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79R2802 SMH-D
By: Lucio S.B. No. 652
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of the residence homesteads of elderly
persons from ad valorem taxation and the deferral or abatement of
the collection of delinquent taxes on the residence homesteads of
elderly and disabled persons.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 6.035(a), Tax Code, is amended to read as
follows:
(a) An individual is ineligible to serve on an appraisal
district board of directors and is disqualified from employment as
chief appraiser if the individual:
(1) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual who is engaged in the business of
appraising property for compensation for use in proceedings under
this title or of representing property owners for compensation in
proceedings under this title in the appraisal district; or
(2) owns property on which delinquent taxes have been
owed to a taxing unit for more than 60 days after the date the
individual knew or should have known of the delinquency unless:
(A) the delinquent taxes and any penalties and
interest are being paid under an installment payment agreement
under Section 33.02; or
(B) a suit to collect the delinquent taxes is
deferred or abated under Section 33.06, 33.061, or 33.065.
SECTION 2. Section 6.412(a), Tax Code, is amended to read as
follows:
(a) An individual is ineligible to serve on an appraisal
review board if the individual:
(1) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual who is engaged in the business of
appraising property for compensation for use in proceedings under
this title or of representing property owners for compensation in
proceedings under this title in the appraisal district for which
the appraisal review board is established; or
(2) owns property on which delinquent taxes have been
owed to a taxing unit for more than 60 days after the date the
individual knew or should have known of the delinquency unless:
(A) the delinquent taxes and any penalties and
interest are being paid under an installment payment agreement
under Section 33.02; or
(B) a suit to collect the delinquent taxes is
deferred or abated under Section 33.06, 33.061, or 33.065.
SECTION 3. Section 11.43, Tax Code, is amended by adding
Subsections (l) and (m) to read as follows:
(l) The form for an application under Section 11.13 must
include a space for the applicant to state the applicant's date of
birth. Failure to provide the date of birth does not affect the
applicant's eligibility for an exemption under that section, other
than an exemption under Section 11.13(c) or (d) for an individual 65
years of age or older, if the applicant has not previously provided
the individual's date of birth to the appraisal district.
(m) Notwithstanding Subsections (a) and (k), a person who
receives an exemption under Section 11.13, other than an exemption
under Section 11.13(c) or (d) for an individual 65 years of age or
older, in a tax year is entitled to receive an exemption under
Section 11.13(c) or (d) for an individual 65 years of age or older
in the next tax year on the same property without applying for the
exemption if the person becomes 65 years of age in that next year as
shown by information in the records of the appraisal district that
was provided by the individual to the appraisal district. This
subsection does not apply if the chief appraiser determines that
the individual is no longer entitled to any exemption under Section
11.13 on the property.
SECTION 4. Subchapter A, Chapter 33, Tax Code, is amended by
adding Section 33.045 to read as follows:
Sec. 33.045. NOTICE OF PROVISIONS AUTHORIZING DEFERRAL OR
ABATEMENT. A tax bill, notice of tax delinquency, notice of intent
to sue to collect a delinquent tax, or notice of intent to foreclose
a tax lien delivered to a person by a collector for a taxing unit or
by an attorney or other agent of a collector must include a
conspicuous statement reasonably designed to notify the person of
the provisions of Section 33.06, including the method by which a
disabled individual may obtain a deferral or abatement under that
section, and of the provisions of Section 33.061, including the
automatic deferral or abatement under that section.
SECTION 5. The heading to Section 33.06, Tax Code, is
amended to read as follows:
Sec. 33.06. DEFERRED COLLECTION OF TAXES ON RESIDENCE
HOMESTEAD OF [ELDERLY OR] DISABLED PERSON.
SECTION 6. Sections 33.06(a) and (b), Tax Code, are amended
to read as follows:
(a) An individual is entitled to defer collection of a tax,
abate a suit to collect a delinquent tax, or abate a sale to
foreclose a tax lien if [the individual]:
(1) the individual [is 65 years of age or older or] is
disabled as defined by Section 11.13(m); and
(2) the tax was imposed against property that the
individual owns and occupies as a residence homestead.
(b) To obtain a deferral, an individual must file with the
chief appraiser for the appraisal district in which the property is
located an affidavit stating the facts required to be established
by Subsection (a). The chief appraiser shall notify each taxing
unit participating in the district of the filing. After an
affidavit is filed under this subsection, a taxing unit may not file
or threaten to file suit to collect delinquent taxes on the property
or take other action against the individual to collect delinquent
taxes on the property and the property may not be sold at a sale to
foreclose the tax lien until the 181st day after the date the
individual no longer owns and occupies the property as a residence
homestead.
SECTION 7. Subchapter A, Chapter 33, Tax Code, is amended by
adding Section 33.061 to read as follows:
Sec. 33.061. AUTOMATIC DEFERRAL OR ABATEMENT OF COLLECTION
OF TAXES ON RESIDENCE HOMESTEAD OF ELDERLY PERSON. (a) This section
applies only to property that an individual who is 65 years of age
or older owns and occupies as a residence homestead.
(b) A taxing unit may not file or threaten to file suit to
collect delinquent taxes on the property or take other action
against the individual to collect delinquent taxes on the property
and the property may not be sold at a sale to foreclose the tax lien
until the 181st day after the date the individual no longer owns and
occupies the property as a residence homestead.
(c) If property is sold in violation of this section, the
property owner may file a motion to set aside the sale under the
same cause number and in the same court as a judgment referenced in
the order of sale. The motion must be filed during the applicable
redemption period as set forth in Section 34.21(a) or, if the
property is bid off to a taxing unit, on or before the 180th day
following the date the taxing unit's deed is filed of record,
whichever is later. This right is not transferable to a third
party.
(d) A tax lien remains on the property and interest
continues to accrue during the period that collection of taxes is
deferred or abated under this section. The annual interest rate
during the period of deferral or abatement is eight percent instead
of the rate provided by Section 33.01. Interest and penalties that
accrued or that were incurred or imposed under Section 33.01 or
33.07 before the date the individual attained the age of 65 are
preserved. A penalty under Section 33.01 is not incurred during a
period of deferral or abatement. The additional penalty under
Section 33.07 may be imposed and collected only if the taxes for
which collection is deferred or abated remain delinquent on or
after the 181st day after the date the period of deferral or
abatement expires. A plea of limitation, laches, or want of
prosecution does not apply against the taxing unit because of a
deferral or abatement of collection under this section.
(e) Each year the chief appraiser for each appraisal
district shall publicize in a manner reasonably designed to notify
all residents of the district or county of the provisions of this
section.
(f) If the individual who is 65 years of age or older dies,
the deferral or abatement of the collection of taxes on the property
continues in effect until the 181st day after the date the surviving
spouse of the individual no longer owns and occupies the property as
a residence homestead if:
(1) the property was the residence homestead of the
deceased spouse when the deceased spouse died;
(2) the surviving spouse was 55 years of age or older
when the deceased spouse died; and
(3) the property was the residence homestead of the
surviving spouse when the deceased spouse died.
(g) An individual may elect not to receive a deferral or
abatement under this section. An individual who elects not to
receive the deferral or abatement shall file with the chief
appraiser for the appraisal district in which the property is
located a written statement signed by the individual affirmatively
stating that the individual elects not to receive the deferral or
abatement. The election is effective on the date the chief
appraiser receives the individual's written statement. The chief
appraiser shall notify each taxing unit participating in the
district of the individual's election.
SECTION 8. Section 33.43(a), Tax Code, is amended to read as
follows:
(a) A petition initiating a suit to collect a delinquent
property tax is sufficient if it alleges that:
(1) the taxing unit is legally constituted and
authorized to impose and collect ad valorem taxes on property;
(2) tax in a stated amount was legally imposed on each
separately described property for each year specified and on each
person named if known who owned the property on January 1 of the
year for which the tax was imposed;
(3) the tax was imposed in the county in which the suit
is filed;
(4) the tax is delinquent;
(5) penalties, interest, and costs authorized by law
in a stated amount for each separately assessed property are due;
(6) the taxing unit is entitled to recover each
penalty that is incurred and all interest that accrues on
delinquent taxes imposed on the property from the date of the
judgment to the date of the sale under Section 34.01 or under
Section 253.010, Local Government Code, as applicable, if the suit
seeks to foreclose a tax lien;
(7) the person sued owned the property on January 1 of
the year for which the tax was imposed if the suit seeks to enforce
personal liability;
(8) the person sued owns the property when the suit is
filed if the suit seeks to foreclose a tax lien;
(9) the taxing unit asserts a lien on each separately
described property to secure the payment of all taxes, penalties,
interest, and costs due if the suit seeks to foreclose a tax lien;
(10) all things required by law to be done have been
done properly by the appropriate officials; [and]
(11) the attorney signing the petition or a person
acting on the attorney's behalf has reviewed the records of the
appraisal district and determined that the person sued is not
entitled to a deferral of a suit to collect delinquent taxes on the
property under Section 33.06 or 33.061; and
(12) the attorney signing the petition is legally
authorized to prosecute the suit on behalf of the taxing unit.
SECTION 9. Section 403.302(d), Government Code, is amended
to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any exemptions granted
under Section 11.251, Tax Code;
(6) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(7) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(8) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(9) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(10) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06 or
33.061, Tax Code;
(11) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(12) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section.
SECTION 10. Section 11.43(m), Tax Code, as added by this
Act, applies only to eligibility for an exemption from ad valorem
taxation under Section 11.13(c) or (d), Tax Code, for an individual
65 years of age or older for a tax year beginning on or after January
1, 2006.
SECTION 11. This Act takes effect September 1, 2005.