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                                  * * * * *