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A BILL TO BE ENTITLED
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AN ACT
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relating to increasing the amount of the residence homestead |
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exemption from ad valorem taxation by a school district from |
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$15,000 to $45,000, providing for a reduction of the limitation on |
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the total amount of ad valorem taxes that may be imposed by a school |
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district on the homestead of an elderly or disabled person to |
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reflect the increased exemption amount, and protecting school |
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districts against the resulting loss in local revenue. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.13(b), Tax Code, is amended to read as |
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follows: |
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(b) An adult is entitled to exemption from taxation by a |
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school district of $45,000 [$15,000] of the appraised value of the |
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adult's residence homestead, except that only $5,000 [$10,000] of |
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the exemption applies [does not apply] to an entity operating under |
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former Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those |
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chapters existed on May 1, 1995, as permitted by Section 11.301, |
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Education Code. |
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SECTION 2. Section 11.26(a), Tax Code, is amended to read as |
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follows: |
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(a) The tax officials shall appraise the property to which |
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this section applies and calculate taxes as on other property, but |
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if the tax so calculated exceeds the limitation imposed by this |
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section, the tax imposed is the amount of the tax as limited by this |
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section, except as otherwise provided by this section. A school |
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district may not increase the total annual amount of ad valorem tax |
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it imposes on the residence homestead of an individual 65 years of |
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age or older or on the residence homestead of an individual who is |
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disabled, as defined by Section 11.13, above the amount of the tax |
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it imposed in the first tax year in which the individual qualified |
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that residence homestead for the applicable exemption provided by |
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Section 11.13(c) for an individual who is 65 years of age or older |
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or is disabled. If the individual qualified that residence |
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homestead for the exemption after the beginning of that first year |
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and the residence homestead remains eligible for the same exemption |
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for the next year, and if the school district taxes imposed on the |
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residence homestead in the next year are less than the amount of |
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taxes imposed in that first year, a school district may not |
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subsequently increase the total annual amount of ad valorem taxes |
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it imposes on the residence homestead above the amount it imposed in |
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the year immediately following the first year for which the |
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individual qualified that residence homestead for the same |
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exemption, except as provided by Subsection (b). If the first tax |
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year the individual qualified the residence homestead for the |
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exemption provided by Section 11.13(c) for individuals 65 years of |
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age or older or disabled was a tax year before the 2016 [1997] tax |
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year, the amount of the limitation provided by this section is the |
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amount of tax the school district imposed for the 2015 [1996] tax |
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year less an amount equal to the amount determined by multiplying |
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$30,000 [$10,000] times the tax rate of the school district for the |
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2016 [1997] tax year, plus any 2016 [1997] tax attributable to |
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improvements made in 2015 [1996], other than improvements made to |
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comply with governmental regulations or repairs. |
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SECTION 3. Subchapter E, Chapter 42, Education Code, is |
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amended by adding Section 42.2512 to read as follows: |
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Sec. 42.2512. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION. |
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(a) Notwithstanding Section 42.2516 or any other provision of this |
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chapter, a school district is entitled to additional state aid to |
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the extent that state aid under this chapter based on the |
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determination of the school district's taxable value of property as |
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provided under Subchapter M, Chapter 403, Government Code, does not |
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fully compensate the district for ad valorem tax revenue lost due to |
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the increase in the homestead exemption under Section 1-b(c), |
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Article VIII, Texas Constitution, as proposed by the joint |
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resolution to amend that section adopted by the 84th Legislature, |
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Regular Session, 2015, and the additional limitation on tax |
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increases under Section 1-b(d), Article VIII, Texas Constitution, |
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as proposed by the joint resolution to amend that section adopted by |
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the 84th Legislature, Regular Session, 2015. |
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(b) The commissioner, using information provided by the |
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comptroller, shall compute the amount of additional state aid to |
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which a district is entitled under Subsection (a). A determination |
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by the commissioner under this section is final and may not be |
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appealed. |
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(c) Notwithstanding any other provision of this chapter, in |
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computing state aid for the 2016-2017 school year, a school |
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district's taxable value of property under Subchapter M, Chapter |
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403, Government Code, is determined as if the increase in the |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, as proposed by the joint resolution to amend that |
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section adopted by the 84th Legislature, Regular Session, 2015, and |
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the additional limitation on tax increases under Section 1-b(d), |
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Article VIII, Texas Constitution, as proposed by the joint |
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resolution to amend that section adopted by the 84th Legislature, |
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Regular Session, 2015, had been in effect for the 2015 tax year. |
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This subsection expires September 1, 2018. |
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SECTION 4. Section 403.302(j), Government Code, is amended |
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to read as follows: |
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(j) For purposes of Chapter 42, Education Code, the |
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comptroller shall certify to the commissioner of education: |
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(1) a final value for each school district computed on |
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a residence homestead exemption under Section 1-b(c), Article VIII, |
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Texas Constitution, of $5,000; |
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(2) a final value for each school district computed |
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on: |
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(A) a residence homestead exemption under |
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Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and |
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(B) the effect of the additional limitation on |
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tax increases under Section 1-b(d), Article VIII, Texas |
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Constitution, as proposed by H.J.R. No. 4, 75th Legislature, |
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Regular Session, 1997; [and] |
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(3) a final value for each school district computed on |
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the effect of the reduction of the limitation on tax increases to |
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reflect any reduction in the school district tax rate as provided by |
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Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable; and |
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(4) a final value for each school district computed |
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on: |
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(A) a residence homestead exemption under |
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Section 1-b(c), Article VIII, Texas Constitution, of $45,000; and |
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(B) the effect of the additional limitation on |
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tax increases under Section 1-b(d), Article VIII, Texas |
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Constitution, as proposed by the joint resolution to amend that |
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section adopted by the 84th Legislature, Regular Session, 2015. |
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SECTION 5. The changes in law made by this Act to Sections |
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11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that |
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begins on or after January 1, 2016. |
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SECTION 6. This Act takes effect January 1, 2016, but only |
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if the constitutional amendment proposed by the 84th Legislature, |
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Regular Session, 2015, increasing the amount of the residence |
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homestead exemption from ad valorem taxation for public school |
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purposes from $15,000 to $45,000 and providing for a reduction of |
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the limitation on the total amount of ad valorem taxes that may be |
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imposed for those purposes on the homestead of an elderly or |
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disabled person to reflect the increased exemption amount is |
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approved by the voters. If that constitutional amendment is not |
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approved by the voters, this Act has no effect. |