88S10213 CJC/KJE-D
 
  By: Bettencourt S.B. No. 26
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to providing property tax relief through the public school
  finance system, exemptions, and limitations on taxes and providing
  franchise tax relief.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. SHORT TITLE
         SECTION 1.01.  This Act may be cited as the Property Tax and
  Franchise Tax Relief Act.
  ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
         SECTION 2.01.  Section 48.255(b), Education Code, is amended
  to read as follows:
         (b)  The state compression percentage is the lower of:
               (1)  93 percent, or a lower percentage set by
  appropriation for a school year;
               (2)  the percentage determined by the following
  formula:
  SCP = PYCP X 1.0175 [1.025]/(1 + ECPV); or
               (3)  the percentage determined under this section for
  the preceding school year.
         SECTION 2.02.  Section 48.2551(b), Education Code, is
  amended to read as follows:
         (b)  Except as provided by Subsection (c), a district's
  maximum compressed rate ("MCR") is the lesser of:
               (1)  the rate determined by the following applicable
  formula:
                     (A)  if "DPV" exceeds "PYDPV" by an amount equal
  to or greater than 1.75 [2.5] percent:
  MCR = (1.0175 [1.025]((PYDPV+E) X PYMCR))/DPV; or
                     (B)  if Paragraph (A) does not apply:
  MCR = PYMCR; or
               (2)  the product of the state compression percentage,
  as determined under Section 48.255, for the current tax year,
  multiplied by $1.00.
         SECTION 2.03.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Sections 48.2555 and 48.283 to read as follows:
         Sec. 48.2555.  MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
  SCHOOL YEAR. (a) Notwithstanding any other provision of this title
  or Chapter 26, Tax Code, for the 2023-2024 school year, the
  commissioner shall calculate the value of a school district's
  maximum compressed tax rate by determining the district's maximum
  compressed rate under Section 48.2551 or 48.2552(b), if applicable,
  and reducing the tax rate determined under the applicable section
  by $0.10.
         (b)  If a school district's maximum compressed tax rate as
  calculated under Subsection (a) would be less than 90 percent of
  another school district's maximum compressed tax rate under
  Subsection (a), the district's maximum compressed tax rate is the
  value at which the district's maximum compressed tax rate would be
  equal to 90 percent of the other district's maximum compressed tax
  rate.
         (c)  Notwithstanding any other provision of this title or
  Chapter 26, Tax Code, for purposes of determining funding for
  school districts for the 2023-2024 school year, a reference in any
  of the following provisions of law to a school district's maximum
  compressed tax rate or maximum compressed rate as determined under
  Section 48.2551 means the maximum compressed tax rate determined
  for the district under this section:
               (1)  Section 13.054(f);
               (2)  Section 45.003(d);
               (3)  Section 45.0032(a);
               (4)  Section 48.051(a);
               (5)  Sections 48.2553(a) and (e); and
               (6)  Section 26.08(n), Tax Code.
         (d)  For purposes of Section 30.003(f-1), a reference in that
  section to Section 48.2551 includes this section.
         (e)  Notwithstanding any other provision of this title, for
  purposes of determining a school district's maximum compressed tax
  rate under Section 48.2551 for the 2024-2025 school year, the value
  of the district's "PYMCR" is the maximum compressed tax rate
  determined for the district under this section for the preceding
  school year.
         (f)  This section expires September 1, 2025.
         Sec. 48.283.  ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
  IMPACTED BY COMPRESSION. (a)  For the 2023-2024 and 2024-2025
  school years, a school district that received an adjustment under
  Section 48.257(b) for the 2022-2023 school year is entitled to
  additional state aid in an amount equal to the difference, if the
  difference is greater than zero, between:
               (1)  the amount of state and local revenue that would
  have been available to the district under this chapter and Chapter
  49 for the current school year if the district's maximum compressed
  tax rate had not been reduced under Section 48.2555, as added by
  S.B. _, Acts of the 88th Legislature, 1st Called Session, 2023; and
               (2)  the amount of state and local revenue available to
  the district under this chapter and Chapter 49 for the current
  school year.
         (b)  This section expires September 1, 2026.
  ARTICLE 3. SCHOOL DISTRICT RESIDENCE HOMESTEAD EXEMPTION
         SECTION 3.01.  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 $100,000 [$40,000] 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 3.02.  Section 11.26, Tax Code, is amended by
  amending Subsections (a), (a-10), and (o) and adding Subsections
  (a-11) and (a-12) 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 2015 tax year, the
  amount of the limitation provided by this section is the amount of
  tax the school district imposed for the 2014 tax year less an amount
  equal to the amount determined by multiplying $10,000 times the tax
  rate of the school district for the 2015 tax year, plus any 2015 tax
  attributable to improvements made in 2014, other than improvements
  made to comply with governmental regulations or repairs.]
         (a-10)  Notwithstanding the other provisions of this
  section, if in the 2024 or a subsequent tax year an individual
  qualifies for a limitation on tax increases provided by this
  section on the individual's residence homestead, the amount of the
  limitation provided by this section on the homestead is equal to the
  amount computed by:
               (1)  multiplying the taxable value of the homestead in
  the preceding tax year by a tax rate equal to the difference between
  the school district's maximum compressed rate for the preceding tax
  year and the district's maximum compressed rate 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 any tax imposed in the current tax year
  attributable to improvements made in the preceding tax year as
  provided by Subsection (b) to the amount computed under Subdivision
  (2);
               (4)  multiplying the amount of any increase in the
  current tax year as compared to the preceding tax year in the
  aggregate amount of the exemptions to which the individual is
  entitled under Sections 11.13(b) and (c) by the school district's
  tax rate for the current tax year; and
               (5)  subtracting the amount computed under Subdivision
  (4) from the amount computed under Subdivision (3).
         (a-11)  This subsection applies only to an individual who in
  the 2023 tax year qualifies for a limitation under this section and
  for whom the 2022 tax year or an earlier tax year was the first tax
  year the individual or the individual's spouse qualified for an
  exemption under Section 11.13(c). The amount of the limitation
  provided by this section on the residence homestead of an
  individual to which this subsection applies 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) of this section, as applicable, less
  an amount equal to the product of $60,000 and the tax rate of the
  school district for the 2023 tax year. This subsection expires
  January 1, 2025.
         (a-12)  This subsection applies only to an individual who in
  the 2023 tax year qualifies for a limitation under this section and
  for whom the 2021 tax year or an earlier tax year was the first tax
  year the individual or the individual's spouse qualified for an
  exemption under Section 11.13(c). The amount of the limitation
  provided by this section on the residence homestead of an
  individual to which this subsection applies for the 2023 tax year is
  the amount of the limitation as computed under Subsection (a-11) of
  this section less an amount equal to the product of $15,000 and the
  tax rate of the school district for the 2022 tax year. This
  subsection expires January 1, 2025.
         (o)  Notwithstanding Subsections (a)[, (a-3),] and (b), an
  improvement to property that would otherwise constitute an
  improvement under Subsection (b) is not treated as an improvement
  under that subsection if the improvement is a replacement structure
  for a structure that was rendered uninhabitable or unusable by a
  casualty or by wind or water damage.  For purposes of appraising the
  property in the tax year in which the structure would have
  constituted an improvement under Subsection (b), the replacement
  structure is considered to be an improvement under that subsection
  only if:
               (1)  the square footage of the replacement structure
  exceeds that of the replaced structure as that structure existed
  before the casualty or damage occurred; or
               (2)  the exterior of the replacement structure is of
  higher quality construction and composition than that of the
  replaced structure.
         SECTION 3.03.  Section 46.071, Education Code, is amended by
  amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
  (b-2), and (c-2) to read as follows:
         (a-1)  For [Beginning with] 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, 2021, if any increase in
  the residence homestead exemption under Section 1-b(c), Article
  VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd
  Called Session, 2021, had not occurred.
         (a-2)  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 a 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 88th Legislature,
  1st Called Session, 2023, had not occurred.
         (b-1)  Subject to Subsections (c-1), (d), and (e),
  additional state aid under this section for [beginning with] 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
  any increase in the residence homestead exemption under Section
  1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
  Legislature, 3rd Called Session, 2021, is not offset by a gain in
  state aid under this chapter.
         (b-2)  Subject to Subsections (c-2), (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 a 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 88th Legislature, 1st Called Session, 2023, is not
  offset by a gain in state aid under this chapter.
         (c-2)  For the purpose of determining state aid under
  Subsections (a-2) and (b-2), local interest and sinking revenue for
  debt service is limited to revenue required to service debt
  eligible under this chapter as of September 1, 2023, 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 3.04.  Section 48.2542, Education Code, is amended
  to read as follows:
         Sec. 48.2542.  ADDITIONAL STATE AID FOR ADJUSTMENT OF
  LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.  
  Notwithstanding any other provision of this chapter, if a school
  district is not fully compensated through state aid or the
  calculation of excess local revenue under this chapter based on the
  determination of the district's taxable value of property under
  Subchapter M, Chapter 403, Government Code, the district is
  entitled to additional state aid in the amount necessary to fully
  compensate the district for the amount of ad valorem tax revenue
  lost due to a reduction of the amount of the limitation on tax
  increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
  (a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as
  applicable.
         SECTION 3.05.  Effective January 1, 2025, Section 48.2542,
  Education Code, is amended to read as follows:
         Sec. 48.2542.  ADDITIONAL STATE AID FOR ADJUSTMENT OF
  LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.  
  Notwithstanding any other provision of this chapter, if a school
  district is not fully compensated through state aid or the
  calculation of excess local revenue under this chapter based on the
  determination of the district's taxable value of property under
  Subchapter M, Chapter 403, Government Code, the district is
  entitled to additional state aid in the amount necessary to fully
  compensate the district for the amount of ad valorem tax revenue
  lost due to a reduction of the amount of the limitation on tax
  increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
  (a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
  applicable].
         SECTION 3.06.  Section 48.2543, Education Code, is amended
  to read as follows:
         Sec. 48.2543.  ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
  (a) For [Beginning with] the 2022-2023 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, 2021, if any increase in the residence
  homestead exemption under Section 1-b(c), Article VIII, Texas
  Constitution, as proposed by the 87th Legislature, 3rd Called
  Session, 2021, had not occurred.
         (a-1)  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 a 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 88th Legislature,
  1st Called Session, 2023, 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:
               (1)  the 2021 tax year is used for the purpose of
  determining additional state aid under Subsection (a); and
               (2)  the 2022 tax year is used for the purpose of
  determining additional state aid under Subsection (a-1).
         SECTION 3.07.  Section 48.2556(a), Education Code, is
  amended to read as follows:
         (a)  The agency shall post the following information on the
  agency's Internet website for purposes of allowing the chief
  appraiser of each appraisal district and the assessor for each
  school district to make the calculations required by Sections
  11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and
  (a-12), Tax Code:
               (1)  each school district's maximum compressed rate, as
  determined under Section 48.2551, for each tax year beginning with
  the 2019 tax year; and
               (2)  each school district's tier one maintenance and
  operations tax rate, as provided by Section 45.0032(a), for the
  2018 tax year.
         SECTION 3.08.  Effective January 1, 2025, Section
  48.2556(a), Education Code, is amended to read as follows:
         (a)  For purposes of allowing the chief appraiser of each
  appraisal district and the assessor for each school district to
  make the calculations required by Section 11.26(a-10), Tax Code,
  the [The] agency shall post [the following information] on the
  agency's Internet website [for purposes of allowing the chief
  appraiser of each appraisal district and the assessor for each
  school district to make the calculations required by Sections
  11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
               [(1)]  each school district's maximum compressed rate,
  as determined under Section 48.2551, for the current [each] tax
  year and the preceding [beginning with the 2019] tax year[; and
               [(2)  each school district's tier one maintenance and
  operations tax rate, as provided by Section 45.0032(a), for the
  2018 tax year].
         SECTION 3.09.  Section 49.004, Education Code, is amended by
  adding Subsections (a-1), (b-1), and (c-1) to read as follows:
         (a-1)  This subsection applies only if the constitutional
  amendment proposed by S.J.R. ___, 88th Legislature, 1st Called
  Session, 2023, is approved by the voters in an election held for
  that purpose.  As soon as practicable after receiving revised
  property values that reflect adoption of the constitutional
  amendment, the commissioner shall review the local revenue level of
  districts in the state and revise as necessary the notifications
  provided under Subsection (a) for the 2023-2024 school year.  This
  subsection expires September 1, 2024.
         (b-1)  This subsection applies only to a district that has
  not previously held an election under this chapter. Notwithstanding
  Subsection (b), a district that enters into an agreement to
  exercise an option to reduce the district's local revenue level in
  excess of entitlement under Section 49.002(3), (4), or (5) for the
  2023-2024 school year may request and, as provided by Section
  49.0042(a), receive approval from the commissioner to delay the
  date of the election otherwise required to be ordered before
  September 1. This subsection expires September 1, 2024.
         (c-1)  Notwithstanding Subsection (c), a district that
  receives approval from the commissioner to delay an election as
  provided by Subsection (b-1) may adopt a tax rate for the 2023 tax
  year before the commissioner certifies that the district has
  reduced its local revenue level to the level established by Section
  48.257.  This subsection expires September 1, 2024.
         SECTION 3.10.  Subchapter A, Chapter 49, Education Code, is
  amended by adding Section 49.0042 to read as follows:
         Sec. 49.0042.  TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD
  EXEMPTIONS AND LIMITATION ON TAX INCREASES.  (a) The commissioner
  shall approve a district's request under Section 49.004(b-1) to
  delay the date of an election required under this chapter if the
  commissioner determines that the district would not have a local
  revenue level in excess of entitlement if the constitutional
  amendment proposed by S.J.R. ___, 88th Legislature, 1st Called
  Session, 2023, were approved by the voters.
         (b)  The commissioner shall set a date by which each district
  that receives approval under this section must order the election.
         (c)  Not later than the 2024-2025 school year, the
  commissioner shall order detachment and annexation of property
  under Subchapter G or consolidation under Subchapter H as necessary
  to reduce the district's local revenue level to the level
  established by Section 48.257 for a district that receives approval
  under this section and subsequently:
               (1)  fails to hold the election; or
               (2)  does not receive voter approval at the election.
         (d)  This section expires September 1, 2025.
         SECTION 3.11.  Subchapter A, Chapter 49, Education Code, is
  amended by adding Section 49.0121 to read as follows:
         Sec. 49.0121.  TRANSITIONAL ELECTION DATES. (a)  This
  section applies only to an election under this chapter that occurs
  during the 2023-2024 school year.
         (b)  Section 49.012 does not apply to a district that
  receives approval of a request under Section 49.0042. The district
  shall hold the election on a Tuesday or Saturday on or before a date
  specified by the commissioner. Section 41.001, Election Code, does
  not apply to the election.
         (c)  This section expires September 1, 2024.
         SECTION 3.12.  Section 49.154, Education Code, is amended by
  adding Subsections (a-2) and (a-3) to read as follows:
         (a-2)  Notwithstanding Subsections (a) and (a-1), a district
  that receives approval of a request under Section 49.0042 shall pay
  for credit purchased:
               (1)  in equal monthly payments as determined by the
  commissioner beginning March 15, 2024, and ending August 15, 2024;
  or
               (2)  in the manner provided by Subsection (a)(2),
  provided that the district notifies the commissioner of the
  district's election to pay in that manner not later than March 15,
  2024.
         (a-3)  Subsection (a-2) and this subsection expire September
  1, 2024.
         SECTION 3.13.  Section 49.308, Education Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a), for the 2023-2024
  school year, the commissioner shall order any detachments and
  annexations of property under this subchapter as soon as
  practicable after the canvass of the votes on the constitutional
  amendment proposed by S.J.R. ___, 88th Legislature, 1st Called
  Session, 2023. This subsection expires September 1, 2024.
         SECTION 3.14.  Section 403.302, Government Code, is amended
  by amending Subsection (j-1) and adding Subsection (j-2) to read as
  follows:
         (j-1)  In the final certification of the study under
  Subsection (j), the comptroller shall separately identify the final
  taxable value for each school district as adjusted to account for
  the reduction of the amount of the limitation on tax increases
  provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
  (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
         (j-2)  In the final certification of the study under
  Subsection (j), the comptroller shall separately identify the final
  taxable value for each school district as adjusted to account for
  the reduction of the amount of the limitation on tax increases
  provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9),
  (a-10), (a-11), and (a-12), Tax Code. This subsection expires
  January 1, 2025.
         SECTION 3.15.  Section 25.23, Tax Code, is amended by adding
  Subsection (a-1) to read as follows:
         (a-1)  This subsection applies only to the appraisal records
  for the 2023 tax year. The chief appraiser shall prepare
  supplemental appraisal records to account for the changes in law
  made by S.B. __, Acts of the 88th Legislature, 1st Called Session,
  2023.  This subsection expires December 31, 2024.
         SECTION 3.16.  Section 26.04, Tax Code, is amended by adding
  Subsections (a-1) and (c-1) to read as follows:
         (a-1)  On receipt of the appraisal roll for the 2023 tax
  year, the assessor for a school district shall determine the total
  taxable value of property taxable by the district and the taxable
  value of new property as if the changes in law made by S.B. __, Acts
  of the 88th Legislature, 1st Called Session, 2023, were in effect
  for that tax year. This subsection expires December 31, 2024.
         (c-1)  An officer or employee designated by the governing
  body of a school district shall calculate the no-new-revenue tax
  rate and the voter-approval tax rate of the district for the 2023
  tax year as if the changes in law made by S.B. __, Acts of the 88th
  Legislature, 1st Called Session, 2023, were in effect for that tax
  year. This subsection expires December 31, 2024.
         SECTION 3.17.  Section 26.08, Tax Code, is amended by adding
  Subsection (q) to read as follows:
         (q)  For purposes of this section, the voter-approval tax
  rate of a school district for the 2023 tax year shall be calculated
  as if the changes in law made by S.B. __, Acts of the 88th
  Legislature, 1st Called Session, 2023, were in effect for that tax
  year. This subsection expires December 31, 2024.
         SECTION 3.18.  Section 26.09, Tax Code, is amended by adding
  Subsection (c-1) to read as follows:
         (c-1)  The assessor for a school district shall calculate the
  amount of tax imposed by the district on a residence homestead for
  the 2023 tax year as if the changes in law made by S.B. __, Acts of
  the 88th Legislature, 1st Called Session, 2023, were in effect for
  that tax year and also as if the changes in law made by that Act were
  not in effect for that tax year. This subsection expires December
  31, 2024.
         SECTION 3.19.  Section 26.15, Tax Code, is amended by adding
  Subsection (h) to read as follows:
         (h)  The assessor for a school district shall correct the tax
  roll for the district for the 2023 tax year to reflect the results
  of the election to approve the constitutional amendment proposed by
  S.J.R. ___, 88th Legislature, 1st Called Session, 2023. This
  subsection expires December 31, 2024.
         SECTION 3.20.  Section 31.01, Tax Code, is amended by adding
  Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
         (d-2)  This subsection and Subsections (d-3) and (d-4) apply
  only to taxes imposed by a school district on a residence homestead
  for the 2023 tax year and only if the changes in law made by S.B. __,
  Acts of the 88th Legislature, 1st Called Session, 2023, would lower
  the taxes imposed by the district on the property for that tax year.
  The assessor for the district shall compute the amount of taxes
  imposed and the other information required by this section as if the
  changes in law made by S.B. __, Acts of the 88th Legislature, 1st
  Called Session, 2023, were in effect for that tax year. The tax
  bill or the separate statement must indicate that the bill is a
  provisional tax bill and include a statement in substantially the
  following form:
         "If the Texas Legislature had not enacted property tax relief
  legislation during the 2023 legislative session, your tax bill
  would have been $____ (insert amount of tax bill if the changes in
  law made by S.B. __, Acts of the 88th Legislature, 1st Called
  Session, 2023, were not in effect for that tax year). Because of
  action by the Texas Legislature, your tax bill has been lowered by
  $____ (insert difference between amount of tax bill if the changes
  in law made by S.B. __, Acts of the 88th Legislature, 1st Called
  Session, 2023, were not in effect for that tax year and amount of
  tax bill if that Act were in effect for that tax year), resulting in
  a lower tax bill of $____ (insert amount of tax bill if the changes
  in law made by S.B. __, Acts of the 88th Legislature, 1st Called
  Session, 2023, were in effect for that tax year), contingent on the
  approval by the voters at an election to be held November 7, 2023,
  of the constitutional amendment proposed by S.J.R. ___, 88th
  Legislature, 1st Called Session, 2023. If that constitutional
  amendment is not approved by the voters at the election, a
  supplemental tax bill in the amount of $____ (insert difference
  between amount of tax bill if the changes in law made by S.B. __,
  Acts of the 88th Legislature, 1st Called Session, 2023, were not in
  effect for that tax year and amount of tax bill if that Act were in
  effect for that tax year) will be mailed to you."
         (d-3)  A tax bill prepared by the assessor for a school
  district as provided by Subsection (d-2) and mailed as provided by
  Subsection (a) is considered to be a provisional tax bill until the
  canvass of the votes on the constitutional amendment proposed by
  S.J.R. ___, 88th Legislature, 1st Called Session, 2023. If the
  constitutional amendment is approved by the voters, the tax bill is
  considered to be a final tax bill for the taxes imposed on the
  property for the 2023 tax year, and no additional tax bill is
  required to be mailed unless another provision of this title
  requires the mailing of a corrected tax bill. If the constitutional
  amendment is not approved by the voters:
               (1)  a tax bill prepared by the assessor as provided by
  Subsection (d-2) is considered to be a final tax bill but only as to
  the portion of the taxes imposed on the property for the 2023 tax
  year that are included in the bill;
               (2)  the amount of taxes imposed by each school
  district on a residence homestead for the 2023 tax year is
  calculated as if the changes in law made by S.B. __, Acts of the 88th
  Legislature, 1st Called Session, 2023, were not in effect for that
  tax year; and
               (3)  except as provided by Subsections (f), (i-1), and
  (k), the assessor for each school district shall prepare and mail a
  supplemental tax bill, by December 1 or as soon thereafter as
  practicable, in an amount equal to the difference between the
  amount of the tax bill if the changes in law made by S.B. __, Acts of
  the 88th Legislature, 1st Called Session, 2023, were not in effect
  for that tax year and the amount of the tax bill if that Act were in
  effect for that tax year.
         (d-4)  Except as otherwise provided by Subsection (d-3), the
  provisions of this section other than Subsection (d-2) apply to a
  supplemental tax bill mailed under Subsection (d-3).
         (d-5)  This subsection and Subsections (d-2), (d-3), and
  (d-4) expire December 31, 2024.
         SECTION 3.21.  Section 31.02, Tax Code, is amended by adding
  Subsection (a-1) to read as follows:
         (a-1)  Except as provided by Subsection (b) of this section
  and Sections 31.03 and 31.04, taxes for which a supplemental tax
  bill is mailed under Section 31.01(d-3) are due on receipt of the
  tax bill and are delinquent if not paid before March 1 of the year
  following the year in which imposed. This subsection expires
  December 31, 2024.
         SECTION 3.22.  (a) Sections 11.26(a-1), (a-2), and (a-3),
  Tax Code, are repealed.
         (b)  Effective January 1, 2025, Sections 11.26(a-5), (a-6),
  (a-7), (a-8), and (a-9), Tax Code, are repealed.
         SECTION 3.23.  The changes in law made by this article to
  Sections 11.13 and 11.26, Tax Code, apply beginning with the ad
  valorem tax year that begins January 1, 2023.
  ARTICLE 4. DETERMINATION AND REPORTING OF FRANCHISE TAX LIABILITY
         SECTION 4.01.  Section 171.002(d), Tax Code, is amended to
  read as follows:
         (d)  A taxable entity is not required to pay any tax and is
  not considered to owe any tax for a period if:
               (1)  the amount of tax computed for the taxable entity
  is less than $1,000; or
               (2)  the amount of the taxable entity's total revenue
  from its entire business is less than or equal to $2.47 [$1] million
  or the amount determined under Section 171.006 per 12-month period
  on which margin is based.
         SECTION 4.02.  Section 171.204(b), Tax Code, is amended to
  read as follows:
         (b)  The comptroller may not require a taxable entity that
  does not owe any tax because of the application of Section
  171.002(d)(2) to file an [abbreviated] information report with the
  comptroller [stating the amount of the taxable entity's total
  revenue from its entire business.  The comptroller may not require
  a taxable entity described by this subsection to file an
  information report that requires the taxable entity to report or
  compute its margin].
         SECTION 4.03.  Section 171.204(d), Tax Code, is repealed.
         SECTION 4.04.  The changes in law made by this article apply
  only to a report originally due on or after January 1, 2024.
  ARTICLE 5. EFFECTIVE DATES
         SECTION 5.01.  Except as otherwise provided by this article,
  this Act takes effect on the 91st day after the last day of the
  legislative session.
         SECTION 5.02.  (a) Except as provided by Subsection (b) of
  this section or as otherwise provided by Article 3 of this Act:
               (1)  Article 3 of this Act takes effect on the date on
  which the constitutional amendment proposed by S.J.R. ___, 88th
  Legislature, 1st Called Session, 2023, takes effect; and
               (2)  if that amendment is not approved by the voters,
  Article 3 of this Act has no effect.
         (b)  Sections 49.004(a-1), (b-1), and (c-1), 49.0042,
  49.0121, 49.154(a-2) and (a-3), and 49.308(a-1), Education Code,
  and Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q),
  26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and
  31.02(a-1), Tax Code, as added by Article 3 of this Act, take effect
  immediately if this Act receives a vote of two-thirds of all the
  members elected to each house, as provided by Section 39, Article
  III, Texas Constitution. If this Act does not receive the vote
  necessary for those sections to have immediate effect, those
  sections take effect on the 91st day after the last day of the
  legislative session.
         SECTION 5.03.  Article 4 of this Act takes effect January 1,
  2024.