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A BILL TO BE ENTITLED
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AN ACT
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relating to the adjustment of the limitation on the amount of ad |
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valorem taxes imposed by a school district on the residence |
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homestead of an elderly or disabled person if the school district |
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adopts, changes the amount of, or rescinds a local option residence |
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homestead exemption. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.26, Tax Code, is amended by adding |
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Subsections (a-4), (a-5), (a-6), and (a-7) to read as follows: |
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(a-4) Notwithstanding the other provisions of this section, |
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if in the 2022 tax year or a subsequent tax year a school district |
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adopts an exemption under Section 11.13(n) for the first time, the |
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amount of the limitation on tax increases provided by this section |
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on the residence homestead of an individual who qualifies for the |
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limitation and who qualified for an exemption under Section |
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11.13(c) for that homestead for the preceding tax year is, for the |
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tax year in which the exemption is adopted, equal to the amount |
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computed by: |
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(1) multiplying the dollar amount of the appraised |
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value of the homestead exempted under Section 11.13(n) by the tax |
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rate of the district for the current tax year; |
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(2) subtracting the amount computed under Subdivision |
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(1) from the amount of tax the district imposed on the homestead in |
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the preceding tax year; and |
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(3) adding to the amount computed under Subdivision |
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(2) any tax imposed by the district on the homestead in the current |
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tax year attributable to improvements made in the preceding tax |
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year, as provided by Subsection (b). |
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(a-5) Except as provided by Subsections (a-6) and (b), a |
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limitation on tax increases provided by this section on a residence |
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homestead computed under Subsection (a-4) continues to apply to the |
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homestead in subsequent tax years until the limitation expires. |
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(a-6) Notwithstanding the other provisions of this section, |
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if a school district increases, decreases, or rescinds an exemption |
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under Section 11.13(n) that the district adopted for the first time |
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in the 2022 tax year or a subsequent tax year, the amount of the |
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limitation on tax increases provided by this section on the |
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residence homestead of an individual who qualifies for the |
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limitation and who qualified for an exemption under Section |
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11.13(c) for that homestead for the preceding tax year is, for the |
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tax year in which the exemption is increased, decreased, or |
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rescinded, equal to the amount computed by: |
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(1) multiplying the change, expressed as a positive |
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amount, in the dollar amount of the appraised value of the homestead |
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exempted under Section 11.13(n) as a result of the increase, |
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decrease, or rescission of that exemption by the tax rate of the |
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district for the current tax year; |
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(2) subtracting the amount computed under Subdivision |
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(1) from, or adding the amount computed under that subdivision to, |
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as applicable, the amount of tax the district imposed on the |
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homestead in the preceding tax year; and |
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(3) adding to the amount computed under Subdivision |
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(2) any tax imposed by the district on the homestead in the current |
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tax year attributable to improvements made in the preceding tax |
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year, as provided by Subsection (b). |
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(a-7) Except as provided by Subsection (b), a limitation on |
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tax increases provided by this section on a residence homestead |
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computed under Subsection (a-6) continues to apply to the homestead |
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in subsequent tax years until the limitation expires. |
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SECTION 2. The changes in law made by this Act apply only to |
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an ad valorem tax year that begins on or after January 1, 2022. |
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SECTION 3. This Act takes effect January 1, 2022, but only |
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if the constitutional amendment proposed by the 87th Legislature, |
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Regular Session, 2021, authorizing the legislature to provide for |
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the adjustment of the limitation on the amount of ad valorem taxes |
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imposed by a school district on the residence homestead of an |
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elderly or disabled person if the school district adopts, changes |
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the amount of, or rescinds a local option residence homestead |
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exemption is approved by the voters. If that constitutional |
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amendment is not approved by the voters, this Act has no effect. |