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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the governing body of a taxing unit to |
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adopt a local option residence homestead exemption from ad valorem |
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taxation of not less than $5,000 or more than $30,000. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.13(n), Tax Code, is amended to read as |
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follows: |
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(n) The [In addition to any other exemptions provided by
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this section, an individual is entitled to an exemption from
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taxation by a taxing unit of a percentage of the appraised value of
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his residence homestead if the exemption is adopted by the] |
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governing body of a [the] taxing unit, [before July 1] in the manner |
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provided by law for official action by the body, may adopt an |
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exemption from taxation by the taxing unit of either a percentage of |
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the appraised value of an individual's residence homestead or a |
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portion of the appraised value of an individual's residence |
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homestead, but not both. The exemption must be adopted by the |
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governing body before July 1 of the tax year in which the exemption |
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applies. If the governing body adopts a percentage exemption and |
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the percentage set by the body [taxing unit] produces an exemption |
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in a tax year of less than $5,000 when applied to a particular |
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residence homestead, the individual is entitled to an exemption of |
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$5,000 of the appraised value. A [The] percentage exemption |
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adopted by the governing body [taxing unit] may not exceed 20 |
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percent. If the governing body adopts an exemption of a portion of |
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the appraised value of a residence homestead, the amount of the |
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exemption in a tax year may not be less than $5,000 or more than |
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$30,000. An individual is entitled to an exemption adopted under |
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this subsection in addition to any other exemptions provided by |
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this section. |
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SECTION 2. Section 42.2516(f-1), Education Code, is amended |
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to read as follows: |
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(f-1) The commissioner shall, in accordance with rules |
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adopted by the commissioner, adjust the amount of a school |
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district's local revenue derived from maintenance and operations |
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tax collections, as calculated for purposes of determining the |
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amount of state revenue to which the district is entitled under this |
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section, if the district, for the 2007 tax year or a subsequent tax |
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year: |
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(1) adopts a percentage [an] exemption under Section |
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11.13(n), Tax Code, that was not in effect for the 2005 or 2006 tax |
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year, or eliminates an exemption under Section 11.13(n), Tax Code, |
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that was in effect for the 2005 or 2006 tax year; |
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(2) adopts a percentage [an] exemption under Section |
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11.13(n), Tax Code, at a greater or lesser percentage than the |
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percentage in effect for the district for the 2005 or 2006 tax year; |
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(3) grants an exemption under an agreement authorized |
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by Chapter 312, Tax Code, that was not in effect for the 2005 or 2006 |
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tax year, or ceases to grant an exemption authorized by that chapter |
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that was in effect for the 2005 or 2006 tax year; or |
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(4) agrees to deposit taxes into a tax increment fund |
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created under Chapter 311, Tax Code, under a reinvestment zone |
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financing plan that was not in effect for the 2005 or 2006 tax year, |
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or ceases depositing taxes into a tax increment fund created under |
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that chapter under a reinvestment zone financing plan that was in |
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effect for the 2005 or 2006 tax year. |
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SECTION 3. 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 percentage exemptions granted under Section |
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11.13(n), Tax Code, in the year that is the subject of the study for |
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each school 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 captured appraised |
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value of property that: |
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(A) is within a reinvestment zone: |
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(i) created on or before December 31, 2008, |
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by a municipality with a population of less than 18,000; and |
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(ii) the project plan for which includes |
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the alteration, remodeling, repair, or reconstruction of a |
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structure that is included on the National Register of Historic |
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Places and requires that a portion of the tax increment of the zone |
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be used for the improvement or construction of related facilities |
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or for affordable housing; |
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(B) generates school district taxes that are paid |
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into a tax increment fund created under Chapter 311, Tax Code; 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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(7) the total dollar amount of any exemptions granted |
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under Section 11.251 or 11.253, Tax Code; |
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(8) 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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(9) 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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(10) 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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(11) 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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(12) 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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(13) 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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(14) 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 4. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 5. This Act takes effect January 1, 2010, but only |
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if the constitutional amendment proposed by the 81st Legislature, |
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Regular Session, 2009, authorizing the governing body of a |
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political subdivision to adopt a local option residence homestead |
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exemption from ad valorem taxation of not less than $5,000 or more |
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than $30,000 is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |