| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the authority of the governing body of a taxing unit |
|
|
other than a school district to adopt an exemption from ad valorem |
|
|
taxation of a portion, expressed as a dollar amount, of the |
|
|
appraised value of an individual's residence homestead and the |
|
|
authority of the governing body of certain taxing units that have |
|
|
adopted such an exemption to reduce the amount of or repeal certain |
|
|
other exemptions. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 11.13, Tax Code, is amended by amending |
|
|
Subsection (i) and adding Subsections (n-2), (s), and (t) to read as |
|
|
follows: |
|
|
(i) The assessor and collector for a taxing unit may |
|
|
disregard the exemptions authorized by Subsection (b), (c), (d), |
|
|
[or] (n), or (s) [of this section] and assess and collect a tax |
|
|
pledged for payment of debt without deducting the amount of the |
|
|
exemption if: |
|
|
(1) prior to adoption of the exemption, the 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. |
|
|
(n-2) Notwithstanding Subsection (n-1), the governing body |
|
|
of a municipality or county that adopted an exemption under |
|
|
Subsection (n) for the 2014 tax year may repeal the exemption if the |
|
|
governing body adopts an exemption under Subsection (s) in an |
|
|
amount greater than $5,000. This subsection expires December 31, |
|
|
2019. |
|
|
(s) In addition to any other exemptions provided by this |
|
|
section, an individual is entitled to an exemption from taxation by |
|
|
a taxing unit other than a school district of a portion of the |
|
|
appraised value of the individual's residence homestead if the |
|
|
exemption is adopted by the governing body of the taxing unit before |
|
|
July 1 in the manner provided by law for official action by the |
|
|
body. The amount of the exemption is $5,000 of the appraised value |
|
|
of the residence homestead, except that if the average market value |
|
|
of residence homesteads in the taxing unit in the tax year in which |
|
|
the exemption is adopted exceeds $25,000, as calculated based on |
|
|
the appraisal records prepared by the chief appraiser of each |
|
|
appraisal district in which the taxing unit participates, the |
|
|
governing body may authorize an exemption in a larger dollar amount |
|
|
not to exceed an amount equal to 20 percent of the average market |
|
|
value of residence homesteads in the taxing unit in the tax year in |
|
|
which the exemption is adopted. |
|
|
(t) This subsection applies only to a taxing unit the |
|
|
governing body of which has ceased granting an exemption under |
|
|
Subsection (n) and has adopted an exemption under Subsection (s). |
|
|
An individual who would have been entitled to an exemption from |
|
|
taxation by the taxing unit under Subsection (n) had the governing |
|
|
body not ceased granting an exemption under that subsection is |
|
|
entitled to continue to receive an exemption under that subsection |
|
|
in lieu of the exemption under Subsection (s) if the individual |
|
|
otherwise qualifies for the exemption under Subsection (n) and the |
|
|
amount of the exemption under that subsection exceeds the amount of |
|
|
the exemption under Subsection (s). The exemption applies only to |
|
|
property for which the individual received an exemption under |
|
|
Subsection (n) in the last year in which the governing body granted |
|
|
an exemption under that subsection. The exemption expires in the |
|
|
event of a change in ownership of the property or, if the property |
|
|
is owned by a qualifying trust and the trustor of the trust or a |
|
|
beneficiary of the trust has the right to use and occupy the |
|
|
property as the trustor's or beneficiary's principal residential |
|
|
property, there is a change in the trustor or beneficiary of the |
|
|
trust, respectively. |
|
|
SECTION 2. 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 (s) that was adopted by the governing body of a |
|
|
taxing unit after the date the appraisal records were submitted. |
|
|
SECTION 3. This Act applies only to ad valorem taxes imposed |
|
|
for a tax year that begins on or after the effective date of this |
|
|
Act. |
|
|
SECTION 4. This Act takes effect January 1, 2018, but only |
|
|
if the constitutional amendment proposed by the 85th Legislature, |
|
|
1st Called Session, 2017, authorizing the governing body of a |
|
|
political subdivision other than a school district to adopt an |
|
|
exemption from ad valorem taxation of a portion, expressed as a |
|
|
dollar amount, of the market value of an individual's residence |
|
|
homestead and authorizing the legislature to prohibit the governing |
|
|
body of a political subdivision that adopts such an exemption from |
|
|
reducing the amount of or repealing the exemption is approved by the |
|
|
voters. If that amendment is not approved by the voters, this Act |
|
|
has no effect. |