By: Hamric, et al. (Senate Sponsor - Van de Putte) H.B. No. 217
(In the Senate - Received from the House May 1, 2003;
May 6, 2003, read first time and referred to Committee on Finance;
May 23, 2003, reported favorably by the following vote: Yeas 11,
Nays 0; May 23, 2003, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to limiting the amount of school district ad valorem taxes
that may be imposed on the residence homestead of a disabled person.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading of Section 11.26, Tax Code, is
amended to read as follows:
Sec. 11.26. LIMITATION OF SCHOOL TAX ON HOMESTEADS OF
ELDERLY OR DISABLED.
SECTION 2. Section 11.26, Tax Code, is amended by amending
Subsections (a), (d), (e), (g), (h), and (l) and adding Subsection
(m) to read as follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older was a tax year before the 1997 tax year, the amount of
the limitation provided by this section is the amount of tax the
school district imposed for the 1996 tax year less an amount equal
to the amount determined by multiplying $10,000 times the tax rate
of the school district for the 1997 tax year, plus any 1997 tax
attributable to improvements made in 1996, other than improvements
made to comply with governmental regulations or repairs.
(d) If the appraisal roll provides for taxation of appraised
value for a prior year because a residence homestead exemption for
individuals [persons] 65 years of age or older or for disabled
individuals was erroneously allowed, the tax assessor shall add, as
back taxes due as provided by [Subsection (d) of] Section 26.09(d)
[26.09 of this code], the positive difference if any between the tax
that should have been imposed for that year and the tax that was
imposed because of the provisions of this section.
(e) For each school district in an appraisal district, the
chief appraiser shall determine the portion of the appraised value
of residence homesteads of individuals [the elderly] on which
school district taxes are not imposed in a tax year because of the
limitation on tax increases imposed by this section. That portion
is calculated by determining the taxable value that, if multiplied
by the tax rate adopted by the school district for the tax year,
would produce an amount equal to the amount of tax that would have
been imposed by the school district on those residence homesteads
[of the elderly] if the limitation on tax increases imposed by this
section were not in effect, but that was not imposed because of that
limitation. The chief appraiser shall determine that taxable value
and certify it to the comptroller as soon as practicable for each
tax year.
(g) Except as provided by Subsection (b), if an individual
who receives a limitation on tax increases imposed by this section,
including a surviving spouse who receives a limitation under
Subsection (i), subsequently qualifies a different residence
homestead for the same [an] exemption under Section 11.13, a school
district may not impose ad valorem taxes on the subsequently
qualified homestead in a year in an amount that exceeds the amount
of taxes the school district would have imposed on the subsequently
qualified homestead in the first year in which the individual
receives that same exemption for the subsequently qualified
homestead had the limitation on tax increases imposed by this
section not been in effect, multiplied by a fraction the numerator
of which is the total amount of school district taxes imposed on the
former homestead in the last year in which the individual received
that same exemption for the former homestead and the denominator of
which is the total amount of school district taxes that would have
been imposed on the former homestead in the last year in which the
individual received that same exemption for the former homestead
had the limitation on tax increases imposed by this section not been
in effect.
(h) An individual who receives a limitation on tax increases
under this section, including a surviving spouse who receives a
limitation under Subsection (i), and who subsequently qualifies a
different residence homestead for an exemption under Section 11.13,
or an agent of the individual, is entitled to receive from the chief
appraiser of the appraisal district in which the former homestead
was located a written certificate providing the information
necessary to determine whether the individual may qualify for that
same [a] limitation on the subsequently qualified homestead under
Subsection (g) and to calculate the amount of taxes the school
district may impose on the subsequently qualified homestead.
(l) For the purpose of calculating a limitation on ad
valorem tax increases by a school district under this section, an
individual who qualified a residence homestead before January 1,
2003, for an exemption under Section 11.13(c) for a disabled
individual is considered to have first qualified the homestead for
that exemption on January 1, 2003.
(m) For the purpose of qualifying under Subsection (g) for
the limitation on ad valorem taxes on a subsequently qualified
homestead imposed by a school district, the residence homestead of
an individual may be considered to be a subsequently qualified
homestead only if the individual qualified the former homestead for
an exemption under Section 11.13(c) for a disabled individual for a
tax year beginning on or after January 1, 2003. [For purposes of
the limitation on tax increases provided by Subsection (g), the
governing body of a school district in a county with a population of
fewer than 75,000 in a manner provided by law for official action by
the governing body may elect to apply the limitation provided by
Subsection (g) to the residence homestead of an individual as if
that subsection were in effect on January 1, 1993. The governing
body must make the election before January 1, 1999. The election
applies only to taxes imposed in a tax year that begins after the
tax year in which the election is made.]
SECTION 3. Section 403.302(d), Government Code, is amended
to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any exemptions granted
under Section 11.251, Tax Code;
(6) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(7) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, [the elderly] on which school district
taxes are not imposed in the year that is the subject of the study,
calculated as if the residence homesteads were appraised at the
full value required by law;
(8) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(9) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(10) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(11) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(12) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
SECTION 4. This Act takes effect January 1, 2004, and
applies only to taxes imposed for tax years that begin on or after
that date, but only if the constitutional amendment proposed by the
78th Legislature, Regular Session, 2003, to prohibit an increase in
the total amount of school district ad valorem taxes that may be
imposed on the residence homestead of a disabled person is approved
by the voters. If that amendment is not approved by the voters, this
Act has no effect.
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