By Cain S.B. No. 1461
76R3947 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the calculation of a residence homestead exemption from
1-3 ad valorem taxation and the limitation of school taxes on the
1-4 homestead of an elderly person if the owner of the homestead
1-5 qualifies for the exemption or limitation after the beginning of a
1-6 tax year.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Section 11.13(h), Tax Code, is amended to read as
1-9 follows:
1-10 (h) Joint, [or] community, or successive owners may not each
1-11 receive the same exemption provided by or pursuant to this section
1-12 for the same residence homestead in the same year. An eligible
1-13 disabled person who is 65 or older may not receive both a disabled
1-14 and an elderly residence homestead exemption but may choose either.
1-15 A person may not receive an exemption under this section for more
1-16 than one residence homestead in the same year.
1-17 SECTION 2. Sections 11.26(a) and (j), Tax Code, are amended
1-18 to read as follows:
1-19 (a) The tax officials shall appraise the property to which
1-20 this section applies and calculate taxes as on other property, but
1-21 if the tax so calculated exceeds the limitation imposed by this
1-22 section, the tax imposed is the amount of the tax as limited by
1-23 this section, except as otherwise provided by this section. A
1-24 school district may not increase the total annual amount of ad
2-1 valorem tax it imposes on the residence homestead of an individual
2-2 65 years or older above the amount of the tax it imposed in the
2-3 first tax year in which the individual qualified that residence
2-4 homestead for the exemption provided by Section 11.13(c) for an
2-5 individual 65 years of age or older. [If the individual qualified
2-6 that residence homestead for the exemption after the beginning of
2-7 that first year, the maximum amount of taxes that a school district
2-8 may impose on that residence homestead in a subsequent year is
2-9 determined as provided by Section 26.112 as if the individual
2-10 qualified that residence homestead for the exemption for that
2-11 entire first year, except as provided by Subsection (b).] If the
2-12 individual qualified that residence homestead for the exemption
2-13 after the beginning of that first year and the residence homestead
2-14 remains eligible for the exemption for the next year, and if the
2-15 school district taxes imposed on the residence homestead in the
2-16 next year are less than the amount of taxes imposed in that first
2-17 year, a school district may not subsequently increase the total
2-18 annual amount of ad valorem taxes it imposes on the residence
2-19 homestead above the amount it imposed in the year immediately
2-20 following the first year for which the individual qualified that
2-21 residence homestead for the exemption, except as provided by
2-22 Subsection (b). If the first tax year the individual qualified the
2-23 residence homestead for the exemption provided by Section 11.13(c)
2-24 was a tax year before the 1997 tax year, the amount of the
2-25 limitation provided by this section is the amount of tax the school
2-26 district imposed for the 1996 tax year less an amount equal to the
2-27 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
3-27 an individual 65 years of age or older is effective as of January 1
4-1 of the tax year in which the person qualifies for the exemption and
4-2 applies to the entire tax year.
4-3 (d) A person who acquires property after January 1 of a tax
4-4 year is entitled to receive an exemption authorized by Section
4-5 11.13, other than an exemption authorized by Section 11.13(c) or
4-6 (d) for an individual 65 years of age or older, for that entire tax
4-7 year if the person qualifies the property for that exemption during
4-8 that tax year.
4-9 (e) A person who acquires property after January 1 of a tax
4-10 year may receive an exemption authorized by Section 11.17, 11.18,
4-11 11.19, 11.20, 11.21, 11.23, or 11.30 for the applicable portion of
4-12 that tax year immediately on qualification for the exemption.
4-13 SECTION 4. Section 11.43(d), Tax Code, as amended by
4-14 Chapters 1039, 1059, and 1155, Acts of the 75th Legislature,
4-15 Regular Session, 1997, is reenacted and amended to read as follows:
4-16 (d) To receive an exemption the eligibility for which is
4-17 determined by the claimant's qualifications on January 1 of the tax
4-18 year, a person required to claim an exemption must file a completed
4-19 exemption application form before May 1 and must furnish the
4-20 information required by the form. A person who after January 1 of
4-21 a tax year acquires property that qualifies for an exemption
4-22 covered by Section 11.42(d) must apply for the exemption for that
4-23 tax year before the first anniversary of the date the person
4-24 acquires the property. A person who after January 1 of a tax year
4-25 acquires property that qualifies for an exemption covered by
4-26 Section 11.42(e) [11.42(c)] must apply for the exemption for the
4-27 applicable portion of that tax year before the first anniversary of
5-1 the date the person acquires the property. For good cause shown
5-2 the chief appraiser may extend the deadline for filing an exemption
5-3 application by written order for a single period not to exceed 60
5-4 days.
5-5 SECTION 5. Section 11.43(k), Tax Code, is amended to read as
5-6 follows:
5-7 (k) A person who qualifies for the exemption authorized by
5-8 Section 11.13(c) or (d) for an individual 65 years of age or older
5-9 [for a portion of a tax year] must apply for the exemption no later
5-10 than the first anniversary of the date the person qualified for the
5-11 exemption.
5-12 SECTION 6. Section 26.112, Tax Code, is amended to read as
5-13 follows:
5-14 Sec. 26.112. CALCULATION OF TAXES ON [PRORATING
5-15 TAXES--QUALIFICATION BY ELDERLY PERSON FOR 65 OR OVER] RESIDENCE
5-16 HOMESTEAD [EXEMPTION]. (a) If at any time during a tax year
5-17 property is owned by an individual who qualifies for an [the]
5-18 exemption under Section 11.13 with respect to the property
5-19 [11.13(c) or (d) for an individual 65 years of age or older after
5-20 the beginning of a tax year], the amount of the tax [taxes] due on
5-21 the property [residence homestead of the individual] for the tax
5-22 year is calculated as if the person qualified for the exemption on
5-23 January 1 and continued to qualify for the exemption for the
5-24 remainder of the tax year.
5-25 (b) If property is the residence homestead of more than one
5-26 individual during a tax year and any of those individuals qualify
5-27 for an exemption under Section 11.13(c) or (d) with respect to the
6-1 property, the amount of the tax due on the property for the tax
6-2 year is calculated as if that individual owned the property for the
6-3 entire tax year.
6-4 (c) If a person qualifies for an exemption under Section
6-5 11.13 with respect to the property after the amount of the tax due
6-6 on the property is calculated and the effect of the qualification
6-7 is to reduce the amount of the tax due on the property, the
6-8 assessor for each taxing unit shall recalculate the amount of the
6-9 tax due on the property and correct the tax roll. If the tax bill
6-10 has been mailed and the tax on the property has not been paid, the
6-11 assessor shall mail a corrected tax bill to the person in whose
6-12 name the property is listed on the tax roll or to the person's
6-13 authorized agent. If the tax on the property has been paid, the
6-14 tax collector for the taxing unit shall refund to the person who
6-15 paid the tax the amount by which the payment exceeded the tax due.
6-16 [by:]
6-17 [(1) subtracting:]
6-18 [(A) the amount of the taxes that otherwise
6-19 would be imposed on the residence homestead for the entire year had
6-20 the individual qualified for the residence homestead exemption on
6-21 January 1; from]
6-22 [(B) the amount of the taxes that otherwise
6-23 would be imposed on the residence homestead for the entire year had
6-24 the individual not qualified for the residence homestead exemption;]
6-25 [(2) multiplying the remainder determined under
6-26 Subdivision (1) by a fraction, the denominator of which is 365 and
6-27 the numerator of which is the number of days that elapsed prior to
7-1 the date that the individual qualified for the exemption; and]
7-2 [(3) adding the product determined under Subdivision
7-3 (2) and the amount described by Subdivision (1)(A).]
7-4 SECTION 7. Section 26.113(a), Tax Code, is amended to read
7-5 as follows:
7-6 (a) If a person acquires taxable property that qualifies for
7-7 and is granted an exemption covered by Section 11.42(e) [11.42(c)]
7-8 for a portion of the year in which the property was acquired, the
7-9 amount of tax due on the property for that year is computed by
7-10 multiplying the amount of taxes imposed on the property for the
7-11 entire year as provided by Section 26.09 by a fraction, the
7-12 denominator of which is 365 and the numerator of which is the
7-13 number of days in that year before the date the property qualified
7-14 for the exemption.
7-15 SECTION 8. This Act takes effect January 1, 2000, and
7-16 applies only to ad valorem taxes imposed for a tax year that begins
7-17 on or after that date.
7-18 SECTION 9. The importance of this legislation and the
7-19 crowded condition of the calendars in both houses create an
7-20 emergency and an imperative public necessity that the
7-21 constitutional rule requiring bills to be read on three several
7-22 days in each house be suspended, and this rule is hereby suspended.