By Wentworth S.B. No. 1437
75R8911 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the exemption from and limitations on ad valorem taxes
1-3 on the residence homestead of an elderly individual and the
1-4 individual's surviving spouse and to the termination of that
1-5 exemption if that homestead ceases to be the homestead of that
1-6 elderly individual or surviving spouse.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Section 11.42(b), Tax Code, is amended to read as
1-9 follows:
1-10 (b) An exemption authorized by Section 11.11 or by Section
1-11 11.13(c) or (d) for an individual 65 or over [of this code] is
1-12 effective immediately on qualification for the exemption.
1-13 SECTION 2. Section 11.13(q), Tax Code, is amended to read as
1-14 follows:
1-15 (q) The surviving spouse of an individual who qualifies for
1-16 [received] an exemption under Subsection (d) for the residence
1-17 homestead of a person 65 or older is entitled to an exemption for
1-18 the same property from the same taxing unit in an amount equal to
1-19 that of the exemption for which [received by] the deceased spouse
1-20 qualified if:
1-21 (1) the deceased spouse died in a year in which the
1-22 deceased spouse qualified for [received] the exemption;
1-23 (2) the surviving spouse was 55 or older when the
1-24 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 adding
2-5 Subsections (g), (h), and (i) to read as follows:
2-6 (g) If an individual who qualifies for the exemption
2-7 provided by Section 11.13(c) for an individual 65 years or older
2-8 dies, the surviving spouse of the individual is entitled to the
2-9 limitation applicable to the residence homestead of the individual
2-10 if:
2-11 (1) the surviving spouse is 55 years or older when the
2-12 individual dies; and
2-13 (2) the residence homestead of the individual:
2-14 (A) is the residence homestead of the surviving
2-15 spouse on the date that the individual dies; and
2-16 (B) remains the residence homestead of the
2-17 surviving spouse.
2-18 (h) If the individual who qualifies for an exemption
2-19 provided by Section 11.13(c) for an individual 65 years or older
2-20 dies in the year in which the person turned 65 years of age, except
2-21 as provided by Subsection (i), the amount to which the surviving
2-22 spouse's school district taxes are limited under Subsection (g) is
2-23 the amount of school district taxes imposed on the residence
2-24 homestead in that year calculated under Section 26.112 as if the
2-25 individual qualifying for the exemption had lived for the entire
2-26 year.
2-27 (i) If in the first tax year after the individual died, the
3-1 amount of school district taxes imposed on the residence homestead
3-2 of the surviving spouse is less than the amount of school district
3-3 taxes imposed in the preceding year as limited by Subsection (h),
3-4 in a subsequent tax year the surviving spouse's school district
3-5 taxes on that residence homestead are limited to the taxes imposed
3-6 by the district in that first tax year.
3-7 SECTION 4. Section 11.43, Tax Code, is amended by amending
3-8 Subsection (d) and adding Subsection (j) to read as follows:
3-9 (d) Except as provided by Subsection (j), a [A] person
3-10 required to claim an exemption must file a completed exemption
3-11 application form before May 1 and must furnish the information
3-12 required by the form. For good cause shown the chief appraiser may
3-13 extend the deadline for filing an exemption application by written
3-14 order for a single period not to exceed 60 days.
3-15 (j) A person who qualifies for the exemption authorized by
3-16 Section 11.13(c) or (d) for an individual 65 years or older for a
3-17 portion of a tax year shall notify the chief appraiser of the
3-18 person's qualification for the exemption no later than the first
3-19 anniversary of the date the person qualified for the exemption.
3-20 SECTION 5. Section 26.10, Tax Code, is amended to read as
3-21 follows:
3-22 Sec. 26.10. PRORATING TAXES--LOSS OF EXEMPTION. (a) If the
3-23 appraisal roll shows that a property is eligible for taxation for
3-24 only part of a year because an exemption, other than a residence
3-25 homestead exemption, applicable on January 1 of that year
3-26 terminated during the year, the tax due against the property is
3-27 calculated by multiplying the tax due for the entire year as
4-1 determined as provided by Section 26.09 of this code by a fraction,
4-2 the denominator of which is 365 and the numerator of which is the
4-3 number of days the exemption is not applicable.
4-4 (b) If the appraisal roll shows that a property is eligible
4-5 for taxation at its full appraised value for only part of a year
4-6 because a residence homestead exemption for an individual 65 or
4-7 older applicable on January 1 of that year terminated during the
4-8 year, the tax due against the property is calculated by:
4-9 (1) subtracting from:
4-10 (A) the amount of the taxes that otherwise would
4-11 be imposed on the residence homestead for the entire year had the
4-12 individual not qualified for the residence homestead exemption on
4-13 January 1;
4-14 (B) the amount of the taxes that otherwise would
4-15 be imposed on the residence homestead for the entire year had the
4-16 individual qualified for the residence homestead exemption for the
4-17 entire year;
4-18 (2) multiplying the remainder determined under
4-19 Subdivision (1) by a fraction, the denominator of which is 365 and
4-20 the numerator of which is the number of days that elapsed after the
4-21 date the exemption terminated; and
4-22 (3) adding the product determined under Subdivision
4-23 (2) and the amount described by Subdivision (1)(B).
4-24 SECTION 6. Chapter 26, Tax Code, is amended by adding
4-25 Section 26.112 to read as follows:
4-26 Sec. 26.112. PRORATING TAXES--QUALIFICATION BY ELDERLY
4-27 PERSON FOR 65 OR OVER RESIDENCE HOMESTEAD EXEMPTION. If an
5-1 individual qualifies for the exemption under Section 11.13(c) or
5-2 (d) for an individual 65 or over after the beginning of a tax year,
5-3 the amount of the taxes due on the residence homestead of the
5-4 individual for the tax year is calculated by:
5-5 (1) subtracting:
5-6 (A) the amount of the taxes that otherwise would
5-7 be imposed on the residence homestead for the entire year had the
5-8 individual qualified for the residence homestead exemption on
5-9 January 1; from
5-10 (B) the amount of the taxes that otherwise would
5-11 be imposed on the residence homestead for the entire year had the
5-12 individual not qualified for the residence homestead exemption;
5-13 (2) multiplying the remainder determined under
5-14 Subdivision (1) by a fraction, the denominator of which is 365 and
5-15 the numerator of which is the number of days that elapsed prior to
5-16 the date that the individual qualified for the exemption; and
5-17 (3) adding the product determined under Subdivision
5-18 (2) and the amount described by Subdivision (1)(A).
5-19 SECTION 7. Section 5 of this Act takes effect January 1,
5-20 1998.
5-21 SECTION 8. The importance of this legislation and the
5-22 crowded condition of the calendars in both houses create an
5-23 emergency and an imperative public necessity that the
5-24 constitutional rule requiring bills to be read on three several
5-25 days in each house be suspended, and this rule is hereby suspended,
5-26 and that this Act take effect and be in force from and after its
5-27 passage, and it is so enacted.