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A BILL TO BE ENTITLED
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AN ACT
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relating to a limitation on the total amount of ad valorem taxes |
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that may be imposed by a taxing unit on the residence homestead of |
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an eligible person who is a member of a reserve component of the |
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United States armed forces and is ordered to active military duty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.262 to read as follows: |
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Sec. 11.262. LIMITATION OF TAX ON HOMESTEADS OF CERTAIN |
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ACTIVE-DUTY ARMED FORCES MEMBERS. (a) This section applies only to |
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a taxing unit that has established a limitation under Section |
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1-b(i), Article VIII, Texas Constitution, on the total amount of |
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taxes that may be imposed by the taxing unit on the residence |
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homestead of an eligible person who is a member of a reserve |
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component of the armed forces of the United States, including the |
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National Guard, and is ordered to active duty by a proper authority. |
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A tax limitation under that subsection applies to the imposition of |
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taxes by the political subdivision on residence homesteads |
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beginning with the first tax year after the year in which the |
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political subdivision establishes the limitation. |
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(b) To be eligible for a limitation on tax increases under |
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this section for a tax year, an individual must: |
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(1) be deployed or stationed on active duty for any |
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part of that tax year at a location that is at least 60 miles from |
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the individual's residence homestead; and |
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(2) have been continuously deployed or stationed on |
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active duty for at least the preceding six months, disregarding |
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temporary periods of leave or other absence, at one or more |
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locations each of which is at least 60 miles from the individual's |
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residence homestead. |
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(c) This section applies only to property that receives an |
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exemption under Section 11.13 and is the residence homestead of an |
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individual who is eligible for the limitation under Subsection (b). |
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(d) Except as provided by Subsection (e), a taxing unit may |
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not increase the total annual amount of ad valorem taxes it imposes |
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on the residence homestead of an individual who is eligible for a |
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limitation on tax increases under this section above the amount of |
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the taxes the unit imposed on the property in the preceding tax year |
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if the property qualified as the individual's residence homestead |
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in the preceding tax year. The tax officials shall appraise the |
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homestead and calculate taxes as on other property, but if the tax |
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so calculated exceeds the limitation provided by this section, the |
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tax imposed is the amount of the tax as limited by this section, |
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except as otherwise provided by this section. |
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(e) If improvements have been made to the individual's |
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residence homestead, other than repairs and other than improvements |
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made to comply with governmental requirements, since the most |
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recent appraisal of the property, the taxing unit may increase the |
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amount of taxes on the homestead in the first year the appraised |
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value of the homestead is increased on the appraisal roll because of |
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the enhancement of value by the improvements. The amount of the tax |
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increase is determined by applying the current tax rate to the |
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difference between the appraised value of the homestead with the |
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improvements and the appraised value the homestead would have had |
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without the improvements. |
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(f) An individual is eligible for a limitation on tax |
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increases under this section for a tax year if the individual |
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qualifies the residence homestead for an exemption under Section |
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11.13 for that tax year and meets the requirements of Subsections |
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(b) and (c) at any time during that tax year and if the individual |
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qualified the homestead for an exemption under Section 11.13 for |
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the preceding tax year. To receive a limitation on tax increases |
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under this section, an individual claiming the limitation must file |
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an application for the limitation with the chief appraiser of the |
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appraisal district. The chief appraiser shall accept and approve |
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or deny the application. For property appraised by more than one |
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appraisal district, a separate application must be filed in each |
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appraisal district to receive a limitation in that district. A |
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limitation under this section, once allowed, need not be claimed in |
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subsequent years and applies to the property until the limitation |
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expires as provided by this section or until the individual's |
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qualification for the limitation ends. However, the chief |
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appraiser may require an individual allowed a limitation in a prior |
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year to file a new application to confirm the individual's current |
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qualification for the limitation by delivering, not later than |
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April 1, a written notice that a new application is required, |
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accompanied by an appropriate application form, to the individual |
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previously allowed the limitation. |
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(g) In this subsection, "driver's license" and "personal |
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identification certificate" have the meanings assigned by Section |
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11.43(f). The comptroller, in prescribing the contents of the |
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application form for a limitation on tax increases under this |
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section, shall ensure that the form requires an applicant to |
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provide the information necessary to determine the validity of the |
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limitation claim. The form must require an applicant to provide the |
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applicant's name and driver's license number, personal |
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identification certificate number, or social security number. The |
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comptroller shall include on the form: |
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(1) a notice of the penalties prescribed by Section |
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37.10, Penal Code, for making or filing an application containing a |
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false statement; and |
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(2) a statement explaining that the application need |
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not be made annually and that if the limitation is allowed, the |
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applicant has a duty to notify the chief appraiser when the |
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applicant's qualification for the limitation ends. |
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(h) An individual who is required to apply for a limitation |
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on tax increases under this section to receive the limitation for a |
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tax year must apply for the limitation not later than May 1 or the |
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90th day after the date the individual has served on active duty at |
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a location and for the minimum period required by Subsection (b) to |
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qualify for the limitation, whichever is later. Except as provided |
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by Subsection (i), if the individual fails to timely file a |
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completed application, the individual may not receive the |
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limitation for that year. |
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(i) The chief appraiser shall accept and approve or deny an |
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application for a limitation on tax increases under this section |
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after the deadline for filing the application under Subsection (h) |
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has passed if the application is filed not later than one year after |
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the delinquency date for the taxes on the property for that tax |
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year. If a late application is approved after approval of the |
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appraisal records by the appraisal review board, the chief |
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appraiser shall notify the collector for each taxing unit in which |
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the property is located. If the tax has not been paid, the |
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collector shall deduct from the individual's tax bill the |
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difference between the taxes that would have been due had the |
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property not qualified for the limitation and the taxes due after |
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taking the limitation into account. If the tax has been paid, the |
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collector shall immediately refund the difference. |
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(j) An individual who receives a limitation on tax increases |
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under this section shall notify the appraisal office in writing |
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before May 1 after the individual's qualification for the |
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limitation ends. |
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(k) If the appraisal roll provides for taxation of appraised |
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value for a prior year because a limitation on tax increases under |
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this section was erroneously allowed, the tax assessor for each |
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taxing unit shall add, as back taxes due as provided by Section |
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26.09(d), the positive difference, if any, between the tax that |
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should have been imposed for that year and the tax that was imposed |
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because of this section. |
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(l) A limitation on tax increases under this section expires |
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on January 1 of the first tax year that: |
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(1) none of the owners of the property who qualify for |
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an exemption provided by Section 11.13 and who owned the property |
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when the limitation first took effect is using the property as a |
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residence homestead; |
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(2) none of the owners of the property qualifies for an |
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exemption provided by Section 11.13; or |
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(3) none of the owners of the property who met the |
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requirements of Subsections (b) and (c) when the limitation first |
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took effect meets the requirements of those subsections. |
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(m) For each school district in an appraisal district, the |
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chief appraiser shall determine the portion of the appraised value |
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of residence homesteads of individuals on which school district |
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taxes are not imposed in a tax year because of the limitation on tax |
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increases under this section. That portion is calculated by |
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determining the taxable value that, if multiplied by the tax rate |
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adopted by the school district for the tax year, would produce an |
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amount equal to the amount of tax that would have been imposed by |
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the school district on those homesteads if the limitation on tax |
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increases under this section were not in effect, but that was not |
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imposed because of that limitation. The chief appraiser shall |
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determine that taxable value and certify it to the comptroller as |
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soon as practicable for each tax year. |
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(n) A limitation on tax increases under this section does |
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not expire because the owner of an interest in the property conveys |
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the interest to a qualifying trust as defined by Section 11.13(j) if |
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the owner or the owner's spouse is a trustor of the trust and is |
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entitled to occupy the property. |
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(o) If an individual who receives a limitation on tax |
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increases by a taxing unit under this section on a residence |
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homestead in the last year in which the individual resided in the |
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property on January 1 qualifies a different residence homestead in |
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the same taxing unit for an exemption under Section 11.13 during the |
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same period of service on active duty, the taxing unit may not |
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impose ad valorem taxes on the subsequently qualified homestead in |
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the first year in which the individual qualified the new residence |
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homestead for the exemption in an amount that exceeds the amount of |
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taxes the taxing unit would have imposed on the subsequently |
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qualified homestead in that first year had the limitation provided |
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by this subsection not been in effect, multiplied by a fraction the |
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numerator of which is the total amount of ad valorem taxes imposed |
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by the taxing unit on the former homestead in the last year in which |
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the individual received the limitation provided by Subsection (d) |
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for the former homestead and the denominator of which is the total |
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amount of ad valorem taxes that would have been imposed by the |
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taxing unit on the former homestead in the last year in which the |
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individual received the limitation for the former homestead had the |
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limitation not been in effect. |
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(p) An individual who receives a limitation on tax increases |
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by a taxing unit under this section and who subsequently applies for |
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a limitation by the same taxing unit on a different residence |
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homestead, or an agent of the individual, is entitled to receive |
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from the chief appraiser of the appraisal district in which the |
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former homestead was located a written certificate providing the |
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information necessary to determine whether the individual may |
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qualify for a limitation by the taxing unit on the subsequently |
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qualified homestead under Subsection (o) and to calculate the |
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amount of taxes the taxing unit may impose on the subsequently |
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qualified homestead. |
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SECTION 2. Sections 23.19(b) and (g), Tax Code, are amended |
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to read as follows: |
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(b) If an appraisal district receives a written request for |
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the appraisal of real property and improvements of a cooperative |
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housing corporation according to the separate interests of the |
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corporation's stockholders, the chief appraiser shall separately |
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appraise the interests described by Subsection (d) if the |
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conditions required by Subsections (e) and (f) have been met. |
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Separate appraisal under this section is for the purposes of |
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administration of tax exemptions, determination of applicable |
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limitations of taxes under Section 11.26, [or] 11.261, or 11.262, |
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and apportionment by a cooperative housing corporation of property |
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taxes among its stockholders but is not the basis for determining |
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value on which a tax is imposed under this title. A stockholder |
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whose interest is separately appraised under this section may |
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protest and appeal the appraised value in the manner provided by |
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this title for protest and appeal of the appraised value of other |
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property. |
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(g) A tax bill or a separate statement accompanying the tax |
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bill to a cooperative housing corporation for which interests of |
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stockholders are separately appraised under this section must |
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state, in addition to the information required by Section 31.01, |
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the appraised value and taxable value of each interest separately |
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appraised. Each exemption claimed as provided by this title by a |
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person entitled to the exemption shall also be deducted from the |
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total appraised value of the property of the corporation. The total |
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tax imposed by a taxing unit [school district, county,
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municipality, or junior college district] shall be reduced by any |
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amount that represents an increase in taxes attributable to |
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separately appraised interests of the real property and |
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improvements that are subject to the limitation of taxes prescribed |
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by Section 11.26, [or] 11.261, or 11.262. The corporation shall |
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apportion among its stockholders liability for reimbursing the |
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corporation for property taxes according to the relative taxable |
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values of their interests. |
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SECTION 3. Sections 26.012(6), (13), and (14), Tax Code, |
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are amended to read as follows: |
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(6) "Current total value" means the total taxable |
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value of property listed on the appraisal roll for the current year, |
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including all appraisal roll supplements and corrections as of the |
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date of the calculation, less the taxable value of property |
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exempted for the current tax year for the first time under Section |
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11.31, except that: |
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(A) the current total value for a school district |
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excludes: |
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(i) the total value of homesteads that |
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qualify for a tax limitation as provided by Section 11.26; and |
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(ii) new property value of property that is |
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subject to an agreement entered into under Chapter 313; [and] |
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(B) the current total value for a county, |
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municipality, or junior college district excludes the total value |
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of homesteads that qualify for a tax limitation provided by Section |
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11.261 applicable to the taxing unit; and |
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(C) the current total value for a taxing unit |
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excludes the total value of homesteads that qualify for a tax |
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limitation provided by Section 11.262 applicable to the taxing |
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unit. |
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(13) "Last year's levy" means the total of: |
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(A) the amount of taxes that would be generated |
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by multiplying the total tax rate adopted by the governing body in |
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the preceding year by the total taxable value of property on the |
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appraisal roll for the preceding year, including: |
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(i) taxable value that was reduced in an |
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appeal under Chapter 42; and |
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(ii) all appraisal roll supplements and |
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corrections other than corrections made pursuant to Section |
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25.25(d), as of the date of the calculation, except that last year's |
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taxable value for a school district excludes the total value of |
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homesteads that qualified for a tax limitation as provided by |
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Section 11.26, [and] last year's taxable value for a county, |
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municipality, or junior college district excludes the total value |
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of homesteads that qualified for a tax limitation as provided by |
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Section 11.261 applicable to the taxing unit, and last year's |
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taxable value for a taxing unit excludes the total value of |
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homesteads that qualified for a tax limitation as provided by |
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Section 11.262 applicable to the taxing unit; and |
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(B) the amount of taxes refunded by the taxing |
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unit in the preceding year for tax years before that year. |
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(14) "Last year's total value" means the total taxable |
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value of property listed on the appraisal roll for the preceding |
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year, including all appraisal roll supplements and corrections, |
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other than corrections made pursuant to Section 25.25(d), as of the |
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date of the calculation, except that: |
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(A) last year's taxable value for a school |
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district excludes the total value of homesteads that qualified for |
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a tax limitation as provided by Section 11.26; [and] |
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(B) last year's taxable value for a county, |
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municipality, or junior college district excludes the total value |
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of homesteads that qualified for a tax limitation as provided by |
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Section 11.261 applicable to the taxing unit; and |
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(C) last year's taxable value for a taxing unit |
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excludes the total value of homesteads that qualified for a tax |
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limitation as provided by Section 11.262 applicable to the taxing |
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unit. |
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SECTION 4. Section 44.004, Education Code, is amended by |
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adding Subsection (c-2) to read as follows: |
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(c-2) If the school district has established a limitation |
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under Section 1-b(i), Article VIII, Texas Constitution, on the |
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total amount of ad valorem taxes that may be imposed by the district |
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on the residence homestead of an eligible person who is a member of |
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a reserve component of the United States armed forces and is ordered |
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to active duty, the notice required by Subsection (c) must also |
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contain the following statement in bold print: "Under state law, |
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the dollar amount of school taxes imposed on the residence |
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homestead of an eligible person who is a member of a reserve |
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component of the United States armed forces and is ordered to active |
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duty may not be increased above the amount of school taxes imposed |
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on the property in the preceding year, regardless of changes in tax |
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rate or property value." |
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SECTION 5. Section 403.302(d), Government Code, is amended |
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to read as follows: |
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(d) For the purposes of this section, "taxable value" means |
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the market value of all taxable property less: |
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(1) the total dollar amount of any residence homestead |
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exemptions lawfully granted under Section 11.13(b) or (c), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(2) one-half of the total dollar amount of any |
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residence homestead exemptions granted under Section 11.13(n), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(3) the total dollar amount of any exemptions granted |
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before May 31, 1993, within a reinvestment zone under agreements |
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authorized by Chapter 312, Tax Code; |
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(4) subject to Subsection (e), the total dollar amount |
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of any captured appraised value of property that: |
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(A) is within a reinvestment zone created on or |
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before May 31, 1999, or is proposed to be included within the |
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boundaries of a reinvestment zone as the boundaries of the zone and |
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the proposed portion of tax increment paid into the tax increment |
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fund by a school district are described in a written notification |
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provided by the municipality or the board of directors of the zone |
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to the governing bodies of the other taxing units in the manner |
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provided by Section 311.003(e), Tax Code, before May 31, 1999, and |
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within the boundaries of the zone as those boundaries existed on |
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September 1, 1999, including subsequent improvements to the |
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property regardless of when made; |
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(B) generates taxes paid into a tax increment |
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fund created under Chapter 311, Tax Code, under a reinvestment zone |
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financing plan approved under Section 311.011(d), Tax Code, on or |
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before September 1, 1999; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(5) for a school district for which a deduction from |
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taxable value is made under Subdivision (4), an amount equal to the |
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taxable value required to generate revenue when taxed at the school |
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district's current tax rate in an amount that, when added to the |
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taxes of the district paid into a tax increment fund as described by |
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Subdivision (4)(B), is equal to the total amount of taxes the |
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district would have paid into the tax increment fund if the district |
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levied taxes at the rate the district levied in 2005; |
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(6) the total dollar amount of any exemptions granted |
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under Section 11.251, Tax Code; |
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(7) the difference between the comptroller's estimate |
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of the market value and the productivity value of land that |
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qualifies for appraisal on the basis of its productive capacity, |
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except that the productivity value estimated by the comptroller may |
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not exceed the fair market value of the land; |
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(8) the portion of the appraised value of residence |
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homesteads of individuals who receive a tax limitation under |
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Section 11.26 or 11.262, Tax Code, on which school district taxes |
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are not imposed in the year that is the subject of the study, |
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calculated as if the residence homesteads were appraised at the |
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full value required by law; |
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(9) a portion of the market value of property not |
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otherwise fully taxable by the district at market value because of: |
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(A) action required by statute or the |
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constitution of this state that, if the tax rate adopted by the |
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district is applied to it, produces an amount equal to the |
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difference between the tax that the district would have imposed on |
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the property if the property were fully taxable at market value and |
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the tax that the district is actually authorized to impose on the |
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property, if this subsection does not otherwise require that |
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portion to be deducted; or |
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(B) action taken by the district under Subchapter |
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B or C, Chapter 313, Tax Code; |
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(10) the market value of all tangible personal |
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property, other than manufactured homes, owned by a family or |
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individual and not held or used for the production of income; |
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(11) the appraised value of property the collection of |
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delinquent taxes on which is deferred under Section 33.06, Tax |
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Code; |
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(12) the portion of the appraised value of property |
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the collection of delinquent taxes on which is deferred under |
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Section 33.065, Tax Code; and |
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(13) the amount by which the market value of a |
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residence homestead to which Section 23.23, Tax Code, applies |
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exceeds the appraised value of that property as calculated under |
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that section. |
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SECTION 6. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 7. This Act takes effect January 1, 2008, but only |
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if the constitutional amendment to authorize a political |
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subdivision to establish a limitation on the total amount of ad |
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valorem taxes that may be imposed by the political subdivision on |
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the residence homestead of an eligible person who is a member of a |
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reserve component of the United States armed forces and is ordered |
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to active military duty is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |