1-1     By:  Cain                                             S.B. No. 1210
 1-2           (In the Senate - Filed March 11, 1999; March 11, 1999, read
 1-3     first time and referred to Committee on Finance; April 16, 1999,
 1-4     reported favorably by the following vote:  Yeas 8, Nays 0;
 1-5     April 16, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the limitation of school district ad valorem taxes on
 1-9     the residence homestead of an elderly person.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subsection (g), Section 11.26, Tax Code, as added
1-12     by Chapter 592, Acts of the 75th Legislature, Regular Session,
1-13     1997, is amended to read as follows:
1-14           (g)  Except as provided by Subsections [Subsection] (b) and
1-15     (m), if an individual who receives a limitation on tax increases
1-16     imposed by this section on a residence homestead the person owned
1-17     and occupied as a homestead for at least 12 consecutive months
1-18     subsequently qualifies a different residence homestead for an
1-19     exemption under Section 11.13, a school district may not impose ad
1-20     valorem taxes on the subsequently qualified homestead in a year in
1-21     an amount that exceeds the amount of taxes the school district
1-22     would have imposed on the subsequently qualified homestead in the
1-23     first year in which the individual receives that exemption for the
1-24     subsequently qualified homestead had the limitation on tax
1-25     increases imposed by this section not been in effect, multiplied by
1-26     a fraction the numerator of which is the total amount of school
1-27     district taxes imposed on the former homestead that the person
1-28     owned and occupied as a homestead for at least 12 consecutive
1-29     months in the last year in which the individual received that
1-30     exemption for that [the] former homestead and the denominator of
1-31     which is the total amount of school district taxes that would have
1-32     been imposed on that [the] former homestead in the last year in
1-33     which the individual received that exemption for that [the] former
1-34     homestead had the limitation on tax increases imposed by this
1-35     section not been in effect.  The limitation provided by this
1-36     subsection applies to each subsequently qualified homestead of the
1-37     individual until the individual owns and occupies a subsequently
1-38     qualified homestead for at least 12 consecutive months.  After the
1-39     individual owns and occupies a subsequently qualified homestead for
1-40     at least 12 consecutive months, the taxes imposed on the former
1-41     residence homestead of the individual may not be used to determine
1-42     the limitation on taxes provided by this subsection for any later
1-43     residence homestead of the individual.
1-44           SECTION 2.  Section 11.26, Tax Code, is amended by adding
1-45     Subsection (m) to read as follows:
1-46           (m)  If school district taxes imposed on an individual's
1-47     residence homestead are limited as provided by Subsection (g) and
1-48     the individual's residence homestead was under construction on
1-49     January 1 of the first tax year in which the individual qualified
1-50     that homestead for an exemption under Section 11.13, the limitation
1-51     provided by Subsection (g) does not apply to the homestead after
1-52     that first year.  In that event, a school district may not impose
1-53     ad valorem taxes on that homestead in:
1-54                 (1)  the succeeding tax year in an amount that exceeds
1-55     the amount of taxes the school district would have imposed on the
1-56     homestead in that succeeding tax year had the limitation on tax
1-57     increases imposed by this section not been in effect, multiplied by
1-58     the fraction specified by Subsection (g); and
1-59                 (2)  a tax year subsequent to the succeeding year in an
1-60     amount that exceeds the amount provided by Subdivision (1), except
1-61     as provided by Subsection (b).
1-62           SECTION 3.  This Act takes effect January 1, 2000, and
1-63     applies only to the calculation of the limitation of school
1-64     district ad valorem taxes on the residence homestead of an elderly
 2-1     person for a tax year beginning on or after that date.
 2-2           SECTION 4.  The importance of this legislation and the
 2-3     crowded condition of the calendars in both houses create an
 2-4     emergency and an imperative public necessity that the
 2-5     constitutional rule requiring bills to be read on three several
 2-6     days in each house be suspended, and this rule is hereby suspended.
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