By: Cain S.B. No. 1461
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the calculation of a residence homestead exemption from
1-2 ad valorem taxation and the limitation of school taxes on the
1-3 homestead of an elderly person if the owner of the homestead
1-4 qualifies for the exemption or limitation after the beginning of a
1-5 tax year.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Subsection (h), Section 11.13, Tax Code, is
1-8 amended to read as follows:
1-9 (h) Joint, [or] community, or successive owners may not each
1-10 receive the same exemption provided by or pursuant to this section
1-11 for the same residence homestead in the same year. An eligible
1-12 disabled person who is 65 or older may not receive both a disabled
1-13 and an elderly residence homestead exemption but may choose either.
1-14 A person may not receive an exemption under this section for more
1-15 than one residence homestead in the same year.
1-16 SECTION 2. Subsections (a) and (j), Section 11.26, Tax Code,
1-17 are amended to read as follows:
1-18 (a) The tax officials shall appraise the property to which
1-19 this section applies and calculate taxes as on other property, but
1-20 if the tax so calculated exceeds the limitation imposed by this
1-21 section, the tax imposed is the amount of the tax as limited by
1-22 this section, except as otherwise provided by this section. A
1-23 school district may not increase the total annual amount of ad
1-24 valorem tax it imposes on the residence homestead of an individual
2-1 65 years or older above the amount of the tax it imposed in the
2-2 first tax year in which the individual qualified that residence
2-3 homestead for the exemption provided by Section 11.13(c) for an
2-4 individual 65 years of age or older. [If the individual qualified
2-5 that residence homestead for the exemption after the beginning of
2-6 that first year, the maximum amount of taxes that a school district
2-7 may impose on that residence homestead in a subsequent year is
2-8 determined as provided by Section 26.112 as if the individual
2-9 qualified that residence homestead for the exemption for that
2-10 entire first year, except as provided by Subsection (b).] If the
2-11 individual qualified that residence homestead for the exemption
2-12 after the beginning of that first year and the residence homestead
2-13 remains eligible for the exemption for the next year, and if the
2-14 school district taxes imposed on the residence homestead in the
2-15 next year are less than the amount of taxes imposed in that first
2-16 year, a school district may not subsequently increase the total
2-17 annual amount of ad valorem taxes it imposes on the residence
2-18 homestead above the amount it imposed in the year immediately
2-19 following the first year for which the individual qualified that
2-20 residence homestead for the exemption, except as provided by
2-21 Subsection (b). If the first tax year the individual qualified the
2-22 residence homestead for the exemption provided by Section 11.13(c)
2-23 was a tax year before the 1997 tax year, the amount of the
2-24 limitation provided by this section is the amount of tax the school
2-25 district imposed for the 1996 tax year less an amount equal to the
2-26 amount determined by multiplying $10,000 times the tax rate of the
3-1 school district for the 1997 tax year, plus any 1997 tax
3-2 attributable to improvements made in 1996, other than improvements
3-3 made to comply with governmental regulations or repairs.
3-4 (j) If an individual who qualifies for an exemption provided
3-5 by Section 11.13(c) for an individual 65 years of age or older dies
3-6 in the first year in which the individual qualified for the
3-7 exemption and the individual first qualified for the exemption
3-8 after the beginning of that year, except as provided by Subsection
3-9 (k), the amount to which the surviving spouse's school district
3-10 taxes are limited under Subsection (i) is the amount of school
3-11 district taxes imposed on the residence homestead in that year
3-12 determined [calculated under Section 26.112] as if the individual
3-13 qualifying for the exemption had lived for the entire year.
3-14 SECTION 3. Section 11.42, Tax Code, is amended to read as
3-15 follows:
3-16 Sec. 11.42. EXEMPTION QUALIFICATION DATE. (a) Except as
3-17 provided by Subsections [Subsection] (b) and (c) and by Sections
3-18 11.421, 11.422, 11.434, 11.435, and 11.436, eligibility for and
3-19 amount of an exemption authorized by this chapter for any tax year
3-20 are determined by a claimant's qualifications on January 1. A
3-21 person who does not qualify for an exemption on January 1 of any
3-22 year may not receive the exemption that year.
3-23 (b) An exemption authorized by Section 11.11 [or by Section
3-24 11.13(c) or (d) for an individual 65 years of age or older] is
3-25 effective immediately on qualification for the exemption.
3-26 (c) An exemption authorized by Section 11.13(c) or (d) for
4-1 an individual 65 years of age or older is effective as of January 1
4-2 of the tax year in which the person qualifies for the exemption and
4-3 applies to the entire tax year.
4-4 (d) A person who acquires property after January 1 of a tax
4-5 year may receive an exemption authorized by Section 11.17, 11.18,
4-6 11.19, 11.20, 11.21, 11.23, or 11.30 for the applicable portion of
4-7 that tax year immediately on qualification for the exemption.
4-8 SECTION 4. Subsection (d), Section 11.43, Tax Code, as
4-9 amended by Chapters 1039, 1059, and 1155, Acts of the 75th
4-10 Legislature, Regular Session, 1997, is reenacted and amended to
4-11 read as follows:
4-12 (d) To receive an exemption the eligibility for which is
4-13 determined by the claimant's qualifications on January 1 of the tax
4-14 year, a person required to claim an exemption must file a completed
4-15 exemption application form before May 1 and must furnish the
4-16 information required by the form. A person who after January 1 of
4-17 a tax year acquires property that qualifies for an exemption
4-18 covered by Section 11.42(d) [11.42(c)] must apply for the exemption
4-19 for the applicable portion of that tax year before the first
4-20 anniversary of the date the person acquires the property. For good
4-21 cause shown the chief appraiser may extend the deadline for filing
4-22 an exemption application by written order for a single period not
4-23 to exceed 60 days.
4-24 SECTION 5. Subsection (k), Section 11.43, Tax Code, is
4-25 amended to read as follows:
4-26 (k) A person who qualifies for the exemption authorized by
5-1 Section 11.13(c) or (d) for an individual 65 years of age or older
5-2 [for a portion of a tax year] must apply for the exemption no later
5-3 than the first anniversary of the date the person qualified for the
5-4 exemption.
5-5 SECTION 6. Section 26.112, Tax Code, is amended to read as
5-6 follows:
5-7 Sec. 26.112. CALCULATION OF TAXES ON [PRORATING
5-8 TAXES--QUALIFICATION BY ELDERLY PERSON FOR 65 OR OVER] RESIDENCE
5-9 HOMESTEAD OF ELDERLY PERSON [EXEMPTION]. (a) If at any time
5-10 during a tax year property is owned by an individual who qualifies
5-11 for an [the] exemption under Section 11.13(c) or (d) for an
5-12 individual 65 years of age or older [after the beginning of a tax
5-13 year], the amount of the tax [taxes] due on the property [residence
5-14 homestead of the individual] for the tax year is calculated as if
5-15 the person qualified for the exemption on January 1 and continued
5-16 to qualify for the exemption for the remainder of the tax year.
5-17 (b) If property is the residence homestead of more than one
5-18 individual during a tax year and any of those individuals qualify
5-19 for an exemption under Section 11.13(c) or (d) for an individual 65
5-20 years of age or older with respect to the property, the amount of
5-21 the tax due on the property for the tax year is calculated as if
5-22 that individual owned the property for the entire tax year.
5-23 (c) If a person qualifies for an exemption under Section
5-24 11.13(c) or (d) for an individual 65 years of age or older with
5-25 respect to the property after the amount of the tax due on the
5-26 property is calculated and the effect of the qualification is to
6-1 reduce the amount of the tax due on the property, the assessor for
6-2 each taxing unit shall recalculate the amount of the tax due on the
6-3 property and correct the tax roll. If the tax bill has been mailed
6-4 and the tax on the property has not been paid, the assessor shall
6-5 mail a corrected tax bill to the person in whose name the property
6-6 is listed on the tax roll or to the person's authorized agent. If
6-7 the tax on the property has been paid, the tax collector for the
6-8 taxing unit shall refund to the person who paid the tax the amount
6-9 by which the payment exceeded the tax due. [by:]
6-10 [(1) subtracting:]
6-11 [(A) the amount of the taxes that otherwise
6-12 would be imposed on the residence homestead for the entire year had
6-13 the individual qualified for the residence homestead exemption on
6-14 January 1; from]
6-15 [(B) the amount of the taxes that otherwise
6-16 would be imposed on the residence homestead for the entire year had
6-17 the individual not qualified for the residence homestead exemption;]
6-18 [(2) multiplying the remainder determined under
6-19 Subdivision (1) by a fraction, the denominator of which is 365 and
6-20 the numerator of which is the number of days that elapsed prior to
6-21 the date that the individual qualified for the exemption; and]
6-22 [(3) adding the product determined under Subdivision
6-23 (2) and the amount described by Subdivision (1)(A).]
6-24 SECTION 7. Subsection (a), Section 26.113, Tax Code, is
6-25 amended to read as follows:
6-26 (a) If a person acquires taxable property that qualifies for
7-1 and is granted an exemption covered by Section 11.42(d) [11.42(c)]
7-2 for a portion of the year in which the property was acquired, the
7-3 amount of tax due on the property for that year is computed by
7-4 multiplying the amount of taxes imposed on the property for the
7-5 entire year as provided by Section 26.09 by a fraction, the
7-6 denominator of which is 365 and the numerator of which is the
7-7 number of days in that year before the date the property qualified
7-8 for the exemption.
7-9 SECTION 8. This Act takes effect January 1, 2000, and
7-10 applies only to ad valorem taxes imposed for a tax year that begins
7-11 on or after that date.
7-12 SECTION 9. The importance of this legislation and the
7-13 crowded condition of the calendars in both houses create an
7-14 emergency and an imperative public necessity that the
7-15 constitutional rule requiring bills to be read on three several
7-16 days in each house be suspended, and this rule is hereby suspended.