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.