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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from ad valorem taxation by a school |
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district of a dollar amount or a percentage, whichever is greater, |
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of the appraised value of a residence homestead, a reduction of the |
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limitation on the total amount of ad valorem taxes that may be |
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imposed by a school district on the homestead of an elderly or |
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disabled person to reflect any increase in the exemption amount, |
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and the protection of school districts against the resulting loss |
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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 $25,000 of the appraised value of the adult's |
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residence homestead or 13 percent of the appraised value of the |
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adult's residence homestead, whichever is greater, except that only |
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$5,000 of the exemption applies to an entity operating under former |
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Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters |
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existed on May 1, 1995, as permitted by Section 11.301, Education |
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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 2015 tax year, the |
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amount of the limitation provided by this section is the amount of |
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tax the school district imposed for the 2014 tax year less an amount |
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equal to the amount determined by multiplying $10,000 times the tax |
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rate of the school district for the 2015 tax year, plus any 2015 tax |
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attributable to improvements made in 2014, other than improvements |
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made to comply with governmental regulations or repairs. If the |
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first tax year the individual qualified the residence homestead for |
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the exemption provided by Section 11.13(c) for individuals 65 years |
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of age or older or disabled was a tax year before the 2018 tax year |
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and the appraised value of the homestead for the 2018 tax year is |
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more than $192,308, the amount of the limitation provided by this |
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section is the amount of tax the school district imposed for the |
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2017 tax year, less an amount equal to the amount computed by |
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subtracting $25,000 from an amount equal to 13 percent of the |
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appraised value of the homestead for the 2018 tax year and |
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multiplying that amount by the tax rate of the school district for |
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the 2018 tax year, plus any 2018 tax attributable to improvements |
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made in 2017, other than improvements made to comply with |
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governmental regulations or repairs. Except as provided by |
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Subsection (b), a limitation on tax increases provided by this |
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section on a residence homestead computed under this subsection |
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continues to apply to the homestead in subsequent tax years until |
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the limitation expires. |
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SECTION 3. 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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2018-2019 SCHOOL YEAR. Notwithstanding any other provision of |
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this chapter, in computing a school district's wealth per student |
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for the 2018-2019 school year, a school district's taxable value of |
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property under Subchapter M, Chapter 403, Government Code, is |
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determined as if any increase in the residence homestead exemption |
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under Section 1-b(c), Article VIII, Texas Constitution, and any |
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additional limitation on tax increases under Section 1-b(d) of that |
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article in effect for the 2018 tax year as proposed by the 85th |
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Legislature, Regular Session, 2017, had been in effect for the 2017 |
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tax year. This section expires September 1, 2019. |
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SECTION 4. Section 42.2518, Education Code, as effective |
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September 1, 2017, is amended by amending Subsections (a) and (b) |
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and adding Subsection (a-1) to read as follows: |
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(a) For [Beginning with] the 2017-2018 school year, a school |
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district is entitled to additional state aid to the extent that |
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state and local revenue under this chapter and Chapter 41 is less |
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than the state and local revenue that would have been available to |
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the district under Chapter 41 and this chapter as those chapters |
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existed on September 1, 2015, excluding any state aid that would |
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have been provided under former Section 42.2516, if the increase in |
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the residence homestead exemption under Section 1-b(c), Article |
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VIII, Texas Constitution, and the additional limitation on tax |
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increases under Section 1-b(d) of that article as proposed by |
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S.J.R. 1, 84th Legislature, Regular Session, 2015, had not |
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occurred. |
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(a-1) Beginning with the 2018-2019 school year, a school |
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district is entitled to additional state aid to the extent that |
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state and local revenue under this chapter and Chapter 41 is less |
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than the state and local revenue that would have been available to |
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the district under Chapter 41 and this chapter as those chapters |
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existed on September 1, 2017, if any increase in the residence |
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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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subsection adopted by the 85th Legislature, Regular Session, 2017, |
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and any additional limitation on tax increases under Section 1-b(d) |
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of that article as proposed by the joint resolution to amend that |
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subsection adopted by the 85th Legislature, Regular Session, 2017, |
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had not occurred. |
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(b) The lesser of the school district's currently adopted |
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maintenance and operations tax rate or the adopted maintenance and |
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operations tax rate for: |
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(1) the 2014 tax year is used for the purpose of |
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determining additional state aid under Subsection (a); and |
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(2) the 2017 tax year is used for the purpose of |
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determining additional state aid under Subsection (a-1) [this
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section]. |
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SECTION 5. Section 42.252, Education Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) Notwithstanding any other provision of this chapter, in |
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computing each school district's local share of program cost under |
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this section for the 2018-2019 school year, a school district's |
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taxable value of property under Subchapter M, Chapter 403, |
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Government Code, is determined as if any increase in the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, and any additional limitation on tax increases under |
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Section 1-b(d) of that article in effect for the 2018 tax year as |
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proposed by the 85th Legislature, Regular Session, 2017, had been |
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in effect for the 2017 tax year. This subsection expires September |
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1, 2019. |
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SECTION 6. Section 42.302, Education Code, is amended by |
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adding Subsection (g) to read as follows: |
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(g) Notwithstanding any other provision of this chapter, in |
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computing a school district's enrichment tax rate ("DTR") and local |
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revenue ("LR") for the 2018-2019 school year, a school district's |
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taxable value of property under Subchapter M, Chapter 403, |
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Government Code, is determined as if any increase in the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, and any additional limitation on tax increases under |
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Section 1-b(d) of that article in effect for the 2018 tax year as |
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proposed by the 85th Legislature, Regular Session, 2017, had been |
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in effect for the 2017 tax year. This subsection expires September |
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1, 2019. |
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SECTION 7. Section 46.003, Education Code, is amended by |
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adding Subsection (i) to read as follows: |
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(i) Notwithstanding any other provision of this chapter, in |
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computing a district's bond tax rate ("BTR") and taxable value of |
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property ("DPV") for the 2018-2019 school year, a school district's |
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taxable value of property under Subchapter M, Chapter 403, |
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Government Code, is determined as if any increase in the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, and any additional limitation on tax increases under |
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Section 1-b(d) of that article in effect for the 2018 tax year as |
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proposed by the 85th Legislature, Regular Session, 2017, had been |
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in effect for the 2017 tax year. This subsection expires September |
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1, 2019. |
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SECTION 8. Section 46.032, Education Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) Notwithstanding any other provision of this chapter, in |
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computing a district's existing debt tax rate ("EDTR") and taxable |
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value of property ("DPV") for the 2018-2019 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 any increase in the |
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residence homestead exemption under Section 1-b(c), Article VIII, |
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Texas Constitution, and any additional limitation on tax increases |
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under Section 1-b(d) of that article in effect for the 2018 tax year |
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as proposed by the 85th Legislature, Regular Session, 2017, had |
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been in effect for the 2017 tax year. This subsection expires |
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September 1, 2019. |
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SECTION 9. Section 46.071, Education Code, is amended by |
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amending Subsections (a), (b), and (c) and adding Subsections |
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(a-1), (b-1), and (c-1) to read as follows: |
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(a) Beginning with the 2015-2016 school year and continuing |
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through the 2017-2018 school year, a school district is entitled to |
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additional state aid under this subchapter to the extent that state |
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and local revenue used to service debt eligible under this chapter |
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is less than the state and local revenue that would have been |
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available to the district under this chapter as it existed on |
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September 1, 2015, if the increase in the residence homestead |
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exemption under Section 1-b(c), Article VIII, Texas Constitution, |
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and the additional limitation on tax increases under Section 1-b(d) |
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of that article as proposed by S.J.R. 1, 84th Legislature, Regular |
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Session, 2015, had not occurred. |
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(a-1) Beginning with the 2018-2019 school year, a school |
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district is entitled to additional state aid under this subchapter |
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to the extent that state and local revenue used to service debt |
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eligible under this chapter is less than the state and local revenue |
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that would have been available to the district under this chapter as |
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it existed on September 1, 2017, if any increase in the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, and any additional limitation on tax increases under |
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Section 1-b(d) of that article as proposed by the 85th Legislature, |
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Regular Session, 2017, had not occurred. |
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(b) Subject to Subsections (c), (d), and (e) [(c)-(e)], |
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additional state aid under this section through the 2017-2018 |
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school year is equal to the amount by which the loss of local |
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interest and sinking revenue for debt service attributable to the |
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increase in the residence homestead exemption under Section 1-b(c), |
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Article VIII, Texas Constitution, and the additional limitation on |
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tax increases under Section 1-b(d) of that article as proposed by |
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S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by |
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a gain in state aid under this chapter. |
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(b-1) Subject to Subsections (c-1), (d), and (e), |
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additional state aid under this section beginning with the |
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2018-2019 school year is equal to the amount by which the loss of |
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local interest and sinking revenue for debt service attributable to |
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any increase in the residence homestead exemption under Section |
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1-b(c), Article VIII, Texas Constitution, and any additional |
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limitation on tax increases under Section 1-b(d) of that article as |
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proposed by the 85th Legislature, Regular Session, 2017, is not |
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offset by a gain in state aid under this chapter. |
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(c) For the purpose of determining state aid under |
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Subsections (a) and (b) [this section], local interest and sinking |
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revenue for debt service is limited to revenue required to service |
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debt eligible under this chapter as of September 1, 2015, including |
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refunding of that debt, subject to Section 46.061. The limitation |
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imposed by Section 46.034(a) does not apply for the purpose of |
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determining state aid under this section. |
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(c-1) For the purpose of determining state aid under |
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Subsections (a-1) and (b-1), local interest and sinking revenue for |
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debt service is limited to revenue required to service debt |
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eligible under this chapter as of September 1, 2017, including |
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refunding of that debt, subject to Section 46.061. The limitation |
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imposed by Section 46.034(a) does not apply for the purpose of |
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determining state aid under this section. |
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SECTION 10. 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, 2018. |
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SECTION 11. 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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Regular Session, 2017, providing for an exemption from ad valorem |
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taxation for public school purposes of $25,000 or 13 percent, |
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whichever is greater, of the market value of a residence homestead |
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and providing for a reduction of the limitation on the total amount |
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of ad valorem taxes that may be imposed for those purposes on the |
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homestead of an elderly or disabled person to reflect any increased |
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exemption amount is approved by the voters. If that constitutional |
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amendment is not approved by the voters, this Act has no effect. |