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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a taxing unit to adopt an exemption or |
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a tax rate that is contingent on voter approval of the adoption of a |
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tax rate or the issuance of bonds by that taxing unit or another |
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taxing unit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.136 to read as follows: |
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Sec. 11.136. CONDITIONAL ADOPTION OR INCREASE IN PERCENTAGE |
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OF LOCAL OPTION RESIDENCE HOMESTEAD EXEMPTION. (a) The governing |
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body of a taxing unit may condition the adoption of an exemption |
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under Section 11.13(n), or an increase in the percentage of an |
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exemption previously adopted by the governing body under that |
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subsection, on the outcome of an election ordered by the governing |
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body or the governing body of another taxing unit to approve: |
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(1) a tax rate under Section 26.07 or 26.08; or |
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(2) the issuance of bonds for which an election is |
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required to be held under: |
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(A) Section 45.003, Education Code; or |
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(B) Chapter 1251, Government Code. |
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(b) If the governing body of a taxing unit proposes to |
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conditionally adopt or increase the percentage of an exemption |
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under Section 11.13(n) under this section, the governing body must |
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include in the ordinance, resolution, or order adopting or |
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increasing the percentage of the exemption: |
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(1) a description of the specific condition that must |
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occur before the adoption or increase in the percentage of the |
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exemption may take effect; and |
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(2) a statement that the adoption or increase in the |
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percentage of the exemption: |
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(A) does not take effect unless the condition |
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described by Subdivision (1) occurs; and |
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(B) takes effect on January 1 of the first tax |
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year following the year in which the condition described by |
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Subdivision (1) occurs if that condition occurs. |
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SECTION 2. Chapter 26, Tax Code, is amended by adding |
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Section 26.0502 to read as follows: |
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Sec. 26.0502. CONDITIONAL TAX RATE. (a) At the time the |
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governing body of a taxing unit adopts a tax rate for the taxing |
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unit for the current tax year under Section 26.05(a), the governing |
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body may also adopt a conditional tax rate for the current tax year |
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that is lower than the tax rate adopted under that subsection, |
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conditioned on the outcome of an election ordered by the governing |
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body or the governing body of another taxing unit to approve: |
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(1) a tax rate under Section 26.07 or 26.08; or |
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(2) the issuance of bonds for which an election is |
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required to be held under: |
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(A) Section 45.003, Education Code; or |
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(B) Chapter 1251, Government Code. |
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(b) If the governing body of a taxing unit adopts a |
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conditional tax rate under Subsection (a) for a tax year, the |
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governing body shall: |
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(1) include the conditional tax rate and a description |
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of the specific condition that must occur for the conditional tax |
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rate to be the tax rate for the taxing unit in the ordinance, |
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resolution, or order adopted under Section 26.05; |
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(2) comply with the requirements of Section 26.05 as |
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to the conditional tax rate; and |
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(3) include in any tax rate notice the taxing unit is |
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required to provide under this chapter or Chapter 44, Education |
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Code: |
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(A) the conditional tax rate; |
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(B) a description of the specific condition that |
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must occur for the conditional tax rate to be the tax rate for the |
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taxing unit; and |
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(C) a statement that the conditional tax rate is |
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the tax rate for the taxing unit only if the specific condition |
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described by Paragraph (B) occurs. |
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(c) If the conditional tax rate becomes the tax rate for a |
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taxing unit for a tax year as the result of a specific condition |
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that occurs after the assessor for the taxing unit has mailed the |
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taxing unit's tax bills for that tax year, the assessor shall |
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prepare and mail corrected tax bills in the manner provided by |
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Chapter 31, and include with the corrected bill a brief explanation |
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of the reason for and effect of the corrected bill. A property |
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owner that paid the tax due as provided in the initial tax bill is |
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entitled to a refund in an amount equal to the difference between |
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the tax paid and the tax due as provided in the corrected bill. A |
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property owner is not required to apply for a refund under this |
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subsection to receive the refund. Section 31.11 does not apply to a |
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refund under this subsection. |
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SECTION 3. Sections 31.12(a) and (b), Tax Code, are amended |
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to read as follows: |
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(a) If a refund of a tax provided by Section 11.431(b), |
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26.07(g), 26.075(k), 26.0502(c), 26.15(f), 31.11, 31.111, or |
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31.112 is paid on or before the 60th day after the date the |
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liability for the refund arises, no interest is due on the amount |
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refunded. If not paid on or before that 60th day, the amount of the |
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tax to be refunded accrues interest at a rate of one percent for |
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each month or part of a month that the refund is unpaid, beginning |
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with the date on which the liability for the refund arises. |
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(b) For purposes of this section, liability for a refund |
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arises: |
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(1) if the refund is required by Section 11.431(b), on |
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the date the chief appraiser notifies the collector for the taxing |
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unit of the approval of the late homestead exemption; |
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(2) if the refund is required by Section 26.07(g) or |
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26.075(k), on the date the results of the election to approve or |
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reduce the tax rate, as applicable, are certified; |
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(2-a) if the refund is required by Section 26.0502(c), |
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on the date the conditional tax rate becomes the adopted tax rate |
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for the taxing unit; |
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(3) if the refund is required by Section 26.15(f): |
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(A) for a correction to the tax roll made under |
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Section 26.15(b), on the date the change in the tax roll is |
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certified to the assessor for the taxing unit under Section 25.25; |
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or |
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(B) for a correction to the tax roll made under |
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Section 26.15(c), on the date the change in the tax roll is ordered |
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by the governing body of the taxing unit; |
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(4) if the refund is required by Section 31.11, on the |
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date the auditor for the taxing unit determines that the payment was |
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erroneous or excessive or, if the amount of the refund exceeds the |
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applicable amount specified by Section 31.11(a), on the date the |
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governing body of the taxing unit approves the refund; |
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(5) if the refund is required by Section 31.111, on the |
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date the collector for the taxing unit determines that the payment |
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was erroneous; or |
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(6) if the refund is required by Section 31.112, on the |
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date required by Section 31.112(d) or (e), as applicable. |
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SECTION 4. This Act applies to an ad valorem tax year that |
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begins on or after the effective date of this Act. |
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SECTION 5. This Act takes effect January 1, 2026. |