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Floor Packet Page No. 80
Amend CSHB 1 in Article __ of the bill by inserting the
following appropriately numbered SECTION and renumbering the
subsequent SECTIONS of the bill accordingly:
SECTION __. (a) Section 11.26, Tax Code, is amended by
adding Subsections (a-1) and (a-2) to read as follows:
(a-1) Notwithstanding the other provisions of this section
and except as provided by Subsection (a-2), if in the current tax
year an individual qualifies for a limitation on tax increases
provided by this section on the individual's residence homestead
and the individual or the individual's spouse qualified for an
exemption under Section 11.13(c) for the same homestead in the
preceding tax year, the amount of the limitation provided by this
section on the homestead in the current tax year is equal to the
lesser of:
(1) the amount computed by:
(A) multiplying the amount of tax the school
district imposed on the homestead in the preceding tax year by the
lesser of one or a fraction the numerator of which is the tax rate of
the district for the current tax year and the denominator of which
is the tax rate of the district for the preceding tax year; and
(B) adding to the amount computed under Paragraph
(A) any tax in the current tax year attributable to improvements
made in the preceding tax year, as provided by Subsection (b); or
(2) the amount of the limitation on tax increases on
the homestead as otherwise provided by this section.
(a-2) Notwithstanding the other provisions of this section,
if in the 2007 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual's
residence homestead and the first tax year the individual or the
individual's spouse qualified for an exemption under Section
11.13(c) for the same homestead was a tax year before the 2006 tax
year, the amount of the limitation provided by this section on the
homestead in the 2007 tax year is equal to the amount computed by:
(1) multiplying the amount of tax the school district
imposed on the homestead in the 2005 tax year by the lesser of one or
a fraction the numerator of which is the tax rate of the district
for the 2006 tax year and the denominator of which is the tax rate of
the district for the 2005 tax year;
(2) adding to the amount computed under Subdivision
(1) any tax in the 2006 tax year attributable to improvements made
in the 2005 tax year, as provided by Subsection (b);
(3) multiplying the amount computed under Subdivision
(2) by the lesser of one or a fraction the numerator of which is the
tax rate of the district for the 2007 tax year and the denominator
of which is the tax rate of the district for the 2006 tax year; and
(4) adding to the amount computed under Subdivision
(3) any tax in the 2007 tax year attributable to improvements made
in the 2006 tax year, as provided by Subsection (b).
(b) Section 42.2511(a), Education Code, is amended to read
as follows:
(a) Notwithstanding any other provision of this chapter, a
school district is entitled to additional state aid to the extent
that state aid under this chapter based on the determination of the
school district's taxable value of property as provided under
Subchapter M, Chapter 403, Government Code, does not fully
compensate the district for ad valorem tax revenue lost due to:
(1) the increase in the homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, as proposed by
HJR 4, 75th Legislature, Regular Session, 1997, and the additional
limitation on tax increases under Section 1-b(d), Article VIII,
Texas Constitution, as proposed by HJR 4, 75th Legislature, Regular
Session, 1997; and
(2) the reduction of the limitation on tax increases
to reflect any reduction in the school district tax rate as provided
by Section 11.26(a-1) or (a-2), Tax Code, as applicable.
(c) Section 403.302, Government Code, is amended by
amending Subsection (j) and adding Subsection (j-1) to read as
follows:
(j) For purposes of Section 42.2511, Education Code, the
comptroller shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000; [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 $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by HJR 4, 75th Legislature, Regular
Session, 1997; and
(3) a final value for each school district computed on
the effect of the reduction of the limitation on tax increases to
reflect any reduction in the school district tax rate as provided by
Section 11.26(a-1) or (a-2), Tax Code, as applicable.
(j-1) For purposes of applying Subsection (j)(3) in the
2007-2008 school year, the comptroller shall compute the final
value under that subsection as if the reduction of the limitation on
tax increases to reflect any reduction in the school district tax
rate as provided by Section 11.26(a-1) or (a-2), Tax Code, as
applicable, had taken effect in the 2006 tax year. This subsection
expires September 1, 2008.
(d) This section applies only to an ad valorem tax year that
begins on or after January 1, 2007.
(e) This section takes effect January 1, 2007, but only if
the constitutional amendment proposed by the 79th Legislature, 3rd
Called Session, 2006, authorizing the legislature to provide for a
reduction of the limitation on the total amount of ad valorem taxes
that may be imposed for public school purposes on the residence
homesteads of the elderly or disabled to reflect any reduction in
the rate of those taxes is approved by the voters. If that
amendment is not approved by the voters, this section has no effect.