79	more improvements, if any, are made.
80	80	(d) A limitation on [county, municipal, or junior college
81	81	district] tax increases by a taxing unit provided by this section
82	82	expires if on January 1:
83	83	(1) none of the owners of the structure who qualify for
84	84	the exemption provided by Section 11.13(c) for an [a disabled]
85	85	individual who is disabled or is [an individual] 65 years of age or
86	86	older and who owned the structure when the limitation provided by
87	87	this section first took effect is using the structure as a residence
88	88	homestead; or
89	89	(2) none of the owners of the structure qualifies for
90	90	the exemption provided by Section 11.13(c) for an [a disabled]
91	91	individual who is disabled or is [an individual] 65 years of age or
92	92	older.
93	93	(e) If the appraisal roll provides for taxation of appraised
94	94	value for a prior year because a residence homestead exemption for
95	95	[disabled] individuals who are disabled or are [individuals] 65
96	96	years of age or older was erroneously allowed, the tax assessor for
97	97	the applicable taxing unit [county, municipality, or junior college
98	98	district] shall add, as back taxes due as provided by Section
99	99	26.09(d), the positive difference, if any, between the tax that
100	100	should have been imposed for that year and the tax that was imposed
101	101	because of the provisions of this section.
102	102	(g) Except as provided by Subsection (c), if an individual
103	103	who receives a limitation on [county, municipal, or junior college
104	104	district] tax increases by a taxing unit provided by this section
105	105	subsequently qualifies a different residence homestead in the same
106	106	taxing unit [county, municipality, or junior college district] for
107	107	an exemption under Section 11.13, the taxing unit [county,
108	108	municipality, or junior college district] may not impose ad valorem
109	109	taxes on the subsequently qualified homestead in a year in an amount
110	110	that exceeds the amount of taxes the taxing unit [county,
111	111	municipality, or junior college district] would have imposed on the
112	112	subsequently qualified homestead in the first year in which the
113	113	individual receives that exemption for the subsequently qualified
114	114	homestead had the limitation on tax increases provided by this
115	115	section not been in effect, multiplied by a fraction the numerator
116	116	of which is the total amount of taxes the taxing unit [county,
117	117	municipality, or junior college district] imposed on the former
118	118	homestead in the last year in which the individual received that
119	119	exemption for the former homestead and the denominator of which is
120	120	the total amount of taxes the taxing unit [county, municipality, or
121	121	junior college district] would have imposed on the former homestead
122	122	in the last year in which the individual received that exemption for
123	123	the former homestead had the limitation on tax increases provided
124	124	by this section not been in effect.
125	125	(h) An individual who receives a limitation on [county,
126	126	municipal, or junior college district] tax increases by a taxing
127	127	unit under this section and who subsequently qualifies a different
128	128	residence homestead in the same taxing unit [county, municipality,
129	129	or junior college district] for an exemption under Section 11.13,
130	130	or an agent of the individual, is entitled to receive from the chief
131	131	appraiser of the appraisal district in which the former homestead
132	132	was located a written certificate providing the information
133	133	necessary to determine whether the individual may qualify for a
134	134	limitation on the subsequently qualified homestead under
135	135	Subsection (g) and to calculate the amount of taxes the taxing unit
136	136	[county, municipality, or junior college district] may impose on
137	137	the subsequently qualified homestead.
138	138	(i) If an individual who qualifies for a limitation on
139	139	[county, municipal, or junior college district] tax increases by a
140	140	taxing unit under this section dies, the surviving spouse of the
141	141	individual is entitled to the limitation on taxes imposed by the
142	142	taxing unit [county, municipality, or junior college district] on
143	143	the residence homestead of the individual if:
144	144	(1) the surviving spouse is disabled or is 55 years of
145	145	age or older when the individual dies; and
146	146	(2) the residence homestead of the individual:
147	147	(A) is the residence homestead of the surviving
148	148	spouse on the date that the individual dies; and
149	149	(B) remains the residence homestead of the
150	150	surviving spouse.
151	151	(j) If an individual who is 65 years of age or older and
152	152	qualifies for a limitation on [county, municipal, or junior college
153	153	district] tax increases for the elderly under this section dies in
154	154	the first year in which the individual qualified for the limitation
155	155	and the individual first qualified for the limitation after the
156	156	beginning of that year, except as provided by Subsection (k), the
157	157	amount to which the surviving spouse's [county, municipal, or
158	158	junior college district] taxes are limited under Subsection (i) is
159	159	the amount of taxes imposed by the taxing unit to which the
160	160	limitation applies [county, municipality, or junior college
161	161	district, as applicable,] on the residence homestead in that year
162	162	determined as if the individual qualifying for the exemption had
163	163	lived for the entire year.
164	164	(k) If in the first tax year after the year in which an
165	165	individual who is 65 years of age or older dies under the
166	166	circumstances described by Subsection (j) the amount of taxes
167	167	imposed by a taxing unit [county, municipality, or junior college
168	168	district] on the residence homestead of the surviving spouse is
169	169	less than the amount of taxes imposed by the taxing unit [county,
170	170	municipality, or junior college district] in the preceding year as
171	171	limited by Subsection (j), in a subsequent tax year the surviving
172	172	spouse's taxes imposed by the taxing unit [county, municipality, or
173	173	junior college district] on that residence homestead are limited to
174	174	the amount of taxes imposed by the taxing unit [county,
175	175	municipality, or junior college district] in that first tax year
176	176	after the year in which the individual dies.
177	177	(l) Notwithstanding Subsection (d), a limitation on
178	178	[county, municipal, or junior college district] tax increases by a
179	179	taxing unit provided by this section does not expire if the owner of
180	180	the structure qualifies for an exemption under Section 11.13 under
181	181	the circumstances described by Section 11.135(a).
182	182	SECTION 3. Section 23.19(g), Tax Code, is amended to read as
183	183	follows:
184	184	(g) A tax bill or a separate statement accompanying the tax
185	185	bill to a cooperative housing corporation for which interests of
186	186	stockholders are separately appraised under this section must
187	187	state, in addition to the information required by Section 31.01,
188	188	the appraised value and taxable value of each interest separately
189	189	appraised. Each exemption claimed as provided by this title by a
190	190	person entitled to the exemption shall also be deducted from the
191	191	total appraised value of the property of the corporation. The total
192	192	tax imposed by a school district or other taxing unit [, county,
193	193	municipality, or junior college district] shall be reduced by any
194	194	amount that represents an increase in taxes attributable to
195	195	separately appraised interests of the real property and
196	196	improvements that are subject to the limitation of taxes prescribed
197	197	by Section 11.26 or 11.261. The corporation shall apportion among
198	198	its stockholders liability for reimbursing the corporation for
199	199	property taxes according to the relative taxable values of their
200	200	interests.
201	201	SECTION 4. Sections 26.012(6), (13), and (14), Tax Code,
202	202	are amended to read as follows:
203	203	(6) "Current total value" means the total taxable
204	204	value of property listed on the appraisal roll for the current year,
205	205	including all appraisal roll supplements and corrections as of the
206	206	date of the calculation, less the taxable value of property
207	207	exempted for the current tax year for the first time under Section
208	208	11.31 or 11.315, except that:
209	209	(A) the current total value for a school district
210	210	excludes:
211	211	(i) the total value of homesteads that
212	212	qualify for a tax limitation as provided by Section 11.26;
213	213	(ii) new property value of property that is
214	214	subject to an agreement entered into under former Subchapter B or C,
215	215	Chapter 313; and
216	216	(iii) new property value of property that
217	217	is subject to an agreement entered into under Subchapter T, Chapter
218	218	403, Government Code; and
219	219	(B) the current total value for a taxing unit
220	220	other than a school [county, municipality, or junior college]
221	221	district excludes the total value of homesteads that qualify for a
222	222	tax limitation provided by Section 11.261.
223	223	(13) "Last year's levy" means the total of:
224	224	(A) the amount of taxes that would be generated
225	225	by multiplying the total tax rate adopted by the governing body in
226	226	the preceding year by the total taxable value of property on the
227	227	appraisal roll for the preceding year, including:
228	228	(i) taxable value that was reduced in an
229	229	appeal under Chapter 42;
230	230	(ii) all appraisal roll supplements and
231	231	corrections other than corrections made pursuant to Section
232	232	25.25(d), as of the date of the calculation, except that last year's
233	233	taxable value for a school district excludes the total value of
234	234	homesteads that qualified for a tax limitation as provided by
235	235	Section 11.26 and last year's taxable value for a taxing unit other
236	236	than a school [county, municipality, or junior college] district
237	237	excludes the total value of homesteads that qualified for a tax
238	238	limitation as provided by Section 11.261; and
239	239	(iii) the portion of taxable value of
240	240	property that is the subject of an appeal under Chapter 42 on July
241	241	25 that is not in dispute; and
242	242	(B) the amount of taxes refunded by the taxing
243	243	unit in the preceding year for tax years before that year.
244	244	(14) "Last year's total value" means the total taxable
245	245	value of property listed on the appraisal roll for the preceding
246	246	year, including all appraisal roll supplements and corrections,
247	247	other than corrections made pursuant to Section 25.25(d), as of the
248	248	date of the calculation, except that:
249	249	(A) last year's taxable value for a school
250	250	district excludes the total value of homesteads that qualified for
251	251	a tax limitation as provided by Section 11.26; and
252	252	(B) last year's taxable value for a taxing unit
253	253	other than a school [county, municipality, or junior college]
254	254	district excludes the total value of homesteads that qualified for
255	255	a tax limitation as provided by Section 11.261.
256	256	SECTION 5. This Act applies only to ad valorem taxes imposed
257	257	for a tax year that begins on or after the effective date of this
258	258	Act.
259	259	SECTION 6. This Act takes effect January 1, 2026, but only
260	260	if the constitutional amendment proposed by the 89th Legislature,
261	261	Regular Session, 2025, to authorize a political subdivision other
262	262	than a school district to establish a limitation on the amount of ad
263	263	valorem taxes that the political subdivision may impose on the
264	264	residence homesteads of persons who are disabled or elderly and
265	265	their surviving spouses is approved by the voters. If that
266	266	amendment is not approved by the voters, this Act has no effect.