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.