By Bonnen H.B. No. 1940
77R3327 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the proration of the taxes imposed on a residence
1-3 homestead in a year in which a residence homestead exemption for an
1-4 elderly person terminates.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 26.10(b), Tax Code, is amended to read as
1-7 follows:
1-8 (b) If the appraisal roll shows that a [property is eligible
1-9 for taxation at its full appraised value for only part of a year
1-10 because a] residence homestead exemption for an individual 65 years
1-11 of age or older applicable to a property on January 1 of a [that]
1-12 year terminated during the year and if the owner qualifies a
1-13 different property for a residence homestead exemption during the
1-14 same year, the tax due against the former residence homestead
1-15 [property] is calculated by:
1-16 (1) subtracting:
1-17 (A) the amount of the taxes that otherwise would
1-18 be imposed on the former residence homestead for the entire year
1-19 had the individual qualified for the residence homestead exemption
1-20 for the entire year; from
1-21 (B) the amount of the taxes that otherwise would
1-22 be imposed on the former residence homestead for the entire year
1-23 had the individual not qualified for the residence homestead
1-24 exemption during the year;
2-1 (2) multiplying the remainder determined under
2-2 Subdivision (1) by a fraction, the denominator of which is 365 and
2-3 the numerator of which is the number of days that elapsed after the
2-4 date the exemption terminated; and
2-5 (3) adding the product determined under Subdivision
2-6 (2) and the amount described by Subdivision (1)(A).
2-7 SECTION 2. Section 26.112, Tax Code, is amended to read as
2-8 follows:
2-9 Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
2-10 ELDERLY PERSON. (a) Except as provided by Section 26.10(b), if
2-11 [If] at any time during a tax year property is owned by an
2-12 individual who qualifies for an exemption under Section 11.13(c) or
2-13 (d) for an individual 65 years of age or older, the amount of the
2-14 tax due on the property for the tax year is calculated as if the
2-15 person qualified for the exemption on January 1 and continued to
2-16 qualify for the exemption for the remainder of the tax year.
2-17 (b) [If property is the residence homestead of more than one
2-18 individual during a tax year and any of those individuals qualify
2-19 for an exemption under Section 11.13(c) or (d) for an individual 65
2-20 years of age or older with respect to the property, the amount of
2-21 the tax due on the property for the tax year is calculated as if
2-22 that individual owned the property for the entire tax year.]
2-23 [(c)] If a person qualifies for an exemption under Section
2-24 11.13(c) or (d) for an individual 65 years of age or older with
2-25 respect to the property after the amount of the tax due on the
2-26 property is calculated and the effect of the qualification is to
2-27 reduce the amount of the tax due on the property, the assessor for
3-1 each taxing unit shall recalculate the amount of the tax due on the
3-2 property and correct the tax roll. If the tax bill has been mailed
3-3 and the tax on the property has not been paid, the assessor shall
3-4 mail a corrected tax bill to the person in whose name the property
3-5 is listed on the tax roll or to the person's authorized agent. If
3-6 the tax on the property has been paid, the tax collector for the
3-7 taxing unit shall refund to the person who paid the tax the amount
3-8 by which the payment exceeded the tax due.
3-9 SECTION 3. This Act takes effect January 1, 2002, and applies
3-10 only to ad valorem taxes imposed for a tax year that begins on or
3-11 after that date.