By Hamric H.B. No. 1127
74R2743 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the prohibition on increasing the total amount of ad
1-3 valorem taxes imposed on the residence homestead of an elderly
1-4 person.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The heading to Section 11.26, Tax Code, is
1-7 amended to read as follows:
1-8 Sec. 11.26. LIMITATION OF TAXES <SCHOOL TAX> ON HOMESTEADS
1-9 OF ELDERLY.
1-10 SECTION 2. Sections 11.26(a), (b), and (e), Tax Code, are
1-11 amended to read as follows:
1-12 (a) Except as provided by Subsection (b) of this section, a
1-13 taxing unit <school district> may not increase the total annual
1-14 amount of ad valorem tax it imposes on the residence homestead of
1-15 an individual 65 years or older above the amount of the tax it
1-16 imposed in the first year the individual qualified that residence
1-17 homestead for the exemption provided by Subsection (c) or (d) of
1-18 Section 11.13 of this code for an individual 65 years of age or
1-19 older. The tax officials shall continue to appraise the property
1-20 and to calculate taxes as on other property, but if the tax so
1-21 calculated exceeds the limitation imposed by this section, the tax
1-22 imposed is the tax imposed in the first year the individual
1-23 qualified the residence homestead for the exemption.
1-24 (b) If an individual makes improvements to his residence
2-1 homestead, other than improvements required to comply with
2-2 governmental requirements or repairs, the taxing unit <school
2-3 district> may increase the tax on the homestead in the first year
2-4 the value of the homestead is increased on the appraisal roll
2-5 because of the enhancement of value by the improvements. The
2-6 amount of the tax increase is determined by applying the current
2-7 tax rate to the difference in the assessed value of the homestead
2-8 with the improvements and the assessed value it would have had
2-9 without the improvements. The limitations imposed by Subsection
2-10 (a) of this section then apply to the increased amount of tax until
2-11 more improvements, if any, are made.
2-12 (e) For each taxing unit <school district> in an appraisal
2-13 district, the chief appraiser shall determine the portion of the
2-14 appraised value of residence homesteads of the elderly on which
2-15 <school district> taxes are not imposed in a tax year because of
2-16 the limitation on tax increases imposed by this section. That
2-17 portion is calculated by determining the taxable value that, if
2-18 multiplied by the tax rate adopted by the taxing unit <school
2-19 district> for the tax year, would produce an amount equal to the
2-20 amount of tax that would have been imposed by the taxing unit
2-21 <school district> on residence homesteads of the elderly if the
2-22 limitation on tax increases imposed by this section were not in
2-23 effect, but that was not imposed because of that limitation. The
2-24 chief appraiser shall determine that taxable value and certify it
2-25 to the comptroller as soon as practicable for each tax year.
2-26 SECTION 3. Section 23.19(g), Tax Code, is amended to read as
2-27 follows:
3-1 (g) A tax bill or a separate statement accompanying the tax
3-2 bill to a cooperative housing corporation for which interests of
3-3 stockholders are separately appraised under this section must
3-4 state, in addition to the information required by Section 31.01 of
3-5 this code, the appraised value and taxable value of each interest
3-6 separately appraised. Each exemption claimed as provided by this
3-7 title by a person entitled to the exemption shall also be deducted
3-8 from the total appraised value of the property of the corporation.
3-9 The total tax imposed by a taxing unit <school district> shall be
3-10 reduced by any amount that represents an increase in taxes
3-11 attributable to separately appraised interests of the real property
3-12 and improvements that are subject to the limitation of taxes
3-13 prescribed by Section 11.26 of this code. The corporation shall
3-14 apportion among its stockholders liability for reimbursing the
3-15 corporation for property taxes according to the relative taxable
3-16 values of their interests.
3-17 SECTION 4. Sections 26.012(6), (13), and (14), Tax Code, are
3-18 amended to read as follows:
3-19 (6) "Current total value" means the total taxable
3-20 value of property listed on the appraisal roll for the current
3-21 year, including all appraisal roll supplements and corrections as
3-22 of the date of the calculation, less the taxable value of property
3-23 exempted for the current tax year for the first time under Section
3-24 11.31 and excluding<, except that the current total value for a
3-25 school district excludes> the total value of homesteads that
3-26 qualify for a tax limitation as provided by Section 11.26.
3-27 (13) "Last year's levy" means the amount of taxes that
4-1 would be generated by multiplying the total tax rate adopted by the
4-2 governing body in the preceding year by the total taxable value of
4-3 property on the appraisal roll for the preceding year, including
4-4 all appraisal roll supplements and corrections as of the date of
4-5 the calculation but excluding<, except that last year's taxable
4-6 value for a school district excludes> the total value of homesteads
4-7 that qualified for a tax limitation as provided by Section 11.26 of
4-8 this code.
4-9 (14) "Last year's total value" means the total taxable
4-10 value of property listed on the appraisal roll for the preceding
4-11 year, including all appraisal roll supplements and corrections as
4-12 of the date of the calculation but excluding<, except that last
4-13 year's taxable value for a school district excludes> the total
4-14 value of homesteads that qualified for a tax limitation as provided
4-15 by Section 11.26 of this code.
4-16 SECTION 5. This Act takes effect January 1, 1996, and
4-17 applies only to taxes imposed for tax years beginning on or after
4-18 that date, but only if the constitutional amendment proposed by the
4-19 74th Legislature, Regular Session, 1995, relating to the
4-20 prohibition on increasing the total amount of ad valorem taxes
4-21 imposed on the residence homestead of an elderly person is approved
4-22 by the voters. If that amendment is not approved by the voters,
4-23 this Act has no effect.
4-24 SECTION 6. The importance of this legislation and the
4-25 crowded condition of the calendars in both houses create an
4-26 emergency and an imperative public necessity that the
4-27 constitutional rule requiring bills to be read on three several
5-1 days in each house be suspended, and this rule is hereby suspended.