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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 an exemption under Section 11.13(n), Tax |
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Code, that was not in effect for the 2005 or 2006 tax year, or |
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eliminates an exemption under Section 11.13(n), Tax Code, that was |
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in effect for the 2005 or 2006 tax year; |
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(2) adopts an exemption under Section 11.13(n), Tax |
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Code, at a greater or lesser percentage than the percentage in |
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effect for the district for the 2005 or 2006 tax year or in a dollar |
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amount that is greater or less than the dollar amount that would be |
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generated if the percentage exemption under that section in effect |
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for the district for the 2005 or 2006 tax year were applied to the |
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average appraised value of a residence homestead in the district; |
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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. 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 4. 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. |