Floor Packet Page No. 255                                                   



	

Amend CSHB 3 as follows:                                                     

	(1)  On page 16, between lines 15 and 16, insert the 

following new part, appropriately lettered:

	PART __. HOMESTEAD EXEMPTION

	SECTION 1___.01.  Section 11.13(b), Tax Code, is amended to 

read as follows: 

	(b)  An adult is entitled to exemption from taxation by a 

school district of $45,000 [$15,000] of the appraised value of the 

adult's residence homestead, except that $40,000 [$10,000] of the 

exemption does not apply to an entity operating under former 

Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters 

existed on May 1, 1995, as permitted by Section 11.301, Education 

Code.

	SECTION 1___.02.  Section 11.26(a), Tax Code, is amended 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 or disabled was a tax year before the 2006 [1997] tax 

year, the amount of the limitation provided by this section is the 

amount of tax the school district imposed for the 2005 [1996] tax 

year less an amount equal to the amount determined by multiplying 

$30,000 [$10,000] times the tax rate of the school district for the 

2006 [1997] tax year, plus any 2006 [1997] tax attributable to 

improvements made in 2005 [1996], other than improvements made to 

comply with governmental regulations or repairs.

	SECTION 1___.03. Section 26.08, Tax Code, is amended by 

adding Subsections (a-9) and (a-10) to read as follows:

	(a-9) For purposes of Subsection (a-10), the chief appraiser 

shall certify to the assessor for each school district:

		(1)  a final value for each school district computed on 

a residence homestead exemption under Section 1-b(c), Article VIII, 

Texas Constitution, of $15,000; and

		(2)  a final value for each school district computed 

on:             

			(A)  a residence homestead exemption under 

Section 1-b(c), Article VIII, Texas Constitution, of $45,000;  and

			(B)  the effect of the additional limitation on 

tax increases under Section 1-b(d), Article VIII, Texas 

Constitution, made in connection with the increase in the homestead 

exemption to the amount specified by Paragraph (A).

	(a-10) Notwithstanding any other provision of this section, a 

school district shall adopt a maintenance and operations tax rate 

that, when applied to the district's taxable value of property as 

determined provided by Subsection (a-9)(2), yields an amount equal 

to the amount that would be raised at a tax rate adopted in 

compliance with the provisions of this section other than this 

subsection when applied to the district's taxable value of property 

as determined provided by Subsection (a-9)(1).

	SECTION 1__.04. This part takes effect January 1, 2006, but 

only if the constitutional amendment proposed by the 79th 

Legislature, 1st Called Session, 2005, increasing the amount of the 

school district residence homestead property tax exemption to 

$45,000 and providing for a corresponding adjustment of the 

limitation on school taxes on residence homesteads of elderly and 

disabled persons is approved by the voters.  If that amendment is 

not approved by the voters, this part has no effect.