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A BILL TO BE ENTITLED
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AN ACT
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relating to certain restrictions on the imposition of ad valorem |
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taxes and to the duty of the state to reimburse certain political |
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subdivisions for certain revenue loss. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.13, Tax Code, is amended by amending |
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Subsection (b) and adding Subsections (b-1) and (n-1) 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 a portion [$15,000] of the appraised value of the |
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adult's residence homestead equal to 25 percent of the median |
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market value of all residence homesteads in the state, except that |
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only $5,000 [$10,000] of the exemption applies [does not apply] to |
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an entity operating under former Chapter 17, 18, 25, 26, 27, or 28, |
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Education Code, as those chapters existed on May 1, 1995, as |
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permitted by Section 11.301, Education Code. For purposes of this |
|
subsection, the Legislative Budget Board shall determine the median |
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market value of all residence homesteads in the state in each tax |
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year on the basis of the market value of all residence homesteads in |
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the state in the preceding tax year as determined by the appraisal |
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districts in the state and shall publish that value in the Texas |
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Register not later than February 1. |
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(b-1) Notwithstanding Subsection (b), for purposes of |
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computing the amount of the exemption under that subsection for the |
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2015 tax year, the Legislative Budget Board shall determine the |
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median market value of all residence homesteads in the state in the |
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manner provided by that subsection and publish that value in the |
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Texas Register not later than August 1, 2015. This subsection |
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expires December 31, 2016. |
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(n-1) The governing body of a taxing unit that adopted an |
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exemption under Subsection (n) for the 2014 tax year may not reduce |
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the amount of or repeal the exemption. This subsection expires |
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December 31, 2024. |
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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 |
|
section, the tax imposed is the amount of the tax as limited by this |
|
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 2015 [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 2014 [1996] tax |
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year less an amount equal to the amount determined by subtracting |
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$15,000 from the amount of the exemption under Section 11.13(b) for |
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the 2015 tax year and multiplying that amount by [$10,000 times] the |
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tax rate of the school district for the 2015 [1997] tax year, plus |
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any 2015 [1997] tax attributable to improvements made in 2014 |
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[1996], other than improvements made to comply with governmental |
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regulations or repairs. |
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SECTION 3. Section 25.23, Tax Code, is amended by adding |
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Subsection (a-1) to read as follows: |
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(a-1) This subsection applies only to the appraisal records |
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for the 2015 tax year. If the appraisal records submitted to the |
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appraisal review board include the taxable value of residence |
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homesteads or show the amount of the exemption under Section |
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11.13(b) applicable to residence homesteads, the chief appraiser |
|
shall prepare supplemental appraisal records that reflect the |
|
amount of the exemption as published by the Legislative Budget |
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Board under Section 11.13(b-1). This subsection expires December |
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31, 2016. |
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SECTION 4. Section 26.04, Tax Code, is amended by adding |
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Subsections (a-1) and (c-1) to read as follows: |
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(a-1) On receipt of the appraisal roll for the 2015 tax |
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year, the assessor for a school district shall determine the total |
|
taxable value of property taxable by the school district and the |
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taxable value of new property based on a residence homestead |
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exemption under Section 11.13(b) of $15,000 and an exemption under |
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that subsection of the amount published by the Legislative Budget |
|
Board under Section 11.13(b-1). This subsection expires December |
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31, 2016. |
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(c-1) An officer or employee designated by the governing |
|
body of a school district shall calculate the effective tax rate and |
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the rollback tax rate of the school district for the 2015 tax year |
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based on a residence homestead exemption under Section 11.13(b) of |
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$15,000 and an exemption under that subsection of the amount |
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published by the Legislative Budget Board under Section 11.13(b-1). |
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This subsection expires December 31, 2016. |
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SECTION 5. Section 26.05, Tax Code, is amended by adding |
|
Subsection (a-1) to read as follows: |
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(a-1) Notwithstanding Subsection (a), the governing body of |
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a taxing unit shall adopt a tax rate for the 2015 tax year before the |
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later of October 31, 2015, or the 60th day after the date the |
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certified appraisal roll is received by the taxing unit. This |
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subsection expires December 31, 2016. |
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SECTION 6. Section 31.01, Tax Code, is amended by adding |
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Subsection (a-1) to read as follows: |
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(a-1) Notwithstanding Subsection (a), the assessor for a |
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school district shall mail the tax bill for the taxes imposed by the |
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school district for the 2015 tax year on a residence homestead that |
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qualifies for a tax limitation as provided by Section 11.26 by |
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December 1, 2015, or as soon thereafter as practicable. This |
|
subsection expires December 31, 2016. |
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SECTION 7. Subchapter A, Chapter 41, Education Code, is |
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amended by adding Section 41.0011 to read as follows: |
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Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR |
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2015-2016 SCHOOL YEAR. Notwithstanding any other provision of this |
|
chapter, in computing a school district's wealth per student for |
|
the 2015-2016 school year, a school district's taxable value of |
|
property under Subchapter M, Chapter 403, Government Code, is |
|
determined as if the increase in the residence homestead exemption |
|
under Section 1-b(c), Article VIII, Texas Constitution, and the |
|
additional limitation on tax increases under Section 1-b(d) of that |
|
article in effect for the 2015 tax year as proposed by S.J.R. 1, |
|
84th Legislature, Regular Session, 2015, had been in effect for the |
|
2014 tax year. This section expires September 1, 2016. |
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SECTION 8. Section 41.004, Education Code, is amended by |
|
adding Subsections (a-1), (b-1), and (c-1) to read as follows: |
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(a-1) This subsection applies only if the constitutional |
|
amendment proposed by S.J.R. 1, 84th Legislature, Regular Session, |
|
2015, is approved by the voters in an election held for that |
|
purpose. As soon as practicable after receiving revised property |
|
values that reflect adoption of the constitutional amendment, the |
|
commissioner shall review the wealth per student of districts in |
|
the state and revise as necessary the notifications provided under |
|
Subsection (a) for the 2015-2016 school year. |
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(b-1) This subsection applies only to a district that has |
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not previously held an election under this chapter and is not |
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eligible to reduce the district's wealth per student in the manner |
|
authorized by Section 41.0041. Notwithstanding Subsection (b), a |
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district that enters into an agreement to exercise an option to |
|
reduce the district's wealth per student under Section 41.003(3), |
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(4), or (5) for the 2015-2016 school year may request and, as |
|
provided by Section 41.0042(a), receive approval from the |
|
commissioner to delay the date of the election otherwise required |
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to be ordered before September 1. This subsection expires |
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September 1, 2016. |
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(c-1) Notwithstanding Subsection (c), a district that |
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receives approval from the commissioner to delay an election as |
|
provided by Subsection (b-1) may adopt a tax rate for the 2015 tax |
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year before the commissioner certifies that the district has |
|
achieved the equalized wealth level. This subsection expires |
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September 1, 2016. |
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SECTION 9. Subchapter A, Chapter 41, Education Code, is |
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amended by adding Section 41.0042 to read as follows: |
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Sec. 41.0042. TRANSITIONAL PROVISIONS: INCREASED |
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HOMESTEAD EXEMPTION AND LIMITATION ON TAX INCREASES. (a) The |
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commissioner shall approve a district's request under Section |
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41.004(b-1) to delay the date of an election required under this |
|
chapter if the commissioner determines that the district would not |
|
have a wealth per student that exceeds the equalized wealth level |
|
if: |
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(1) the constitutional amendment proposed by S.J.R. 1, |
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84th Legislature, Regular Session, 2015, were approved by the |
|
voters; and |
|
(2) the effect of the amendment specified in |
|
Subdivision (1) were determined using the median market value of |
|
all residence homesteads in the state in the 2014 tax year, as |
|
determined by the Legislative Budget Board in accordance with |
|
Section 11.13(b-1), Tax Code. |
|
(b) The commissioner shall set a date by which each district |
|
that receives approval under this section must order the election. |
|
(c) Not later than the 2016-2017 school year, the |
|
commissioner shall order detachment and annexation of property |
|
under Subchapter G or consolidation under Subchapter H as necessary |
|
to achieve the equalized wealth level for a district that receives |
|
approval under this section and subsequently: |
|
(1) fails to hold the election; or |
|
(2) does not receive voter approval at the election. |
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(d) This section expires September 1, 2017. |
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SECTION 10. Subchapter A, Chapter 41, Education Code, is |
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amended by adding Section 41.0121 to read as follows: |
|
Sec. 41.0121. TRANSITIONAL ELECTION DATES. (a) This |
|
section applies only to an election under this chapter that occurs |
|
during the 2015-2016 school year. |
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(b) Section 41.012 does not apply to a district that |
|
receives approval of a request under Section 41.0042. The district |
|
shall hold the election on a Tuesday or Saturday on or before a date |
|
specified by the commissioner. Section 41.001, Election Code, does |
|
not apply to the election. |
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(c) This section expires September 1, 2016. |
|
SECTION 11. Section 41.094, Education Code, is amended by |
|
adding Subsection (a-1) to read as follows: |
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(a-1) Notwithstanding Subsection (a), a district that |
|
receives approval of a request under Section 41.0042 shall pay for |
|
credits purchased in equal monthly payments as determined by the |
|
commissioner beginning March 15, 2016, and ending August 15, 2016. |
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This subsection expires September 1, 2016. |
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SECTION 12. Subchapter D, Chapter 41, Education Code, is |
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amended by adding Section 41.0981 to read as follows: |
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Sec. 41.0981. TRANSITIONAL EARLY AGREEMENT CREDIT. |
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Notwithstanding Section 41.098, a district that receives approval |
|
of a request under Section 41.0042 may receive the early agreement |
|
credit described by Section 41.098 for the 2015-2016 school year if |
|
the district orders the election and obtains voter approval not |
|
later than the date specified by the commissioner. This section |
|
expires September 1, 2016. |
|
SECTION 13. Section 41.208, Education Code, is amended by |
|
adding Subsection (a-1) to read as follows: |
|
(a-1) Notwithstanding Subsection (a), for the 2015-2016 |
|
school year, the commissioner shall order any detachments and |
|
annexations of property under this subchapter as soon as |
|
practicable after the canvass of the votes on the constitutional |
|
amendment proposed by S.J.R. 1, 84th Legislature, Regular Session, |
|
2015. This subsection expires September 1, 2016. |
|
SECTION 14. Subchapter E, Chapter 42, Education Code, is |
|
amended by adding Section 42.2518 to read as follows: |
|
Sec. 42.2518. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION |
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AND LIMITATION ON TAX INCREASES. (a) For the 2015-2016 and |
|
2016-2017 school years, a school district is entitled to additional |
|
state aid to the extent that state and local revenue under this |
|
chapter and Chapter 41 is less than the state and local revenue that |
|
would have been available to the district under Chapter 41 and this |
|
chapter as those chapters existed on September 1, 2015, if the |
|
increase in the residence homestead exemption under Section 1-b(c), |
|
Article VIII, Texas Constitution, and the additional limitation on |
|
tax increases under Section 1-b(d) of that article in effect for the |
|
applicable tax year as proposed by S.J.R. 1, 84th Legislature, |
|
Regular Session, 2015, had not occurred. |
|
(b) The lesser of the school district's currently adopted |
|
maintenance and operations tax rate or the adopted maintenance and |
|
operations tax rate for the 2014 tax year is used for the purpose of |
|
determining additional state aid under this section. |
|
(c) Revenue from a school district maintenance and |
|
operations tax that is levied to pay costs of a lease-purchase |
|
agreement as described by Section 46.004 and that is included in |
|
determining state assistance under Subchapter A, Chapter 46, is |
|
included for the purpose of calculating state aid under this |
|
section. |
|
(d) The commissioner, using information provided by the |
|
comptroller and other information as necessary, shall compute the |
|
amount of additional state aid to which a district is entitled under |
|
this section. A determination by the commissioner under this |
|
section is final and may not be appealed. |
|
(e) This section expires August 31, 2017. |
|
SECTION 15. Effective September 1, 2017, Subchapter E, |
|
Chapter 42, Education Code, is amended by adding Section 42.2518 to |
|
read as follows: |
|
Sec. 42.2518. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION |
|
AND LIMITATION ON TAX INCREASES. (a) Beginning with the 2017-2018 |
|
school year, a school district is entitled to additional state aid |
|
to the extent that state and local revenue under this chapter and |
|
Chapter 41 is less than the state and local revenue that would have |
|
been available to the district under Chapter 41 and this chapter as |
|
those chapters existed on September 1, 2015, excluding any state |
|
aid that would have been provided under former Section 42.2516, if |
|
the increase in the residence homestead exemption under Section |
|
1-b(c), Article VIII, Texas Constitution, and the additional |
|
limitation on tax increases under Section 1-b(d) of that article in |
|
effect for the applicable tax year as proposed by S.J.R. 1, 84th |
|
Legislature, Regular Session, 2015, had not occurred. |
|
(b) The lesser of the school district's currently adopted |
|
maintenance and operations tax rate or the adopted maintenance and |
|
operations tax rate for the 2014 tax year is used for the purpose of |
|
determining additional state aid under this section. |
|
(c) Revenue from a school district maintenance and |
|
operations tax that is levied to pay costs of a lease-purchase |
|
agreement as described by Section 46.004 and that is included in |
|
determining state assistance under Subchapter A, Chapter 46, is |
|
included for the purpose of calculating state aid under this |
|
section. |
|
(d) The commissioner, using information provided by the |
|
comptroller and other information as necessary, shall compute the |
|
amount of additional state aid to which a district is entitled under |
|
this section. A determination by the commissioner under this |
|
section is final and may not be appealed. |
|
SECTION 16. Section 42.252, Education Code, is amended by |
|
adding Subsection (e) to read as follows: |
|
(e) Notwithstanding any other provision of this chapter, in |
|
computing each school district's local share of program cost under |
|
this section for the 2015-2016 school year, a school district's |
|
taxable value of property under Subchapter M, Chapter 403, |
|
Government Code, is determined as if the increase in the residence |
|
homestead exemption under Section 1-b(c), Article VIII, Texas |
|
Constitution, and the additional limitation on tax increases under |
|
Section 1-b(d) of that article in effect for the 2015 tax year as |
|
proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, had |
|
been in effect for the 2014 tax year. This subsection expires |
|
September 1, 2016. |
|
SECTION 17. Section 42.302, Education Code, is amended by |
|
adding Subsection (g) to read as follows: |
|
(g) Notwithstanding any other provision of this chapter, in |
|
computing a school district's enrichment tax rate ("DTR") and local |
|
revenue ("LR") for the 2015-2016 school year, a school district's |
|
taxable value of property under Subchapter M, Chapter 403, |
|
Government Code, is determined as if the increase in the residence |
|
homestead exemption under Section 1-b(c), Article VIII, Texas |
|
Constitution, and the additional limitation on tax increases under |
|
Section 1-b(d) of that article in effect for the 2015 tax year as |
|
proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, had |
|
been in effect for the 2014 tax year. This subsection expires |
|
September 1, 2016. |
|
SECTION 18. Section 46.003, Education Code, is amended by |
|
adding Subsection (i) to read as follows: |
|
(i) Notwithstanding any other provision of this chapter, in |
|
computing a district's bond tax rate ("BTR") and taxable value of |
|
property ("DPV") for the 2015-2016 school year, a school district's |
|
taxable value of property under Subchapter M, Chapter 403, |
|
Government Code, is determined as if the increase in the residence |
|
homestead exemption under Section 1-b(c), Article VIII, Texas |
|
Constitution, and the additional limitation on tax increases under |
|
Section 1-b(d) of that article in effect for the 2015 tax year as |
|
proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, had |
|
been in effect for the 2014 tax year. This subsection expires |
|
September 1, 2016. |
|
SECTION 19. Section 46.032, Education Code, is amended by |
|
adding Subsection (d) to read as follows: |
|
(d) Notwithstanding any other provision of this chapter, in |
|
computing a district's existing debt tax rate ("EDTR") and taxable |
|
value of property ("DPV") for the 2015-2016 school year, a school |
|
district's taxable value of property under Subchapter M, Chapter |
|
403, Government Code, is determined as if the increase in the |
|
residence homestead exemption under Section 1-b(c), Article VIII, |
|
Texas Constitution, and the additional limitation on tax increases |
|
under Section 1-b(d) of that article in effect for the 2015 tax year |
|
as proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, |
|
had been in effect for the 2014 tax year. This subsection expires |
|
September 1, 2016. |
|
SECTION 20. Chapter 46, Education Code, is amended by |
|
adding Subchapter D to read as follows: |
|
SUBCHAPTER D. STATE AID FOR HOMESTEAD EXEMPTION AND LIMITATION ON |
|
TAX INCREASES |
|
Sec. 46.071. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION |
|
AND LIMITATION ON TAX INCREASES. (a) Beginning with the 2015-2016 |
|
school year, a school district is entitled to additional state aid |
|
under this subchapter to the extent that state and local revenue |
|
used to service debt eligible under this chapter is less than the |
|
state and local revenue that would have been available to the |
|
district under this chapter as it existed on September 1, 2015, if |
|
the increase in the residence homestead exemption under Section |
|
1-b(c), Article VIII, Texas Constitution, and the additional |
|
limitation on tax increases under Section 1-b(d) of that article in |
|
effect for the applicable tax year as proposed by S.J.R. 1, 84th |
|
Legislature, Regular Session, 2015, had not occurred. |
|
(b) Subject to Subsections (c)-(e), additional state aid |
|
under this section is equal to the amount by which the loss of local |
|
interest and sinking revenue for debt service attributable to the |
|
increase in the residence homestead exemption under Section 1-b(c), |
|
Article VIII, Texas Constitution, and the additional limitation on |
|
tax increases under Section 1-b(d) of that article in effect for the |
|
applicable tax year as proposed by S.J.R. 1, 84th Legislature, |
|
Regular Session, 2015, is not offset by a gain in state aid under |
|
this chapter. |
|
(c) For the purpose of determining state aid under this |
|
section, local interest and sinking revenue for debt service is |
|
limited to revenue required to service debt eligible under this |
|
chapter as of September 1, 2015, including refunding of that debt, |
|
subject to Section 46.061. The limitation imposed by Section |
|
46.034(a) does not apply for the purpose of determining state aid |
|
under this section. |
|
(d) If the amount required to pay debt service eligible |
|
under this section is less than the sum of state and local |
|
assistance provided under this chapter, including the amount of |
|
additional aid provided under this section, the district may not |
|
receive aid under this section in excess of the amount that, when |
|
added to the district's local interest and sinking revenue for debt |
|
service for the school year, as defined by this section, and state |
|
aid under Subchapters A and B, equals the amount required to pay the |
|
eligible debt service. |
|
(e) The commissioner, using information provided by the |
|
comptroller and other information as necessary, shall compute the |
|
amount of additional state aid to which a district is entitled under |
|
this section. A determination by the commissioner under this |
|
section is final and may not be appealed. |
|
SECTION 21. Section 403.302(j), Government Code, is amended |
|
to read as follows: |
|
(j) For purposes of Chapter 42, Education Code, the |
|
comptroller shall certify to the commissioner of education: |
|
(1) a final value for each school district computed on |
|
a residence homestead exemption under Section 1-b(c), Article VIII, |
|
Texas Constitution, of $5,000; |
|
(2) a final value for each school district computed |
|
on: |
|
(A) a residence homestead exemption under |
|
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and |
|
(B) the effect of the additional limitation on |
|
tax increases under Section 1-b(d), Article VIII, Texas |
|
Constitution, as proposed by H.J.R. No. 4, 75th Legislature, |
|
Regular Session, 1997; [and] |
|
(3) a final value for each school district computed on |
|
the effect of the reduction of the limitation on tax increases to |
|
reflect any reduction in the school district tax rate as provided by |
|
Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable; and |
|
(4) a final value for each school district computed |
|
on: |
|
(A) the amount of the residence homestead |
|
exemption under Section 1-b(c), Article VIII, Texas Constitution, |
|
in effect for the applicable tax year; and |
|
(B) the effect of the additional limitation on |
|
tax increases under Section 1-b(d), Article VIII, Texas |
|
Constitution, as proposed by S.J.R. 1, 84th Legislature, Regular |
|
Session, 2015. |
|
SECTION 22. This Act applies to each tax year that begins on |
|
or after January 1, 2015. |
|
SECTION 23. (a) Except as provided by Subsection (b) of this |
|
section or as otherwise provided by this Act: |
|
(1) this Act takes effect on the date on which the |
|
constitutional amendment proposed by S.J.R. 1, 84th Legislature, |
|
Regular Session, 2015, takes effect; and |
|
(2) if that amendment is not approved by the voters, |
|
this Act has no effect. |
|
(b) Sections 11.13(b-1), 25.23(a-1), 26.04(a-1) and (c-1), |
|
and 31.01(a-1), Tax Code, and Sections 41.004(a-1), (b-1), and |
|
(c-1), 41.0042, 41.0121, 41.094(a-1), and 41.0981, Education Code, |
|
as added by this Act, take effect immediately if this Act receives a |
|
vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for those sections to have |
|
immediate effect, those sections take effect on the 91st day after |
|
the last day of the legislative session. |
|
|
|
* * * * * |