By Hilbert H.B. No. 3499
75R5293 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to transferring the school tax freeze on homesteads of the
1-3 elderly.
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, a school
1-24 district may not impose ad valorem taxes on the subsequently
2-1 qualified homestead in a year in an amount that exceeds the amount
2-2 of taxes the school district would have imposed on the subsequently
2-3 qualified homestead in the first year in which the individual
2-4 receives that exemption for the subsequently qualified homestead
2-5 had the limitation on tax increases imposed by this section not
2-6 been in effect, multiplied by a fraction the numerator of which is
2-7 the total amount of school district taxes imposed on the former
2-8 homestead in the last year in which the individual received that
2-9 exemption for the former homestead and the denominator of which is
2-10 the total amount of school district taxes that would have been
2-11 imposed on the former homestead in the last year in which the
2-12 individual received that exemption for the former homestead had the
2-13 limitation on tax increases imposed by this section not been in
2-14 effect.
2-15 SECTION 2. This Act takes effect January 1, 1998, but only
2-16 if the constitutional amendment to provide for transferring the
2-17 school tax freeze for an elderly person from a former homestead to
2-18 a newly acquired homestead is approved by the voters. If that
2-19 amendment is not approved by the voters, this Act has no effect.
2-20 SECTION 3. The importance of this legislation and the
2-21 crowded condition of the calendars in both houses create an
2-22 emergency and an imperative public necessity that the
2-23 constitutional rule requiring bills to be read on three several
2-24 days in each house be suspended, and this rule is hereby suspended.