By Cain S.B. No. 1641
75R2100 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the limitation on county and municipal ad valorem taxes
1-3 on the residence homestead of an elderly person.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
1-6 adding Section 11.265 to read as follows:
1-7 Sec. 11.265. LIMITATION ON COUNTY AND MUNICIPAL TAXES ON
1-8 HOMESTEADS OF ELDERLY. (a) This section applies to property that
1-9 is subject to the tax increase limitation provided by Section
1-10 1-b(g), Article VIII, Texas Constitution.
1-11 (b) Each tax year the tax officials shall appraise the
1-12 property and calculate taxes on the property as on other property,
1-13 but if the tax exceeds the tax increase limitation provided by
1-14 Section 1-b(g), Article VIII, Texas Constitution, the tax imposed
1-15 is the tax permitted to be imposed by that section.
1-16 (c) The amount of a tax increase imposed because the person
1-17 has made taxable improvements to the person's residence homestead
1-18 is determined in the first tax year after completion of the
1-19 improvement by applying the current tax rate to the difference in
1-20 the appraised value of the homestead including the improvements and
1-21 the appraised value of the property without the improvements. The
1-22 tax increase limitation provided by Section 1-b(g), Article VIII,
1-23 Texas Constitution, then applies in subsequent tax years to the
1-24 increased amount of tax, subject to later improvements, if any.
2-1 (d) The tax increase limitation provided by Section 1-b(g),
2-2 Article VIII, Texas Constitution, expires if on January 1:
2-3 (1) none of the owners of the structure who qualify
2-4 for the limitation and who owned the structure when the limitation
2-5 first took effect is using the structure as a residence homestead;
2-6 or
2-7 (2) none of the owners of the structure qualifies for
2-8 the limitation.
2-9 (e) If the appraisal roll provides for taxation of appraised
2-10 value for a previous year because the tax increase limitation
2-11 provided by Section 1-b(g), Article VIII, Texas Constitution, was
2-12 erroneously allowed, the tax assessor shall add, as back taxes due
2-13 as provided by Section 26.09(d), the positive difference, if any,
2-14 between the tax that should have been imposed for that year and the
2-15 tax that was imposed because of Section 1-b(g), Article VIII, Texas
2-16 Constitution.
2-17 (f) The chief appraiser shall, for each county or
2-18 municipality in the appraisal district, determine the portion of
2-19 the appraised value of residence homesteads on which county or
2-20 municipal taxes are not imposed in a tax year because of the tax
2-21 increase limitation provided by Section 1-b(g), Article VIII, Texas
2-22 Constitution. That portion is calculated by determining the
2-23 taxable value that, if multiplied by the tax rate adopted by the
2-24 county or municipality for the tax year, would produce an amount
2-25 equal to the amount of tax that would have been imposed by the
2-26 county or municipality on residence homesteads subject to the
2-27 limitation if the limitation were not in effect. The chief
3-1 appraiser shall certify that taxable value to the comptroller as
3-2 soon as practicable for each tax year.
3-3 (g) The tax increase limitation provided by Section 1-b(g),
3-4 Article VIII, Texas Constitution, does not expire because the owner
3-5 of an interest in the structure conveys the interest to a
3-6 qualifying trust as defined by Section 11.13(j) if the owner or the
3-7 owner's spouse is a trustor of the trust and is entitled to occupy
3-8 the structure.
3-9 (h) The provisions of Subchapter C applicable to an
3-10 exemption provided by Section 11.13 apply to the tax increase
3-11 limitation provided by Section 1-b(g), Article VIII, Texas
3-12 Constitution.
3-13 (i) Notwithstanding Subsection (h), a person who received
3-14 the exemption provided by Section 11.13(c) in the 1997 tax year is
3-15 not required to apply for the tax increase limitation provided by
3-16 Section 1-b(g), Article VIII, Texas Constitution. Not later than
3-17 May 1, 1998, the appraisal district in which the school district
3-18 participates shall notify the appraisal district in which the
3-19 county or municipality participates, if the school district does
3-20 not participate in that appraisal district, that the person
3-21 received the exemption.
3-22 SECTION 2. Section 23.19(g), Tax Code, is amended to read as
3-23 follows:
3-24 (g) A tax bill or a separate statement accompanying the tax
3-25 bill to a cooperative housing corporation for which interests of
3-26 stockholders are separately appraised under this section must
3-27 state, in addition to the information required by Section 31.01 of
4-1 this code, the appraised value and taxable value of each interest
4-2 separately appraised. Each exemption claimed as provided by this
4-3 title by a person entitled to the exemption shall also be deducted
4-4 from the total appraised value of the property of the corporation.
4-5 The total tax imposed by a school district, county, or municipality
4-6 shall be reduced by any amount that represents an increase in taxes
4-7 attributable to separately appraised interests of the real property
4-8 and improvements that are subject to the limitation of taxes
4-9 prescribed by Section 11.26 of this code or Section 1-b(g), Article
4-10 VIII, Texas Constitution. The corporation shall apportion among
4-11 its stockholders liability for reimbursing the corporation for
4-12 property taxes according to the relative taxable values of their
4-13 interests.
4-14 SECTION 3. Sections 26.012(6), (13), and (14), Tax Code, are
4-15 amended to read as follows:
4-16 (6) "Current total value" means the total taxable
4-17 value of property listed on the appraisal roll for the current
4-18 year, including all appraisal roll supplements and corrections as
4-19 of the date of the calculation, less the taxable value of property
4-20 exempted for the current tax year for the first time under Section
4-21 11.31, except that the current total value for a school district,
4-22 county, or municipality excludes the total value of homesteads that
4-23 qualify for a tax limitation as provided by Section 11.26 of this
4-24 code or Section 1-b(g), Article VIII, Texas Constitution.
4-25 (13) "Last year's levy" means the total of:
4-26 (A) the amount of taxes that would be generated
4-27 by multiplying the total tax rate adopted by the governing body in
5-1 the preceding year by the total taxable value of property on the
5-2 appraisal roll for the preceding year, including all appraisal roll
5-3 supplements and corrections other than corrections made pursuant to
5-4 Section 25.25(d) of this code, as of the date of the calculation,
5-5 except that last year's taxable value for a school district,
5-6 county, or municipality excludes the total value of homesteads that
5-7 qualified for a tax limitation as provided by Section 11.26 of
5-8 this code or Section 1-b(g), Article VIII, Texas Constitution; and
5-9 (B) the amount of taxes refunded by the taxing
5-10 unit in the preceding year for tax years before that year.
5-11 (14) "Last year's total value" means the total taxable
5-12 value of property listed on the appraisal roll for the preceding
5-13 year, including all appraisal roll supplements and corrections,
5-14 other than corrections made pursuant to Section 25.25(d) of this
5-15 code, as of the date of the calculation, except that last year's
5-16 taxable value for a school district, county, or municipality
5-17 excludes the total value of homesteads that qualified for a tax
5-18 limitation as provided by Section 11.26 of this code or Section
5-19 1-b(g), Article VIII, Texas Constitution.
5-20 SECTION 4. This Act takes effect January 1, 1998, but only
5-21 if the constitutional amendment proposed by the 75th Legislature,
5-22 Regular Session, 1997, to limit county and municipal ad valorem
5-23 taxes on the residence homestead of an elderly person is approved
5-24 by the voters. If that amendment is not approved by the voters,
5-25 this Act has no effect.
5-26 SECTION 5. The importance of this legislation and the
5-27 crowded condition of the calendars in both houses create an
6-1 emergency and an imperative public necessity that the
6-2 constitutional rule requiring bills to be read on three several
6-3 days in each house be suspended, and this rule is hereby suspended.