By Rosson S.B. No. 674
74R1593 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the limitation of school district ad valorem tax
1-3 increases on the residence homestead of certain disabled persons.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading to Section 11.26, Tax Code, is
1-6 amended to read as follows:
1-7 Sec. 11.26. LIMITATION OF SCHOOL TAX ON HOMESTEADS OF
1-8 DISABLED OR ELDERLY.
1-9 SECTION 2. Sections 11.26(a), (d), and (e), Tax Code, are
1-10 amended to read as follows:
1-11 (a) Except as provided by Subsection (b) of this section, a
1-12 school district may not increase the total annual amount of ad
1-13 valorem tax it imposes on the residence homestead of an individual
1-14 who is disabled or is 65 years or older above the amount of the tax
1-15 it imposed in the first year the individual qualified that
1-16 residence homestead for the exemption provided by Subsection (c) of
1-17 Section 11.13 of this code. The tax officials shall continue to
1-18 appraise the property and to calculate taxes as on other property,
1-19 but if the tax so calculated exceeds the limitation imposed by this
1-20 section, the tax imposed is the tax imposed in the first year the
1-21 individual qualified the residence homestead for the exemption.
1-22 (d) If the appraisal roll provides for taxation of appraised
1-23 value for a prior year because a residence homestead exemption for
1-24 a person who is disabled or is <persons> 65 years or older was
2-1 erroneously allowed, the tax assessor shall add, as back taxes due
2-2 as provided by Subsection (d) of Section 26.09 of this code, the
2-3 positive difference if any between the tax that should have been
2-4 imposed for that year and the tax that was imposed because of the
2-5 provisions of this section.
2-6 (e) For each school district in an appraisal district, the
2-7 chief appraiser shall determine the portion of the appraised value
2-8 of residence homesteads of disabled persons and the elderly on
2-9 which school district taxes are not imposed in a tax year because
2-10 of the limitation on tax increases imposed by this section. That
2-11 portion is calculated by determining the taxable value that, if
2-12 multiplied by the tax rate adopted by the school district for the
2-13 tax year, would produce an amount equal to the amount of tax that
2-14 would have been imposed by the school district on residence
2-15 homesteads of disabled persons and the elderly if the limitation on
2-16 tax increases imposed by this section were not in effect, but that
2-17 was not imposed because of that limitation. The chief appraiser
2-18 shall determine that taxable value and certify it to the
2-19 comptroller as soon as practicable for each tax year.
2-20 SECTION 3. This Act takes effect January 1, 1996, and
2-21 applies only to taxes imposed for tax years beginning on or after
2-22 that date, but only if the constitutional amendment proposed by the
2-23 74th Legislature, Regular Session, 1995, to limit school district
2-24 ad valorem tax increases on the residence homesteads of certain
2-25 disabled persons is approved by the voters. If that amendment is
2-26 not approved by the voters, this Act has no effect.
2-27 SECTION 4. The importance of this legislation and the
3-1 crowded condition of the calendars in both houses create an
3-2 emergency and an imperative public necessity that the
3-3 constitutional rule requiring bills to be read on three several
3-4 days in each house be suspended, and this rule is hereby suspended.