By Brown of Kaufman                                   H.B. No. 2240
         77R7414 JD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to limiting the transfer of the school district ad valorem
 1-3     tax freeze on the residence homesteads of the elderly to different
 1-4     homesteads in the same school district.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 11.26, Tax Code, is amended by amending
 1-7     Subsections (g) and (h) and adding Subsection (m) to read as
 1-8     follows:
 1-9           (g)  Except as provided by Subsection (b), if an individual
1-10     who receives a limitation on tax increases imposed by this section
1-11     subsequently qualifies a different residence homestead in the same
1-12     school district for an exemption under Section 11.13, the [a]
1-13     school district may not impose ad valorem taxes on the subsequently
1-14     qualified homestead in a year in an amount that exceeds the amount
1-15     of taxes 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 and who subsequently qualifies a different
 2-6     residence homestead in the same school district for an exemption
 2-7     under Section 11.13, or an agent of the individual, is entitled to
 2-8     receive from the chief appraiser of the appraisal district in which
 2-9     the former homestead was located a written certificate providing
2-10     the information necessary to determine whether the individual may
2-11     qualify for a limitation on the subsequently qualified homestead
2-12     under Subsection (g) and to calculate the amount of taxes the
2-13     school district may impose on the subsequently qualified homestead.
2-14           (m)  Except as provided by Subsection (b) and notwithstanding
2-15     Subsection (g), if an individual received a limitation on tax
2-16     increases on a subsequently qualified homestead under Subsection
2-17     (g) for the 2001 tax year, the individual is entitled to continue
2-18     to receive that limitation regardless of whether, in the year the
2-19     individual qualified that homestead for an exemption under Section
2-20     11.13, the subsequently qualified homestead was located in the same
2-21     school district as the individual's former homestead, as long as
2-22     the individual otherwise qualifies for the limitation.
2-23           SECTION 2. (a)  This Act takes effect January 1, 2002, and
2-24     applies to each tax year that begins on or after that date.
2-25           (b)  Section 11.26(g), Tax Code, as amended by this Act,
2-26     applies only to an individual who, after receiving a limitation on
2-27     school district tax increases under Section 11.26, Tax Code, on the
 3-1     individual's residence homestead, as defined by Section 11.13 of
 3-2     that code, acquires a different residence homestead on or after
 3-3     January 1, 2002.