By:  Cain                                             S.B. No. 1210
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the limitation of school district ad valorem taxes on
 1-2     the residence homestead of an elderly person.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subsection (g), Section 11.26, Tax Code, as added
 1-5     by Chapter 592, Acts of the 75th Legislature, Regular Session,
 1-6     1997, is amended to read as follows:
 1-7           (g)  Except as provided by Subsections [Subsection] (b) and
 1-8     (m), if an individual who receives a limitation on tax increases
 1-9     imposed by this section on a residence homestead the person owned
1-10     and occupied as a homestead for at least 12 consecutive months
1-11     subsequently qualifies a different residence homestead for an
1-12     exemption under Section 11.13, a school district may not impose ad
1-13     valorem taxes on the subsequently qualified homestead in a year in
1-14     an amount that exceeds the amount of taxes the school district
1-15     would have imposed on the subsequently qualified homestead in the
1-16     first year in which the individual receives that exemption for the
1-17     subsequently qualified homestead had the limitation on tax
1-18     increases imposed by this section not been in effect, multiplied by
1-19     a fraction the numerator of which is the total amount of school
1-20     district taxes imposed on the former homestead that the person
1-21     owned and occupied as a homestead for at least 12 consecutive
1-22     months in the last year in which the individual received that
1-23     exemption for that [the] former homestead and the denominator of
1-24     which is the total amount of school district taxes that would have
 2-1     been imposed on that [the] former homestead in the last year in
 2-2     which the individual received that exemption for that [the] former
 2-3     homestead had the limitation on tax increases imposed by this
 2-4     section not been in effect.  The limitation provided by this
 2-5     subsection applies to each subsequently qualified homestead of the
 2-6     individual until the individual owns and occupies a subsequently
 2-7     qualified homestead for at least 12 consecutive months.  After the
 2-8     individual owns and occupies a subsequently qualified homestead for
 2-9     at least 12 consecutive months, the taxes imposed on the former
2-10     residence homestead of the individual may not be used to determine
2-11     the limitation on taxes provided by this subsection for any later
2-12     residence homestead of the individual.
2-13           SECTION 2.  Section 11.26, Tax Code, is amended by adding
2-14     Subsection (m) to read as follows:
2-15           (m)  If school district taxes imposed on an individual's
2-16     residence homestead are limited as provided by Subsection (g) and
2-17     the individual's residence homestead was under construction on
2-18     January 1 of the first tax year in which the individual qualified
2-19     that homestead for an exemption under Section 11.13, the limitation
2-20     provided by Subsection (g) does not apply to the homestead after
2-21     that first year.  In that event, a school district may not impose
2-22     ad valorem taxes on that homestead in:
2-23                 (1)  the succeeding tax year in an amount that exceeds
2-24     the amount of taxes the school district would have imposed on the
2-25     homestead in that succeeding tax year had the limitation on tax
2-26     increases imposed by this section not been in effect, multiplied by
 3-1     the fraction specified by Subsection (g); and
 3-2                 (2)  a tax year subsequent to the succeeding year in an
 3-3     amount that exceeds the amount provided by Subdivision (1), except
 3-4     as provided by Subsection (b).
 3-5           SECTION 3.  This Act takes effect January 1, 2000, and
 3-6     applies only to the calculation of the limitation of school
 3-7     district ad valorem taxes on the residence homestead of an elderly
 3-8     person for a tax year beginning on or after that date.
 3-9           SECTION 4.  The importance of this legislation and the
3-10     crowded condition of the calendars in both houses create an
3-11     emergency and an imperative public necessity that the
3-12     constitutional rule requiring bills to be read on three several
3-13     days in each house be suspended, and this rule is hereby suspended.