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A BILL TO BE ENTITLED
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AN ACT
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relating to increasing the amount of the residence homestead |
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exemption from ad valorem taxation by a school district to $45,000, |
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providing for an adjustment of the limitation on the total amount of |
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ad valorem taxes that may be imposed by a school district on the |
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homesteads of the elderly or disabled to reflect the increased |
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exemption amount and changes in the school district's ad valorem |
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tax rate, and protecting school districts against the resulting |
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loss in local revenue. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.13(b), Tax Code, is amended to read as |
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follows: |
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(b) An adult is entitled to exemption from taxation by a |
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school district of $45,000 [$15,000] of the appraised value of the |
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adult's residence homestead, except that only $5,000 [$10,000] of |
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the exemption applies [does not apply] to an entity operating under |
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former Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those |
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chapters existed on May 1, 1995, as permitted by Section 11.301, |
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Education Code. |
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SECTION 2. Section 11.26, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (a-1) to read as follows: |
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(a) The tax officials shall appraise the property to which |
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this section applies and calculate taxes as on other property, but |
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if the tax so calculated exceeds the limitation imposed by this |
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section, the tax imposed is the amount of the tax as limited by this |
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section, except as otherwise provided by this section. A school |
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district may not increase the total annual amount of ad valorem tax |
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it imposes on the residence homestead of an individual 65 years of |
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age or older or on the residence homestead of an individual who is |
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disabled, as defined by Section 11.13, above the amount of the tax |
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it imposed in the first tax year in which the individual qualified |
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that residence homestead for the applicable exemption provided by |
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Section 11.13(c) for an individual who is 65 years of age or older |
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or is disabled. If the individual qualified that residence |
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homestead for the exemption after the beginning of that first year |
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and the residence homestead remains eligible for the same exemption |
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for the next year, and if the school district taxes imposed on the |
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residence homestead in the next year are less than the amount of |
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taxes imposed in that first year, a school district may not |
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subsequently increase the total annual amount of ad valorem taxes |
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it imposes on the residence homestead above the amount it imposed in |
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the year immediately following the first year for which the |
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individual qualified that residence homestead for the same |
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exemption, except as provided by Subsection (b). If an individual |
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receives the limitation provided by this section for the |
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individual's residence homestead and the individual or the |
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individual's spouse received the limitation in the preceding tax |
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year for that homestead and the tax rate of the school district for |
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the current tax year is higher or lower than the tax rate of the |
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district for the preceding tax year, the total amount of taxes that |
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may be imposed by the district on the homestead is equal to the |
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amount of tax the district imposed on the homestead for the |
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preceding tax year multiplied by a fraction the numerator of which |
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is the tax rate of the district for the current tax year and the |
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denominator of which is the tax rate of the district for the |
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preceding tax year, plus any tax for the current tax year |
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attributable to improvements made in the preceding tax year, other |
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than improvements made to comply with governmental regulations or |
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repairs, except that the total amount of taxes that may be imposed |
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may not exceed the amount of taxes imposed by the district for the |
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later of the 2007 tax year or the tax year in which the limitation |
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took effect, as that limitation may have been increased in |
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subsequent tax years or may be increased for the current tax year |
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because of improvements as authorized by this section. |
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(a-1) Notwithstanding Subsection (a), if the first tax year |
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the individual qualified the residence homestead for the exemption |
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provided by Section 11.13(c) for individuals 65 years of age or |
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older or disabled was a tax year before the 2008 tax year, the |
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amount of the limitation provided by this section for the 2008 tax |
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year is the amount of tax the school district imposed for the 2007 |
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tax year, increased or reduced, as applicable, in proportion to any |
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increase or reduction in the tax rate as provided by Subsection (a), |
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less an amount equal to the amount determined by multiplying |
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$30,000 times the tax rate of the school district for the 2008 tax |
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year, plus any 2008 tax attributable to improvements made in 2007, |
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other than improvements made to comply with governmental |
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regulations or repairs. That limitation continues to apply to the |
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property in subsequent tax years, subject to the other provisions |
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of this section. [If the first tax year the individual qualified
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the residence homestead for the exemption provided by Section
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11.13(c) for individuals 65 years of age or older was a tax year
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before the 1997 tax year, the amount of the limitation provided by
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this section is the amount of tax the school district imposed for
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the 1996 tax year less an amount equal to the amount determined by
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multiplying $10,000 times the tax rate of the school district for
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the 1997 tax year, plus any 1997 tax attributable to improvements
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made in 1996, other than improvements made to comply with
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governmental regulations or repairs.] |
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SECTION 3. Section 42.2511(a), Education Code, is amended |
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to read as follows: |
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(a) Notwithstanding any other provision of this chapter, a |
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school district is entitled to additional state aid to the extent |
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that state aid under this chapter based on the determination of the |
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school district's taxable value of property as provided under |
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Subchapter M, Chapter 403, Government Code, does not fully |
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compensate the district for ad valorem tax revenue lost due to: |
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(1) the increase in the amount of the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, as proposed by H.J.R. No. 4, 75th Legislature, |
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Regular Session, 1997, and the corresponding adjustment of the |
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[additional] limitation on the total amount of ad valorem taxes |
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that may be imposed for public school purposes on the homesteads of |
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the elderly or disabled [tax increases] under Section 1-b(d), |
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Article VIII, Texas Constitution, as proposed by H.J.R. No. 4, 75th |
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Legislature, Regular Session, 1997; |
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(2) the increase in the amount of the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, as proposed by ___.J.R. No. ___, 80th Legislature, |
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Regular Session, 2007, and the corresponding adjustment of the |
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limitation on the total amount of ad valorem taxes that may be |
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imposed for public school purposes on the homesteads of the elderly |
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or disabled under Section 1-b(d), Article VIII, Texas Constitution, |
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as proposed by ___.J.R. No. ___, 80th Legislature, Regular Session, |
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2007; and |
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(3) the adjustment of the limitation on the total |
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amount of ad valorem taxes that may be imposed for public school |
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purposes on the residence homesteads of the elderly or disabled in |
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proportion to any increase or decrease in the tax rate for those |
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purposes under Section 1-b(d), Article VIII, Texas Constitution, as |
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proposed by __.J.R. No. ____, 80th Legislature, Regular Session, |
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2007. |
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SECTION 4. Section 403.302(j), Government Code, is amended |
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to read as follows: |
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(j) For purposes of Section 42.2511, Education Code, the |
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comptroller shall certify to the commissioner of education: |
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(1) a final value for each school district computed on |
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a residence homestead exemption under Section 1-b(c), Article VIII, |
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Texas Constitution, of $5,000; [and] |
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(2) a final value for each school district computed |
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on[:
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[(A)] a residence homestead exemption under |
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Section 1-b(c), Article VIII, Texas Constitution, of $15,000,[;] |
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and |
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[(B)] the effect of the corresponding adjustment |
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of the [additional] limitation on the total amount of ad valorem |
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taxes that may be imposed for public school purposes on the |
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homesteads of the elderly or disabled [tax increases] under Section |
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1-b(d), Article VIII, Texas Constitution, as proposed by H.J.R. No. |
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4, 75th Legislature, Regular Session, 1997; and |
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(3) a final value for each school district computed |
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on: |
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(A) a residence homestead exemption under |
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Section 1-b(c), Article VIII, Texas Constitution, of $45,000, and |
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the effect of the corresponding adjustment of the limitation on the |
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total amount of ad valorem taxes that may be imposed for public |
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school purposes on the homesteads of the elderly or disabled under |
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Section 1-b(d), Article VIII, Texas Constitution, as proposed by |
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___.J.R. No. ___, 80th Legislature, Regular Session, 2007; and |
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(B) the effect of the adjustment of the |
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limitation on the total amount of ad valorem taxes that may be |
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imposed for public school purposes on the residence homesteads of |
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the elderly or disabled in proportion to any increase or decrease in |
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the tax rate for those purposes under Section 1-b(d), Article VIII, |
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Texas Constitution, as proposed by __.J.R. No. ____, 80th |
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Legislature, Regular Session, 2007. |
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SECTION 5. This Act applies only to an ad valorem tax year |
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that begins on or after January 1, 2008. |
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SECTION 6. This Act takes effect January 1, 2008, but only |
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if the constitutional amendment proposed by __.J.R. No. ___, 80th |
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Legislature, Regular Session, 2007, is approved by the voters. If |
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that constitutional amendment is not approved by the voters, this |
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Act has no effect. |