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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a limit on the amount of ad valorem |
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taxes that may be imposed on the residence homestead of a disabled |
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or elderly person that is constructed under the federal community |
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development block grant program or a housing rehabilitation program |
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of the Texas Department of Housing and Community Affairs and that |
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replaces the person's former residence homestead. |
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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 11.34 to read as follows: |
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Sec. 11.34. LIMITATION OF TAXES ON CERTAIN RESIDENCE |
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HOMESTEADS OF THE DISABLED OR ELDERLY. (a) This section applies |
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only to a residence homestead of a disabled person or a person who |
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is 65 years of age or older that consists of a structure built on |
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land that the person previously qualified as part of the person's |
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former residence homestead and that was constructed under the |
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federal community development block grant program using a |
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nonentitlement grant or under a housing rehabilitation program of |
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the Texas Department of Housing and Community Affairs or a |
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successor program. A taxing unit may not impose taxes on a |
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residence homestead to which this section applies in an amount that |
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exceeds the amount of taxes imposed by the taxing unit on the former |
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residence homestead in the last year in which the taxing unit |
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imposed taxes on the homestead. |
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(b) The tax officials shall appraise the property to which |
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the limitation applies and calculate taxes as on other property, |
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but, if the tax so calculated exceeds the limitation established |
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under this section, the tax imposed is the amount of the tax as |
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limited by this section, except as provided by Subsection (c). |
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(c) If an individual makes improvements to the individual's |
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residence homestead, other than improvements required to comply |
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with governmental requirements or repairs, a taxing unit may |
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increase the tax on the homestead in the first year the value of the |
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homestead is increased on the appraisal roll because of the |
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enhancement of value by the improvements. The amount of the tax |
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increase is determined by applying the current tax rate of the |
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taxing unit to the difference in the assessed value of the homestead |
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with the improvements and the assessed value it would have had |
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without the improvements. A limitation imposed by this section |
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then applies to the increased amount of tax until more |
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improvements, if any, are made. |
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(d) The limitation on tax increases required by this section |
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expires if on January 1 none of the owners of the structure who |
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qualify for the limitation and who owned the structure when the |
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limitation first took effect is using the structure as the person's |
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residence homestead. |
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(e) If the appraisal roll provides for taxation of appraised |
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value for a prior year because a residence homestead exemption was |
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erroneously allowed, the tax assessor shall add, as back taxes due |
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as provided by Section 26.09(d), the positive difference if any |
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between the tax that should have been imposed for that year and the |
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tax that was imposed because of the provisions of this section. |
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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 11.34, |
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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 11.34. 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 11.34 applicable to the taxing 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 11.34 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 11.34 applicable to the taxing |
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unit. |
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SECTION 4. 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 11.34, Tax Code, on which school district taxes are |
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not imposed in the year that is the subject of the study, calculated |
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as if the residence homesteads were appraised at the full value |
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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 5. 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 6. This Act takes effect January 1, 2008, but only |
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if the constitutional amendment authorizing the legislature to |
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establish a limit on the amount of ad valorem taxes that may be |
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imposed on the residence homestead of a disabled or elderly person |
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that is constructed under the federal community development block |
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grant program or a housing rehabilitation program of the Texas |
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Department of Housing and Community Affairs and that replaces the |
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person's former residence homestead is approved by the voters. If |
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that amendment is not approved by the voters, this Act has no |
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effect. |