| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the establishment of a limitation on the total amount of |
|
|
ad valorem taxes that a county may impose on the residence |
|
|
homesteads of individuals who are disabled or elderly and their |
|
|
surviving spouses. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. The heading to Section 11.261, Tax Code, is |
|
|
amended to read as follows: |
|
|
Sec. 11.261. LIMITATION OF [COUNTY,] MUNICIPAL[,] OR JUNIOR |
|
|
COLLEGE DISTRICT TAX ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED |
|
|
OR [AND] ELDERLY. |
|
|
SECTION 2. Sections 11.261(a), (b), (c), (d), (e), (g), |
|
|
(h), (i), (j), (k), and (l), Tax Code, are amended to read as |
|
|
follows: |
|
|
(a) This section applies only to a [county,] |
|
|
municipality[,] or junior college district that has established a |
|
|
limitation on the total amount of taxes that may be imposed by the |
|
|
[county,] municipality[,] or junior college district on the |
|
|
residence homestead of an individual who is [a] disabled |
|
|
[individual] or is [an individual] 65 years of age or older under |
|
|
Section 1-b(h), Article VIII, Texas Constitution. |
|
|
(b) The tax officials shall appraise the property to which |
|
|
this section [the limitation] applies and calculate taxes as on |
|
|
other property, but if the tax so calculated exceeds the limitation |
|
|
provided by this section, the tax imposed is the amount of the tax |
|
|
as limited by this section, except as otherwise provided by this |
|
|
section. The [county,] municipality[,] or junior college district |
|
|
may not increase the total annual amount of ad valorem taxes the |
|
|
[county,] municipality[,] or junior college district imposes on the |
|
|
residence homestead of an individual who is [a] disabled |
|
|
[individual] or is [an individual] 65 years of age or older above |
|
|
the amount of the taxes the [county,] municipality[,] or junior |
|
|
college district imposed on the residence homestead in the first |
|
|
tax year, other than a tax year preceding the tax year in which the |
|
|
[county,] municipality[,] or junior college district established |
|
|
the limitation described by Subsection (a), in which the individual |
|
|
qualified that residence homestead for the exemption provided by |
|
|
Section 11.13(c) for an individual who is [a] disabled [individual] |
|
|
or is [an individual] 65 years of age or older. If the individual |
|
|
qualified that residence homestead for the exemption after the |
|
|
beginning of that first year and the residence homestead remains |
|
|
eligible for the exemption for the next year, and if the [county,] |
|
|
municipal[,] or junior college district taxes imposed on the |
|
|
residence homestead in the next year are less than the amount of |
|
|
taxes imposed in that first year, a [county,] municipality[,] or |
|
|
junior college district may not subsequently increase the total |
|
|
annual amount of ad valorem taxes it imposes on the residence |
|
|
homestead above the amount it imposed on the residence homestead in |
|
|
the year immediately following the first year, other than a tax year |
|
|
preceding the tax year in which the [county,] municipality[,] or |
|
|
junior college district established the limitation described by |
|
|
Subsection (a), for which the individual qualified that residence |
|
|
homestead for the exemption. |
|
|
(c) If an individual makes improvements to the individual's |
|
|
residence homestead, other than repairs and other than improvements |
|
|
required to comply with governmental requirements, the [county,] |
|
|
municipality[,] or junior college district may increase the amount |
|
|
of taxes on the homestead in the first year the value of the |
|
|
homestead is increased on the appraisal roll because of the |
|
|
enhancement of value by the improvements. The amount of the tax |
|
|
increase is determined by applying the current tax rate to the |
|
|
difference between the appraised value of the homestead with the |
|
|
improvements and the appraised value the homestead [it] would have |
|
|
had without the improvements. The [A] limitation provided by this |
|
|
section then applies to the increased amount of [county,] |
|
|
municipal[,] or junior college district taxes on the residence |
|
|
homestead until more improvements, if any, are made. |
|
|
(d) A limitation on [county,] municipal[,] or junior |
|
|
college district tax increases provided by this section expires if |
|
|
on January 1: |
|
|
(1) none of the owners of the structure who qualify for |
|
|
the exemption provided by Section 11.13(c) for an individual who is |
|
|
[a] disabled [individual] or is [an individual] 65 years of age or |
|
|
older and who owned the structure when the limitation [provided by |
|
|
this section] first took effect is using the structure as a |
|
|
residence homestead; or |
|
|
(2) none of the owners of the structure qualifies for |
|
|
the exemption provided by Section 11.13(c) for an individual who is |
|
|
[a] disabled [individual] or is [an individual] 65 years of age or |
|
|
older. |
|
|
(e) If the appraisal roll provides for taxation of appraised |
|
|
value for a prior year because a residence homestead exemption for |
|
|
an individual who is disabled [individuals] or is [individuals] 65 |
|
|
years of age or older was erroneously allowed, the tax assessor for |
|
|
the applicable [county,] municipality[,] or junior college |
|
|
district shall add, as back taxes due as provided by Section |
|
|
26.09(d), the positive difference, if any, between the tax that |
|
|
should have been imposed for that year and the tax that was imposed |
|
|
under [because of] the provisions of this section. |
|
|
(g) Except as provided by Subsection (c), if an individual |
|
|
who receives a limitation on [county,] municipal[,] or junior |
|
|
college district tax increases provided by this section |
|
|
subsequently qualifies a different residence homestead in the same |
|
|
[county,] municipality[,] or junior college district for an |
|
|
exemption under Section 11.13, the [county,] municipality[,] or |
|
|
junior college district may not impose ad valorem taxes on the |
|
|
subsequently qualified homestead in a year in an amount that |
|
|
exceeds the amount of taxes the [county,] municipality[,] or junior |
|
|
college district would have imposed on the subsequently qualified |
|
|
homestead in the first year in which the individual receives that |
|
|
exemption for the subsequently qualified homestead had the |
|
|
limitation on tax increases provided by this section not been in |
|
|
effect, multiplied by a fraction the numerator of which is the total |
|
|
amount of taxes the [county,] municipality[,] or junior college |
|
|
district imposed on the former homestead in the last year in which |
|
|
the individual received that exemption for the former homestead and |
|
|
the denominator of which is the total amount of taxes the [county,] |
|
|
municipality[,] or junior college district would have imposed on |
|
|
the former homestead in the last year in which the individual |
|
|
received that exemption for the former homestead had the limitation |
|
|
on tax increases provided by this section not been in effect. |
|
|
(h) An individual who receives a limitation on [county,] |
|
|
municipal[,] or junior college district tax increases under this |
|
|
section and who subsequently qualifies a different residence |
|
|
homestead in the same [county,] municipality[,] or junior college |
|
|
district for an exemption under Section 11.13, or an agent of the |
|
|
individual, is entitled to receive from the chief appraiser of the |
|
|
appraisal district in which the former homestead was located a |
|
|
written certificate providing the information necessary to |
|
|
determine whether the individual may qualify for a limitation on |
|
|
the subsequently qualified homestead under Subsection (g) and to |
|
|
calculate the amount of taxes the [county,] municipality[,] or |
|
|
junior college district may impose on the subsequently qualified |
|
|
homestead. |
|
|
(i) If an individual who qualifies for a limitation on |
|
|
[county,] municipal[,] or junior college district tax increases |
|
|
under this section dies, the surviving spouse of the individual is |
|
|
entitled to the limitation on taxes imposed by the [county,] |
|
|
municipality[,] or junior college district on the residence |
|
|
homestead of the individual if: |
|
|
(1) the surviving spouse is disabled or is 55 years of |
|
|
age or older when the individual dies; and |
|
|
(2) the residence homestead of the individual: |
|
|
(A) is the residence homestead of the surviving |
|
|
spouse on the date that the individual dies; and |
|
|
(B) remains the residence homestead of the |
|
|
surviving spouse. |
|
|
(j) If an individual who is 65 years of age or older and |
|
|
qualifies for a limitation on [county,] municipal[,] or junior |
|
|
college district tax increases for the elderly under this section |
|
|
dies in the first year in which the individual qualified for the |
|
|
limitation and the individual first qualified for the limitation |
|
|
after the beginning of that year, except as provided by Subsection |
|
|
(k), the amount to which the surviving spouse's [county,] |
|
|
municipal[,] or junior college district taxes are limited under |
|
|
Subsection (i) is the amount of taxes imposed by the [county,] |
|
|
municipality[,] or junior college district, as applicable, on the |
|
|
residence homestead in that year determined as if the individual |
|
|
qualifying for the exemption had lived for the entire year. |
|
|
(k) If in the first tax year after the year in which an |
|
|
individual who is 65 years of age or older dies under the |
|
|
circumstances described by Subsection (j) the amount of taxes |
|
|
imposed by a [county,] municipality[,] or junior college district |
|
|
on the residence homestead of the surviving spouse is less than the |
|
|
amount of taxes imposed by the [county,] municipality[,] or junior |
|
|
college district in the preceding year as limited by Subsection |
|
|
(j), in a subsequent tax year the surviving spouse's taxes imposed |
|
|
by the [county,] municipality[,] or junior college district on that |
|
|
residence homestead are limited to the amount of taxes imposed by |
|
|
the [county,] municipality[,] or junior college district in that |
|
|
first tax year after the year in which the individual dies. |
|
|
(l) Notwithstanding Subsection (d), a limitation on |
|
|
[county,] municipal[,] or junior college district tax increases |
|
|
provided by this section does not expire if the owner of the |
|
|
structure qualifies for an exemption under Section 11.13 under the |
|
|
circumstances described by Section 11.135(a). |
|
|
SECTION 3. Subchapter B, Chapter 11, Tax Code, is amended by |
|
|
adding Section 11.262 to read as follows: |
|
|
Sec. 11.262. LIMITATION OF COUNTY TAX ON HOMESTEADS OF |
|
|
INDIVIDUALS WHO ARE DISABLED OR ELDERLY. (a) The tax officials |
|
|
shall appraise the property to which this section applies and |
|
|
calculate taxes as on other property, but if the tax so calculated |
|
|
exceeds the limitation required by this section, the tax imposed is |
|
|
the amount of the tax as limited by this section, except as |
|
|
otherwise provided by this section. |
|
|
(b) A county may not increase the total annual amount of ad |
|
|
valorem taxes the county imposes on the residence homestead of an |
|
|
individual who is disabled or is 65 years of age or older above the |
|
|
amount of the taxes the county imposed on the residence homestead in |
|
|
the first tax year in which the individual qualified that residence |
|
|
homestead for the exemption provided by Section 11.13(c) for an |
|
|
individual who is disabled or is 65 years of age or older. If the |
|
|
individual qualified that residence homestead for the exemption |
|
|
after the beginning of that first year and the residence homestead |
|
|
remains eligible for the exemption for the next year, and if the |
|
|
taxes imposed by the county on the residence homestead in the next |
|
|
year are less than the amount of those taxes imposed in that first |
|
|
year, the county may not subsequently increase the total annual |
|
|
amount of ad valorem taxes it imposes on the residence homestead |
|
|
above the amount it imposed on the residence homestead in the year |
|
|
immediately following the first year for which the individual |
|
|
qualified that residence homestead for the exemption. |
|
|
(c) If the first tax year the individual qualified the |
|
|
residence homestead for the exemption provided by Section 11.13(c) |
|
|
for individuals who are disabled or are 65 years of age or older was |
|
|
a tax year before the 2024 tax year and the homestead qualified for |
|
|
a limitation on county taxes under Section 11.261, as that section |
|
|
existed on January 1, 2023, for the 2024 tax year, the amount of the |
|
|
limitation on county taxes required by this section is the amount of |
|
|
the tax imposed by the county for the 2023 tax year, plus any 2024 |
|
|
tax attributable to improvements made in 2023, other than |
|
|
improvements made to comply with governmental regulations or |
|
|
repairs. |
|
|
(d) Except as provided by Subsection (c), for the purpose of |
|
|
calculating a limitation on tax increases by a county under this |
|
|
section, an individual who qualified a residence homestead before |
|
|
January 1, 2024, for an exemption under Section 11.13(c) for |
|
|
individuals who are disabled or are 65 years of age or older is |
|
|
considered to have qualified the homestead for that exemption on |
|
|
January 1, 2024. |
|
|
(e) If an individual makes improvements to the individual's |
|
|
residence homestead, other than repairs and other than improvements |
|
|
required to comply with governmental requirements, the county may |
|
|
increase the amount of taxes on the homestead in the first year the |
|
|
value of the homestead is increased on the appraisal roll because of |
|
|
the enhancement of value by the improvements. The amount of the tax |
|
|
increase is determined by applying the current tax rate of the |
|
|
county to the difference between the appraised value of the |
|
|
homestead with the improvements and the appraised value the |
|
|
homestead would have had without the improvements. The limitation |
|
|
provided by this section then applies to the increased amount of |
|
|
county taxes on the residence homestead until more improvements, if |
|
|
any, are made. |
|
|
(f) A limitation on county tax increases required by this |
|
|
section expires if on January 1: |
|
|
(1) none of the owners of the structure who qualify for |
|
|
the exemption provided by Section 11.13(c) for an individual who is |
|
|
disabled or is 65 years of age or older and who owned the structure |
|
|
when the limitation first took effect is using the structure as a |
|
|
residence homestead; or |
|
|
(2) none of the owners of the structure qualifies for |
|
|
the exemption provided by Section 11.13(c) for an individual who is |
|
|
disabled or is 65 years of age or older. |
|
|
(g) If the appraisal roll provides for taxation of appraised |
|
|
value for a prior year because a residence homestead exemption for |
|
|
an individual who is disabled or is 65 years of age or older was |
|
|
erroneously allowed, the tax assessor for the applicable county |
|
|
shall add, as back taxes due as provided by Section 26.09(d), the |
|
|
positive difference, if any, between the tax that should have been |
|
|
imposed for that year and the tax that was imposed under the |
|
|
requirements of this section. |
|
|
(h) A limitation on county tax increases required by this |
|
|
section does not expire because the owner of an interest in the |
|
|
structure conveys the interest to a qualifying trust as defined by |
|
|
Section 11.13(j) if the owner or the owner's spouse is a trustor of |
|
|
the trust and is entitled to occupy the structure. |
|
|
(i) Except as provided by Subsection (e), if an individual |
|
|
who receives a limitation on county tax increases required by this |
|
|
section, including a surviving spouse who receives a limitation |
|
|
under Subsection (k), subsequently qualifies a different residence |
|
|
homestead for an exemption under Section 11.13, a county may not |
|
|
impose ad valorem taxes on the subsequently qualified homestead in |
|
|
a year in an amount that exceeds the amount of taxes the county |
|
|
would have imposed on the subsequently qualified homestead in the |
|
|
first year in which the individual receives that exemption for the |
|
|
subsequently qualified homestead had the limitation on tax |
|
|
increases required by this section not been in effect, multiplied |
|
|
by a fraction the numerator of which is the total amount of county |
|
|
taxes imposed on the former homestead in the last year in which the |
|
|
individual received that exemption for the former homestead and the |
|
|
denominator of which is the total amount of county taxes that would |
|
|
have been imposed on the former homestead in the last year in which |
|
|
the individual received that exemption for the former homestead had |
|
|
the limitation on tax increases required by this section not been in |
|
|
effect. |
|
|
(j) An individual who receives a limitation on county tax |
|
|
increases under this section, including a surviving spouse who |
|
|
receives a limitation under Subsection (k), and who subsequently |
|
|
qualifies a different residence homestead for an exemption under |
|
|
Section 11.13, or an agent of the individual, is entitled to receive |
|
|
from the chief appraiser of the appraisal district in which the |
|
|
former homestead was located a written certificate providing the |
|
|
information necessary to determine whether the individual may |
|
|
qualify for a limitation on the subsequently qualified homestead |
|
|
under Subsection (i) and to calculate the amount of taxes the county |
|
|
may impose on the subsequently qualified homestead. |
|
|
(k) If an individual who qualifies for a limitation on |
|
|
county tax increases under this section dies, the surviving spouse |
|
|
of the individual is entitled to the limitation on taxes imposed by |
|
|
the county on the residence homestead of the individual if: |
|
|
(1) the surviving spouse is disabled or is 55 years of |
|
|
age or older when the individual dies; and |
|
|
(2) the residence homestead of the individual: |
|
|
(A) is the residence homestead of the surviving |
|
|
spouse on the date that the individual dies; and |
|
|
(B) remains the residence homestead of the |
|
|
surviving spouse. |
|
|
(l) If an individual who is 65 years of age or older and |
|
|
qualifies for a limitation on county tax increases for the elderly |
|
|
under this section dies in the first year in which the individual |
|
|
qualified for the limitation and the individual first qualified for |
|
|
the limitation after the beginning of that year, except as provided |
|
|
by Subsection (m), the amount to which the surviving spouse's |
|
|
county taxes are limited under Subsection (k) is the amount of taxes |
|
|
imposed by the county on the residence homestead in that year |
|
|
determined as if the individual qualifying for the exemption had |
|
|
lived for the entire year. |
|
|
(m) If in the first tax year after the year in which an |
|
|
individual who is 65 years of age or older dies under the |
|
|
circumstances described by Subsection (l) the amount of taxes |
|
|
imposed by a county on the residence homestead of the surviving |
|
|
spouse is less than the amount of taxes imposed by the county in the |
|
|
preceding year as limited by Subsection (l), in a subsequent tax |
|
|
year the surviving spouse's taxes imposed by the county on that |
|
|
residence homestead are limited to the amount of taxes imposed by |
|
|
the county in that first tax year after the year in which the |
|
|
individual dies. |
|
|
(n) Notwithstanding Subsection (f), a limitation on county |
|
|
tax increases required by this section does not expire if the owner |
|
|
of the structure qualifies for an exemption under Section 11.13 |
|
|
under the circumstances described by Section 11.135(a). |
|
|
(o) Notwithstanding Subsections (a) and (e), an improvement |
|
|
to property that would otherwise constitute an improvement under |
|
|
Subsection (e) is not treated as an improvement under that |
|
|
subsection if the improvement is a replacement structure for a |
|
|
structure that was rendered uninhabitable or unusable by a casualty |
|
|
or by wind or water damage. For purposes of appraising the property |
|
|
in the tax year in which the structure would have constituted an |
|
|
improvement under Subsection (e), the replacement structure is |
|
|
considered to be an improvement under that subsection only if: |
|
|
(1) the square footage of the replacement structure |
|
|
exceeds that of the replaced structure as that structure existed |
|
|
before the casualty or damage occurred; or |
|
|
(2) the exterior of the replacement structure is of |
|
|
higher quality construction and composition than that of the |
|
|
replaced structure. |
|
|
(p) An heir property owner who qualifies heir property as |
|
|
the owner's residence homestead under this chapter is considered |
|
|
the sole owner of the property for the purposes of this section. |
|
|
SECTION 4. Sections 23.19(b) and (g), Tax Code, are amended |
|
|
to read as follows: |
|
|
(b) If an appraisal district receives a written request for |
|
|
the appraisal of real property and improvements of a cooperative |
|
|
housing corporation according to the separate interests of the |
|
|
corporation's stockholders, the chief appraiser shall separately |
|
|
appraise the interests described by Subsection (d) if the |
|
|
conditions required by Subsections (e) and (f) have been |
|
|
met. Separate appraisal under this section is for the purposes of |
|
|
administration of tax exemptions, determination of applicable |
|
|
limitations of taxes under Section 11.26, [or] 11.261, or 11.262, |
|
|
and apportionment by a cooperative housing corporation of property |
|
|
taxes among its stockholders but is not the basis for determining |
|
|
value on which a tax is imposed under this title. A stockholder |
|
|
whose interest is separately appraised under this section may |
|
|
protest and appeal the appraised value in the manner provided by |
|
|
this title for protest and appeal of the appraised value of other |
|
|
property. |
|
|
(g) A tax bill or a separate statement accompanying the tax |
|
|
bill to a cooperative housing corporation for which interests of |
|
|
stockholders are separately appraised under this section must |
|
|
state, in addition to the information required by Section 31.01, |
|
|
the appraised value and taxable value of each interest separately |
|
|
appraised. Each exemption claimed as provided by this title by a |
|
|
person entitled to the exemption shall also be deducted from the |
|
|
total appraised value of the property of the corporation. The |
|
|
total tax imposed by a school district, [county,] municipality, |
|
|
[or] junior college district, or county shall be reduced by any |
|
|
amount that represents an increase in taxes attributable to |
|
|
separately appraised interests of the real property and |
|
|
improvements that are subject to the limitation of taxes prescribed |
|
|
by Section 11.26, [or] 11.261, or 11.262. The corporation shall |
|
|
apportion among its stockholders liability for reimbursing the |
|
|
corporation for property taxes according to the relative taxable |
|
|
values of their interests. |
|
|
SECTION 5. Sections 26.012(6), (13), and (14), Tax Code, |
|
|
are amended to read as follows: |
|
|
(6) "Current total value" means the total taxable |
|
|
value of property listed on the appraisal roll for the current year, |
|
|
including all appraisal roll supplements and corrections as of the |
|
|
date of the calculation, less the taxable value of property |
|
|
exempted for the current tax year for the first time under Section |
|
|
11.31 or 11.315, except that: |
|
|
(A) the current total value for a school district |
|
|
excludes: |
|
|
(i) the total value of homesteads that |
|
|
qualify for a tax limitation as provided by Section 11.26; and |
|
|
(ii) new property value of property that is |
|
|
subject to an agreement entered into under Chapter 313; [and] |
|
|
(B) the current total value for a [county,] |
|
|
municipality[,] or junior college district excludes the total value |
|
|
of homesteads that qualify for a tax limitation as provided by |
|
|
Section 11.261; and |
|
|
(C) the current total value for a county excludes |
|
|
the total value of homesteads that qualify for a tax limitation as |
|
|
provided by Section 11.262. |
|
|
(13) "Last year's levy" means the total of: |
|
|
(A) the amount of taxes that would be generated |
|
|
by multiplying the total tax rate adopted by the governing body in |
|
|
the preceding year by the total taxable value of property on the |
|
|
appraisal roll for the preceding year, including: |
|
|
(i) taxable value that was reduced in an |
|
|
appeal under Chapter 42; |
|
|
(ii) all appraisal roll supplements and |
|
|
corrections other than corrections made pursuant to Section |
|
|
25.25(d), as of the date of the calculation, except that: |
|
|
(a) last year's taxable value for a |
|
|
school district excludes the total value of homesteads that |
|
|
qualified for a tax limitation as provided by Section 11.26; |
|
|
(b) [and] last year's taxable value |
|
|
for a [county,] municipality[,] or junior college district excludes |
|
|
the total value of homesteads that qualified for a tax limitation as |
|
|
provided by Section 11.261; and |
|
|
(c) last year's taxable value for a |
|
|
county excludes the total value of homesteads that qualified for a |
|
|
tax limitation as provided by Section 11.261; and |
|
|
(iii) the portion of taxable value of |
|
|
property that is the subject of an appeal under Chapter 42 on July |
|
|
25 that is not in dispute; and |
|
|
(B) the amount of taxes refunded by the taxing |
|
|
unit in the preceding year for tax years before that year. |
|
|
(14) "Last year's total value" means the total taxable |
|
|
value of property listed on the appraisal roll for the preceding |
|
|
year, including all appraisal roll supplements and corrections, |
|
|
other than corrections made pursuant to Section 25.25(d), as of the |
|
|
date of the calculation, except that: |
|
|
(A) last year's taxable value for a school |
|
|
district excludes the total value of homesteads that qualified for |
|
|
a tax limitation as provided by Section 11.26; [and] |
|
|
(B) last year's taxable value for a [county,] |
|
|
municipality[,] or junior college district excludes the total value |
|
|
of homesteads that qualified for a tax limitation as provided by |
|
|
Section 11.261; and |
|
|
(C) last year's taxable value for a county |
|
|
excludes the total value of homesteads that qualified for a tax |
|
|
limitation as provided by Section 11.262. |
|
|
SECTION 6. This Act applies only to ad valorem taxes imposed |
|
|
for a tax year beginning on or after the effective date of this Act. |
|
|
SECTION 7. This Act takes effect January 1, 2024, but only |
|
|
if the constitutional amendment proposed by the 88th Legislature, |
|
|
Regular Session, 2023, establishing a limitation on the total |
|
|
amount of ad valorem taxes that a county may impose on the residence |
|
|
homesteads of persons who are disabled or elderly and their |
|
|
surviving spouses is approved by the voters. If that amendment is |
|
|
not approved by the voters, this Act has no effect. |