79(3) HB 99 - Introduced version


                                                                                

79S30684 UM-D

By:  Leibowitz                                                    H.B. No. 99 



A BILL TO BE ENTITLED

AN ACT

relating to increasing the amount of the residence homestead 
exemption from ad valorem taxation by a school district to $45,000, 
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 
homesteads of the elderly or disabled to reflect the increased 
exemption amount and changes in the school district's ad valorem 
tax rate, and protecting school districts against the resulting 
loss in local revenue.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  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 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.
	SECTION 2.  Section 11.26, Tax Code, is amended by amending 
Subsection (a) and adding Subsection (a-1) 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 2007 [1997] tax 
year, the amount of the limitation provided by this section is the 
amount of tax the school district imposed for the 2006 [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 
2007 [1997] tax year, plus any 2007 [1997] tax attributable to 
improvements made in 2006 [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 higher or lower 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, except that the total amount of taxes that may be imposed 
may not exceed the amount of taxes imposed by the district for the 
later of the 2006 tax year or the tax year in which the limitation 
took effect, as that limitation may have been increased in 
subsequent tax years or may be increased for the current tax year 
because of improvements as authorized by this section.
	(a-1)  Notwithstanding Subsection (a), 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 2007 tax year and the tax 
rate of the school district for the 2007 tax year is higher or lower 
than the tax rate of the district for the 2006 tax year, the amount 
of the limitation provided by this section for the 2007 tax year is 
the amount of tax the school district imposed for the 2006 tax year, 
increased or reduced, as applicable, in proportion to the increase 
or reduction in the tax rate as provided by Subsection (a), less an 
amount equal to the amount determined by multiplying $30,000 times 
the tax rate of the school district for the 2007 tax year, plus any 
2007 tax attributable to improvements made in 2006, other than 
improvements made to comply with governmental regulations or 
repairs.  That limitation continues to apply to the property in 
subsequent tax years, subject to the other provisions of this 
section.
	SECTION 3.  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 amount of the residence 
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 corresponding adjustment of the 
[additional] limitation on the total amount of ad valorem taxes 
that may be imposed for public school purposes on the homesteads of 
the elderly or disabled [tax increases] under Section 1-b(d), 
Article VIII, Texas Constitution, as proposed by H.J.R. No. 4, 75th 
Legislature, Regular Session, 1997;
		(2)  the increase in the amount of the residence 
homestead exemption under Section 1-b(c), Article VIII, Texas 
Constitution, as proposed by ___.J.R. No. ___, 79th Legislature, 
3rd Called Session, 2006, and the corresponding adjustment of the 
limitation on the total amount of ad valorem taxes that may be 
imposed for public school purposes on the homesteads of the elderly 
or disabled under Section 1-b(d), Article VIII, Texas Constitution, 
as proposed by ___.J.R. No. ___, 79th Legislature, 3rd Called 
Session, 2006; and
		(3)  the adjustment 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 in 
proportion to any increase or decrease in the tax rate for those 
purposes under Section 1-b(d), Article VIII, Texas Constitution, as 
proposed by __.J.R. No. ____, 79th Legislature, 3rd Called Session, 
2006.
	SECTION 4.  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 corresponding adjustment 
of the [additional] limitation on the total amount of ad valorem 
taxes that may be imposed for public school purposes on the 
homesteads of the elderly or disabled [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:             
			(A)  a residence homestead exemption under 
Section 1-b(c), Article VIII, Texas Constitution, of $45,000, and 
the effect of the corresponding adjustment of the limitation on the 
total amount of ad valorem taxes that may be imposed for public 
school purposes on the homesteads of the elderly or disabled under 
Section 1-b(d), Article VIII, Texas Constitution, as proposed by 
___.J.R. No. ___, 79th Legislature, 3rd Called Session, 2006; and
			(B)  the effect of the adjustment 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 in proportion to any increase or decrease in 
the tax rate for those purposes under Section 1-b(d), Article VIII, 
Texas Constitution, as proposed by __.J.R. No. ____, 79th 
Legislature, 3rd Called Session, 2006.
	SECTION 5.  This Act applies only to an ad valorem tax year 
that begins on or after January 1, 2007.
	SECTION 6.  This Act takes effect January 1, 2007, but only 
if the constitutional amendment proposed by __.J.R. No. ___, 79th 
Legislature, 3rd Called Session, 2006, is approved by the voters.  
If that constitutional amendment is not approved by the voters, 
this Act has no effect.