By Hamric                                             H.B. No. 3367
         77R7708 JD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to limiting the amount of school district ad valorem taxes
 1-3     that may be imposed on the residence homestead of a disabled
 1-4     person.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. The heading of Section 11.26, Tax Code, is amended
 1-7     to read as follows:
 1-8           Sec. 11.26.  LIMITATION OF SCHOOL TAX ON HOMESTEADS OF
 1-9     ELDERLY OR DISABLED.
1-10           SECTION 2. Section 11.26, Tax Code, is amended by amending
1-11     Subsections (a), (d), (e), (g), (h), and (l) and adding Subsection
1-12     (m) to read as follows:
1-13           (a)  The tax officials shall appraise the property to which
1-14     this section applies and calculate taxes as on other property, but
1-15     if the tax so calculated exceeds the limitation imposed by this
1-16     section, the tax imposed is the amount of the tax as limited by
1-17     this section, except as otherwise provided by this section.  A
1-18     school district may not increase the total annual amount of ad
1-19     valorem tax it imposes on the residence homestead of an individual
1-20     65 years or older or on the residence homestead of a disabled
1-21     person, as defined by Section 11.13, above the amount of the tax it
1-22     imposed in the first tax year in which the individual qualified
1-23     that residence homestead for the applicable exemption provided by
1-24     Section 11.13(c) for an individual who is 65 years of age or older
 2-1     or is disabled.  If the individual qualified that residence
 2-2     homestead for the exemption after the beginning of that first year
 2-3     and the residence homestead remains eligible for the same exemption
 2-4     for the next year, and if the school district taxes imposed on the
 2-5     residence homestead in the next year are less than the amount of
 2-6     taxes imposed in that first year, a school district may not
 2-7     subsequently increase the total annual amount of ad valorem taxes
 2-8     it imposes on the residence homestead above the amount it imposed
 2-9     in the year immediately following the first year for which the
2-10     individual qualified that residence homestead for the same
2-11     exemption, except as provided by Subsection (b).  If the first tax
2-12     year the individual qualified the residence homestead for the
2-13     exemption provided by Section 11.13(c) was a tax year before the
2-14     1997 tax year, the amount of the limitation provided by this
2-15     section is the amount of tax the school district imposed for the
2-16     1996 tax year less an amount equal to the amount determined by
2-17     multiplying $10,000 times the tax rate of the school district for
2-18     the 1997 tax year, plus any 1997 tax attributable to improvements
2-19     made in 1996, other than improvements made to comply with
2-20     governmental regulations or repairs.
2-21           (d)  If the appraisal roll provides for taxation of appraised
2-22     value for a prior year because a residence homestead exemption for
2-23     persons 65 years or older or for disabled persons was erroneously
2-24     allowed, the tax assessor shall add, as back taxes due as provided
2-25     by [Subsection (d) of] Section 26.09(d) [26.09 of this code], the
2-26     positive difference if any between the tax that should have been
2-27     imposed for that year and the tax that was imposed because of the
 3-1     provisions of this section.
 3-2           (e)  For each school district in an appraisal district, the
 3-3     chief appraiser shall determine the portion of the appraised value
 3-4     of residence homesteads of [the] elderly and disabled persons on
 3-5     which school district taxes are not imposed in a tax year because
 3-6     of the limitation on tax increases imposed by this section.  That
 3-7     portion is calculated by determining the taxable value that, if
 3-8     multiplied by the tax rate adopted by the school district for the
 3-9     tax year, would produce an amount equal to the amount of tax that
3-10     would have been imposed by the school district on residence
3-11     homesteads of [the] elderly and disabled persons if the limitation
3-12     on tax increases imposed by this section were not in effect, but
3-13     that was not imposed because of that limitation.  The chief
3-14     appraiser shall determine that taxable value and certify it to the
3-15     comptroller as soon as practicable for each tax year.
3-16           (g)  Except as provided by Subsection (b), if an individual
3-17     who receives a limitation on tax increases imposed by this section
3-18     subsequently qualifies a different residence homestead for the same
3-19     [an] exemption under Section 11.13, a school district may not
3-20     impose ad valorem taxes on the subsequently qualified homestead in
3-21     a year in an amount that exceeds the amount of taxes the school
3-22     district would have imposed on the subsequently qualified homestead
3-23     in the first year in which the individual receives that same
3-24     exemption for the subsequently qualified homestead had the
3-25     limitation on tax increases imposed by this section not been in
3-26     effect, multiplied by a fraction the numerator of which is the
3-27     total amount of school district taxes imposed on the former
 4-1     homestead in the last year in which the individual received that
 4-2     same exemption for the former homestead and the denominator of
 4-3     which is the total amount of school district taxes that would have
 4-4     been imposed on the former homestead in the last year in which the
 4-5     individual received that same exemption for the former homestead
 4-6     had the limitation on tax increases imposed by this section not
 4-7     been in effect.
 4-8           (h)  An individual who receives a limitation on tax increases
 4-9     under this section and who subsequently qualifies a different
4-10     residence homestead for an exemption under Section 11.13, or an
4-11     agent of the individual, is entitled to receive from the chief
4-12     appraiser of the appraisal district in which the former homestead
4-13     was located a written certificate providing the information
4-14     necessary to determine whether the individual may qualify for that
4-15     same [a] limitation on the subsequently qualified homestead under
4-16     Subsection (g) and to calculate the amount of taxes the school
4-17     district may impose on the subsequently qualified homestead.
4-18           (l)  For the purpose of calculating a limitation on ad
4-19     valorem tax increases by a school district under this section, an
4-20     individual who qualified a residence homestead before January 1,
4-21     2001, for an exemption under Section 11.13(c) for a disabled
4-22     individual is considered to have first qualified the homestead for
4-23     that exemption on January 1, 2001.
4-24           (m)  For the purpose of qualifying under Subsection (g) for
4-25     the limitation on ad valorem taxes on a subsequently qualified
4-26     homestead imposed by a school district, the residence homestead of
4-27     an individual may be considered to be a subsequently qualified
 5-1     homestead only if the individual qualified the former homestead for
 5-2     an exemption under Section 11.13(c) for a disabled individual for a
 5-3     tax year beginning on or after January 1, 2001  [For purposes of
 5-4     the limitation on tax increases provided by Subsection (g) as added
 5-5     by this Act or by H.B. No. 4, Acts of the 75th Legislature, Regular
 5-6     Session, 1997, as applicable, the governing body of a school
 5-7     district in a county with a population of fewer than 75,000 in a
 5-8     manner provided by law for official action by the governing body
 5-9     may elect to apply the limitation provided by Subsection (g) to the
5-10     residence homestead of an individual as if that subsection were in
5-11     effect on January 1, 1993. The governing body must make the
5-12     election before January 1, 1999. The election applies only to taxes
5-13     imposed in a tax year that begins after the tax year in which the
5-14     election is made].
5-15           SECTION 3. Section 403.302(d), Government Code, is amended to
5-16     read as follows:
5-17           (d)  For the purposes of this section, "taxable value" means
5-18     the market value of all taxable property less:
5-19                 (1)  the total dollar amount of any residence homestead
5-20     exemptions lawfully granted under Section 11.13(b) or (c), Tax
5-21     Code, in the year that is the subject of the study for each school
5-22     district;
5-23                 (2)  one-half of the total dollar amount of any
5-24     residence homestead exemptions granted under Section 11.13(n), Tax
5-25     Code, in the year that is the subject of the study for each school
5-26     district;
5-27                 (3)  the total dollar amount of any exemptions granted
 6-1     before May 31, 1993, within a reinvestment zone under agreements
 6-2     authorized by Chapter 312, Tax Code;
 6-3                 (4)  subject to Subsection (e), the total dollar amount
 6-4     of any captured appraised value of property that:
 6-5                       (A)  is within a reinvestment zone created on or
 6-6     before May 31, 1999, or is proposed to be included within the
 6-7     boundaries of a reinvestment zone as the boundaries of the zone and
 6-8     the proposed portion of tax increment paid into the tax increment
 6-9     fund by a school district are described in a written notification
6-10     provided by the municipality or the board of directors of the zone
6-11     to the governing bodies of the other taxing units in the manner
6-12     provided by Section 311.003(e), Tax Code, before May 31, 1999, and
6-13     within the boundaries of the zone as those boundaries existed on
6-14     September 1, 1999, including subsequent improvements to the
6-15     property regardless of when made;
6-16                       (B)  generates taxes paid into a tax increment
6-17     fund created under Chapter 311, Tax Code, under a reinvestment zone
6-18     financing plan approved under Section 311.011(d), Tax Code, on or
6-19     before September 1, 1999; and
6-20                       (C)  is eligible for tax increment financing
6-21     under Chapter 311, Tax Code;
6-22                 (5)  the total dollar amount of any exemptions granted
6-23     under Section 11.251, Tax Code;
6-24                 (6)  the difference between the comptroller's estimate
6-25     of the market value and the productivity value of land that
6-26     qualifies for appraisal on the basis of its productive capacity,
6-27     except that the productivity value estimated by the comptroller may
 7-1     not exceed the fair market value of the land;
 7-2                 (7)  the portion of the appraised value of residence
 7-3     homesteads of the elderly or the disabled on which school district
 7-4     taxes are not imposed in the year that is the subject of the study,
 7-5     calculated as if the residence homesteads were appraised at the
 7-6     full value required by law;
 7-7                 (8)  a portion of the market value of property not
 7-8     otherwise fully taxable by the district at market value because of
 7-9     action required by statute or the constitution of this state that,
7-10     if the tax rate adopted by the district is applied to it, produces
7-11     an amount equal to the difference between the tax that the district
7-12     would have imposed on the property if the property were fully
7-13     taxable at market value and the tax that the district is actually
7-14     authorized to impose on the property, if this subsection does not
7-15     otherwise require that portion to be deducted;
7-16                 (9)  the market value of all tangible personal
7-17     property, other than manufactured homes, owned by a family or
7-18     individual and not held or used for the production of income;
7-19                 (10)  the appraised value of property the collection of
7-20     delinquent taxes on which is deferred under Section 33.06, Tax
7-21     Code;
7-22                 (11)  the portion of the appraised value of property
7-23     the collection of delinquent taxes on which is deferred under
7-24     Section 33.065, Tax Code; and
7-25                 (12)  the amount by which the market value of a
7-26     residence homestead to which Section 23.23, Tax Code, applies
7-27     exceeds the appraised value of that property as calculated under
 8-1     that section.
 8-2           SECTION 4. This Act takes effect January 1, 2002, and applies
 8-3     only to taxes imposed for tax years that begin on or after that
 8-4     date, but only if the constitutional amendment proposed by the 77th
 8-5     Legislature, Regular Session, 2001, to prohibit an increase in the
 8-6     total amount of school district ad valorem taxes that may be
 8-7     imposed on the residence homestead of a disabled person is approved
 8-8     by the voters. If that amendment is not approved by the voters,
 8-9     this Act has no effect.