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A BILL TO BE ENTITLED
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AN ACT
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relating to an increase in the amount of the exemption of residence |
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homesteads from ad valorem taxation by a school district, a |
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reduction in the amount of the limitation on school district ad |
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valorem taxes imposed on the residence homesteads of the elderly or |
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disabled to reflect the increased exemption amount, and the |
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protection of school districts against the resulting loss in local |
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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 $35,000 [$25,000] of the appraised value of the |
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adult's residence homestead, except that only $5,000 of the |
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exemption applies to an entity operating under former Chapter 17, |
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18, 25, 26, 27, or 28, Education Code, as those chapters existed on |
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May 1, 1995, as permitted by Section 11.301, Education 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 2020 [2015] tax |
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year, the amount of the limitation provided by this section for the |
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2020 tax year is the amount of tax the school district imposed for |
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the 2019 [2014] tax year less an amount equal to the amount |
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determined by multiplying $10,000 times the tax rate of the school |
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district for the 2020 [2015] tax year, plus any 2020 [2015] tax |
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attributable to improvements made in 2019 [2014], other than |
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improvements made to comply with governmental regulations or |
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repairs. |
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SECTION 3. Subchapter A, Chapter 41, Education Code, is |
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amended by adding Section 41.0012 to read as follows: |
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Sec. 41.0012. COMPUTATION OF WEALTH PER STUDENT FOR |
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2020-2021 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 2020-2021 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 the increase in the residence homestead exemption |
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under Section 1-b(c), Article VIII, Texas Constitution, and the |
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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 2020 tax year as proposed by the 86th |
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Legislature, Regular Session, 2019, had been in effect for the 2019 |
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tax year. This section expires September 1, 2021. |
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SECTION 4. Section 42.2518, Education Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (a-1) to |
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read as follows: |
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(a) Beginning with the 2017-2018 school year and continuing |
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through the 2019-2020 school year, a school district is entitled to |
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additional state aid to the extent that state and local revenue |
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under this chapter and Chapter 41 is less than the state and local |
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revenue that would have been available to the district under |
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Chapter 41 and this chapter as those chapters existed on September |
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1, 2015, excluding any state aid that would have been provided under |
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former Section 42.2516, 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 2020-2021 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, 2019, if the increase in the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, and the additional limitation on tax increases under |
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Section 1-b(d) of that article as proposed by the 86th Legislature, |
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Regular Session, 2019, 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 2019 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 2020-2021 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 the increase in the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, and the additional limitation on tax increases under |
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Section 1-b(d) of that article in effect for the 2020 tax year as |
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proposed by the 86th Legislature, Regular Session, 2019, had been |
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in effect for the 2019 tax year. This subsection expires September |
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1, 2021. |
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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 2020-2021 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 the increase in the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, and the additional limitation on tax increases under |
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Section 1-b(d) of that article in effect for the 2020 tax year as |
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proposed by the 86th Legislature, Regular Session, 2019, had been |
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in effect for the 2019 tax year. This subsection expires September |
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1, 2021. |
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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 2020-2021 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 the increase in the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, and the additional limitation on tax increases under |
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Section 1-b(d) of that article in effect for the 2020 tax year as |
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proposed by the 86th Legislature, Regular Session, 2019, had been |
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in effect for the 2019 tax year. This subsection expires September |
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1, 2021. |
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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 2020-2021 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 the increase in the |
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residence homestead exemption under Section 1-b(c), Article VIII, |
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Texas Constitution, and the additional limitation on tax increases |
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under Section 1-b(d) of that article in effect for the 2020 tax year |
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as proposed by the 86th Legislature, Regular Session, 2019, had |
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been in effect for the 2019 tax year. This subsection expires |
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September 1, 2021. |
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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 2019-2020 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 2020-2021 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, 2019, if the increase in the residence |
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homestead exemption under Section 1-b(c), Article VIII, Texas |
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Constitution, and the additional limitation on tax increases under |
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Section 1-b(d) of that article as proposed by the 86th Legislature, |
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Regular Session, 2019, 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 2019-2020 |
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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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2020-2021 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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the increase in the residence homestead exemption under Section |
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1-b(c), Article VIII, Texas Constitution, and the 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 86th Legislature, Regular Session, 2019, 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, 2019, 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, 2020. |
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SECTION 11. This Act takes effect January 1, 2020, but only |
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if the constitutional amendment proposed by the 86th Legislature, |
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Regular Session, 2019, to use revenue attributable to oil and gas |
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production taxes to increase the amount of the exemption of |
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residence homesteads from ad valorem taxation by a school district |
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and reduce the amount of the limitation on school district ad |
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valorem taxes imposed on the residence homesteads of the elderly or |
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disabled to reflect the increased exemption amount is approved by |
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the voters. If that constitutional amendment is not approved by the |
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voters, this Act has no effect. |