1-1 By: Bonnen (Senate Sponsor - Cain) H.B. No. 1940
1-2 (In the Senate - Received from the House May 7, 2001;
1-3 May 7, 2001, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 11, 2001, reported favorably by
1-5 the following vote: Yeas 5, Nays 0; May 11, 2001, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the proration of the taxes imposed on a residence
1-10 homestead in a year in which a residence homestead exemption for an
1-11 elderly person terminates.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 26.10(b), Tax Code, is amended to read as
1-14 follows:
1-15 (b) If the appraisal roll shows that a [property is eligible
1-16 for taxation at its full appraised value for only part of a year
1-17 because a] residence homestead exemption for an individual 65 years
1-18 of age or older applicable to a property on January 1 of a [that]
1-19 year terminated during the year and if the owner qualifies a
1-20 different property for a residence homestead exemption during the
1-21 same year, the tax due against the former residence homestead
1-22 [property] is calculated by:
1-23 (1) subtracting:
1-24 (A) the amount of the taxes that otherwise would
1-25 be imposed on the former residence homestead for the entire year
1-26 had the individual qualified for the residence homestead exemption
1-27 for the entire year; from
1-28 (B) the amount of the taxes that otherwise would
1-29 be imposed on the former residence homestead for the entire year
1-30 had the individual not qualified for the residence homestead
1-31 exemption during the year;
1-32 (2) multiplying the remainder determined under
1-33 Subdivision (1) by a fraction, the denominator of which is 365 and
1-34 the numerator of which is the number of days that elapsed after the
1-35 date the exemption terminated; and
1-36 (3) adding the product determined under Subdivision
1-37 (2) and the amount described by Subdivision (1)(A).
1-38 SECTION 2. Section 26.112, Tax Code, is amended to read as
1-39 follows:
1-40 Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
1-41 ELDERLY PERSON. (a) Except as provided by Section 26.10(b), if
1-42 [If] at any time during a tax year property is owned by an
1-43 individual who qualifies for an exemption under Section 11.13(c) or
1-44 (d) for an individual 65 years of age or older, the amount of the
1-45 tax due on the property for the tax year is calculated as if the
1-46 person qualified for the exemption on January 1 and continued to
1-47 qualify for the exemption for the remainder of the tax year.
1-48 (b) [If property is the residence homestead of more than one
1-49 individual during a tax year and any of those individuals qualify
1-50 for an exemption under Section 11.13(c) or (d) for an individual 65
1-51 years of age or older with respect to the property, the amount of
1-52 the tax due on the property for the tax year is calculated as if
1-53 that individual owned the property for the entire tax year.]
1-54 [(c)] If a person qualifies for an exemption under Section
1-55 11.13(c) or (d) for an individual 65 years of age or older with
1-56 respect to the property after the amount of the tax due on the
1-57 property is calculated and the effect of the qualification is to
1-58 reduce the amount of the tax due on the property, the assessor for
1-59 each taxing unit shall recalculate the amount of the tax due on the
1-60 property and correct the tax roll. If the tax bill has been mailed
1-61 and the tax on the property has not been paid, the assessor shall
1-62 mail a corrected tax bill to the person in whose name the property
1-63 is listed on the tax roll or to the person's authorized agent. If
1-64 the tax on the property has been paid, the tax collector for the
2-1 taxing unit shall refund to the person who paid the tax the amount
2-2 by which the payment exceeded the tax due.
2-3 SECTION 3. This Act takes effect January 1, 2002, and applies
2-4 only to ad valorem taxes imposed for a tax year that begins on or
2-5 after that date.
2-6 * * * * *