AN ACT
1-1 relating to the exemption from and limitations on ad valorem taxes
1-2 on the residence homestead of an elderly individual and the
1-3 individual's surviving spouse and to the termination of that
1-4 exemption if that homestead ceases to be the homestead of that
1-5 elderly individual or surviving spouse.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Subsection (b), Section 11.42, Tax Code, is
1-8 amended to read as follows:
1-9 (b) An exemption authorized by Section 11.11 or by Section
1-10 11.13(c) or (d) for an individual 65 or over [of this code] is
1-11 effective immediately on qualification for the exemption.
1-12 SECTION 2. Subsection (q), Section 11.13, Tax Code, is
1-13 amended to read as follows:
1-14 (q) The surviving spouse of an individual who qualifies for
1-15 [received] an exemption under Subsection (d) for the residence
1-16 homestead of a person 65 or older is entitled to an exemption for
1-17 the same property from the same taxing unit in an amount equal to
1-18 that of the exemption for which [received by] the deceased spouse
1-19 qualified if:
1-20 (1) the deceased spouse died in a year in which the
1-21 deceased spouse qualified for [received] the exemption;
1-22 (2) the surviving spouse was 55 or older when the
1-23 deceased spouse died; and
2-1 (3) the property was the residence homestead of the
2-2 surviving spouse when the deceased spouse died and remains the
2-3 residence homestead of the surviving spouse.
2-4 SECTION 3. Section 11.26, Tax Code, is amended by amending
2-5 Subsection (a) and adding Subsections (g), (h), and (i) to read as
2-6 follows:
2-7 (a) Except as provided by Subsection (b) [of this section],
2-8 a school district may not increase the total annual amount of ad
2-9 valorem tax it imposes on the residence homestead of an individual
2-10 65 years or older above the amount of the tax it imposed in the
2-11 first year the individual qualified that residence homestead for
2-12 the exemption provided by [Subsection (c) of] Section 11.13(c) for
2-13 an individual 65 years of age or older [11.13 of this code]. If
2-14 the individual qualified that residence homestead for the exemption
2-15 after the beginning of that first year, the maximum amount of taxes
2-16 that a school district may impose on that residence homestead in a
2-17 subsequent year is determined as provided by Section 26.112 as if
2-18 the individual qualified that residence homestead for the exemption
2-19 for that entire first year, except as provided by Subsection (b).
2-20 If the individual qualified that residence homestead for the
2-21 exemption after the beginning of that first year and the residence
2-22 homestead remains eligible for the exemption for the next year, and
2-23 if the school district taxes imposed on the residence homestead in
2-24 the next year are less than the amount of taxes imposed in that
2-25 first year, a school district may not subsequently increase the
3-1 total annual amount of ad valorem taxes it imposes on the residence
3-2 homestead above the amount it imposed in the year immediately
3-3 following the first year for which the individual qualified that
3-4 residence homestead for the exemption, except as provided by
3-5 Subsection (b). The tax officials shall continue to appraise the
3-6 property and to calculate taxes as on other property, but if the
3-7 tax so calculated exceeds the limitation imposed by this section,
3-8 the tax imposed is the tax imposed in the first year the individual
3-9 qualified the residence homestead for the exemption.
3-10 (g) If an individual who qualifies for the exemption
3-11 provided by Section 11.13(c) for an individual 65 years of age or
3-12 older dies, the surviving spouse of the individual is entitled to
3-13 the limitation applicable to the residence homestead of the
3-14 individual if:
3-15 (1) the surviving spouse is 55 years of age or older
3-16 when the individual dies; and
3-17 (2) the residence homestead of the individual:
3-18 (A) is the residence homestead of the surviving
3-19 spouse on the date that the individual dies; and
3-20 (B) remains the residence homestead of the
3-21 surviving spouse.
3-22 (h) If an individual who qualifies for an exemption provided
3-23 by Section 11.13(c) for an individual 65 years of age or older dies
3-24 in the first year in which the individual qualified for the
3-25 exemption and the individual first qualified for the exemption
4-1 after the beginning of that year, except as provided by Subsection
4-2 (i), the amount to which the surviving spouse's school district
4-3 taxes are limited under Subsection (g) is the amount of school
4-4 district taxes imposed on the residence homestead in that year
4-5 calculated under Section 26.112 as if the individual qualifying for
4-6 the exemption had lived for the entire year.
4-7 (i) If in the first tax year after the year in which an
4-8 individual dies in the circumstances described by Subsection (h)
4-9 the amount of school district taxes imposed on the residence
4-10 homestead of the surviving spouse is less than the amount of school
4-11 district taxes imposed in the preceding year as limited by
4-12 Subsection (h), in a subsequent tax year the surviving spouse's
4-13 school district taxes on that residence homestead are limited to
4-14 the amount of taxes imposed by the district in that first tax year
4-15 after the year in which the individual dies.
4-16 SECTION 4. Section 11.43, Tax Code, is amended by amending
4-17 Subsection (d) and adding Subsection (j) to read as follows:
4-18 (d) Except as provided by Subsection (j), a [A] person
4-19 required to claim an exemption must file a completed exemption
4-20 application form before May 1 and must furnish the information
4-21 required by the form. For good cause shown the chief appraiser may
4-22 extend the deadline for filing an exemption application by written
4-23 order for a single period not to exceed 60 days.
4-24 (j) A person who qualifies for the exemption authorized by
4-25 Section 11.13(c) or (d) for an individual 65 years or older for a
5-1 portion of a tax year shall notify the chief appraiser of the
5-2 person's qualification for the exemption no later than the first
5-3 anniversary of the date the person qualified for the exemption.
5-4 SECTION 5. Section 26.10, Tax Code, is amended to read as
5-5 follows:
5-6 Sec. 26.10. PRORATING TAXES--LOSS OF EXEMPTION. (a) If the
5-7 appraisal roll shows that a property is eligible for taxation for
5-8 only part of a year because an exemption, other than a residence
5-9 homestead exemption, applicable on January 1 of that year
5-10 terminated during the year, the tax due against the property is
5-11 calculated by multiplying the tax due for the entire year as
5-12 determined as provided by Section 26.09 of this code by a fraction,
5-13 the denominator of which is 365 and the numerator of which is the
5-14 number of days the exemption is not applicable.
5-15 (b) If the appraisal roll shows that a property is eligible
5-16 for taxation at its full appraised value for only part of a year
5-17 because a residence homestead exemption for an individual 65 or
5-18 older applicable on January 1 of that year terminated during the
5-19 year, the tax due against the property is calculated by:
5-20 (1) subtracting from:
5-21 (A) the amount of the taxes that otherwise would
5-22 be imposed on the residence homestead for the entire year had the
5-23 individual not qualified for the residence homestead exemption on
5-24 January 1;
5-25 (B) the amount of the taxes that otherwise would
6-1 be imposed on the residence homestead for the entire year had the
6-2 individual qualified for the residence homestead exemption for the
6-3 entire year;
6-4 (2) multiplying the remainder determined under
6-5 Subdivision (1) by a fraction, the denominator of which is 365 and
6-6 the numerator of which is the number of days that elapsed after the
6-7 date the exemption terminated; and
6-8 (3) adding the product determined under Subdivision
6-9 (2) and the amount described by Subdivision (1)(B).
6-10 SECTION 6. Chapter 26, Tax Code, is amended by adding
6-11 Section 26.112 to read as follows:
6-12 Sec. 26.112. PRORATING TAXES--QUALIFICATION BY ELDERLY
6-13 PERSON FOR 65 OR OVER RESIDENCE HOMESTEAD EXEMPTION. If an
6-14 individual qualifies for the exemption under Section 11.13(c) or
6-15 (d) for an individual 65 or over after the beginning of a tax year,
6-16 the amount of the taxes due on the residence homestead of the
6-17 individual for the tax year is calculated by:
6-18 (1) subtracting:
6-19 (A) the amount of the taxes that otherwise would
6-20 be imposed on the residence homestead for the entire year had the
6-21 individual qualified for the residence homestead exemption on
6-22 January 1; from
6-23 (B) the amount of the taxes that otherwise would
6-24 be imposed on the residence homestead for the entire year had the
6-25 individual not qualified for the residence homestead exemption;
7-1 (2) multiplying the remainder determined under
7-2 Subdivision (1) by a fraction, the denominator of which is 365 and
7-3 the numerator of which is the number of days that elapsed prior to
7-4 the date that the individual qualified for the exemption; and
7-5 (3) adding the product determined under Subdivision
7-6 (2) and the amount described by Subdivision (1)(A).
7-7 SECTION 7. Section 5 of this Act takes effect January 1,
7-8 1998.
7-9 SECTION 8. The importance of this legislation and the
7-10 crowded condition of the calendars in both houses create an
7-11 emergency and an imperative public necessity that the
7-12 constitutional rule requiring bills to be read on three several
7-13 days in each house be suspended, and this rule is hereby suspended,
7-14 and that this Act take effect and be in force from and after its
7-15 passage, and it is so enacted.
S.B. No. 1437
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1437 passed the Senate on
April 28, 1997, by the following vote: Yeas 31, Nays 0; and that
the Senate adopted S.C.R. No. 99, recalling S.B. No. 1437 from the
Governor for reconsideration on May 19, 1997; and that the Senate
concurred in House amendment on May 30, 1997, by the following
vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1437 passed the House on May
13, 1997, by the following vote: Yeas 143, Nays 0, two present not
voting; and that the House adopted S.C.R. No. 99, recalling
S.B. No. 1437 from the Governor for reconsideration on
May 21, 1997; and that S.B. No. 1437 passed the House, with
amendment, on May 28, 1997, by the following vote: Yeas 137,
Nays 0, one present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor