79S20323 JD-D



By:  Bohac                                                        H.B. No. 55 







A BILL TO BE ENTITLED



AN ACT



relating to the annual adjustment for inflation of the amount of the 

residence homestead exemption from ad valorem taxation by a school 

district.

	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        

	SECTION 1.  Section 11.13, Tax Code, is amended by amending 

Subsection (b) and adding Subsection (b-1) to read as follows:

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

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

adult's residence homestead in the amount provided by this 

subsection, except that only $5,000 [$10,000] of the exemption 

applies [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.  For the 2005 tax year, the amount of the exemption is 

$15,000.  For each subsequent tax year, the amount of the exemption 

shall be calculated by the comptroller by multiplying the amount of 

that exemption for the preceding tax year by the inflation rate and 

adding that amount to the amount of that exemption for the preceding 

tax year.  Each year, not later than April 15, the comptroller shall 

calculate the amount of the exemption for the current tax year and 

publish that amount in the Texas Register.

	(b-1)  In this section:                                                 

		(1)  "Consumer price index" means the average over a 

calendar year of the Consumer Price Index for All Urban Consumers 

(CPI-U), U.S. City Average, published monthly by the United States 

Bureau of Labor Statistics, or its successor in function.

		(2)  "Inflation rate" means the amount, positive or 

negative, expressed in decimal form rounded to the nearest 

thousandth, computed by:

			(A)  determining the percentage change in the 

consumer price index for each of the three preceding calendar years 

as compared to the consumer price index for the calendar year 

preceding each of those calendar years; and

			(B)  averaging the percentages computed under 

Paragraph (A).        

	SECTION 2.  This Act takes effect January 1, 2006, but only 

if the constitutional amendment proposed by the 79th Legislature, 

2nd Called Session, 2005, to provide for the annual adjustment for 

inflation of the amount of the residence homestead exemption from 

ad valorem taxation for general elementary and secondary public 

school purposes is approved by the voters.  If that amendment is not 

approved by the voters, this Act has no effect.