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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 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 $40,000 [$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 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 2021-2022 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 2022-2023 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, 2021, 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 87th Legislature, 3rd Called |
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Session, 2021, 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 2021-2022 |
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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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2022-2023 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, as proposed by the 87th |
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Legislature, 3rd Called Session, 2021, is not offset by a gain in |
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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, 2021, 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 3. Subchapter F, Chapter 48, Education Code, is |
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amended by adding Section 48.2543 to read as follows: |
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Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION. |
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(a) Beginning with the 2022-2023 school year, a school district is |
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entitled to additional state aid to the extent that state and local |
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revenue under this chapter and Chapter 49 is less than the state and |
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local revenue that would have been available to the district under |
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this chapter and Chapter 49 as those chapters existed on September |
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1, 2021, if any increase in the residence homestead exemption under |
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Section 1-b(c), Article VIII, Texas Constitution, as proposed by |
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the 87th Legislature, 3rd Called Session, 2021, 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 the 2021 tax year is used for the purpose of |
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determining additional state aid under Subsection (a). |
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SECTION 4. The comptroller of public accounts may adopt |
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rules for the purpose of implementing and administering the changes |
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in law made by this Act, including rules relating to the form of |
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certain information required to be provided by tax officials and |
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the date on which the information must be provided. |
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SECTION 5. Section 11.13, Tax Code, as amended by this Act, |
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applies beginning with the 2022 tax year. |
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SECTION 6. (a) Except as provided by Subsection (b) of this |
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section: |
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(1) this Act takes effect on the date on which the |
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constitutional amendment proposed by the 87th Legislature, 3rd |
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Called Session, 2021, increasing the amount of the residence |
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homestead exemption from ad valorem taxation for public school |
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purposes is approved by the voters; and |
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(2) if that amendment is not approved by the voters, |
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this Act has no effect. |
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(b) Section 4 of this Act takes effect immediately if this |
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Act receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, Section 4 of this Act takes effect on the 91st day after the |
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last day of the legislative session. |
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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. 1 passed the Senate on |
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September 22, 2021, by the following vote: Yeas 30, Nays 1; |
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October 15, 2021, Senate refused to concur in House amendments and |
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requested appointment of Conference Committee; October 15, 2021, |
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House granted request of the Senate; October 18, 2021, Senate |
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adopted Conference Committee Report by the following |
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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. 1 passed the House, with |
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amendments, on October 15, 2021, by the following vote: Yeas 140, |
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Nays 4, one present not voting; October 15, 2021, House granted |
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request of the Senate for appointment of Conference Committee; |
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October 18, 2021, House adopted Conference Committee Report by the |
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following vote: Yeas 146, 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 |