By: Shaheen H.B. No. 4092
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the maximum amount of the local option residence
  homestead exemption from ad valorem taxation by a school district
  and the effect of such exemptions on the provision of funding under
  the foundation school program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 7.062(c), Education Code, is amended to
  read as follows:
         (c)  Except as otherwise provided by this subsection, if the
  commissioner certifies that the amount appropriated for a state
  fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
  the amount to which school districts are entitled under those
  subchapters for that year, the commissioner shall use the excess
  funds, in an amount not to exceed $20 million in any state fiscal
  year, for the purpose of making grants under this section. The use
  of excess funds under this subsection has priority over any
  provision of Chapter 42 that permits or directs the use of excess
  foundation school program funds, including Sections 42.2517,
  42.2521, [42.2522,] and 42.2531. The commissioner is required to
  use excess funds as provided by this subsection only if the
  commissioner is not required to reduce the total amount of state
  funds allocated to school districts under Section 42.253(h).
         SECTION 2.  Section 45.006(f), Education Code, is amended to
  read as follows:
         (f)  The governing body of a school district that adopts a
  tax rate that exceeds $1.50 per $100 valuation of taxable property
  may set the amount of the exemption from taxation authorized by
  Section 11.13(n-2) [11.13(n)], Tax Code, at any time before the
  date the governing body adopts the district's tax rate for the tax
  year in which the election approving the additional taxes is held.
         SECTION 3.  Section 403.302(d), Government Code, is amended
  to read as follows:
         (d)  For the purposes of this section, "taxable value" means
  the market value of all taxable property less:
               (1)  the total dollar amount of any residence homestead
  exemptions lawfully granted under Section 11.13(b) or (c), Tax
  Code, in the year that is the subject of the study for each school
  district;
               (2)  [one-half of] the total dollar amount of any
  residence homestead exemptions granted under Section 11.13(n-2)
  [11.13(n)], Tax Code, in the year that is the subject of the study
  for each school district;
               (3)  the total dollar amount of any exemptions granted
  before May 31, 1993, within a reinvestment zone under agreements
  authorized by Chapter 312, Tax Code;
               (4)  subject to Subsection (e), the total dollar amount
  of any captured appraised value of property that:
                     (A)  is within a reinvestment zone created on or
  before May 31, 1999, or is proposed to be included within the
  boundaries of a reinvestment zone as the boundaries of the zone and
  the proposed portion of tax increment paid into the tax increment
  fund by a school district are described in a written notification
  provided by the municipality or the board of directors of the zone
  to the governing bodies of the other taxing units in the manner
  provided by former Section 311.003(e), Tax Code, before May 31,
  1999, and within the boundaries of the zone as those boundaries
  existed on September 1, 1999, including subsequent improvements to
  the property regardless of when made;
                     (B)  generates taxes paid into a tax increment
  fund created under Chapter 311, Tax Code, under a reinvestment zone
  financing plan approved under Section 311.011(d), Tax Code, on or
  before September 1, 1999; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (5)  the total dollar amount of any captured appraised
  value of property that:
                     (A)  is within a reinvestment zone:
                           (i)  created on or before December 31, 2008,
  by a municipality with a population of less than 18,000; and
                           (ii)  the project plan for which includes
  the alteration, remodeling, repair, or reconstruction of a
  structure that is included on the National Register of Historic
  Places and requires that a portion of the tax increment of the zone
  be used for the improvement or construction of related facilities
  or for affordable housing;
                     (B)  generates school district taxes that are paid
  into a tax increment fund created under Chapter 311, Tax Code; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (6)  the total dollar amount of any exemptions granted
  under Section 11.251 or 11.253, Tax Code;
               (7)  the difference between the comptroller's estimate
  of the market value and the productivity value of land that
  qualifies for appraisal on the basis of its productive capacity,
  except that the productivity value estimated by the comptroller may
  not exceed the fair market value of the land;
               (8)  the portion of the appraised value of residence
  homesteads of individuals who receive a tax limitation under
  Section 11.26, Tax Code, on which school district taxes are not
  imposed in the year that is the subject of the study, calculated as
  if the residence homesteads were appraised at the full value
  required by law;
               (9)  a portion of the market value of property not
  otherwise fully taxable by the district at market value because of:
                     (A)  action required by statute or the
  constitution of this state, other than Section 11.311, Tax Code,
  that, if the tax rate adopted by the district is applied to it,
  produces an amount equal to the difference between the tax that the
  district would have imposed on the property if the property were
  fully taxable at market value and the tax that the district is
  actually authorized to impose on the property, if this subsection
  does not otherwise require that portion to be deducted; or
                     (B)  action taken by the district under Subchapter
  B or C, Chapter 313, Tax Code, before the expiration of the
  subchapter;
               (10)  the market value of all tangible personal
  property, other than manufactured homes, owned by a family or
  individual and not held or used for the production of income;
               (11)  the appraised value of property the collection of
  delinquent taxes on which is deferred under Section 33.06, Tax
  Code;
               (12)  the portion of the appraised value of property
  the collection of delinquent taxes on which is deferred under
  Section 33.065, Tax Code; and
               (13)  the amount by which the market value of a
  residence homestead to which Section 23.23, Tax Code, applies
  exceeds the appraised value of that property as calculated under
  that section.
         SECTION 4.  Section 11.13, Tax Code, is amended by amending
  Subsections (i) and (n) and adding Subsection (n-2) 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 (n-2) [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 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.
         (n)  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 percentage of the
  appraised value of the individual's [his] 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. If the percentage set by the taxing unit produces an
  exemption in a tax year of less than $5,000 when applied to a
  particular residence homestead, the individual is entitled to an
  exemption of $5,000 of the appraised value. The percentage adopted
  by the taxing unit may not exceed 20 percent.
         (n-2)  In addition to any other exemptions provided by this
  section, an individual is entitled to an exemption from taxation by
  a school district of a percentage of the appraised value of the
  individual's residence homestead if the exemption is adopted by the
  governing body of the school district before July 1 in the manner
  provided by law for official action by the body. The percentage
  adopted by the school district may not exceed 50 percent of taxable
  income.
         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 (n-2) that was adopted by the governing body of
  a taxing unit after the date the appraisal records were submitted.
         SECTION 6.  Section 42.2522, Education Code, is repealed.
         SECTION 7.  Section 403.302, Government Code, as amended by
  this Act, applies only to a school district property value study
  conducted for a tax year that begins on or after January 1, 2020.
         SECTION 8.  This Act applies only to ad valorem taxes imposed
  for a tax year that begins on or after January 1, 2020.
         SECTION 9.  This Act takes effect January 1, 2020, but only
  if the constitutional amendment proposed by the 86th Legislature,
  Regular Session, 2019, to increase the maximum amount of the local
  option residence homestead exemption from ad valorem taxation by a
  school district from 20 percent to 50 percent, not to exceed
  $700,000, is approved by the voters. If that amendment is not
  approved by the voters, this Act has no effect.