81R3369 JE-D
 
  By: Paxton H.B. No. 1037
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to allowing persons acquiring a new residence homestead to
  receive an ad valorem tax exemption on the homestead in the year in
  which the property is acquired.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.42, Tax Code, is amended by amending
  Subsection (c) and adding Subsection (c-1) to read as follows:
         (c)  An exemption authorized by Section 11.13(c) or (d) is
  effective as of January 1 of the tax year in which the person
  qualifies for the exemption and applies to the entire tax year.  If
  the individual acquired the property in that tax year, each other
  exemption authorized by Section 11.13 for which the individual
  qualifies the property in that tax year is also effective as of
  January 1 of the tax year and applies to the entire tax year.
         (c-1)  Except as provided by Subsection (c), if an individual
  acquires a property after January 1 of a tax year and qualifies the
  property during that tax year for one or more exemptions under
  Section 11.13, but the individual does not qualify for an exemption
  under Section 11.13(c) or (d) for an individual 65 years of age or
  older, and the property did not previously qualify for any
  exemption under Section 11.13 for any portion of the tax year in
  which the property was acquired, the individual may receive the
  exemptions for which the individual qualifies for the portion of
  that tax year for which the individual qualifies for the exemptions
  immediately on qualification for the exemptions.
         SECTION 2.  Section 26.10, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  This section does not affect a residence homestead
  exemption other than an exemption under Section 11.13(c) or (d) for
  an individual 65 years of age or older, and for purposes of
  Subsection (b)(1)(B) the taxes shall be calculated taking into
  account any residence homestead exemption applicable to the
  property other than an exemption under Section 11.13(c) or (d) for
  an individual 65 years of age or older.
         SECTION 3.  Chapter 26, Tax Code, is amended by adding
  Section 26.1115 to read as follows:
         Sec. 26.1115.  CALCULATION OF TAXES ON RESIDENCE HOMESTEAD
  GENERALLY. (a) If an individual receives one or more exemptions
  under Section 11.13, other than an exemption under Section 11.13(c)
  or (d) for an individual 65 years of age or older, for a portion of a
  tax year as provided by Section 11.42(c-1), except as provided by
  Subsection (b) the amount of tax due on the property for that year
  is calculated by:
               (1)  subtracting:
                     (A)  the amount of the taxes that otherwise would
  be imposed on the property for the entire year had the individual
  qualified for the exemptions for the entire year; from
                     (B)  the amount of the taxes that otherwise would
  be imposed on the property for the entire year had the individual
  not qualified for the exemptions during the year;
               (2)  multiplying the remainder determined under
  Subdivision (1) by a fraction, the denominator of which is 365 and
  the numerator of which is the number of days in that year that
  elapsed before the date the individual first qualified the property
  for the exemptions; and
               (3)  adding the product determined under Subdivision
  (2) and the amount described by Subdivision (1)(A).
         (b)  If an individual receives one or more exemptions to
  which Subsection (a) applies for a portion of a tax year as provided
  by Section 11.42(c-1) and the exemptions terminate during the year
  in which the individual acquired the property, the amount of tax due
  on the property for that year is calculated by:
               (1)  subtracting:
                     (A)  the amount of the taxes that otherwise would
  be imposed on the property for the entire year had the individual
  qualified for the exemptions for the entire year; from
                     (B)  the amount of the taxes that otherwise would
  be imposed on the property for the entire year had the individual
  not qualified for the exemptions during the year;
               (2)  multiplying the remainder determined under
  Subdivision (1) by a fraction, the denominator of which is 365 and
  the numerator of which is the sum of:
                     (A)  the number of days in that year that elapsed
  before the date the individual first qualified the property for the
  exemptions; and
                     (B)  the number of days in that year that elapsed
  after the date the exemptions terminated; and
               (3)  adding the product determined under Subdivision
  (2) and the amount described by Subdivision (1)(A).
         (c)  If an individual qualifies to receive an exemption as
  described by Subsection (a) with respect to a property after the
  amount of tax due on the property is calculated and if the effect of
  the qualification is to reduce the amount of tax due on the
  property, the assessor for each taxing unit shall recalculate the
  amount of the tax due on the property and correct the tax roll. If
  the tax bill has been mailed and the tax on the property has not been
  paid, the assessor shall mail a corrected tax bill to the person in
  whose name the property is listed on the tax roll or to the person's
  authorized agent. If the tax on the property has been paid, the
  collector for the taxing unit shall refund to the person who paid
  the tax the amount by which the payment exceeded the tax due.
         SECTION 4.  Section 26.112(a), Tax Code, is amended to read
  as follows:
         (a)  Except as provided by Section 26.10(b), if at any time
  during a tax year property is owned by an individual who qualifies
  for an exemption under Section 11.13(c) or (d), the amount of the
  tax due on the property for the tax year is calculated as if the
  person qualified for the exemption on January 1 and continued to
  qualify for the exemption for the remainder of the tax year. If the
  individual acquired the property in that tax year, the amount of the
  tax due on the property is calculated as if the person qualified on
  January 1 for each exemption for which the individual qualifies the
  property in that tax year under Section 11.13 and continued to
  qualify for each exemption for the remainder of the tax year.
         SECTION 5.  This Act takes effect January 1, 2010, and
  applies only to a residence homestead acquired on or after that
  date.