By: Berman, Chisum, McReynolds, Flynn, H.B. No. 72
Uresti, et al.
A BILL TO BE ENTITLED
AN ACT
relating to providing for an adjustment of the limitation on the
total amount of ad valorem taxes that may be imposed by a school
district on the residence homesteads of the elderly or disabled to
reflect any change in the school district's tax rate and protecting
a school district against the resulting loss in local revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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).
SECTION 2. 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
H.J.R. No. 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 H.J.R. No. 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.
SECTION 3. 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 H.J.R. No. 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.
SECTION 4. This Act applies only to an ad valorem tax year
that begins on or after January 1, 2007.
SECTION 5. This Act 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 Act has no
effect.