By Cain                                               S.B. No. 1210
         76R4494 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the limitation of school district ad valorem taxes on
 1-3     the residence homestead of an elderly person.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 11.26(g), Tax Code, as added by Chapter
 1-6     592, Acts of the 75th Legislature, Regular Session, 1997, is
 1-7     amended to read as follows:
 1-8           (g)  Except as provided by Subsections [Subsection] (b) and
 1-9     (m), if an individual who receives a limitation on tax increases
1-10     imposed by this section on a residence homestead the person owned
1-11     and occupied as a homestead for at least 12 consecutive months
1-12     subsequently qualifies a different residence homestead for an
1-13     exemption under Section 11.13, a school district may not impose ad
1-14     valorem taxes on the subsequently qualified homestead in a year in
1-15     an amount that exceeds the amount of taxes the school district
1-16     would have imposed on the subsequently qualified homestead in the
1-17     first year in which the individual receives that exemption for the
1-18     subsequently qualified homestead had the limitation on tax
1-19     increases imposed by this section not been in effect, multiplied by
1-20     a fraction the numerator of which is the total amount of school
1-21     district taxes imposed on the former homestead that the person
1-22     owned and occupied as a homestead for at least 12 consecutive
1-23     months in the last year in which the individual received that
1-24     exemption for that [the] former homestead and the denominator of
 2-1     which is the total amount of school district taxes that would have
 2-2     been imposed on that [the] former homestead in the last year in
 2-3     which the individual received that exemption for that [the] former
 2-4     homestead had the limitation on tax increases imposed by this
 2-5     section not been in effect.  The limitation provided by this
 2-6     subsection applies to each subsequently qualified homestead of the
 2-7     individual until the individual owns and occupies a subsequently
 2-8     qualified homestead for at least 12 consecutive months.  After the
 2-9     individual owns and occupies a subsequently qualified homestead for
2-10     at least 12 consecutive months, the taxes imposed on the former
2-11     residence homestead of the individual may not be used to determine
2-12     the limitation on taxes provided by this subsection for any later
2-13     residence homestead of the individual.
2-14           SECTION 2.  Section 11.26, Tax Code, is amended by adding
2-15     Subsection (m) to read as follows:
2-16           (m)  If school district taxes imposed on an individual's
2-17     residence homestead are limited as provided by Subsection (g) and
2-18     the individual's residence homestead was under construction on
2-19     January 1 of the first tax year in which the individual qualified
2-20     that homestead for an exemption under Section 11.13, the limitation
2-21     provided by Subsection (g) does not apply to the homestead after
2-22     that first year.  In that event, a school district may not impose
2-23     ad valorem taxes on that homestead in:
2-24                 (1)  the succeeding tax year in an amount that exceeds
2-25     the amount of taxes the school district would have imposed on the
2-26     homestead in that succeeding tax year had the limitation on tax
2-27     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.