1-1 By: Cain S.B. No. 1461
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Finance; April 19, 1999,
1-4 reported favorably, as amended, by the following vote: Yeas 8,
1-5 Nays 0; April 19, 1999, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Moncrief
1-7 Amend S.B. No. 1461 as follows:
1-8 (1) In SECTION 3 of the bill, in amended Section 11.42, Tax
1-9 Code (introduced version, page 2, lines 55-61), strike added
1-10 Subsection (d) and redesignate Subsection (e) as Subsection (d).
1-11 (2) In SECTION 4 of the bill, in amended Section 11.43(d),
1-12 Tax Code (introduced version, page 3, lines 4-8), strike the second
1-13 sentence of the subsection.
1-14 (3) In SECTION 4 of the bill, in amended Section 11.43(d),
1-15 Tax Code (introduced version, page 3, line 10), strike "11.42(e)"
1-16 and substitute "11.42(d)".
1-17 (4) In SECTION 6 of the bill, in amended Section 26.112, Tax
1-18 Code, in the heading to the section (introduced version, page 3,
1-19 line 27), between "HOMESTEAD" and "[EXEMPTION]", insert "OF ELDERLY
1-20 PERSON".
1-21 (5) In SECTION 6 of the bill, in amended Section 26.112(a),
1-22 Tax Code (introduced version, page 3, lines 29-31), strike "11.13
1-23 with respect to the property [11.13(c) or (d) for an individual 65
1-24 years of age or older after the beginning of a tax year]" and
1-25 substitute "11.13(c) or (d) for an individual 65 years of age or
1-26 older [after the beginning of a tax year]".
1-27 (6) In SECTION 6 of the bill, in amended Section 26.112(b),
1-28 Tax Code (introduced version, page 3, line 38), between "(d)" and
1-29 "with", insert "for an individual 65 years of age or older".
1-30 (7) In SECTION 6 of the bill, in amended Section 26.112(c),
1-31 Tax Code (introduced version, page 3, line 43), strike "11.13" and
1-32 substitute "11.13(c) or (d) for an individual 65 years of age or
1-33 older".
1-34 (8) In SECTION 7 of the bill, in amended Section 26.113(a),
1-35 Tax Code (introduced version, page 4, line 3), strike "11.42(e)"
1-36 and substitute "11.42(d)".
1-37 A BILL TO BE ENTITLED
1-38 AN ACT
1-39 relating to the calculation of a residence homestead exemption from
1-40 ad valorem taxation and the limitation of school taxes on the
1-41 homestead of an elderly person if the owner of the homestead
1-42 qualifies for the exemption or limitation after the beginning of a
1-43 tax year.
1-44 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-45 SECTION 1. Subsection (h), Section 11.13, Tax Code, is
1-46 amended to read as follows:
1-47 (h) Joint, [or] community, or successive owners may not each
1-48 receive the same exemption provided by or pursuant to this section
1-49 for the same residence homestead in the same year. An eligible
1-50 disabled person who is 65 or older may not receive both a disabled
1-51 and an elderly residence homestead exemption but may choose either.
1-52 A person may not receive an exemption under this section for more
1-53 than one residence homestead in the same year.
1-54 SECTION 2. Subsections (a) and (j), Section 11.26, Tax Code,
1-55 are amended to read as follows:
1-56 (a) The tax officials shall appraise the property to which
1-57 this section applies and calculate taxes as on other property, but
1-58 if the tax so calculated exceeds the limitation imposed by this
1-59 section, the tax imposed is the amount of the tax as limited by
1-60 this section, except as otherwise provided by this section. A
1-61 school district may not increase the total annual amount of ad
1-62 valorem tax it imposes on the residence homestead of an individual
1-63 65 years or older above the amount of the tax it imposed in the
2-1 first tax year in which the individual qualified that residence
2-2 homestead for the exemption provided by Section 11.13(c) for an
2-3 individual 65 years of age or older. [If the individual qualified
2-4 that residence homestead for the exemption after the beginning of
2-5 that first year, the maximum amount of taxes that a school district
2-6 may impose on that residence homestead in a subsequent year is
2-7 determined as provided by Section 26.112 as if the individual
2-8 qualified that residence homestead for the exemption for that
2-9 entire first year, except as provided by Subsection (b).] If the
2-10 individual qualified that residence homestead for the exemption
2-11 after the beginning of that first year and the residence homestead
2-12 remains eligible for the exemption for the next year, and if the
2-13 school district taxes imposed on the residence homestead in the
2-14 next year are less than the amount of taxes imposed in that first
2-15 year, a school district may not subsequently increase the total
2-16 annual amount of ad valorem taxes it imposes on the residence
2-17 homestead above the amount it imposed in the year immediately
2-18 following the first year for which the individual qualified that
2-19 residence homestead for the exemption, except as provided by
2-20 Subsection (b). If the first tax year the individual qualified the
2-21 residence homestead for the exemption provided by Section 11.13(c)
2-22 was a tax year before the 1997 tax year, the amount of the
2-23 limitation provided by this section is the amount of tax the school
2-24 district imposed for the 1996 tax year less an amount equal to the
2-25 amount determined by multiplying $10,000 times the tax rate of the
2-26 school district for the 1997 tax year, plus any 1997 tax
2-27 attributable to improvements made in 1996, other than improvements
2-28 made to comply with governmental regulations or repairs.
2-29 (j) If an individual who qualifies for an exemption provided
2-30 by Section 11.13(c) for an individual 65 years of age or older dies
2-31 in the first year in which the individual qualified for the
2-32 exemption and the individual first qualified for the exemption
2-33 after the beginning of that year, except as provided by Subsection
2-34 (k), the amount to which the surviving spouse's school district
2-35 taxes are limited under Subsection (i) is the amount of school
2-36 district taxes imposed on the residence homestead in that year
2-37 determined [calculated under Section 26.112] as if the individual
2-38 qualifying for the exemption had lived for the entire year.
2-39 SECTION 3. Section 11.42, Tax Code, is amended to read as
2-40 follows:
2-41 Sec. 11.42. EXEMPTION QUALIFICATION DATE. (a) Except as
2-42 provided by Subsections [Subsection] (b) and (c) and by Sections
2-43 11.421, 11.422, 11.434, 11.435, and 11.436, eligibility for and
2-44 amount of an exemption authorized by this chapter for any tax year
2-45 are determined by a claimant's qualifications on January 1. A
2-46 person who does not qualify for an exemption on January 1 of any
2-47 year may not receive the exemption that year.
2-48 (b) An exemption authorized by Section 11.11 [or by Section
2-49 11.13(c) or (d) for an individual 65 years of age or older] is
2-50 effective immediately on qualification for the exemption.
2-51 (c) An exemption authorized by Section 11.13(c) or (d) for
2-52 an individual 65 years of age or older is effective as of January 1
2-53 of the tax year in which the person qualifies for the exemption and
2-54 applies to the entire tax year.
2-55 (d) A person who acquires property after January 1 of a tax
2-56 year is entitled to receive an exemption authorized by Section
2-57 11.13, other than an exemption authorized by Section 11.13(c) or
2-58 (d) for an individual 65 years of age or older, for that entire tax
2-59 year if the person qualifies the property for that exemption during
2-60 that tax year.
2-61 (e) A person who acquires property after January 1 of a tax
2-62 year may receive an exemption authorized by Section 11.17, 11.18,
2-63 11.19, 11.20, 11.21, 11.23, or 11.30 for the applicable portion of
2-64 that tax year immediately on qualification for the exemption.
2-65 SECTION 4. Subsection (d), Section 11.43, Tax Code, as
2-66 amended by Chapters 1039, 1059, and 1155, Acts of the 75th
2-67 Legislature, Regular Session, 1997, is reenacted and amended to
2-68 read as follows:
2-69 (d) To receive an exemption the eligibility for which is
3-1 determined by the claimant's qualifications on January 1 of the tax
3-2 year, a person required to claim an exemption must file a completed
3-3 exemption application form before May 1 and must furnish the
3-4 information required by the form. A person who after January 1 of
3-5 a tax year acquires property that qualifies for an exemption
3-6 covered by Section 11.42(d) must apply for the exemption for that
3-7 tax year before the first anniversary of the date the person
3-8 acquires the property. A person who after January 1 of a tax year
3-9 acquires property that qualifies for an exemption covered by
3-10 Section 11.42(e) [11.42(c)] must apply for the exemption for the
3-11 applicable portion of that tax year before the first anniversary of
3-12 the date the person acquires the property. For good cause shown
3-13 the chief appraiser may extend the deadline for filing an exemption
3-14 application by written order for a single period not to exceed 60
3-15 days.
3-16 SECTION 5. Subsection (k), Section 11.43, Tax Code, is
3-17 amended to read as follows:
3-18 (k) A person who qualifies for the exemption authorized by
3-19 Section 11.13(c) or (d) for an individual 65 years of age or older
3-20 [for a portion of a tax year] must apply for the exemption no later
3-21 than the first anniversary of the date the person qualified for the
3-22 exemption.
3-23 SECTION 6. Section 26.112, Tax Code, is amended to read as
3-24 follows:
3-25 Sec. 26.112. CALCULATION OF TAXES ON [PRORATING
3-26 TAXES--QUALIFICATION BY ELDERLY PERSON FOR 65 OR OVER] RESIDENCE
3-27 HOMESTEAD [EXEMPTION]. (a) If at any time during a tax year
3-28 property is owned by an individual who qualifies for an [the]
3-29 exemption under Section 11.13 with respect to the property
3-30 [11.13(c) or (d) for an individual 65 years of age or older after
3-31 the beginning of a tax year], the amount of the tax [taxes] due on
3-32 the property [residence homestead of the individual] for the tax
3-33 year is calculated as if the person qualified for the exemption on
3-34 January 1 and continued to qualify for the exemption for the
3-35 remainder of the tax year.
3-36 (b) If property is the residence homestead of more than one
3-37 individual during a tax year and any of those individuals qualify
3-38 for an exemption under Section 11.13(c) or (d) with respect to the
3-39 property, the amount of the tax due on the property for the tax
3-40 year is calculated as if that individual owned the property for the
3-41 entire tax year.
3-42 (c) If a person qualifies for an exemption under Section
3-43 11.13 with respect to the property after the amount of the tax due
3-44 on the property is calculated and the effect of the qualification
3-45 is to reduce the amount of the tax due on the property, the
3-46 assessor for each taxing unit shall recalculate the amount of the
3-47 tax due on the property and correct the tax roll. If the tax bill
3-48 has been mailed and the tax on the property has not been paid, the
3-49 assessor shall mail a corrected tax bill to the person in whose
3-50 name the property is listed on the tax roll or to the person's
3-51 authorized agent. If the tax on the property has been paid, the
3-52 tax collector for the taxing unit shall refund to the person who
3-53 paid the tax the amount by which the payment exceeded the tax due.
3-54 [by:]
3-55 [(1) subtracting:]
3-56 [(A) the amount of the taxes that otherwise
3-57 would be imposed on the residence homestead for the entire year had
3-58 the individual qualified for the residence homestead exemption on
3-59 January 1; from]
3-60 [(B) the amount of the taxes that otherwise
3-61 would be imposed on the residence homestead for the entire year had
3-62 the individual not qualified for the residence homestead exemption;]
3-63 [(2) multiplying the remainder determined under
3-64 Subdivision (1) by a fraction, the denominator of which is 365 and
3-65 the numerator of which is the number of days that elapsed prior to
3-66 the date that the individual qualified for the exemption; and]
3-67 [(3) adding the product determined under Subdivision
3-68 (2) and the amount described by Subdivision (1)(A).]
3-69 SECTION 7. Subsection (a), Section 26.113, Tax Code, is
4-1 amended to read as follows:
4-2 (a) If a person acquires taxable property that qualifies for
4-3 and is granted an exemption covered by Section 11.42(e) [11.42(c)]
4-4 for a portion of the year in which the property was acquired, the
4-5 amount of tax due on the property for that year is computed by
4-6 multiplying the amount of taxes imposed on the property for the
4-7 entire year as provided by Section 26.09 by a fraction, the
4-8 denominator of which is 365 and the numerator of which is the
4-9 number of days in that year before the date the property qualified
4-10 for the exemption.
4-11 SECTION 8. This Act takes effect January 1, 2000, and
4-12 applies only to ad valorem taxes imposed for a tax year that begins
4-13 on or after that date.
4-14 SECTION 9. The importance of this legislation and the
4-15 crowded condition of the calendars in both houses create an
4-16 emergency and an imperative public necessity that the
4-17 constitutional rule requiring bills to be read on three several
4-18 days in each house be suspended, and this rule is hereby suspended.
4-19 * * * * *