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A BILL TO BE ENTITLED
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AN ACT
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relating to a local option election in a county to set a limit on the |
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maximum appraised value of a residence homestead for ad valorem tax |
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purposes of less than 110 percent but not less than 103 percent of |
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the appraised value of the property for the preceding tax year. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.23, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (g) to read as follows: |
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(a) Except as provided by Subsection (g), notwithstanding |
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[Notwithstanding] the requirements of Section 25.18, and |
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regardless of whether the appraisal office has appraised the |
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property and determined the market value of the property for the tax |
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year, an appraisal office may increase the appraised value of a |
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residence homestead for a tax year to an amount not to exceed the |
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lesser of: |
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(1) the market value of the property for the most |
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recent tax year that the market value was determined by the |
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appraisal office; or |
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(2) the sum of: |
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(A) 10 percent of the appraised value of the |
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property for the preceding tax year; |
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(B) the appraised value of the property for the |
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preceding tax year; and |
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(C) the market value of all new improvements to |
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the property. |
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(g) The commissioners court of a county may call an election |
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in the county to permit the voters of the county to determine by |
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majority vote whether a lower percentage limitation on maximum |
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appraised value determined in the manner provided by Subsection |
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(a)(2) using a percentage of less than 10 percent but not less than |
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three percent in place of 10 percent in Subsection (a)(2)(A) will |
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apply to the taxation of residence homesteads in the county by each |
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taxing unit having territory in the county. The election must be |
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held on or before the date of the next general election for state |
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and county officers. The ballot proposition shall specify the |
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proposed percentage limitation on maximum appraised value. If a |
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majority of the votes cast at the election favor the establishment |
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of the proposed limitation, the limitation applies beginning with |
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the tax year following the year in which the election is held and |
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remains in effect until amended or repealed by the voters of the |
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county at a subsequent election called by the commissioners court |
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of the county. An election called to amend or repeal a limitation |
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must be held on or before the date of the next general election for |
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state and county officers following the date the election is |
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called. If the voters of a county amend or repeal a limitation, the |
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amendment or repeal applies beginning with the tax year after the |
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year in which the election is held. A limitation adopted under this |
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subsection applies to the taxation of residence homesteads in the |
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county by each taxing unit having territory in the county, except |
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that if a taxing unit has territory in more than one county, the |
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highest percentage limitation on maximum appraised value under |
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Subsection (a)(2) or this subsection otherwise applicable in any |
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portion of the territory of the taxing unit applies to the taxation |
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of residence homesteads by the taxing unit throughout that taxing |
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unit's territory. |
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SECTION 2. Section 42.26(d), Tax Code, is amended to read as |
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follows: |
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(d) For purposes of this section, the value of the property |
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subject to the suit and the value of a comparable property or sample |
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property that is used for comparison must be the market value |
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determined by the appraisal district when the property is a |
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residence homestead subject to a [the] limitation on appraised |
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value imposed by or authorized under Section 23.23. |
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SECTION 3. Sections 42.2516(f-1) and (f-2), Education Code, |
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are amended 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: |
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(1) the district, for the 2010 tax year or a subsequent |
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tax year: |
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(A) [(1)] adopts an exemption under Section |
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11.13(n), Tax Code, that was not in effect for the 2009 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 2009 tax year; |
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(B) [(2)] adopts an exemption under Section |
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11.13(n), Tax Code, at a greater or lesser percentage than the |
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percentage in effect for the district for the 2009 tax year; |
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(C) [(3)] grants an exemption under an agreement |
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authorized by Chapter 312, Tax Code, that was not in effect for the |
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2009 tax year, or ceases to grant an exemption authorized by that |
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chapter that was in effect for the 2009 tax year; or |
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(D) [(4)] agrees to deposit taxes into a tax |
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increment fund created under Chapter 311, Tax Code, under a |
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reinvestment zone financing plan that was not in effect for the 2009 |
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tax year, or ceases depositing taxes into a tax increment fund |
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created under that chapter under a reinvestment zone financing plan |
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that was in effect for the 2009 tax year; or |
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(2) for the 2012 tax year or a subsequent tax year, a |
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limitation adopted under Section 23.23(g), Tax Code, applies to the |
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taxation of residence homesteads by the district. |
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(f-2) The rules adopted by the commissioner under |
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Subsection (f-1) must: |
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(1) require the commissioner to determine, as if this |
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section did not exist, the effect under Chapter 41 and this chapter |
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of a school district's action described by Subsection (f-1)(1)(A), |
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(B), (C), or (D) or of a limitation described by Subsection (f-1)(2) |
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[(f-1)(1), (2), (3), or (4)] on the total state revenue to which the |
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district would be entitled or the cost to the district of purchasing |
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sufficient attendance credits to reduce the district's wealth per |
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student to the equalized wealth level; and |
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(2) require an increase or reduction in the amount of |
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state revenue to which a school district is entitled under |
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Subsection (b) that is substantially equivalent to any change in |
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total state revenue or the cost of purchasing attendance credits |
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that would apply to the district if this section did not exist. |
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SECTION 4. Section 403.302(d), Government Code, as amended |
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by Chapters 1186 (H.B. 3676) and 1328 (H.B. 3646), Acts of the 81st |
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Legislature, Regular Session, 2009, is reenacted and amended to |
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read as follows: |
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(d) For the purposes of this section, "taxable value" means |
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the market value of all taxable property less: |
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(1) the total dollar amount of any residence homestead |
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exemptions lawfully granted under Section 11.13(b) or (c), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(2) one-half of the total dollar amount of any |
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residence homestead exemptions granted under Section 11.13(n), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(3) the total dollar amount of any exemptions granted |
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before May 31, 1993, within a reinvestment zone under agreements |
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authorized by Chapter 312, Tax Code; |
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(4) subject to Subsection (e), the total dollar amount |
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of any captured appraised value of property that: |
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(A) is within a reinvestment zone created on or |
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before May 31, 1999, or is proposed to be included within the |
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boundaries of a reinvestment zone as the boundaries of the zone and |
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the proposed portion of tax increment paid into the tax increment |
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fund by a school district are described in a written notification |
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provided by the municipality or the board of directors of the zone |
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to the governing bodies of the other taxing units in the manner |
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provided by Section 311.003(e), Tax Code, before May 31, 1999, and |
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within the boundaries of the zone as those boundaries existed on |
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September 1, 1999, including subsequent improvements to the |
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property regardless of when made; |
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(B) generates taxes paid into a tax increment |
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fund created under Chapter 311, Tax Code, under a reinvestment zone |
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financing plan approved under Section 311.011(d), Tax Code, on or |
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before September 1, 1999; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(5) the total dollar amount of any captured appraised |
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value of property that: |
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(A) is within a reinvestment zone: |
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(i) created on or before December 31, 2008, |
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by a municipality with a population of less than 18,000; and |
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(ii) the project plan for which includes |
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the alteration, remodeling, repair, or reconstruction of a |
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structure that is included on the National Register of Historic |
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Places and requires that a portion of the tax increment of the zone |
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be used for the improvement or construction of related facilities |
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or for affordable housing; |
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(B) generates school district taxes that are paid |
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into a tax increment fund created under Chapter 311, Tax Code; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(6) the total dollar amount of any exemptions granted |
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under Section 11.251 or 11.253, Tax Code; |
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(7) the difference between the comptroller's estimate |
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of the market value and the productivity value of land that |
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qualifies for appraisal on the basis of its productive capacity, |
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except that the productivity value estimated by the comptroller may |
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not exceed the fair market value of the land; |
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(8) the portion of the appraised value of residence |
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homesteads of individuals who receive a tax limitation under |
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Section 11.26, Tax Code, on which school district taxes are not |
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imposed in the year that is the subject of the study, calculated as |
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if the residence homesteads were appraised at the full value |
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required by law; |
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(9) a portion of the market value of property not |
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otherwise fully taxable by the district at market value because of: |
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(A) action required by statute or the |
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constitution of this state that, if the tax rate adopted by the |
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district is applied to it, produces an amount equal to the |
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difference between the tax that the district would have imposed on |
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the property if the property were fully taxable at market value and |
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the tax that the district is actually authorized to impose on the |
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property, if this subsection does not otherwise require that |
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portion to be deducted; or |
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(B) action taken by the district under Subchapter |
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B or C, Chapter 313, Tax Code, before the expiration of the |
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subchapter; |
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(10) the market value of all tangible personal |
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property, other than manufactured homes, owned by a family or |
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individual and not held or used for the production of income; |
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(11) the appraised value of property the collection of |
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delinquent taxes on which is deferred under Section 33.06, Tax |
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Code; |
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(12) the portion of the appraised value of property |
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the collection of delinquent taxes on which is deferred under |
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Section 33.065, Tax Code; and |
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(13) the amount by which the market value of a |
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residence homestead to which Section 23.23, Tax Code, applies |
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exceeds the appraised value of that property as calculated under |
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that section but without regard to any action taken under |
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Subsection (g) of that section. |
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SECTION 5. Section 403.302(i), Government Code, is amended |
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to read as follows: |
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(i) If the comptroller determines in the study that the |
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market value of property in a school district as determined by the |
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appraisal district that appraises property for the school district, |
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less the total of the amounts and values listed in Subsection (d) as |
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determined by that appraisal district, is valid, the comptroller, |
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in determining the taxable value of property in the school district |
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under Subsection (d), shall for purposes of Subsection (d)(13) |
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subtract from the market value as determined by the appraisal |
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district of residence homesteads to which Section 23.23, Tax Code, |
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applies the amount by which that amount exceeds the appraised value |
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of those properties as calculated by the appraisal district under |
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Section 23.23, Tax Code, but without regard to any action taken |
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under Section 23.23(g) of that code. If the comptroller determines |
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in the study that the market value of property in a school district |
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as determined by the appraisal district that appraises property for |
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the school district, less the total of the amounts and values listed |
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in Subsection (d) as determined by that appraisal district, is not |
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valid, the comptroller, in determining the taxable value of |
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property in the school district under Subsection (d), shall for |
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purposes of Subsection (d)(13) subtract from the market value as |
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estimated by the comptroller of residence homesteads to which |
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Section 23.23, Tax Code, applies the amount by which that amount |
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exceeds the appraised value of those properties as calculated by |
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the appraisal district under Section 23.23, Tax Code, but without |
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regard to any action taken under Section 23.23(g) of that code. |
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SECTION 6. The change in law made by this Act to Section |
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23.23, Tax Code, applies only to the appraisal of a residence |
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homestead for ad valorem tax purposes for a tax year that begins on |
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or after January 1, 2012. |
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SECTION 7. This Act takes effect January 1, 2012, but only |
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if the constitutional amendment proposed by the 82nd Legislature, |
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Regular Session, 2011, authorizing the legislature to provide for a |
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local option election in a county to set a limit on the maximum |
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appraised value of a residence homestead for ad valorem tax |
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purposes of less than 110 percent but not less than 103 percent of |
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the appraised value of the property for the preceding tax year is |
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approved by the voters. If that amendment is not approved by the |
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voters, this Act has no effect. |