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A BILL TO BE ENTITLED
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AN ACT
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relating to the deferral or abatement of the collection of |
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delinquent ad valorem taxes on certain residence homesteads in |
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certain economically disadvantaged urban areas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 33, Tax Code, is amended by |
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adding Section 33.061 to read as follows: |
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Sec. 33.061. DEFERRED COLLECTION OF TAXES ON CERTAIN LOW |
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INCOME RESIDENCE HOMESTEADS IN CERTAIN ECONOMICALLY DISADVANTAGED |
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URBAN AREAS. (a) An individual is entitled to defer collection of |
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a tax, abate a suit to collect a delinquent tax, or abate a sale to |
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foreclose a tax lien if: |
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(1) the individual's family income is not more than the |
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greater of: |
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(A) the area median family income for the |
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household's place of residence, as adjusted for family size and as |
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established by the United States Department of Housing and Urban |
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Development; or |
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(B) the statewide area median family income, as |
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adjusted for family size and as established by the United States |
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Department of Housing and Urban Development; and |
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(2) the tax was imposed against property that: |
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(A) the individual owns and occupies, and has |
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owned and occupied for the preceding 14 tax years, as a residence |
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homestead; |
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(B) is located in an economically disadvantaged |
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census tract; and |
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(C) complies with other criteria established by |
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the chief appraiser with the advice and consent of the taxing |
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authority. |
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(b) This section does not apply to taxes imposed by a school |
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district or hospital district. |
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(c) To obtain a deferral, an individual must file with the |
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chief appraiser for the appraisal district in which the property is |
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located an affidavit stating the facts required to be established |
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by Subsection (a). The chief appraiser shall notify each taxing |
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unit participating in the district of the filing. After an |
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affidavit is filed under this subsection, a taxing unit may not file |
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suit to collect delinquent taxes on the property and the property |
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may not be sold at a sale to foreclose the tax lien until the 181st |
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day after the date the individual no longer owns and occupies the |
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property as a residence homestead. |
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(d) To obtain an abatement of a pending suit, the individual |
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must file in the court in which suit is pending an affidavit stating |
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the facts required to be established by Subsection (a). If no |
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controverting affidavit is filed by the taxing unit filing suit or |
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if, after a hearing, the court finds the individual is entitled to |
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the deferral, the court shall abate the suit until the 181st day |
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after the date the individual no longer owns and occupies the |
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property as a residence homestead. The clerk of the court shall |
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deliver a copy of the judgment abating the suit to the chief |
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appraiser of each appraisal district that appraises the property. |
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(e) To obtain an abatement of a pending sale to foreclose |
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the tax lien, the individual must deliver an affidavit stating the |
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facts required to be established by Subsection (a) to the chief |
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appraiser of each appraisal district that appraises the property, |
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the collector for the taxing unit that requested the order of sale |
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or the attorney representing that unit for the collection of |
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delinquent taxes, and the officer charged with selling the |
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property, not later than the fifth day before the date of the sale. |
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After an affidavit is delivered under this subsection, the property |
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may not be sold at a tax sale until the 181st day after the date the |
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individual no longer owns and occupies the property as a residence |
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homestead. If property is sold in violation of this section, the |
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property owner may file a motion to set aside the sale under the |
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same cause number and in the same court as a judgment reference in |
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the order of sale. The motion must be filed during the applicable |
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redemption period as set forth in Section 34.21(a) or, if the |
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property is bid off to a taxing unit, on or before the 180th day |
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following the date the taxing unit's deed is filed of record, |
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whichever is later. This right is not transferable to a third |
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party. |
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(f) A tax lien remains on the property and interest |
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continues to accrue during the period collection of taxes is |
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deferred or abated under this section. The annual interest rate |
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during the deferral or abatement period is eight percent instead of |
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the rate provided by Section 33.01. Interest and penalties that |
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accrued or that were incurred or imposed under Section 33.01 or |
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33.07 before the date the individual files the deferral affidavit |
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under Subsection (b) or the date the judgment abating the suit is |
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entered, as applicable, are preserved. A penalty under Section |
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33.01 is not incurred during a deferral or abatement period. The |
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additional penalty under Section 33.07 may be imposed and collected |
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only if the taxes for which collection is deferred or abated remain |
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delinquent on or after the 181st day after the date the deferral or |
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abatement period expires. A plea of limitation, laches, or want of |
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prosecution does not apply against the taxing unit because of |
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deferral or abatement of collection as provided by this section. |
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(g) Each year the chief appraiser for each appraisal |
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district shall publicize in a manner reasonably designed to notify |
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all residents of the district or county of the provisions of this |
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section and, specifically, the method by which eligible persons may |
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obtain a deferral or abatement. |
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(h) Notwithstanding the other provisions of this section, |
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if an individual qualifies for a deferral or abatement of |
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collection of taxes on property and the census tract in which the |
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property is located ceases to meet the requirements of Subsection |
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(a)(2)(B), the deferral or abatement continues in effect until the |
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181st day after the date the individual no longer owns and occupies |
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the property as a residence homestead if the individual remains |
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qualified under the other requirements of Subsection (a). |
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(i) In this section: |
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(1) "Economically disadvantaged census tract" means a |
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census tract delineated by the U.S. Bureau of the Census in the most |
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recent decennial census in which the median family income is |
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reported by the U.S. Bureau of the Census to be less than 60 percent |
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of the area median family income. |
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SECTION 2. Section 6.035(a), Tax Code, is amended to read as |
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follows: |
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(a) An individual is ineligible to serve on an appraisal |
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district board of directors and is disqualified from employment as |
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chief appraiser if the individual: |
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(1) is related within the second degree by |
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consanguinity or affinity, as determined under Chapter 573, |
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Government Code, to an individual who is engaged in the business of |
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appraising property for compensation for use in proceedings under |
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this title or of representing property owners for compensation in |
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proceedings under this title in the appraisal district; or |
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(2) owns property on which delinquent taxes have been |
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owed to a taxing unit for more than 60 days after the date the |
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individual knew or should have known of the delinquency unless: |
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(A) the delinquent taxes and any penalties and |
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interest are being paid under an installment payment agreement |
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under Section 33.02; or |
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(B) a suit to collect the delinquent taxes is |
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deferred or abated under Section 33.06, 33.061, or 33.065. |
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SECTION 3. Section 6.412(a), Tax Code, is amended to read as |
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follows: |
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(a) An individual is ineligible to serve on an appraisal |
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review board if the individual: |
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(1) is related within the second degree by |
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consanguinity or affinity, as determined under Chapter 573, |
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Government Code, to an individual who is engaged in the business of |
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appraising property for compensation for use in proceedings under |
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this title or of representing property owners for compensation in |
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proceedings under this title in the appraisal district for which |
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the appraisal review board is established; or |
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(2) owns property on which delinquent taxes have been |
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owed to a taxing unit for more than 60 days after the date the |
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individual knew or should have known of the delinquency unless: |
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(A) the delinquent taxes and any penalties and |
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interest are being paid under an installment payment agreement |
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under Section 33.02; or |
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(B) a suit to collect the delinquent taxes is |
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deferred or abated under Section 33.06, 33.061, or 33.065. |
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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, Tax Code, on which school district taxes are not |
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imposed in the year that is the subject of the study, calculated as |
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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 or |
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33.061, Tax 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 takes effect September 1, 2007. |