84R5504 CJC-D

By: King of Taylor H.B. No. 2838

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the governing body of a taxing unit to provide an additional exemption from ad valorem taxation of the residence homesteads of certain surviving spouses of peace officers and firefighters killed in the line of duty.

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

SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by adding Section 11.134 to read as follows:

Sec. 11.134. RESIDENCE HOMESTEAD OF SURVIVING SPOUSES OF CERTAIN PEACE OFFICERS AND FIREFIGHTERS. (a) In this section:

(1) "Controlled substance" has the meaning assigned by Section 481.002, Health and Safety Code.

(2) "Dangerous drug" has the meaning assigned by Section 483.001, Health and Safety Code.

(3) "Firefighter" means:

(A) an individual employed by this state or by a political or legal subdivision of this state who is subject to certification by the Texas Commission on Fire Protection; or

(B) a member of an organized volunteer fire-fighting unit that:

(i) renders fire-fighting services without remuneration; and

(ii) conducts a minimum of two drills each month, each at least two hours long.

(4) "Peace officer" means an individual described by Article 2.12, Code of Criminal Procedure, who is elected, appointed, or employed as a peace officer by this state, a political subdivision of this state, or another entity listed in that article.

(5) "Residence homestead" has the meaning assigned by Section 11.13.

(b) The surviving spouse of a peace officer or firefighter who has not remarried is entitled to an exemption from taxation by a taxing unit of all or part of the appraised value of the surviving spouse's residence homestead if:

(1) the exemption is adopted by the governing body of the taxing unit in the manner required by law for official action by the governing body;

(2) the property was the residence homestead of the surviving spouse on the date the peace officer or firefighter died or qualified as the residence homestead of the surviving spouse before the second anniversary of the date the peace officer or firefighter died;

(3) the peace officer or firefighter was killed, or died as a result of an injury incurred, while in the performance of official duties as a peace officer or firefighter; and

(4) the death of the peace officer or firefighter was not the result of the peace officer's or firefighter's own wilful misconduct or abuse of alcohol, a controlled substance, a dangerous drug, or a combination of two or more of those substances.

(c) The governing body of a taxing unit may adopt the exemption provided by Subsection (b) as a specified dollar amount or as a percentage of the appraised value of the property.

(d) If a surviving spouse who receives an exemption under Subsection (b) subsequently qualifies a different property in the same taxing unit as the surviving spouse's residence homestead, the surviving spouse is entitled to an exemption adopted by the governing body of the taxing unit under Subsection (b) on the subsequently qualified residence homestead.

(e) The assessor and collector for a taxing unit may disregard the exemption authorized by Subsection (b) and assess and collect a tax pledged for the payment of debt without giving effect to the exemption if:

(1) prior to the adoption of the exemption, the taxing unit pledged the taxes for the payment of a debt; and

(2) granting the exemption would impair the obligation of the contract creating the debt.

SECTION 2. Section 11.42(c), Tax Code, is amended to read as follows:

(c) An exemption authorized by Section 11.13(c) or (d), [or] 11.132, or 11.134 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.

SECTION 3. Section 11.43(c), Tax Code, is amended to read as follows:

(c) An exemption provided by Section 11.13, 11.131, 11.132, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22, 11.23(h), (j), or (j-1), 11.231, 11.254, 11.271, 11.29, 11.30, 11.31, or 11.315, once allowed, need not be claimed in subsequent years, and except as otherwise provided by Subsection (e), the exemption applies to the property until it changes ownership or the person's qualification for the exemption changes. However, the chief appraiser may require a person allowed one of the exemptions in a prior year to file a new application to confirm the person's current qualification for the exemption by delivering a written notice that a new application is required, accompanied by an appropriate application form, to the person previously allowed the exemption.

SECTION 4. Section 11.431(a), Tax Code, is amended to read as follows:

(a) The chief appraiser shall accept and approve or deny an application for a residence homestead exemption, including an exemption under Section 11.131 or 11.132 for the residence homestead of a disabled veteran or the surviving spouse of a disabled veteran, [or] an exemption under Section 11.132 for the residence homestead of the surviving spouse of a member of the armed services of the United States who is killed in action, or an exemption under Section 11.134 for the residence homestead of the surviving spouse of a peace officer or firefighter, after the deadline for filing it has passed if it is filed not later than one year after the delinquency date for the taxes on the homestead.

SECTION 5. Section 25.23(a), Tax Code, is amended to read as follows:

(a) After submission of appraisal records, the chief appraiser shall prepare supplemental appraisal records listing:

(1) each taxable property the chief appraiser discovers that is not included in the records already submitted, including property that was omitted from an appraisal roll in a prior tax year;

(2) property on which the appraisal review board has not determined a protest at the time of its approval of the appraisal records; and

(3) property that qualifies for an exemption under Section 11.13(n) or 11.134 that was adopted by the governing body of a taxing unit after the date the appraisal records were submitted.

SECTION 6. Section 26.10(b), Tax Code, is amended to read as follows:

(b) If the appraisal roll shows that a residence homestead exemption under Section 11.13(c) or (d), [or] 11.132, or 11.134 applicable to a property on January 1 of a year terminated during the year and if the owner of the property qualifies a different property for one of those residence homestead exemptions during the same year, the tax due against the former residence homestead is calculated by:

(1) subtracting:

(A) the amount of the taxes that otherwise would be imposed on the former residence homestead for the entire year had the owner qualified for the residence homestead exemption for the entire year; from

(B) the amount of the taxes that otherwise would be imposed on the former residence homestead for the entire year had the owner not qualified for the residence homestead exemption 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 that elapsed after the date the exemption terminated; and

(3) adding the product determined under Subdivision (2) and the amount described by Subdivision (1)(A).

SECTION 7. Section 26.112, Tax Code, is amended to read as follows:

Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF CERTAIN PERSONS. (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), [or] 11.132, or 11.134, the amount of the tax due on the property for the tax year is calculated as if the individual qualified for the exemption on January 1 and continued to qualify for the exemption for the remainder of the tax year.

(b) If an individual qualifies for an exemption under Section 11.13(c) or (d), [or] 11.132, or 11.134 with respect to the property after the amount of the tax due on the property is calculated and the effect of the qualification is to reduce the amount of the 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 tax 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 8. Section 403.302(d-1), Government Code, is amended to read as follows:

(d-1) For purposes of Subsection (d):

(1) [,] a residence homestead that receives an exemption under Section 11.131 or 11.132, Tax Code, in the year that is the subject of the study is not considered to be taxable property; and

(2) a residence homestead that receives an exemption under Section 11.134, Tax Code, in the year that is the subject of the study is considered to be taxable property.

SECTION 9. This Act applies only to an ad valorem tax year that begins on or after the effective date of this Act.

SECTION 10. This Act takes effect January 1, 2016, but only if the constitutional amendment proposed by the 84th Legislature, Regular Session, 2015, authorizing the governing body of a political subdivision to provide an additional exemption from ad valorem taxation of the residence homesteads of certain surviving spouses of peace officers and firefighters killed in the line of duty is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.