81R3656 JE-D
 
  By: McReynolds H.B. No. 1129
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of a hospital district to establish an ad
  valorem tax freeze on the residence homesteads of disabled or
  elderly persons and their surviving spouses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 11.261, Tax Code, is
  amended to read as follows:
         Sec. 11.261.  LIMITATION OF COUNTY, MUNICIPAL, HOSPITAL
  DISTRICT, OR JUNIOR COLLEGE DISTRICT TAX ON HOMESTEADS OF DISABLED
  AND ELDERLY.
         SECTION 2.  Sections 11.261(a), (b), (c), (d), (e), (g),
  (h), (i), (j), and (k), Tax Code, are amended to read as follows:
         (a)  This section applies only to a taxing unit that:
               (1)  is a county, municipality, hospital district, or
  junior college district; and
               (2)  [that] has established a limitation on the total
  amount of taxes that may be imposed by the county, municipality,
  hospital district, or junior college district on the residence
  homestead of a disabled individual or an individual 65 years of age
  or older under Section 1-b(h), Article VIII, Texas Constitution.
         (b)  The tax officials shall appraise the property to which
  the limitation applies and calculate taxes as on other property,
  but if the tax so calculated exceeds the limitation provided by this
  section, the tax imposed by a taxing unit is the amount of the tax as
  limited by this section, except as otherwise provided by this
  section. The taxing unit [county, municipality, or junior college
  district] may not increase the total annual amount of ad valorem
  taxes the taxing unit [county, municipality, or junior college
  district] imposes on the residence homestead of a disabled
  individual or an individual 65 years of age or older above the
  amount of the taxes the taxing unit [county, municipality, or
  junior college district] imposed on the residence homestead in the
  first tax year, other than a tax year preceding the tax year in
  which the taxing unit [county, municipality, or junior college
  district] established the limitation described by Subsection (a),
  in which the individual qualified that residence homestead for the
  exemption provided by Section 11.13(c) for a disabled individual or
  an individual 65 years of age or older. If the individual qualified
  that residence homestead for the exemption after the beginning of
  that first year and the residence homestead remains eligible for
  the exemption for the next year, and if the [county, municipal, or
  junior college district] taxes imposed by the taxing unit on the
  residence homestead in the next year are less than the amount of
  taxes imposed in that first year, the taxing unit [a county,
  municipality, or junior college district] may not subsequently
  increase the total annual amount of ad valorem taxes it imposes on
  the residence homestead above the amount it imposed on the
  residence homestead in the year immediately following the first
  year, other than a tax year preceding the tax year in which the
  taxing unit [county, municipality, or junior college district]
  established the limitation described by Subsection (a), for which
  the individual qualified that residence homestead for the
  exemption.
         (c)  If an individual makes improvements to the individual's
  residence homestead, other than repairs and other than improvements
  required to comply with governmental requirements, the taxing unit
  [county, municipality, or junior college district] may increase the
  amount of taxes on the homestead in the first year the value of the
  homestead is increased on the appraisal roll because of the
  enhancement of value by the improvements. The amount of the tax
  increase is determined by applying the current tax rate to the
  difference between the appraised value of the homestead with the
  improvements and the appraised value the homestead [it] would have
  had without the improvements. A limitation provided by this
  section then applies to the increased amount of [county, municipal,
  or junior college district] taxes on the residence homestead until
  more improvements, if any, are made.
         (d)  A limitation on [county, municipal, or junior college
  district] tax increases by a taxing unit provided by this section
  expires if on January 1:
               (1)  none of the owners of the structure who qualify for
  the exemption provided by Section 11.13(c) for a disabled
  individual or an individual 65 years of age or older and who owned
  the structure when the limitation provided by this section first
  took effect is using the structure as a residence homestead; or
               (2)  none of the owners of the structure qualifies for
  the exemption provided by Section 11.13(c) for a disabled
  individual or an individual 65 years of age or older.
         (e)  If the appraisal roll provides for taxation of appraised
  value for a prior year because a residence homestead exemption for
  disabled individuals or individuals 65 years of age or older was
  erroneously allowed, the tax assessor for the applicable taxing
  unit [county, municipality, or junior college district] shall add,
  as back taxes due as provided by Section 26.09(d), the positive
  difference, if any, between the tax that should have been imposed
  for that year and the tax that was imposed because of the provisions
  of this section.
         (g)  Except as provided by Subsection (c), if an individual
  who receives a limitation on [county, municipal, or junior college
  district] tax increases by a taxing unit provided by this section
  subsequently qualifies a different residence homestead in the same
  taxing unit [county, municipality, or junior college district] for
  an exemption under Section 11.13, the taxing unit [county,
  municipality, or junior college district] may not impose ad valorem
  taxes on the subsequently qualified homestead in a year in an amount
  that exceeds the amount of taxes the taxing unit [county,
  municipality, or junior college district] would have imposed on the
  subsequently qualified homestead in the first year in which the
  individual receives that exemption for the subsequently qualified
  homestead had the limitation on tax increases provided by this
  section not been in effect, multiplied by a fraction the numerator
  of which is the total amount of taxes the taxing unit [county,
  municipality, or junior college district] imposed on the former
  homestead in the last year in which the individual received that
  exemption for the former homestead and the denominator of which is
  the total amount of taxes the taxing unit [county, municipality, or
  junior college district] would have imposed on the former homestead
  in the last year in which the individual received that exemption for
  the former homestead had the limitation on tax increases provided
  by this section not been in effect.
         (h)  An individual who receives a limitation on [county,
  municipal, or junior college district] tax increases by a taxing
  unit under this section and who subsequently qualifies a different
  residence homestead in the same taxing unit [county, municipality,
  or junior college district] for an exemption under Section 11.13,
  or an agent of the individual, is entitled to receive from the chief
  appraiser of the appraisal district in which the former homestead
  was located a written certificate providing the information
  necessary to determine whether the individual may qualify for a
  limitation on the subsequently qualified homestead under
  Subsection (g) and to calculate the amount of taxes the taxing unit 
  [county, municipality, or junior college district] may impose on
  the subsequently qualified homestead.
         (i)  If an individual who qualifies for a limitation on
  [county, municipal, or junior college district] tax increases by a
  taxing unit under this section dies, the surviving spouse of the
  individual is entitled to the limitation on taxes imposed by the
  taxing unit [county, municipality, or junior college district] on
  the residence homestead of the individual if:
               (1)  the surviving spouse is disabled or is 55 years of
  age or older when the individual dies; and
               (2)  the residence homestead of the individual:
                     (A)  is the residence homestead of the surviving
  spouse on the date that the individual dies; and
                     (B)  remains the residence homestead of the
  surviving spouse.
         (j)  If an individual who is 65 years of age or older and
  qualifies for a limitation on [county, municipal, or junior college
  district] tax increases for the elderly under this section dies in
  the first year in which the individual qualified for the limitation
  and the individual first qualified for the limitation after the
  beginning of that year, except as provided by Subsection (k), the
  amount to which the surviving spouse's [county, municipal, or
  junior college district] taxes are limited under Subsection (i) is
  the amount of taxes imposed by the taxing unit to which the
  limitation applies [county, municipality, or junior college
  district, as applicable,] on the residence homestead in that year
  determined as if the individual qualifying for the exemption had
  lived for the entire year.
         (k)  If in the first tax year after the year in which an
  individual who is 65 years of age or older dies under the
  circumstances described by Subsection (j) the amount of taxes
  imposed by a taxing unit [county, municipality, or junior college
  district] on the residence homestead of the surviving spouse is
  less than the amount of taxes imposed by the taxing unit [county,
  municipality, or junior college district] in the preceding year as
  limited by Subsection (j), in a subsequent tax year the surviving
  spouse's taxes imposed by the taxing unit [county, municipality, or
  junior college district] on that residence homestead are limited to
  the amount of taxes imposed by the taxing unit [county,
  municipality, or junior college district] in that first tax year
  after the year in which the individual dies.
         SECTION 3.  Section 23.19(g), Tax Code, is amended to read as
  follows:
         (g)  A tax bill or a separate statement accompanying the tax
  bill to a cooperative housing corporation for which interests of
  stockholders are separately appraised under this section must
  state, in addition to the information required by Section 31.01,
  the appraised value and taxable value of each interest separately
  appraised. Each exemption claimed as provided by this title by a
  person entitled to the exemption shall also be deducted from the
  total appraised value of the property of the corporation. The total
  tax imposed by a school district, county, municipality, hospital
  district, or junior college district shall be reduced by any amount
  that represents an increase in taxes attributable to separately
  appraised interests of the real property and improvements that are
  subject to the limitation of taxes prescribed by Section 11.26 or
  11.261. The corporation shall apportion among its stockholders
  liability for reimbursing the corporation for property taxes
  according to the relative taxable values of their interests.
         SECTION 4.  Sections 26.012(6), (13), and (14), Tax Code,
  are amended to read as follows:
               (6)  "Current total value" means the total taxable
  value of property listed on the appraisal roll for the current year,
  including all appraisal roll supplements and corrections as of the
  date of the calculation, less the taxable value of property
  exempted for the current tax year for the first time under Section
  11.31, except that:
                     (A)  the current total value for a school district
  excludes:
                           (i)  the total value of homesteads that
  qualify for a tax limitation as provided by Section 11.26; and
                           (ii)  new property value of property that is
  subject to an agreement entered into under Chapter 313; and
                     (B)  the current total value for a county,
  municipality, hospital district, or junior college district
  excludes the total value of homesteads that qualify for a tax
  limitation provided by Section 11.261.
               (13)  "Last year's levy" means the total of:
                     (A)  the amount of taxes that would be generated
  by multiplying the total tax rate adopted by the governing body in
  the preceding year by the total taxable value of property on the
  appraisal roll for the preceding year, including:
                           (i)  taxable value that was reduced in an
  appeal under Chapter 42; and
                           (ii)  all appraisal roll supplements and
  corrections other than corrections made pursuant to Section
  25.25(d), as of the date of the calculation, except that last year's
  taxable value for a school district excludes the total value of
  homesteads that qualified for a tax limitation as provided by
  Section 11.26 and last year's taxable value for a county,
  municipality, hospital district, or junior college district
  excludes the total value of homesteads that qualified for a tax
  limitation as provided by Section 11.261; and
                     (B)  the amount of taxes refunded by the taxing
  unit in the preceding year for tax years before that year.
               (14)  "Last year's total value" means the total taxable
  value of property listed on the appraisal roll for the preceding
  year, including all appraisal roll supplements and corrections,
  other than corrections made pursuant to Section 25.25(d), as of the
  date of the calculation, except that:
                     (A)  last year's taxable value for a school
  district excludes the total value of homesteads that qualified for
  a tax limitation as provided by Section 11.26; and
                     (B)  last year's taxable value for a county,
  municipality, hospital district, or junior college district
  excludes the total value of homesteads that qualified for a tax
  limitation as provided by Section 11.261.
         SECTION 5.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 6.  This Act takes effect January 1, 2010, but only
  if the constitutional amendment to authorize a hospital district to
  establish an ad valorem tax freeze on the residence homesteads of
  disabled or elderly persons and their surviving spouses is approved
  by the voters. If that amendment is not approved by the voters,
  this Act has no effect.