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AN ACT
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relating to the reduction of the amount of a limitation on the total |
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amount of ad valorem taxes that may be imposed by a school district |
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on the residence homestead of an individual who is elderly or |
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disabled to reflect any reduction from the preceding tax year in the |
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district's maximum compressed rate and to the protection of school |
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districts against the resulting loss 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 11.26, Tax Code, is amended by adding |
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Subsections (a-4), (a-5), (a-6), (a-7), (a-8), (a-9), and (a-10) to |
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read as follows: |
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(a-4) In this section, "maximum compressed rate" means the |
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maximum compressed rate of a school district as calculated under |
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Section 48.2551, Education Code. |
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(a-5) Notwithstanding the other provisions of this section, |
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if in the 2023 tax year an individual qualifies for a limitation on |
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tax increases provided by this section on the individual's |
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residence homestead and the first tax year the individual or the |
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individual's spouse qualified for an exemption under Section |
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11.13(c) for the same homestead was a tax year before the 2019 tax |
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year, the amount of the limitation provided by this section on the |
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homestead in the 2023 tax year is equal to the amount computed by: |
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(1) multiplying the taxable value of the homestead in |
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the 2018 tax year by a tax rate equal to the difference between the |
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school district's tier one maintenance and operations rate for the |
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2018 tax year and the district's maximum compressed rate for the |
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2019 tax year; |
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(2) subtracting the greater of zero or the amount |
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computed under Subdivision (1) from the amount of tax the district |
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imposed on the homestead in the 2018 tax year; |
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(3) adding any tax imposed in the 2019 tax year |
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attributable to improvements made in the 2018 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (2); |
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(4) multiplying the taxable value of the homestead in |
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the 2019 tax year by a tax rate equal to the difference between the |
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district's maximum compressed rate for the 2019 tax year and the |
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district's maximum compressed rate for the 2020 tax year; |
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(5) subtracting the amount computed under Subdivision |
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(4) from the amount computed under Subdivision (3); |
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(6) adding any tax imposed in the 2020 tax year |
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attributable to improvements made in the 2019 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (5); |
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(7) multiplying the taxable value of the homestead in |
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the 2020 tax year by a tax rate equal to the difference between the |
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district's maximum compressed rate for the 2020 tax year and the |
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district's maximum compressed rate for the 2021 tax year; |
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(8) subtracting the amount computed under Subdivision |
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(7) from the amount computed under Subdivision (6); |
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(9) adding any tax imposed in the 2021 tax year |
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attributable to improvements made in the 2020 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (8); |
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(10) multiplying the taxable value of the homestead in |
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the 2021 tax year by a tax rate equal to the difference between the |
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district's maximum compressed rate for the 2021 tax year and the |
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district's maximum compressed rate for the 2022 tax year; |
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(11) subtracting the amount computed under |
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Subdivision (10) from the amount computed under Subdivision (9); |
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(12) adding any tax imposed in the 2022 tax year |
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attributable to improvements made in the 2021 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (11); |
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(13) multiplying the taxable value of the homestead in |
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the 2022 tax year by a tax rate equal to the difference between the |
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district's maximum compressed rate for the 2022 tax year and the |
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district's maximum compressed rate for the 2023 tax year; |
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(14) subtracting the amount computed under |
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Subdivision (13) from the amount computed under Subdivision (12); |
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and |
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(15) adding any tax imposed in the 2023 tax year |
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attributable to improvements made in the 2022 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (14). |
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(a-6) Notwithstanding the other provisions of this section, |
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if in the 2023 tax year an individual qualifies for a limitation on |
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tax increases provided by this section on the individual's |
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residence homestead and the first tax year the individual or the |
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individual's spouse qualified for an exemption under Section |
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11.13(c) for the same homestead was the 2019 tax year, the amount of |
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the limitation provided by this section on the homestead in the 2023 |
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tax year is equal to the amount computed by: |
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(1) multiplying the taxable value of the homestead in |
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the 2019 tax year by a tax rate equal to the difference between the |
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school district's maximum compressed rate for the 2019 tax year and |
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the district's maximum compressed rate for the 2020 tax year; |
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(2) subtracting the amount computed under Subdivision |
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(1) from the amount of tax the district imposed on the homestead in |
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the 2019 tax year; |
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(3) adding any tax imposed in the 2020 tax year |
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attributable to improvements made in the 2019 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (2); |
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(4) multiplying the taxable value of the homestead in |
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the 2020 tax year by a tax rate equal to the difference between the |
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district's maximum compressed rate for the 2020 tax year and the |
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district's maximum compressed rate for the 2021 tax year; |
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(5) subtracting the amount computed under Subdivision |
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(4) from the amount computed under Subdivision (3); |
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(6) adding any tax imposed in the 2021 tax year |
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attributable to improvements made in the 2020 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (5); |
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(7) multiplying the taxable value of the homestead in |
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the 2021 tax year by a tax rate equal to the difference between the |
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district's maximum compressed rate for the 2021 tax year and the |
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district's maximum compressed rate for the 2022 tax year; |
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(8) subtracting the amount computed under Subdivision |
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(7) from the amount computed under Subdivision (6); |
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(9) adding any tax imposed in the 2022 tax year |
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attributable to improvements made in the 2021 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (8); |
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(10) multiplying the taxable value of the homestead in |
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the 2022 tax year by a tax rate equal to the difference between the |
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district's maximum compressed rate for the 2022 tax year and the |
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district's maximum compressed rate for the 2023 tax year; |
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(11) subtracting the amount computed under |
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Subdivision (10) from the amount computed under Subdivision (9); |
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and |
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(12) adding any tax imposed in the 2023 tax year |
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attributable to improvements made in the 2022 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (11). |
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(a-7) Notwithstanding the other provisions of this section, |
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if in the 2023 tax year an individual qualifies for a limitation on |
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tax increases provided by this section on the individual's |
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residence homestead and the first tax year the individual or the |
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individual's spouse qualified for an exemption under Section |
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11.13(c) for the same homestead was the 2020 tax year, the amount of |
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the limitation provided by this section on the homestead in the 2023 |
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tax year is equal to the amount computed by: |
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(1) multiplying the taxable value of the homestead in |
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the 2020 tax year by a tax rate equal to the difference between the |
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school district's maximum compressed rate for the 2020 tax year and |
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the district's maximum compressed rate for the 2021 tax year; |
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(2) subtracting the amount computed under Subdivision |
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(1) from the amount of tax the district imposed on the homestead in |
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the 2020 tax year; |
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(3) adding any tax imposed in the 2021 tax year |
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attributable to improvements made in the 2020 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (2); |
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(4) multiplying the taxable value of the homestead in |
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the 2021 tax year by a tax rate equal to the difference between the |
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district's maximum compressed rate for the 2021 tax year and the |
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district's maximum compressed rate for the 2022 tax year; |
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(5) subtracting the amount computed under Subdivision |
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(4) from the amount computed under Subdivision (3); |
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(6) adding any tax imposed in the 2022 tax year |
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attributable to improvements made in the 2021 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (5); |
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(7) multiplying the taxable value of the homestead in |
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the 2022 tax year by a tax rate equal to the difference between the |
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district's maximum compressed rate for the 2022 tax year and the |
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district's maximum compressed rate for the 2023 tax year; |
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(8) subtracting the amount computed under Subdivision |
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(7) from the amount computed under Subdivision (6); and |
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(9) adding any tax imposed in the 2023 tax year |
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attributable to improvements made in the 2022 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (8). |
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(a-8) Notwithstanding the other provisions of this section, |
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if in the 2023 tax year an individual qualifies for a limitation on |
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tax increases provided by this section on the individual's |
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residence homestead and the first tax year the individual or the |
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individual's spouse qualified for an exemption under Section |
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11.13(c) for the same homestead was the 2021 tax year, the amount of |
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the limitation provided by this section on the homestead in the 2023 |
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tax year is equal to the amount computed by: |
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(1) multiplying the taxable value of the homestead in |
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the 2021 tax year by a tax rate equal to the difference between the |
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school district's maximum compressed rate for the 2021 tax year and |
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the district's maximum compressed rate for the 2022 tax year; |
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(2) subtracting the amount computed under Subdivision |
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(1) from the amount of tax the district imposed on the homestead in |
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the 2021 tax year; |
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(3) adding any tax imposed in the 2022 tax year |
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attributable to improvements made in the 2021 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (2); |
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(4) multiplying the taxable value of the homestead in |
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the 2022 tax year by a tax rate equal to the difference between the |
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school district's maximum compressed rate for the 2022 tax year and |
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the district's maximum compressed rate for the 2023 tax year; |
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(5) subtracting the amount computed under Subdivision |
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(4) from the amount computed under Subdivision (3); and |
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(6) adding any tax imposed in the 2023 tax year |
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attributable to improvements made in the 2022 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (5). |
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(a-9) Notwithstanding the other provisions of this section, |
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if in the 2023 tax year an individual qualifies for a limitation on |
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tax increases provided by this section on the individual's |
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residence homestead and the first tax year the individual or the |
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individual's spouse qualified for an exemption under Section |
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11.13(c) for the same homestead was the 2022 tax year, the amount of |
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the limitation provided by this section on the homestead in the 2023 |
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tax year is equal to the amount computed by: |
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(1) multiplying the taxable value of the homestead in |
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the 2022 tax year by a tax rate equal to the difference between the |
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school district's maximum compressed rate for the 2022 tax year and |
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the district's maximum compressed rate for the 2023 tax year; |
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(2) subtracting the amount computed under Subdivision |
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(1) from the amount of tax the district imposed on the homestead in |
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the 2022 tax year; and |
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(3) adding any tax imposed in the 2023 tax year |
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attributable to improvements made in the 2022 tax year as provided |
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by Subsection (b) to the amount computed under Subdivision (2). |
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(a-10) Notwithstanding the other provisions of this |
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section, if in the 2024 or a subsequent tax year an individual |
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qualifies for a limitation on tax increases provided by this |
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section on the individual's residence homestead, the amount of the |
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limitation provided by this section on the homestead is equal to the |
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amount computed by: |
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(1) multiplying the taxable value of the homestead in |
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the preceding tax year by a tax rate equal to the difference between |
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the school district's maximum compressed rate for the preceding tax |
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year and the district's maximum compressed rate for the current tax |
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year; |
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(2) subtracting the amount computed under Subdivision |
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(1) from the amount of tax the district imposed on the homestead in |
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the preceding tax year; and |
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(3) adding any tax imposed in the current tax year |
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attributable to improvements made in the preceding tax year as |
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provided by Subsection (b) to the amount computed under Subdivision |
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(2). |
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SECTION 2. Subchapter F, Chapter 48, Education Code, is |
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amended by adding Section 48.2542 to read as follows: |
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Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF |
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LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED. |
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Notwithstanding any other provision of this chapter, if a school |
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district is not fully compensated through state aid or the |
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calculation of excess local revenue under this chapter based on the |
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determination of the district's taxable value of property under |
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Subchapter M, Chapter 403, Government Code, the district is |
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entitled to additional state aid in the amount necessary to fully |
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compensate the district for the amount of ad valorem tax revenue |
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lost due to a reduction of the amount of the limitation on tax |
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increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7), |
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(a-8), (a-9), and (a-10), Tax Code, as applicable. |
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SECTION 3. Section 48.2551(d), Education Code, is amended |
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to read as follows: |
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(d) The agency shall: |
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(1) calculate and make available school districts' |
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maximum compressed rates, as determined under this section; and |
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(2) post the information described by Section 48.2556 |
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on the agency's Internet website as required by that section. |
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SECTION 4. Subchapter F, Chapter 48, Education Code, is |
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amended by adding Section 48.2556 to read as follows: |
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Sec. 48.2556. POSTING ON AGENCY WEBSITE OF INFORMATION |
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RELATED TO REDUCTION OF LIMITATION OF TAX ON HOMESTEADS OF ELDERLY |
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OR DISABLED. (a) The agency shall post the following information |
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on the agency's Internet website for purposes of allowing the chief |
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appraiser of each appraisal district and the assessor for each |
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school district to make the calculations required by Sections |
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11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code: |
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(1) each school district's maximum compressed rate, as |
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determined under Section 48.2551, for each tax year beginning with |
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the 2019 tax year; and |
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(2) each school district's tier one maintenance and |
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operations tax rate, as provided by Section 45.0032(a), for the |
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2018 tax year. |
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(b) The agency shall post each school district's maximum |
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compressed rate for the current tax year, as determined under |
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Section 48.2551, promptly after calculating the rate. If, for the |
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2023 or a subsequent tax year, the agency calculates a preliminary |
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rate before calculating a final rate, the agency shall post the |
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preliminary rate, and the chief appraiser of each appraisal |
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district and the assessor for each school district shall use the |
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preliminary rate to make the calculations described by Subsection |
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(a). |
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(c) The agency shall notify the chief appraiser of each |
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appraisal district and the assessor for each school district when |
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the agency has complied with Subsection (b). The notice must |
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include the location on the agency's Internet website at which the |
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information required by this section to be posted may be found. |
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SECTION 5. Section 403.302, Government Code, is amended by |
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adding Subsection (j-1) to read as follows: |
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(j-1) In the final certification of the study under |
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Subsection (j), the comptroller shall separately identify the final |
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taxable value for each school district as adjusted to account for |
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the reduction of the amount of the limitation on tax increases |
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provided by Sections 11.26(a-4), (a-5), (a-6), (a-7), (a-8), (a-9), |
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and (a-10), Tax Code, as applicable. |
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SECTION 6. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 7. This Act takes effect January 1, 2023, but only |
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if the constitutional amendment proposed by the 87th Legislature, |
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2nd Called Session, 2021, authorizing the legislature to provide |
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for the reduction of the amount of a limitation on the total amount |
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of ad valorem taxes that may be imposed for general elementary and |
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secondary public school purposes on the residence homestead of a |
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person who is elderly or disabled to reflect any statutory |
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reduction from the preceding tax year in the maximum compressed |
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rate of the maintenance and operations taxes imposed for those |
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purposes on the homestead is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 12 passed the Senate on |
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August 9, 2021, by the following vote: Yeas 29, Nays 0; and that |
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the Senate concurred in House amendment on August 29, 2021, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 12 passed the House, with |
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amendment, on August 27, 2021, by the following vote: Yeas 121, |
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Nays 0, one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |