By: Stephenson H.B. No. 4317
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the adjustment of the limitation on the amount of ad
  valorem taxes imposed by a school district on the residence
  homestead of an elderly or disabled person if the school district
  adopts, changes the amount of, or rescinds a local option residence
  homestead exemption.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.26, Tax Code, is amended by adding
  Subsections (a-4), (a-5), (a-6), and (a-7) to read as follows:
         (a-4)  Notwithstanding the other provisions of this section,
  if in the 2022 tax year or a subsequent tax year a school district
  adopts an exemption under Section 11.13(n) for the first time, the
  amount of the limitation on tax increases provided by this section
  on the residence homestead of an individual who qualifies for the
  limitation and who qualified for an exemption under Section
  11.13(c) for that homestead for the preceding tax year is, for the
  tax year in which the exemption is adopted, equal to the amount
  computed by:
               (1)  multiplying the dollar amount of the appraised
  value of the homestead exempted under Section 11.13(n) by the tax
  rate of the district for the current tax year;
               (2)  subtracting the amount computed under Subdivision
  (1) from the amount of tax the district imposed on the homestead in
  the preceding tax year; and
               (3)  adding to the amount computed under Subdivision
  (2) any tax imposed by the district on the homestead in the current
  tax year attributable to improvements made in the preceding tax
  year, as provided by Subsection (b).
         (a-5)  Except as provided by Subsections (a-6) and (b), a
  limitation on tax increases provided by this section on a residence
  homestead computed under Subsection (a-4) continues to apply to the
  homestead in subsequent tax years until the limitation expires.
         (a-6)  Notwithstanding the other provisions of this section,
  if a school district increases, decreases, or rescinds an exemption
  under Section 11.13(n) that the district adopted for the first time
  in the 2022 tax year or a subsequent tax year, the amount of the
  limitation on tax increases provided by this section on the
  residence homestead of an individual who qualifies for the
  limitation and who qualified for an exemption under Section
  11.13(c) for that homestead for the preceding tax year is, for the
  tax year in which the exemption is increased, decreased, or
  rescinded, equal to the amount computed by:
               (1)  multiplying the change, expressed as a positive
  amount, in the dollar amount of the appraised value of the homestead
  exempted under Section 11.13(n) as a result of the increase,
  decrease, or rescission of that exemption by the tax rate of the
  district for the current tax year;
               (2)  subtracting the amount computed under Subdivision
  (1) from, or adding the amount computed under that subdivision to,
  as applicable, the amount of tax the district imposed on the
  homestead in the preceding tax year; and
               (3)  adding to the amount computed under Subdivision
  (2) any tax imposed by the district on the homestead in the current
  tax year attributable to improvements made in the preceding tax
  year, as provided by Subsection (b).
         (a-7)  Except as provided by Subsection (b), a limitation on
  tax increases provided by this section on a residence homestead
  computed under Subsection (a-6) continues to apply to the homestead
  in subsequent tax years until the limitation expires.
         SECTION 2.  The changes in law made by this Act apply only to
  an ad valorem tax year that begins on or after January 1, 2022.
         SECTION 3.  This Act takes effect January 1, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  Regular Session, 2021, authorizing the legislature to provide for
  the adjustment of the limitation on the amount of ad valorem taxes
  imposed by a school district on the residence homestead of an
  elderly or disabled person if the school district adopts, changes
  the amount of, or rescinds a local option residence homestead
  exemption is approved by the voters. If that constitutional
  amendment is not approved by the voters, this Act has no effect.