1-1 AN ACT
1-2 relating to the authority of a taxing unit to permit certain
1-3 persons to perform services or to provide persons to perform
1-4 services for the taxing unit in lieu of paying ad valorem taxes
1-5 owed to the unit.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Chapter 31, Tax Code, is amended by adding
1-8 Section 31.035 to read as follows:
1-9 Sec. 31.035. PERFORMANCE OF SERVICE IN LIEU OF PAYMENT OF
1-10 TAXES ON HOMESTEAD OF ELDERLY PERSON. (a) The governing body of a
1-11 taxing unit by order or resolution may permit an individual who is
1-12 at least 65 years of age to perform service for the taxing unit in
1-13 lieu of paying taxes imposed by the taxing unit on property owned
1-14 by the individual and occupied as the individual's residence
1-15 homestead.
1-16 (b) The governing body of the taxing unit shall determine:
1-17 (1) the number of property owners who will be
1-18 permitted to perform service for the taxing unit under this
1-19 section; and
1-20 (2) the maximum number of hours of service that a
1-21 property owner may perform for the taxing unit under this section.
1-22 (c) The governing body shall require that each property
1-23 owner permitted to perform service for the taxing unit under this
1-24 section execute a contract with the taxing unit. The contract must
2-1 be executed before the delinquency date and must:
2-2 (1) specify:
2-3 (A) the nature of the service that the property
2-4 owner will perform for the taxing unit;
2-5 (B) the facility or location where the service
2-6 will be performed;
2-7 (C) the number of hours of service the property
2-8 owner will perform; and
2-9 (D) when the property owner will perform the
2-10 service; and
2-11 (2) set out or describe the provisions of Subsections
2-12 (d), (e), and (f).
2-13 (d) For each hour of service performed for the taxing unit,
2-14 the property owner receives a credit against the taxes owed in an
2-15 amount equal to the amount that would be earned by working one hour
2-16 at the federal hourly minimum wage rate. The contract must require
2-17 the property owner to perform the service not later than one year
2-18 after the delinquency date for the taxes against which the property
2-19 owner receives credit.
2-20 (e) Taxes for which the property owner is to receive credit
2-21 under the contract do not become delinquent on the delinquency date
2-22 otherwise provided by this chapter as long as the contract is in
2-23 effect and are considered paid when the service is performed. If
2-24 the property owner fails to perform the service, or if the taxing
2-25 unit determines that the service of the property owner is
2-26 unsatisfactory, the taxing unit shall terminate the contract and
2-27 notify the property owner of the termination. The unpaid taxes for
3-1 which the property owner was to receive credit under the contract
3-2 for service not yet performed become delinquent and incur penalty
3-3 and interest provided by Section 33.01 on the later of:
3-4 (1) the delinquency date otherwise provided by this
3-5 chapter for the unpaid taxes; or
3-6 (2) the first day of the next calendar month that
3-7 begins at least 21 days after the date the taxing unit delivers
3-8 notice to the property owner that the contract has been terminated.
3-9 (f) While performing service for a taxing unit, the property
3-10 owner:
3-11 (1) is not an employee of the taxing unit; and
3-12 (2) is not entitled to any benefit, including workers'
3-13 compensation coverage, that the taxing unit provides to an employee
3-14 of the taxing unit.
3-15 (g) Property owners performing services for a taxing unit
3-16 under this section may only supplement or complement the regular
3-17 personnel of the taxing unit. A taxing unit may not reduce the
3-18 number of persons the taxing unit employs or reduce the number of
3-19 hours to be worked by employees of the taxing unit because the
3-20 taxing unit permits property owners to perform services for the
3-21 taxing unit under this section.
3-22 (h) A person performing service for a taxing unit under this
3-23 section is not entitled to indemnification from the taxing unit for
3-24 injury or property damage the person sustains or liability the
3-25 person incurs in performing service under this section. The taxing
3-26 unit is not liable for any damages arising from an act or omission
3-27 of the person in performing service under this section.
4-1 SECTION 2. Chapter 31, Tax Code, is amended by adding
4-2 Sections 31.036 and 31.037 to read as follows:
4-3 Sec. 31.036. PERFORMANCE OF TEACHING SERVICES IN LIEU OF
4-4 PAYMENT OF SCHOOL TAXES ON HOMESTEAD. (a) The governing body of a
4-5 school district by resolution may permit qualified individuals to
4-6 perform teaching services for the school district at a junior high
4-7 school or high school of the district in lieu of paying taxes
4-8 imposed by the district on property owned and occupied by the
4-9 individual as a residence homestead.
4-10 (b) The governing body of the school district shall
4-11 determine:
4-12 (1) the number of qualified individuals who will be
4-13 permitted to perform teaching services for the district under this
4-14 section;
4-15 (2) the courses that a qualified individual may teach
4-16 for the district under this section; and
4-17 (3) the amount of the tax credit that a qualified
4-18 individual may earn.
4-19 (c) The governing body shall require that each qualified
4-20 individual permitted to perform teaching services for the district
4-21 under this section execute a contract with the district. The
4-22 contract must be executed before the delinquency date and must:
4-23 (1) specify:
4-24 (A) the course or courses that the qualified
4-25 individual will teach for the district;
4-26 (B) the high school or junior high school of the
4-27 district where the qualified individual will perform the teaching
5-1 services;
5-2 (C) the semester in which the qualified
5-3 individual will perform the teaching services; and
5-4 (D) the amount of the tax credit that the
5-5 qualified individual will receive on successful completion of the
5-6 individual's contractual obligations; and
5-7 (2) set out or describe the provisions of Subsections
5-8 (d)-(g).
5-9 (d) A qualified individual who teaches a course for an
5-10 entire school semester is entitled to a maximum credit of $500
5-11 against the taxes imposed, except that if the qualified individual
5-12 teaches a course for which a student receives a full year's credit
5-13 for one semester, the qualified individual is entitled to a maximum
5-14 credit of $1,000 for each such course taught for one semester by
5-15 the qualified individual. A qualified individual may not receive
5-16 credits for teaching more than two courses in any school year.
5-17 (e) The district shall terminate the contract if:
5-18 (1) the qualified individual fails to perform the
5-19 teaching services; or
5-20 (2) the district determines that the teaching services
5-21 of the qualified individual are unsatisfactory.
5-22 (f) If the contract is terminated under Subsection (e), on
5-23 the termination date the district may grant the individual a
5-24 portion of the tax credit based on the portion of the teaching
5-25 services performed.
5-26 (g) While performing teaching services for a school
5-27 district, the qualified individual:
6-1 (1) is not an employee of the district; and
6-2 (2) is not entitled to any benefit, including workers'
6-3 compensation coverage, that the district provides to an employee of
6-4 the district.
6-5 (h) An individual is qualified to perform teaching services
6-6 for a school district under this section only if the individual
6-7 holds a baccalaureate or more advanced degree in a field related to
6-8 each course to be taught and:
6-9 (1) is certified as a classroom teacher under
6-10 Subchapter B, Chapter 21, Education Code; or
6-11 (2) obtains a school district teaching permit under
6-12 Section 21.055, Education Code.
6-13 Sec. 31.037. PERFORMANCE OF TEACHING SERVICES BY EMPLOYEE IN
6-14 LIEU OF PAYMENT OF SCHOOL TAXES ON PROPERTY OF BUSINESS ENTITY.
6-15 (a) The governing body of a school district by resolution may
6-16 authorize a corporation or other business entity to permit a
6-17 qualified individual employed by the business entity to perform
6-18 teaching services in a high school or a junior high school for the
6-19 school district in lieu of paying taxes imposed by the district on
6-20 property owned by the business entity.
6-21 (b) The governing body of the school district shall
6-22 determine:
6-23 (1) the number of business entities that will be
6-24 eligible for a tax credit under this section;
6-25 (2) the courses that an employee of the business
6-26 entity may teach for the district under this section; and
6-27 (3) the amount of the tax credit that a business
7-1 entity may earn.
7-2 (c) The governing body shall require that each business
7-3 entity permitted to provide an employee to perform teaching
7-4 services for the district under this section execute a contract
7-5 with the district. The contract must be executed before the
7-6 delinquency date and must:
7-7 (1) specify:
7-8 (A) the course or courses that the employee will
7-9 teach for the district;
7-10 (B) the high school or junior high school of the
7-11 district where the employee will perform the teaching services;
7-12 (C) the semester in which the employee will
7-13 perform the teaching services; and
7-14 (D) the amount of the tax credit that the
7-15 business entity will receive on successful completion of the
7-16 contractual obligations of the business entity and its employee;
7-17 and
7-18 (2) set out or describe the provisions of Subsections
7-19 (d)-(h).
7-20 (d) For each course taught for the entire school semester by
7-21 an employee of the business entity for the school district, the
7-22 business entity is entitled to a maximum credit of $500 against the
7-23 taxes imposed, except that if the employee teaches a course for
7-24 which a student receives a full year's credit for one semester, the
7-25 business entity is entitled to a maximum credit of $1,000 for each
7-26 such course taught for one semester by the employee.
7-27 (e) The district shall terminate the contract if:
8-1 (1) the employee fails to perform the teaching
8-2 services; or
8-3 (2) the district determines that the teaching services
8-4 of the employee of the business entity are unsatisfactory.
8-5 (f) If the contract is terminated under Subsection (e), on
8-6 the termination date the district may grant the business entity a
8-7 portion of the tax credit based on the portion of the teaching
8-8 services performed.
8-9 (g) While performing teaching services for a school
8-10 district, the employee of the business entity:
8-11 (1) is not an employee of the district; and
8-12 (2) is not entitled to any benefit, including workers'
8-13 compensation coverage, that the district provides to an employee of
8-14 the district.
8-15 (h) An individual may not perform teaching services for
8-16 which a business entity receives a tax credit under this section if
8-17 the individual enters into a contract with the same school district
8-18 to provide teaching services for a tax credit for the same tax year
8-19 under Section 31.036.
8-20 (i) An individual is qualified to perform teaching services
8-21 for a school district under this section only if the individual
8-22 holds a baccalaureate or more advanced degree in a field related to
8-23 the course to be taught and:
8-24 (1) is certified as a classroom teacher under
8-25 Subchapter B, Chapter 21, Education Code; or
8-26 (2) obtains a school district teaching permit under
8-27 Section 21.055, Education Code.
9-1 SECTION 3. Section 42.302, Education Code, is amended by
9-2 adding Subsection (c) to read as follows:
9-3 (c) For purposes of this section, school district taxes for
9-4 which credit is granted under Section 31.035, 31.036, or 31.037,
9-5 Tax Code, are considered taxes collected by the school district as
9-6 if the taxes were paid when the credit for the taxes was granted.
9-7 SECTION 4. The importance of this legislation and the
9-8 crowded condition of the calendars in both houses create an
9-9 emergency and an imperative public necessity that the
9-10 constitutional rule requiring bills to be read on three several
9-11 days in each house be suspended, and this rule is hereby suspended,
9-12 and that this Act take effect and be in force from and after its
9-13 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 51 was passed by the House on May 13,
1999, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 51 was passed by the Senate on May
26, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor