87S30269 CJC/KJE-D
 
  By: Zwiener H.B. No. 115
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an increase in the amount of the exemption of residence
  homesteads from ad valorem taxation by a school district, a
  reduction in the amount of the limitation on school district ad
  valorem taxes imposed on the residence homesteads of the elderly or
  disabled to reflect the increased exemption amount, and the
  protection of school districts against the resulting loss in local
  revenue.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.13(b), Tax Code, is amended to read as
  follows:
         (b)  An adult is entitled to exemption from taxation by a
  school district of $50,000 [$25,000] of the appraised value of the
  adult's residence homestead, except that only $5,000 of the
  exemption applies to an entity operating under former Chapter 17,
  18, 25, 26, 27, or 28, Education Code, as those chapters existed on
  May 1, 1995, as permitted by Section 11.301, Education Code.
         SECTION 2.  (a)  This section takes effect only if the
  constitutional amendment proposed by S.J.R. No. 2, 87th
  Legislature, 2nd Called Session, 2021, is approved by the voters.
  If that amendment is not approved by the voters, this section has no
  effect.
         (b)  Section 11.26(a), Tax Code, is amended to read as
  follows:
         (a)  The tax officials shall appraise [the] property to which
  this section applies and calculate taxes as on other property, but
  if the tax [so] calculated exceeds the limitation imposed by this
  section, the tax imposed is the amount of the tax as limited by this
  section, except as otherwise provided by this section.  A school
  district may not increase the total annual amount of ad valorem tax
  it imposes on the residence homestead of an individual 65 years of
  age or older or on the residence homestead of an individual who is
  disabled, as defined by Section 11.13, above the amount of the tax
  it imposed in the first tax year in which the individual qualified
  that residence homestead for the applicable exemption provided by
  Section 11.13(c) for an individual who is 65 years of age or older
  or is disabled.  If the individual qualified that residence
  homestead for the exemption after the beginning of that first year
  and the residence homestead remains eligible for the same exemption
  for the next year, and if the school district taxes imposed on the
  residence homestead in the next year are less than the amount of
  taxes imposed in that first year, a school district may not
  subsequently increase the total annual amount of ad valorem taxes
  it imposes on the residence homestead above the amount it imposed in
  the year immediately following the first year for which the
  individual qualified that residence homestead for the same
  exemption, except as provided by Subsection (b).  If the first tax
  year the individual qualified the residence homestead for the
  exemption provided by Section 11.13(c) for individuals 65 years of
  age or older or disabled was a tax year before the 2023 [2015] tax
  year, the amount of the limitation provided by this section for the
  2023 tax year is the amount of the limitation as computed under
  Subsection (a-5), (a-6), (a-7), (a-8), or (a-9), as applicable,
  [tax the school district imposed for the 2014 tax year] less an
  amount equal to the product of $25,000 and [amount determined by
  multiplying $10,000 times] the tax rate of the school district for
  the 2023 [2015] tax year[, plus any 2015 tax attributable to
  improvements made in 2014, other than improvements made to comply
  with governmental regulations or repairs].
         SECTION 3.  (a)  This section takes effect only if the
  constitutional amendment proposed by S.J.R. No. 2, 87th
  Legislature, 2nd Called Session, 2021, is not approved by the
  voters. If that amendment is approved by the voters, this section
  has no effect.
         (b)  Section 11.26(a), Tax Code, is amended to read as
  follows:
         (a)  The tax officials shall appraise [the] property to which
  this section applies and calculate taxes as on other property, but
  if the tax [so] calculated exceeds the limitation imposed by this
  section, the tax imposed is the amount of the tax as limited by this
  section, except as otherwise provided by this section. A school
  district may not increase the total annual amount of ad valorem tax
  it imposes on the residence homestead of an individual 65 years of
  age or older or on the residence homestead of an individual who is
  disabled, as defined by Section 11.13, above the amount of the tax
  it imposed in the first tax year in which the individual qualified
  that residence homestead for the applicable exemption provided by
  Section 11.13(c) for an individual who is 65 years of age or older
  or is disabled. If the individual qualified that residence
  homestead for the exemption after the beginning of that first year
  and the residence homestead remains eligible for the same exemption
  for the next year, and if the school district taxes imposed on the
  residence homestead in the next year are less than the amount of
  taxes imposed in that first year, a school district may not
  subsequently increase the total annual amount of ad valorem taxes
  it imposes on the residence homestead above the amount it imposed in
  the year immediately following the first year for which the
  individual qualified that residence homestead for the same
  exemption, except as provided by Subsection (b). If the first tax
  year the individual qualified the residence homestead for the
  exemption provided by Section 11.13(c) for individuals 65 years of
  age or older or disabled was a tax year before the 2023 [2015] tax
  year, the amount of the limitation provided by this section for the
  2023 tax year is the amount of tax the school district imposed for
  the 2022 [2014] tax year less an amount equal to the product of
  $25,000 and [amount determined by multiplying $10,000 times] the
  tax rate of the school district for the 2023 [2015] tax year, plus
  any 2023 [2015] tax attributable to improvements made in 2022
  [2014], other than improvements made to comply with governmental
  regulations or repairs.
         SECTION 4.  Section 46.071, Education Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsections
  (a-1), (b-1), and (c-1) to read as follows:
         (a)  Beginning with the 2015-2016 school year and continuing
  through the 2022-2023 school year, a school district is entitled to
  additional state aid under this subchapter to the extent that state
  and local revenue used to service debt eligible under this chapter
  is less than the state and local revenue that would have been
  available to the district under this chapter as it existed on
  September 1, 2015, if the increase in the residence homestead
  exemption under Section 1-b(c), Article VIII, Texas Constitution,
  and the additional limitation on tax increases under Section 1-b(d)
  of that article as proposed by S.J.R. 1, 84th Legislature, Regular
  Session, 2015, had not occurred.
         (a-1)  Beginning with the 2023-2024 school year, a school
  district is entitled to additional state aid under this subchapter
  to the extent that state and local revenue used to service debt
  eligible under this chapter is less than the state and local revenue
  that would have been available to the district under this chapter as
  it existed on September 1, 2022, if any increase in the residence
  homestead exemption under Section 1-b(c), Article VIII, Texas
  Constitution, and any additional limitation on tax increases under
  Section 1-b(d) of that article as proposed by the 87th Legislature,
  3rd Called Session, 2021, had not occurred.
         (b)  Subject to Subsections (c), (d), and (e) [(c)-(e)],
  additional state aid under this section through the 2022-2023
  school year is equal to the amount by which the loss of local
  interest and sinking revenue for debt service attributable to the
  increase in the residence homestead exemption under Section 1-b(c),
  Article VIII, Texas Constitution, and the additional limitation on
  tax increases under Section 1-b(d) of that article as proposed by
  S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
  a gain in state aid under this chapter.
         (b-1)  Subject to Subsections (c-1), (d), and (e),
  additional state aid under this section beginning with the
  2023-2024 school year is equal to the amount by which the loss of
  local interest and sinking revenue for debt service attributable to
  any increase in the residence homestead exemption under Section
  1-b(c), Article VIII, Texas Constitution, and any additional
  limitation on tax increases under Section 1-b(d) of that article as
  proposed by the 87th Legislature, 3rd Called Session, 2021, is not
  offset by a gain in state aid under this chapter.
         (c)  For the purpose of determining state aid under
  Subsections (a) and (b) [this section], local interest and sinking
  revenue for debt service is limited to revenue required to service
  debt eligible under this chapter as of September 1, 2015, including
  refunding of that debt, subject to Section 46.061. The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         (c-1)  For the purpose of determining state aid under
  Subsections (a-1) and (b-1), local interest and sinking revenue for
  debt service is limited to revenue required to service debt
  eligible under this chapter as of September 1, 2022, including
  refunding of that debt, subject to Section 46.061. The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         SECTION 5.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Section 48.2543 to read as follows:
         Sec. 48.2543.  ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION
  AND LIMITATION ON TAX INCREASES. (a) Beginning with the 2023-2024
  school year, a school district is entitled to additional state aid
  to the extent that state and local revenue under this chapter and
  Chapter 49 is less than the state and local revenue that would have
  been available to the district under this chapter and Chapter 49 as
  those chapters existed on September 1, 2022, if any increase in the
  residence homestead exemption under Section 1-b(c), Article VIII,
  Texas Constitution, and any additional limitation on tax increases
  under Section 1-b(d) of that article as proposed by the 87th
  Legislature, 3rd Called Session, 2021, had not occurred.
         (b)  The lesser of the school district's currently adopted
  maintenance and operations tax rate or the adopted maintenance and
  operations tax rate for the 2022 tax year is used for the purpose of
  determining additional state aid under Subsection (a).
         SECTION 6.  The changes in law made by this Act to Sections
  11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
  begins on or after January 1, 2023.
         SECTION 7.  This Act takes effect January 1, 2023, but only
  if the constitutional amendment proposed by the 87th Legislature,
  3rd Called Session, 2021, to increase the amount of the exemption of
  residence homesteads from ad valorem taxation by a school district
  and to reduce the amount of the limitation on school district ad
  valorem taxes imposed on the residence homesteads of the elderly or
  disabled to reflect the increased exemption amount is approved by
  the voters. If that amendment is not approved by the voters, this
  Act has no effect.