79S30566 SMH-D
By: Berman H.B. No. 72
A BILL TO BE ENTITLED
AN ACT
relating to 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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 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. If an
individual receives the limitation provided by this section for the
individual's residence homestead and the individual or the
individual's spouse received the limitation in the preceding tax
year for that homestead and the tax rate of the school district for
the current tax year is less than the tax rate of the district for
the preceding tax year, the total amount of taxes that may be
imposed by the district on the homestead is equal to the amount of
tax the district imposed on the homestead for the preceding tax year
multiplied by 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, plus any
tax for the current tax year attributable to improvements made in
the preceding tax year, other than improvements made to comply with
governmental regulations or repairs.
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
under Section 1-b(d), Article VIII, Texas Constitution, in
proportion to tax rate reductions as proposed by the joint
resolution to amend that section adopted by the 79th Legislature,
3rd Called Session, 2006.
SECTION 3. Section 403.302(j), Government Code, is amended
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 under
Section 1-b(d), Article VIII, Texas Constitution, in proportion to
tax rate reductions as proposed by the joint resolution to amend
that section adopted by the 79th Legislature, 3rd Called Session,
2006.
SECTION 4. This Act takes effect January 1, 2007, but only
if the constitutional amendment proposed by the 79th Legislature,
3rd Called Session, 2006, to reduce the total amount of ad valorem
taxes that may be imposed for public school purposes on the
residence homestead of an elderly or disabled person in proportion
to any reduction in the rate of the tax imposed for those purposes
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.