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A BILL TO BE ENTITLED
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AN ACT
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relating to allowing persons acquiring a new residence homestead to |
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receive an ad valorem tax exemption on the homestead in the year in |
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which the property is acquired. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.42, Tax Code, is amended by amending |
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Subsection (c) and adding Subsection (c-1) to read as follows: |
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(c) An exemption authorized by Section 11.13(c) or (d) is |
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effective as of January 1 of the tax year in which the person |
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qualifies for the exemption and applies to the entire tax year. If |
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the individual acquired the property in that tax year, each other |
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exemption authorized by Section 11.13 for which the individual |
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qualifies the property in that tax year is also effective as of |
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January 1 of the tax year and applies to the entire tax year. |
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(c-1) Except as provided by Subsection (c), if an individual |
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acquires a property after January 1 of a tax year and qualifies the |
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property during that tax year for one or more exemptions under |
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Section 11.13, but the individual does not qualify for an exemption |
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under Section 11.13(c) or (d) for an individual 65 years of age or |
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older, and the property did not previously qualify for any |
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exemption under Section 11.13 for any portion of the tax year in |
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which the property was acquired, the individual may receive the |
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exemptions for which the individual qualifies for the portion of |
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that tax year for which the individual qualifies for the exemptions |
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immediately on qualification for the exemptions. |
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SECTION 2. Section 26.10, Tax Code, is amended by adding |
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Subsection (c) to read as follows: |
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(c) This section does not affect a residence homestead |
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exemption other than an exemption under Section 11.13(c) or (d) for |
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an individual 65 years of age or older, and for purposes of |
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Subsection (b)(1)(B) the taxes shall be calculated taking into |
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account any residence homestead exemption applicable to the |
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property other than an exemption under Section 11.13(c) or (d) for |
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an individual 65 years of age or older. |
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SECTION 3. Chapter 26, Tax Code, is amended by adding |
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Section 26.1115 to read as follows: |
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Sec. 26.1115. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD |
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GENERALLY. (a) If an individual receives one or more exemptions |
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under Section 11.13, other than an exemption under Section 11.13(c) |
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or (d) for an individual 65 years of age or older, for a portion of a |
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tax year as provided by Section 11.42(c-1), except as provided by |
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Subsection (b) the amount of tax due on the property for that year |
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is calculated by: |
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(1) subtracting: |
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(A) the amount of the taxes that otherwise would |
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be imposed on the property for the entire year had the individual |
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qualified for the exemptions for the entire year; from |
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(B) the amount of the taxes that otherwise would |
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be imposed on the property for the entire year had the individual |
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not qualified for the exemptions during the year; |
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(2) multiplying the remainder determined under |
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Subdivision (1) by a fraction, the denominator of which is 365 and |
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the numerator of which is the number of days in that year that |
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elapsed before the date the individual first qualified the property |
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for the exemptions; and |
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(3) adding the product determined under Subdivision |
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(2) and the amount described by Subdivision (1)(A). |
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(b) If an individual receives one or more exemptions to |
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which Subsection (a) applies for a portion of a tax year as provided |
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by Section 11.42(c-1) and the exemptions terminate during the year |
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in which the individual acquired the property, the amount of tax due |
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on the property for that year is calculated by: |
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(1) subtracting: |
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(A) the amount of the taxes that otherwise would |
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be imposed on the property for the entire year had the individual |
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qualified for the exemptions for the entire year; from |
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(B) the amount of the taxes that otherwise would |
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be imposed on the property for the entire year had the individual |
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not qualified for the exemptions during the year; |
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(2) multiplying the remainder determined under |
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Subdivision (1) by a fraction, the denominator of which is 365 and |
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the numerator of which is the sum of: |
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(A) the number of days in that year that elapsed |
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before the date the individual first qualified the property for the |
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exemptions; and |
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(B) the number of days in that year that elapsed |
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after the date the exemptions terminated; and |
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(3) adding the product determined under Subdivision |
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(2) and the amount described by Subdivision (1)(A). |
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(c) If an individual qualifies to receive an exemption as |
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described by Subsection (a) with respect to a property after the |
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amount of tax due on the property is calculated and if the effect of |
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the qualification is to reduce the amount of tax due on the |
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property, the assessor for each taxing unit shall recalculate the |
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amount of the tax due on the property and correct the tax roll. If |
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the tax bill has been mailed and the tax on the property has not been |
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paid, the assessor shall mail a corrected tax bill to the person in |
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whose name the property is listed on the tax roll or to the person's |
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authorized agent. If the tax on the property has been paid, the |
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collector for the taxing unit shall refund to the person who paid |
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the tax the amount by which the payment exceeded the tax due. |
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SECTION 4. Section 26.112(a), Tax Code, is amended to read |
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as follows: |
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(a) Except as provided by Section 26.10(b), if at any time |
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during a tax year property is owned by an individual who qualifies |
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for an exemption under Section 11.13(c) or (d), the amount of the |
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tax due on the property for the tax year is calculated as if the |
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person qualified for the exemption on January 1 and continued to |
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qualify for the exemption for the remainder of the tax year. If the |
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individual acquired the property in that tax year, the amount of the |
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tax due on the property is calculated as if the person qualified on |
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January 1 for each exemption for which the individual qualifies the |
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property in that tax year under Section 11.13 and continued to |
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qualify for each exemption for the remainder of the tax year. |
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SECTION 5. This Act takes effect January 1, 2010, and |
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applies only to a residence homestead acquired on or after that |
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date. |