By Smith H.B. No. 506 77R13 SMH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the transfer of a limitation on school district ad 1-3 valorem taxes on the residence homestead of the surviving spouse of 1-4 an elderly person to a subsequent homestead. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Sections 11.26(g) and (h), Tax Code, are amended 1-7 to read as follows: 1-8 (g) Except as provided by Subsection (b), if an individual 1-9 who receives a limitation on tax increases imposed by this section, 1-10 including a surviving spouse who receives a limitation under 1-11 Subsection (i), subsequently qualifies a different residence 1-12 homestead for an exemption under Section 11.13, a school district 1-13 may not impose ad valorem taxes on the subsequently qualified 1-14 homestead in a year in an amount that exceeds the amount of taxes 1-15 the school district would have imposed on the subsequently 1-16 qualified homestead in the first year in which the individual 1-17 receives that exemption for the subsequently qualified homestead 1-18 had the limitation on tax increases imposed by this section not 1-19 been in effect, multiplied by a fraction the numerator of which is 1-20 the total amount of school district taxes imposed on the former 1-21 homestead in the last year in which the individual received that 1-22 exemption for the former homestead and the denominator of which is 1-23 the total amount of school district taxes that would have been 1-24 imposed on the former homestead in the last year in which the 2-1 individual received that exemption for the former homestead had the 2-2 limitation on tax increases imposed by this section not been in 2-3 effect. 2-4 (h) An individual who receives a limitation on tax increases 2-5 under this section, including a surviving spouse who receives a 2-6 limitation under Subsection (i), and who subsequently qualifies a 2-7 different residence homestead for an exemption under Section 11.13, 2-8 or an agent of the individual, is entitled to receive from the 2-9 chief appraiser of the appraisal district in which the former 2-10 homestead was located a written certificate providing the 2-11 information necessary to determine whether the individual may 2-12 qualify for a limitation on the subsequently qualified homestead 2-13 under Subsection (g) and to calculate the amount of taxes the 2-14 school district may impose on the subsequently qualified homestead. 2-15 SECTION 2. (a) This Act takes effect January 1, 2002, and 2-16 applies only to ad valorem taxes imposed for a tax year that begins 2-17 on or after January 1, 2002. 2-18 (b) The change in law made by this Act is intended to 2-19 clarify existing law in effect before the effective date of this 2-20 Act and is not intended to make a substantive change in the law. 2-21 For purposes of calculating the tax imposed on the residence 2-22 homestead of a surviving spouse for a tax year that begins on or 2-23 after the effective date of this Act, the governing body of a 2-24 school district shall apply the limitation on tax increases 2-25 provided by Section 11.26(g), Tax Code, as amended by this Act, to 2-26 the residence homestead as if the change in law made by this Act 2-27 were in effect on August 25, 1997.