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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the governing body of a taxing unit |
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other than a school district to adopt an exemption from ad valorem |
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taxation of a portion, expressed as a dollar amount, of the |
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appraised value of an individual's residence homestead and the |
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authority of the governing body of certain taxing units that have |
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adopted such an exemption to reduce the amount of or repeal certain |
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other exemptions. |
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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 (i) and adding Subsections (n-2), (s), and (t) to read as |
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follows: |
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(i) The assessor and collector for a taxing unit may |
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disregard the exemptions authorized by Subsection (b), (c), (d), |
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[or] (n), or (s) [of this section] and assess and collect a tax |
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pledged for payment of debt without deducting the amount of the |
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exemption if: |
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(1) prior to adoption of the exemption, the unit |
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pledged the taxes for the payment of a debt; and |
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(2) granting the exemption would impair the obligation |
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of the contract creating the debt. |
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(n-2) Notwithstanding Subsection (n-1), the governing body |
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of a municipality or county that adopted an exemption under |
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Subsection (n) for the 2014 tax year may repeal the exemption if the |
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governing body adopts an exemption under Subsection (s) in an |
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amount greater than $5,000. This subsection expires December 31, |
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2019. |
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(s) In addition to any other exemptions provided by this |
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section, an individual is entitled to an exemption from taxation by |
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a taxing unit other than a school district of a portion of the |
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appraised value of the individual's residence homestead if the |
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exemption is adopted by the governing body of the taxing unit before |
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July 1 in the manner provided by law for official action by the |
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body. The amount of the exemption is $5,000 of the appraised value |
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of the residence homestead, except that if the average market value |
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of residence homesteads in the taxing unit in the tax year in which |
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the exemption is adopted exceeds $25,000, as calculated based on |
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the appraisal records prepared by the chief appraiser of each |
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appraisal district in which the taxing unit participates, the |
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governing body may authorize an exemption in a larger dollar amount |
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not to exceed an amount equal to 20 percent of the average market |
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value of residence homesteads in the taxing unit in the tax year in |
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which the exemption is adopted. |
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(t) This subsection applies only to a taxing unit the |
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governing body of which has ceased granting an exemption under |
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Subsection (n) and has adopted an exemption under Subsection (s). |
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An individual who would have been entitled to an exemption from |
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taxation by the taxing unit under Subsection (n) had the governing |
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body not ceased granting an exemption under that subsection is |
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entitled to continue to receive an exemption under that subsection |
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in lieu of the exemption under Subsection (s) if the individual |
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otherwise qualifies for the exemption under Subsection (n) and the |
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amount of the exemption under that subsection exceeds the amount of |
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the exemption under Subsection (s). The exemption applies only to |
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property for which the individual received an exemption under |
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Subsection (n) in the last year in which the governing body granted |
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an exemption under that subsection. The exemption expires in the |
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event of a change in ownership of the property or, if the property |
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is owned by a qualifying trust and the trustor of the trust or a |
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beneficiary of the trust has the right to use and occupy the |
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property as the trustor's or beneficiary's principal residential |
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property, there is a change in the trustor or beneficiary of the |
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trust, respectively. |
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SECTION 2. Section 25.23(a), Tax Code, is amended to read as |
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follows: |
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(a) After submission of appraisal records, the chief |
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appraiser shall prepare supplemental appraisal records listing: |
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(1) each taxable property the chief appraiser |
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discovers that is not included in the records already submitted, |
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including property that was omitted from an appraisal roll in a |
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prior tax year; |
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(2) property on which the appraisal review board has |
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not determined a protest at the time of its approval of the |
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appraisal records; and |
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(3) property that qualifies for an exemption under |
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Section 11.13(n) or (s) that was adopted by the governing body of a |
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taxing unit after the date the appraisal records were submitted. |
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SECTION 3. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 4. This Act takes effect January 1, 2018, but only |
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if the constitutional amendment proposed by the 85th Legislature, |
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1st Called Session, 2017, authorizing the governing body of a |
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political subdivision other than a school district to adopt an |
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exemption from ad valorem taxation of a portion, expressed as a |
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dollar amount, of the market value of an individual's residence |
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homestead and authorizing the legislature to prohibit the governing |
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body of a political subdivision that adopts such an exemption from |
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reducing the amount of or repealing the exemption is approved by the |
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voters. If that amendment is not approved by the voters, this Act |
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has no effect. |