81R8182 JE-D

By: Vaught H.B. No. 2934

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation of a portion of the appraised value of the residence homesteads of certain military servicemembers who have served in a hostile fire or imminent danger pay zone or a combat zone.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 11.13, Tax Code, is amended by adding Subsections (s), (t), and (u) to read as follows:

(s) In addition to any other exemptions provided by this section, an individual is entitled to an exemption from taxation by a taxing unit in the amount computed under Subsection (t) of the appraised value of the individual's residence homestead if the individual:

(1) is a member or former member of:

(A) the armed forces of the United States;

(B) the Texas National Guard or the National Guard of another state; or

(C) a reserve component of the armed forces of the United States; and

(2) has served in:

(A) a hostile fire or imminent danger pay zone designated by the secretary of state of the United States; or

(B) a combat zone designated by the president of the United States.

(t) The total amount of the exemption to which an individual is entitled under Subsection (s) is computed by:

(1) determining the total number of months or portions of a month the individual served in the circumstances described by Subsection (s)(2) during the preceding 10 years; and

(2) multiplying the amount determined under Subdivision (1) by $750.

(u) An individual may not claim an exemption in more than one tax year for the same month or portion of a month of service described by Subsection (s)(2) or claim more than one exemption in a tax year for the same month or portion of a month of that service on the ground that the individual served in more than one category of service during that month or portion of a month.

SECTION 2. Section 11.43, Tax Code, is amended by adding Subsection (c-1) to read as follows:

(c-1) To receive an exemption authorized by Section 11.13(s), a person must submit an application for the exemption even if the person already receives another exemption under Section 11.13. The application required by this subsection must include an affidavit and a copy of official documents evidencing the person's service described by Subsection (s)(2) and the period of service. An affidavit required by this subsection must be in substantially the following form:

"I, __________, do hereby solemnly swear or affirm that I am a member or former member of (__) the armed forces of the United States, (___) the Texas National Guard or the National Guard of another state, or (___) a reserve component of the armed forces of the United States, during the preceding 10 years I have served a total of (___) months in (___) a hostile fire pay zone designated by the secretary of state of the United States, (___) an imminent danger pay zone designated by the secretary of state of the United States, or (___) a combat zone designated by the president of the United States, and I have not previously claimed an exemption for that period of service.

Subscribed to and sworn before me this _______ day of _______, _______.

SEAL_______________________

Notary Public in and for

________ County, Texas"

SECTION 3. Section 403.302(d), Government Code, is amended to read as follows:

(d) For the purposes of this section, "taxable value" means the market value of all taxable property less:

(1) the total dollar amount of any residence homestead exemptions lawfully granted under Section 11.13(b), [or] (c), or (s), Tax Code, in the year that is the subject of the study for each school district;

(2) one-half of the total dollar amount of any residence homestead exemptions granted under Section 11.13(n), Tax Code, in the year that is the subject of the study for each school district;

(3) the total dollar amount of any exemptions granted before May 31, 1993, within a reinvestment zone under agreements authorized by Chapter 312, Tax Code;

(4) subject to Subsection (e), the total dollar amount of any captured appraised value of property that:

(A) is within a reinvestment zone created on or before May 31, 1999, or is proposed to be included within the boundaries of a reinvestment zone as the boundaries of the zone and the proposed portion of tax increment paid into the tax increment fund by a school district are described in a written notification provided by the municipality or the board of directors of the zone to the governing bodies of the other taxing units in the manner provided by Section 311.003(e), Tax Code, before May 31, 1999, and within the boundaries of the zone as those boundaries existed on September 1, 1999, including subsequent improvements to the property regardless of when made;

(B) generates taxes paid into a tax increment fund created under Chapter 311, Tax Code, under a reinvestment zone financing plan approved under Section 311.011(d), Tax Code, on or before September 1, 1999; and

(C) is eligible for tax increment financing under Chapter 311, Tax Code;

(5) for a school district for which a deduction from taxable value is made under Subdivision (4), an amount equal to the taxable value required to generate revenue when taxed at the school district's current tax rate in an amount that, when added to the taxes of the district paid into a tax increment fund as described by Subdivision (4)(B), is equal to the total amount of taxes the district would have paid into the tax increment fund if the district levied taxes at the rate the district levied in 2005;

(6) the total dollar amount of any captured appraised value of property that:

(A) is within a reinvestment zone:

(i) created on or before December 31, 2008, by a municipality with a population of less than 18,000; and

(ii) the project plan for which includes the alteration, remodeling, repair, or reconstruction of a structure that is included on the National Register of Historic Places and requires that a portion of the tax increment of the zone be used for the improvement or construction of related facilities or for affordable housing;

(B) generates school district taxes that are paid into a tax increment fund created under Chapter 311, Tax Code; and

(C) is eligible for tax increment financing under Chapter 311, Tax Code;

(7) the total dollar amount of any exemptions granted under Section 11.251 or 11.253, Tax Code;

(8) the difference between the comptroller's estimate of the market value and the productivity value of land that qualifies for appraisal on the basis of its productive capacity, except that the productivity value estimated by the comptroller may not exceed the fair market value of the land;

(9) the portion of the appraised value of residence homesteads of individuals who receive a tax limitation under Section 11.26, Tax Code, on which school district taxes are not imposed in the year that is the subject of the study, calculated as if the residence homesteads were appraised at the full value required by law;

(10) a portion of the market value of property not otherwise fully taxable by the district at market value because of:

(A) action required by statute or the constitution of this state that, if the tax rate adopted by the district is applied to it, produces an amount equal to the difference between the tax that the district would have imposed on the property if the property were fully taxable at market value and the tax that the district is actually authorized to impose on the property, if this subsection does not otherwise require that portion to be deducted; or

(B) action taken by the district under Subchapter B or C, Chapter 313, Tax Code;

(11) the market value of all tangible personal property, other than manufactured homes, owned by a family or individual and not held or used for the production of income;

(12) the appraised value of property the collection of delinquent taxes on which is deferred under Section 33.06, Tax Code;

(13) the portion of the appraised value of property the collection of delinquent taxes on which is deferred under Section 33.065, Tax Code; and

(14) the amount by which the market value of a residence homestead to which Section 23.23, Tax Code, applies exceeds the appraised value of that property as calculated under that section.

SECTION 4. This Act applies only to ad valorem taxes imposed for a tax year beginning on or after the effective date of this Act.

SECTION 5. This Act takes effect January 1, 2010, but only if the constitutional amendment proposed by the 81st Legislature, Regular Session, 2009, authorizing the legislature to exempt from ad valorem taxation a portion of the assessed value of the residence homesteads of certain military servicemembers who have served in a hostile fire or imminent danger pay zone or a combat zone takes effect. If that amendment is not approved by the voters, this Act has no effect.