1-1 By: Smith (Senate Sponsor - Staples) H.B. No. 506 1-2 (In the Senate - Received from the House April 2, 2001; 1-3 April 3, 2001, read first time and referred to Committee on 1-4 Education; April 27, 2001, reported favorably by the following 1-5 vote: Yeas 7, Nays 0; April 27, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the transfer of a limitation on school district ad 1-9 valorem taxes on the residence homestead of the surviving spouse of 1-10 an elderly person to a subsequent homestead. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Sections 11.26(g) and (h), Tax Code, are amended 1-13 to read as follows: 1-14 (g) Except as provided by Subsection (b), if an individual 1-15 who receives a limitation on tax increases imposed by this section, 1-16 including a surviving spouse who receives a limitation under 1-17 Subsection (i), subsequently qualifies a different residence 1-18 homestead for an exemption under Section 11.13, a school district 1-19 may not impose ad valorem taxes on the subsequently qualified 1-20 homestead in a year in an amount that exceeds the amount of taxes 1-21 the school district would have imposed on the subsequently 1-22 qualified homestead in the first year in which the individual 1-23 receives that exemption for the subsequently qualified homestead 1-24 had the limitation on tax increases imposed by this section not 1-25 been in effect, multiplied by a fraction the numerator of which is 1-26 the total amount of school district taxes imposed on the former 1-27 homestead in the last year in which the individual received that 1-28 exemption for the former homestead and the denominator of which is 1-29 the total amount of school district taxes that would have been 1-30 imposed on the former homestead in the last year in which the 1-31 individual received that exemption for the former homestead had the 1-32 limitation on tax increases imposed by this section not been in 1-33 effect. 1-34 (h) An individual who receives a limitation on tax increases 1-35 under this section, including a surviving spouse who receives a 1-36 limitation under Subsection (i), and who subsequently qualifies a 1-37 different residence homestead for an exemption under Section 11.13, 1-38 or an agent of the individual, is entitled to receive from the 1-39 chief appraiser of the appraisal district in which the former 1-40 homestead was located a written certificate providing the 1-41 information necessary to determine whether the individual may 1-42 qualify for a limitation on the subsequently qualified homestead 1-43 under Subsection (g) and to calculate the amount of taxes the 1-44 school district may impose on the subsequently qualified homestead. 1-45 SECTION 2. (a) This Act takes effect January 1, 2002, and 1-46 applies only to ad valorem taxes imposed for a tax year that begins 1-47 on or after January 1, 2002. 1-48 (b) The change in law made by this Act is intended to 1-49 clarify existing law in effect before the effective date of this 1-50 Act and is not intended to make a substantive change in the law. 1-51 For purposes of calculating the tax imposed on the residence 1-52 homestead of a surviving spouse for a tax year that begins on or 1-53 after the effective date of this Act, the governing body of a 1-54 school district shall apply the limitation on tax increases 1-55 provided by Section 11.26(g), Tax Code, as amended by this Act, to 1-56 the residence homestead as if the change in law made by this Act 1-57 were in effect on August 25, 1997. 1-58 * * * * *