This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.
Amend CSHB 3 by adding the following section to the bill,
appropriately numbered, and renumbering existing sections
accordingly:
SECTION ____. (a) Title 1, Tax Code, is amended by adding
Chapter 61 to read as follows:
CHAPTER 61. PROPERTY TAX RELIEF FOR
RESIDENTIAL TENANTS
Sec. 61.001. PURPOSE. The purpose of this chapter is to
ensure that tenants of certain dwelling units receive direct and
immediate benefit from reductions in local school district ad
valorem taxes and that landlords of certain dwelling units give a
monthly rent rebate or credit to each tenant of the landlord in
calendar years 2006 and 2007.
Sec. 61.002. DEFINITIONS. In this chapter:
(1) "Dwelling unit" means one or more rooms rented or
leased for residential use under a single lease to one or more
tenants. The term includes a dwelling unit in a multifamily
residential property.
(2) "Landlord" means the owner, lessor, or sublessor
of a dwelling unit, but does not include a manager or agent of the
landlord unless the manager or agent purports to be the owner,
lessor, or sublessor in a written or oral lease.
(3) "Lease" means a written or oral agreement between
a landlord and tenant that establishes or modifies the terms,
conditions, rules, or other provisions regarding the use and
occupancy of a dwelling unit.
(4) "Multifamily residential property" includes a
duplex, apartment building, dormitory, manufactured housing
community, retirement center or community, and assisted living
center.
(5) "Rent" includes the total amount charged by a
landlord, or by a person on the landlord's behalf, for the use and
occupancy of a dwelling unit. The term does not include a
refundable security deposit.
(6) "Rental period" means a month, week, or other
period for which a rental payment is due under a lease.
(7) "Tenant" means a person who is authorized by a
lease to occupy a dwelling unit to the exclusion of others, other
than cotenants, and who is obligated under the lease to pay rent.
Sec. 61.003. APPLICABILITY. (a) This chapter applies only
to a dwelling unit:
(1) that is subject to ad valorem taxation by a school
district; and
(2) except as provided by Subsection (b), for which
the rent is $600 a month or less.
(b) For a dwelling unit that is located in a metropolitan
statistical area as established by the federal Office of Management
and Budget with a population of greater than one million, this
chapter applies only to a dwelling unit for which the rent is $750 a
month or less.
(c) This chapter does not apply to a temporary residential
tenancy created by a contract of sale under which the buyer is
entitled to occupy the property before closing or the seller is
entitled to occupy the property after closing for a term of not more
than 90 days.
Sec. 61.004. REBATE OR CREDIT TO TENANT; AMOUNTS. (a)
Except as provided by Subsection (b), for each rental period in
calendar years 2006 and 2007, a landlord shall provide each of the
landlord's tenants, as directed by the tenant, with a rebate, paid
in cash or by check, or a credit against the tenant's rent.
(b) For a lease entered into during calendar year 2006 or
2007, in the lease agreement or another writing the tenant may agree
to waive the rebate or credit and accept the benefit of this chapter
in the form of an appropriate reduction in the tenant's rent for
each rental period.
(c) In each rental period of calendar year 2006, the amount
of the rental rebate or credit required by Subsection (a) is one
percent of the tenant's rent. In each month of calendar year 2007,
the amount of the rental rebate or credit required by Subsection (a)
is two percent of the tenant's rent.
(d) If two or more tenants are parties to a lease for the
same dwelling unit, the rebate or credit shall be provided jointly
to all tenants renting the unit.
Sec. 61.005. DATE OF REQUIRED REBATE OR CREDIT. (a) If a
landlord pays a rent rebate to the tenant, the landlord shall pay
the rebate not later than the 10th day after the date the tenant
pays the entire rent due for the applicable rental period. A
landlord is presumed to have timely paid a rebate if the rebate is
placed in the United States mail and postmarked on or before that
date.
(b) If a landlord gives a credit to a tenant under this
chapter for a rental period, the landlord shall give the credit on
the due date for the rent for the rental period.
Sec. 61.006. NOTICE BY CHIEF APPRAISERS. (a) In calendar
years 2005 and 2006, on or before December 1 or as soon as
practicable after that date, the chief appraiser of each appraisal
district shall send to all property owners a notice describing the
requirements of this chapter. The notice shall indicate whether a
property owned by a person is in a metropolitan statistical area to
which Section 61.003(b) applies.
(b) In December of calendar years 2005 and 2006, each
appraisal district shall place at least one advertisement in a
newspaper of general circulation in the county for which the
appraisal district is established. The advertisement shall be in
14-point or larger type and contain a notice describing the
requirements of this chapter.
(c) Not later than November 15, 2005, the comptroller shall
prescribe the language to be included in the notice required by
Subsections (a) and (b). The notices shall be printed in both
English and Spanish, and copies shall be sent to each appraisal
district not later than November 30, 2005. A copy of the materials
shall be provided by the comptroller without cost to any property
owner on request.
(d) The comptroller shall provide necessary technical
assistance to appraisal districts and landlords in complying with
this chapter.
Sec. 61.007. TAX APPRAISALS. In tax years 2006 and 2007, a
chief appraiser or an appraisal district may not consider a
reduction of school district ad valorem taxes attributable to a
provision of the Act of the legislature enacting this chapter in any
determination of the appraised value of a dwelling unit to which
this chapter applies.
Sec. 61.008. EXPIRATION. This chapter expires January 1,
2008.
(b) Chapter 1, Tax Code, is amended by adding Section 1.16
to read as follows:
Sec. 1.16. LANDLORD LIABILITY UNDER CHAPTER 61. The
expiration of Chapter 61 does not affect the liability of a landlord
for any amount arising under Chapter 61 before the expiration of
that chapter, and the law governing that liability remains in
effect notwithstanding the expiration of that chapter for purposes
of enforcing or satisfying the liability.