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.