By Alexander H.B. No. 1347
75R5163 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the transfer of the school tax freeze on the homestead
1-3 of an elderly person to a newly acquired homestead.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 11.26, Tax Code, is amended by amending
1-6 Subsection (b) and adding Subsection (g) to read as follows:
1-7 (b) If an individual makes improvements to the individual's
1-8 [his] residence homestead, other than improvements required to
1-9 comply with governmental requirements or repairs, the school
1-10 district may increase the tax on the homestead in the first year
1-11 the value of the homestead is increased on the appraisal roll
1-12 because of the enhancement of value by the improvements. The
1-13 amount of the tax increase is determined by applying the current
1-14 tax rate to the difference in the assessed value of the homestead
1-15 with the improvements and the assessed value it would have had
1-16 without the improvements. The limitations imposed by Subsection
1-17 (a) or (g), as applicable, [of this section] then apply to the
1-18 increased amount of tax until more improvements, if any, are made.
1-19 (g) Except as provided by Subsection (b), if an individual
1-20 who receives the limitation on tax increases imposed by this
1-21 section subsequently qualifies a different residence homestead for
1-22 the exemption provided by Section 11.13(c) for the residence
1-23 homestead of an individual 65 years of age or older and not later
1-24 than December 31 of the first tax year for which the limitation is
2-1 sought provides the appraisal district that appraises the
2-2 individual's new residence homestead for school taxes with
2-3 satisfactory evidence of the individual's eligibility for the
2-4 limitation, the school district that taxes the new residence
2-5 homestead may not impose ad valorem taxes on the new homestead in a
2-6 year in an amount that exceeds the maximum amount of taxes the
2-7 school district could have imposed on the former homestead in the
2-8 last year in which the individual received that exemption for the
2-9 former homestead. Once allowed, the limitation applies to each
2-10 subsequent tax year in which the individual receives an exemption
2-11 for the homestead under Section 11.13.
2-12 SECTION 2. This Act takes effect January 1, 1998, but only
2-13 if the constitutional amendment to provide for transferring the
2-14 school tax freeze for an elderly person from a former homestead to
2-15 a newly acquired homestead is approved by the voters. If that
2-16 amendment is not approved by the voters, this Act has no effect.
2-17 SECTION 3. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended.