1-1 By: Wentworth, Zaffirini S.B. No. 1437
1-2 (In the Senate - Filed March 13, 1997; March 19, 1997, read
1-3 first time and referred to Committee on Finance; April 18, 1997,
1-4 reported favorably by the following vote: Yeas 11, Nays 0;
1-5 April 18, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the exemption from and limitations on ad valorem taxes
1-9 on the residence homestead of an elderly individual and the
1-10 individual's surviving spouse and to the termination of that
1-11 exemption if that homestead ceases to be the homestead of that
1-12 elderly individual or surviving spouse.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Subsection (b), Section 11.42, Tax Code, is
1-15 amended to read as follows:
1-16 (b) An exemption authorized by Section 11.11 or by Section
1-17 11.13(c) or (d) for an individual 65 or over [of this code] is
1-18 effective immediately on qualification for the exemption.
1-19 SECTION 2. Subsection (q), Section 11.13, Tax Code, is
1-20 amended to read as follows:
1-21 (q) The surviving spouse of an individual who qualifies for
1-22 [received] an exemption under Subsection (d) for the residence
1-23 homestead of a person 65 or older is entitled to an exemption for
1-24 the same property from the same taxing unit in an amount equal to
1-25 that of the exemption for which [received by] the deceased spouse
1-26 qualified if:
1-27 (1) the deceased spouse died in a year in which the
1-28 deceased spouse qualified for [received] the exemption;
1-29 (2) the surviving spouse was 55 or older when the
1-30 deceased spouse died; and
1-31 (3) the property was the residence homestead of the
1-32 surviving spouse when the deceased spouse died and remains the
1-33 residence homestead of the surviving spouse.
1-34 SECTION 3. Section 11.26, Tax Code, is amended by adding
1-35 Subsections (g), (h), and (i) to read as follows:
1-36 (g) If an individual who qualifies for the exemption
1-37 provided by Section 11.13(c) for an individual 65 years or older
1-38 dies, the surviving spouse of the individual is entitled to the
1-39 limitation applicable to the residence homestead of the individual
1-40 if:
1-41 (1) the surviving spouse is 55 years or older when the
1-42 individual dies; and
1-43 (2) the residence homestead of the individual:
1-44 (A) is the residence homestead of the surviving
1-45 spouse on the date that the individual dies; and
1-46 (B) remains the residence homestead of the
1-47 surviving spouse.
1-48 (h) If the individual who qualifies for an exemption
1-49 provided by Section 11.13(c) for an individual 65 years or older
1-50 dies in the year in which the person turned 65 years of age, except
1-51 as provided by Subsection (i), the amount to which the surviving
1-52 spouse's school district taxes are limited under Subsection (g) is
1-53 the amount of school district taxes imposed on the residence
1-54 homestead in that year calculated under Section 26.112 as if the
1-55 individual qualifying for the exemption had lived for the entire
1-56 year.
1-57 (i) If in the first tax year after the individual died, the
1-58 amount of school district taxes imposed on the residence homestead
1-59 of the surviving spouse is less than the amount of school district
1-60 taxes imposed in the preceding year as limited by Subsection (h),
1-61 in a subsequent tax year the surviving spouse's school district
1-62 taxes on that residence homestead are limited to the taxes imposed
1-63 by the district in that first tax year.
1-64 SECTION 4. Section 11.43, Tax Code, is amended by amending
2-1 Subsection (d) and adding Subsection (j) to read as follows:
2-2 (d) Except as provided by Subsection (j), a [A] person
2-3 required to claim an exemption must file a completed exemption
2-4 application form before May 1 and must furnish the information
2-5 required by the form. For good cause shown the chief appraiser may
2-6 extend the deadline for filing an exemption application by written
2-7 order for a single period not to exceed 60 days.
2-8 (j) A person who qualifies for the exemption authorized by
2-9 Section 11.13(c) or (d) for an individual 65 years or older for a
2-10 portion of a tax year shall notify the chief appraiser of the
2-11 person's qualification for the exemption no later than the first
2-12 anniversary of the date the person qualified for the exemption.
2-13 SECTION 5. Section 26.10, Tax Code, is amended to read as
2-14 follows:
2-15 Sec. 26.10. PRORATING TAXES--LOSS OF EXEMPTION. (a) If the
2-16 appraisal roll shows that a property is eligible for taxation for
2-17 only part of a year because an exemption, other than a residence
2-18 homestead exemption, applicable on January 1 of that year
2-19 terminated during the year, the tax due against the property is
2-20 calculated by multiplying the tax due for the entire year as
2-21 determined as provided by Section 26.09 of this code by a fraction,
2-22 the denominator of which is 365 and the numerator of which is the
2-23 number of days the exemption is not applicable.
2-24 (b) If the appraisal roll shows that a property is eligible
2-25 for taxation at its full appraised value for only part of a year
2-26 because a residence homestead exemption for an individual 65 or
2-27 older applicable on January 1 of that year terminated during the
2-28 year, the tax due against the property is calculated by:
2-29 (1) subtracting from:
2-30 (A) the amount of the taxes that otherwise would
2-31 be imposed on the residence homestead for the entire year had the
2-32 individual not qualified for the residence homestead exemption on
2-33 January 1;
2-34 (B) the amount of the taxes that otherwise would
2-35 be imposed on the residence homestead for the entire year had the
2-36 individual qualified for the residence homestead exemption for the
2-37 entire year;
2-38 (2) multiplying the remainder determined under
2-39 Subdivision (1) by a fraction, the denominator of which is 365 and
2-40 the numerator of which is the number of days that elapsed after the
2-41 date the exemption terminated; and
2-42 (3) adding the product determined under Subdivision
2-43 (2) and the amount described by Subdivision (1)(B).
2-44 SECTION 6. Chapter 26, Tax Code, is amended by adding
2-45 Section 26.112 to read as follows:
2-46 Sec. 26.112. PRORATING TAXES--QUALIFICATION BY ELDERLY
2-47 PERSON FOR 65 OR OVER RESIDENCE HOMESTEAD EXEMPTION. If an
2-48 individual qualifies for the exemption under Section 11.13(c) or
2-49 (d) for an individual 65 or over after the beginning of a tax year,
2-50 the amount of the taxes due on the residence homestead of the
2-51 individual for the tax year is calculated by:
2-52 (1) subtracting:
2-53 (A) the amount of the taxes that otherwise would
2-54 be imposed on the residence homestead for the entire year had the
2-55 individual qualified for the residence homestead exemption on
2-56 January 1; from
2-57 (B) the amount of the taxes that otherwise would
2-58 be imposed on the residence homestead for the entire year had the
2-59 individual not qualified for the residence homestead exemption;
2-60 (2) multiplying the remainder determined under
2-61 Subdivision (1) by a fraction, the denominator of which is 365 and
2-62 the numerator of which is the number of days that elapsed prior to
2-63 the date that the individual qualified for the exemption; and
2-64 (3) adding the product determined under Subdivision
2-65 (2) and the amount described by Subdivision (1)(A).
2-66 SECTION 7. Section 5 of this Act takes effect January 1,
2-67 1998.
2-68 SECTION 8. The importance of this legislation and the
2-69 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended,
3-4 and that this Act take effect and be in force from and after its
3-5 passage, and it is so enacted.
3-6 * * * * *