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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of certain ad valorem tax rates of a |
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taxing unit for a year in which a property owner provides notice |
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that the owner intends to appeal an order of an appraisal review |
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board determining a protest by the owner regarding the appraisal of |
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the owner's property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) Section 26.012, Tax Code, is amended by |
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adding Subdivisions (1-a), (1-b), (1-c), (2-a), and (20) to read as |
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follows: |
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(1-a) "Affected taxing unit" means a taxing unit: |
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(A) that is wholly or partly located in a county |
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that: |
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(i) has a population of less than 500,000; |
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and |
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(ii) is located on the Gulf of Mexico; and |
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(B) in which one or more parcels of property are |
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located that are included as part of anticipated substantial |
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|
litigation. |
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(1-b) "Anticipated substantial litigation" means one |
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or more appeals filed or intended to be filed under Chapter 42 for a |
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tax year by a single property owner or by one or more associated |
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business entities of a single property owner of one or more orders |
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of an appraisal review board determining one or more protests by the |
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owner or entities of the taxable value of one or more parcels of |
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property located in an affected taxing unit that have an aggregate |
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contested taxable value of more than $1 billion. |
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(1-c) "Associated business entity" means a subsidiary |
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or other associated business entity of a property owner. |
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(2-a) "Contested taxable value" means the portion of |
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the taxable value of property that is in dispute. |
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(20) "Uncontested taxable value" means the portion of |
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the taxable value of property that is not in dispute. |
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(b) Sections 26.012(1-a), (1-b), (1-c), (2-a), and (20), |
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Tax Code, as added by this Act, expire December 31, 2025. |
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SECTION 2. Section 26.012(6), Tax Code, as effective |
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January 1, 2024, is amended to read as follows: |
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(6) "Current total value" means the total taxable |
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value of property listed on the appraisal roll for the current year, |
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|
including all appraisal roll supplements and corrections as of the |
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|
date of the calculation, less the taxable value of property |
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|
exempted for the current tax year for the first time under Section |
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11.31 or 11.315, except that: |
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(A) the current total value for a school district |
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excludes: |
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(i) the total value of homesteads that |
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|
qualify for a tax limitation as provided by Section 11.26; |
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|
(ii) new property value of property that is |
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|
subject to an agreement entered into under former Subchapter B or C, |
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|
Chapter 313; and |
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(iii) new property value of property that |
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|
is subject to an agreement entered into under Subchapter T, Chapter |
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|
403, Government Code; [and] |
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(B) the current total value for a county, |
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municipality, or junior college district excludes the total value |
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|
of homesteads that qualify for a tax limitation provided by Section |
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11.261; and |
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(C) the current total value of an affected taxing |
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unit excludes the portion of the aggregate taxable value of all of |
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the property located in the taxing unit that is included as part of |
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anticipated substantial litigation that consists of contested |
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taxable value. |
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SECTION 3. Effective January 1, 2026, Section 26.012(6), |
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Tax Code, as effective January 1, 2024, is amended to read as |
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follows: |
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(6) "Current total value" means the total taxable |
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|
value of property listed on the appraisal roll for the current year, |
|
|
including all appraisal roll supplements and corrections as of the |
|
|
date of the calculation, less the taxable value of property |
|
|
exempted for the current tax year for the first time under Section |
|
|
11.31 or 11.315, except that: |
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|
(A) the current total value for a school district |
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|
excludes: |
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|
(i) the total value of homesteads that |
|
|
qualify for a tax limitation as provided by Section 11.26; |
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|
(ii) new property value of property that is |
|
|
subject to an agreement entered into under former Subchapter B or C, |
|
|
Chapter 313; and |
|
|
(iii) new property value of property that |
|
|
is subject to an agreement entered into under Subchapter T, Chapter |
|
|
403, Government Code; and |
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|
(B) the current total value for a county, |
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|
municipality, or junior college district excludes the total value |
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|
of homesteads that qualify for a tax limitation provided by Section |
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11.261. |
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SECTION 4. Section 26.04(d-3), Tax Code, is amended to read |
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as follows: |
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(d-3) As soon as practicable after the designated officer or |
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|
employee calculates the no-new-revenue tax rate and the |
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|
voter-approval tax rate of the taxing unit, the designated officer |
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|
or employee shall submit the tax rate calculation forms used in |
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|
calculating the rates to the county assessor-collector for each |
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county in which all or part of the territory of the taxing unit is |
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located. If an amount described by Section 26.012(6)(C) is excluded |
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from the current total value of an affected taxing unit for a tax |
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|
year, the designated officer or employee for the taxing unit shall |
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|
include as an addendum to the tax rate calculation forms for that |
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|
tax year documentation that supports the exclusion. |
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SECTION 5. Effective January 1, 2026, Section 26.04(d-3), |
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|
Tax Code, is amended to read as follows: |
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|
(d-3) As soon as practicable after the designated officer or |
|
|
employee calculates the no-new-revenue tax rate and the |
|
|
voter-approval tax rate of the taxing unit, the designated officer |
|
|
or employee shall submit the tax rate calculation forms used in |
|
|
calculating the rates to the county assessor-collector for each |
|
|
county in which all or part of the territory of the taxing unit is |
|
|
located. |
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SECTION 6. Section 26.16(d-1), Tax Code, is amended to read |
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|
as follows: |
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(d-1) In addition to posting the information described by |
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Subsection (a), the county assessor-collector shall post on the |
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|
Internet website of the county for each taxing unit all or part of |
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|
the territory of which is located in the county: |
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|
(1) the tax rate calculation forms used by the |
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|
designated officer or employee of each taxing unit to calculate the |
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|
no-new-revenue and voter-approval tax rates of the taxing unit for |
|
|
the most recent five tax years beginning with the 2020 tax year, as |
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|
certified by the designated officer or employee under Section |
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|
26.04(d-2), along with the addendum to those forms required by |
|
|
Section 26.04(d-3), if applicable; and |
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(2) the name and official contact information for each |
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|
member of the governing body of the taxing unit. |
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SECTION 7. Effective January 1, 2026, Section 26.16(d-1), |
|
|
Tax Code, is amended to read as follows: |
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(d-1) In addition to posting the information described by |
|
|
Subsection (a), the county assessor-collector shall post on the |
|
|
Internet website of the county for each taxing unit all or part of |
|
|
the territory of which is located in the county: |
|
|
(1) the tax rate calculation forms used by the |
|
|
designated officer or employee of each taxing unit to calculate the |
|
|
no-new-revenue and voter-approval tax rates of the taxing unit for |
|
|
the most recent five tax years beginning with the 2020 tax year, as |
|
|
certified by the designated officer or employee under Section |
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|
26.04(d-2); and |
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(2) the name and official contact information for each |
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member of the governing body of the taxing unit. |
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SECTION 8. Sections 26.17(e) and (f), Tax Code, are amended |
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|
to read as follows: |
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(e) The officer or employee designated by the governing body |
|
|
of each taxing unit in which the property is located to calculate |
|
|
the no-new-revenue tax rate and the voter-approval tax rate for the |
|
|
taxing unit must electronically incorporate into the database: |
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|
(1) the information described by Subsections (b)(5), |
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|
(6), (7), (12), and (13), as applicable, as the information becomes |
|
|
available; and |
|
|
(2) the tax rate calculation forms prepared under |
|
|
Section 26.04(d-1), along with the addendum to those forms required |
|
|
by Section 26.04(d-3), if applicable, at the same time the |
|
|
designated officer or employee submits the tax rates to the |
|
|
governing body of the taxing unit under Section 26.04(e). |
|
|
(f) The chief appraiser shall make the information |
|
|
described by Subsection (e)(1) and the tax rate calculation forms, |
|
|
along with the addendum to those forms required by Section |
|
|
26.04(d-3), if applicable, described by Subsection (e)(2) |
|
|
available to the public not later than the third business day after |
|
|
the date the information and forms are incorporated into the |
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|
database. |
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SECTION 9. Effective January 1, 2026, Sections 26.17(e) and |
|
|
(f), Tax Code, are amended to read as follows: |
|
|
(e) The officer or employee designated by the governing body |
|
|
of each taxing unit in which the property is located to calculate |
|
|
the no-new-revenue tax rate and the voter-approval tax rate for the |
|
|
taxing unit must electronically incorporate into the database: |
|
|
(1) the information described by Subsections (b)(5), |
|
|
(6), (7), (12), and (13), as applicable, as the information becomes |
|
|
available; and |
|
|
(2) the tax rate calculation forms prepared under |
|
|
Section 26.04(d-1) at the same time the designated officer or |
|
|
employee submits the tax rates to the governing body of the taxing |
|
|
unit under Section 26.04(e). |
|
|
(f) The chief appraiser shall make the information |
|
|
described by Subsection (e)(1) and the tax rate calculation forms |
|
|
described by Subsection (e)(2) available to the public not later |
|
|
than the third business day after the date the information and forms |
|
|
are incorporated into the database. |
|
|
SECTION 10. Subchapter C, Chapter 41, Tax Code, is amended |
|
|
by adding Section 41.48 to read as follows: |
|
|
Sec. 41.48. NOTICE OF CERTAIN APPEALS. (a) In this section, |
|
|
"affected taxing unit," "anticipated substantial litigation," |
|
|
"associated business entity," and "uncontested taxable value" have |
|
|
the meanings assigned by Section 26.012. |
|
|
(b) A property owner or associated business entity of the |
|
|
owner that intends to file an appeal under Chapter 42 that is part |
|
|
of anticipated substantial litigation shall submit to the collector |
|
|
for each affected taxing unit in which the property included in the |
|
|
litigation is located the total amount of uncontested taxable value |
|
|
of all property located in the taxing unit that may be the subject |
|
|
of an appeal by the property owner or entity and that is part of the |
|
|
litigation. |
|
|
(c) A property owner or associated business entity of the |
|
|
property owner must submit the information required to be submitted |
|
|
under this section not later than the earlier of August 7 or the |
|
|
21st day after the date the first hearing regarding a protest of the |
|
|
value of any property included in the anticipated substantial |
|
|
litigation is conducted under this chapter. |
|
|
(d) This section expires December 31, 2025. |
|
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SECTION 11. (a) This section takes effect only if the |
|
|
constitutional amendment proposed by H.J.R. 2, 88th Legislature, |
|
|
2nd Called Session, 2023, is approved by the voters. |
|
|
(b) Section 403.302(d), Government Code, is amended to read |
|
|
as follows: |
|
|
(d) For the purposes of this section, "taxable value" means |
|
|
the market value of all taxable property less: |
|
|
(1) the total dollar amount of any residence homestead |
|
|
exemptions lawfully granted under Section 11.13(b) or (c), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(2) one-half of the total dollar amount of any |
|
|
residence homestead exemptions granted under Section 11.13(n), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(3) the total dollar amount of any exemptions granted |
|
|
before May 31, 1993, within a reinvestment zone under agreements |
|
|
authorized by Chapter 312, Tax Code; |
|
|
(4) subject to Subsection (e), the total dollar amount |
|
|
of any captured appraised value of property that: |
|
|
(A) is within a reinvestment zone created on or |
|
|
before May 31, 1999, or is proposed to be included within the |
|
|
boundaries of a reinvestment zone as the boundaries of the zone and |
|
|
the proposed portion of tax increment paid into the tax increment |
|
|
fund by a school district are described in a written notification |
|
|
provided by the municipality or the board of directors of the zone |
|
|
to the governing bodies of the other taxing units in the manner |
|
|
provided by former Section 311.003(e), Tax Code, before May 31, |
|
|
1999, and within the boundaries of the zone as those boundaries |
|
|
existed on September 1, 1999, including subsequent improvements to |
|
|
the property regardless of when made; |
|
|
(B) generates taxes paid into a tax increment |
|
|
fund created under Chapter 311, Tax Code, under a reinvestment zone |
|
|
financing plan approved under Section 311.011(d), Tax Code, on or |
|
|
before September 1, 1999; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(5) the total dollar amount of any captured appraised |
|
|
value of property that: |
|
|
(A) is within a reinvestment zone: |
|
|
(i) created on or before December 31, 2008, |
|
|
by a municipality with a population of less than 18,000; and |
|
|
(ii) the project plan for which includes |
|
|
the alteration, remodeling, repair, or reconstruction of a |
|
|
structure that is included on the National Register of Historic |
|
|
Places and requires that a portion of the tax increment of the zone |
|
|
be used for the improvement or construction of related facilities |
|
|
or for affordable housing; |
|
|
(B) generates school district taxes that are paid |
|
|
into a tax increment fund created under Chapter 311, Tax Code; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(6) the total dollar amount of any exemptions granted |
|
|
under Section 11.251 or 11.253, Tax Code; |
|
|
(7) the difference between the comptroller's estimate |
|
|
of the market value and the productivity value of land that |
|
|
qualifies for appraisal on the basis of its productive capacity, |
|
|
except that the productivity value estimated by the comptroller may |
|
|
not exceed the fair market value of the land; |
|
|
(8) the portion of the appraised value of residence |
|
|
homesteads of individuals who receive a tax limitation under |
|
|
Section 11.26, Tax Code, on which school district taxes are not |
|
|
imposed in the year that is the subject of the study, calculated as |
|
|
if the residence homesteads were appraised at the full value |
|
|
required by law; |
|
|
(9) a portion of the market value of property not |
|
|
otherwise fully taxable by the district at market value because of |
|
|
action required by statute or the constitution of this state, other |
|
|
than Section 11.311, Tax Code, that, if the tax rate adopted by the |
|
|
district is applied to it, produces an amount equal to the |
|
|
difference between the tax that the district would have imposed on |
|
|
the property if the property were fully taxable at market value and |
|
|
the tax that the district is actually authorized to impose on the |
|
|
property, if this subsection does not otherwise require that |
|
|
portion to be deducted; |
|
|
(10) the market value of all tangible personal |
|
|
property, other than manufactured homes, owned by a family or |
|
|
individual and not held or used for the production of income; |
|
|
(11) the appraised value of property the collection of |
|
|
delinquent taxes on which is deferred under Section 33.06, Tax |
|
|
Code; |
|
|
(12) the portion of the appraised value of property |
|
|
the collection of delinquent taxes on which is deferred under |
|
|
Section 33.065, Tax Code; |
|
|
(13) the amount by which the market value of property |
|
|
to which Section 23.23 or 23.231, Tax Code, applies exceeds the |
|
|
appraised value of that property as calculated under Section 23.23 |
|
|
or 23.231, Tax Code, as applicable; [and] |
|
|
(14) the total dollar amount of any exemptions granted |
|
|
under Section 11.35, Tax Code; and |
|
|
(15) the amount excluded from the current total value |
|
|
of the district under Section 26.012(6)(C), Tax Code. |
|
|
(c) Effective January 1, 2026, Section 403.302(d), |
|
|
Government Code, is amended to read as follows: |
|
|
(d) For the purposes of this section, "taxable value" means |
|
|
the market value of all taxable property less: |
|
|
(1) the total dollar amount of any residence homestead |
|
|
exemptions lawfully granted under Section 11.13(b) or (c), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(2) one-half of the total dollar amount of any |
|
|
residence homestead exemptions granted under Section 11.13(n), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(3) the total dollar amount of any exemptions granted |
|
|
before May 31, 1993, within a reinvestment zone under agreements |
|
|
authorized by Chapter 312, Tax Code; |
|
|
(4) subject to Subsection (e), the total dollar amount |
|
|
of any captured appraised value of property that: |
|
|
(A) is within a reinvestment zone created on or |
|
|
before May 31, 1999, or is proposed to be included within the |
|
|
boundaries of a reinvestment zone as the boundaries of the zone and |
|
|
the proposed portion of tax increment paid into the tax increment |
|
|
fund by a school district are described in a written notification |
|
|
provided by the municipality or the board of directors of the zone |
|
|
to the governing bodies of the other taxing units in the manner |
|
|
provided by former Section 311.003(e), Tax Code, before May 31, |
|
|
1999, and within the boundaries of the zone as those boundaries |
|
|
existed on September 1, 1999, including subsequent improvements to |
|
|
the property regardless of when made; |
|
|
(B) generates taxes paid into a tax increment |
|
|
fund created under Chapter 311, Tax Code, under a reinvestment zone |
|
|
financing plan approved under Section 311.011(d), Tax Code, on or |
|
|
before September 1, 1999; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(5) the total dollar amount of any captured appraised |
|
|
value of property that: |
|
|
(A) is within a reinvestment zone: |
|
|
(i) created on or before December 31, 2008, |
|
|
by a municipality with a population of less than 18,000; and |
|
|
(ii) the project plan for which includes |
|
|
the alteration, remodeling, repair, or reconstruction of a |
|
|
structure that is included on the National Register of Historic |
|
|
Places and requires that a portion of the tax increment of the zone |
|
|
be used for the improvement or construction of related facilities |
|
|
or for affordable housing; |
|
|
(B) generates school district taxes that are paid |
|
|
into a tax increment fund created under Chapter 311, Tax Code; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(6) the total dollar amount of any exemptions granted |
|
|
under Section 11.251 or 11.253, Tax Code; |
|
|
(7) the difference between the comptroller's estimate |
|
|
of the market value and the productivity value of land that |
|
|
qualifies for appraisal on the basis of its productive capacity, |
|
|
except that the productivity value estimated by the comptroller may |
|
|
not exceed the fair market value of the land; |
|
|
(8) the portion of the appraised value of residence |
|
|
homesteads of individuals who receive a tax limitation under |
|
|
Section 11.26, Tax Code, on which school district taxes are not |
|
|
imposed in the year that is the subject of the study, calculated as |
|
|
if the residence homesteads were appraised at the full value |
|
|
required by law; |
|
|
(9) a portion of the market value of property not |
|
|
otherwise fully taxable by the district at market value because of |
|
|
action required by statute or the constitution of this state, other |
|
|
than Section 11.311, Tax Code, that, if the tax rate adopted by the |
|
|
district is applied to it, produces an amount equal to the |
|
|
difference between the tax that the district would have imposed on |
|
|
the property if the property were fully taxable at market value and |
|
|
the tax that the district is actually authorized to impose on the |
|
|
property, if this subsection does not otherwise require that |
|
|
portion to be deducted; |
|
|
(10) the market value of all tangible personal |
|
|
property, other than manufactured homes, owned by a family or |
|
|
individual and not held or used for the production of income; |
|
|
(11) the appraised value of property the collection of |
|
|
delinquent taxes on which is deferred under Section 33.06, Tax |
|
|
Code; |
|
|
(12) the portion of the appraised value of property |
|
|
the collection of delinquent taxes on which is deferred under |
|
|
Section 33.065, Tax Code; |
|
|
(13) the amount by which the market value of property |
|
|
to which Section 23.23 or 23.231, Tax Code, applies exceeds the |
|
|
appraised value of that property as calculated under Section 23.23 |
|
|
or 23.231, Tax Code, as applicable; and |
|
|
(14) the total dollar amount of any exemptions granted |
|
|
under Section 11.35, Tax Code. |
|
|
(d) Effective January 1, 2027, Section 403.302(d), |
|
|
Government Code, is amended to read as follows: |
|
|
(d) For the purposes of this section, "taxable value" means |
|
|
the market value of all taxable property less: |
|
|
(1) the total dollar amount of any residence homestead |
|
|
exemptions lawfully granted under Section 11.13(b) or (c), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(2) one-half of the total dollar amount of any |
|
|
residence homestead exemptions granted under Section 11.13(n), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(3) the total dollar amount of any exemptions granted |
|
|
before May 31, 1993, within a reinvestment zone under agreements |
|
|
authorized by Chapter 312, Tax Code; |
|
|
(4) subject to Subsection (e), the total dollar amount |
|
|
of any captured appraised value of property that: |
|
|
(A) is within a reinvestment zone created on or |
|
|
before May 31, 1999, or is proposed to be included within the |
|
|
boundaries of a reinvestment zone as the boundaries of the zone and |
|
|
the proposed portion of tax increment paid into the tax increment |
|
|
fund by a school district are described in a written notification |
|
|
provided by the municipality or the board of directors of the zone |
|
|
to the governing bodies of the other taxing units in the manner |
|
|
provided by former Section 311.003(e), Tax Code, before May 31, |
|
|
1999, and within the boundaries of the zone as those boundaries |
|
|
existed on September 1, 1999, including subsequent improvements to |
|
|
the property regardless of when made; |
|
|
(B) generates taxes paid into a tax increment |
|
|
fund created under Chapter 311, Tax Code, under a reinvestment zone |
|
|
financing plan approved under Section 311.011(d), Tax Code, on or |
|
|
before September 1, 1999; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(5) the total dollar amount of any captured appraised |
|
|
value of property that: |
|
|
(A) is within a reinvestment zone: |
|
|
(i) created on or before December 31, 2008, |
|
|
by a municipality with a population of less than 18,000; and |
|
|
(ii) the project plan for which includes |
|
|
the alteration, remodeling, repair, or reconstruction of a |
|
|
structure that is included on the National Register of Historic |
|
|
Places and requires that a portion of the tax increment of the zone |
|
|
be used for the improvement or construction of related facilities |
|
|
or for affordable housing; |
|
|
(B) generates school district taxes that are paid |
|
|
into a tax increment fund created under Chapter 311, Tax Code; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(6) the total dollar amount of any exemptions granted |
|
|
under Section 11.251 or 11.253, Tax Code; |
|
|
(7) the difference between the comptroller's estimate |
|
|
of the market value and the productivity value of land that |
|
|
qualifies for appraisal on the basis of its productive capacity, |
|
|
except that the productivity value estimated by the comptroller may |
|
|
not exceed the fair market value of the land; |
|
|
(8) the portion of the appraised value of residence |
|
|
homesteads of individuals who receive a tax limitation under |
|
|
Section 11.26, Tax Code, on which school district taxes are not |
|
|
imposed in the year that is the subject of the study, calculated as |
|
|
if the residence homesteads were appraised at the full value |
|
|
required by law; |
|
|
(9) a portion of the market value of property not |
|
|
otherwise fully taxable by the district at market value because of |
|
|
action required by statute or the constitution of this state, other |
|
|
than Section 11.311, Tax Code, that, if the tax rate adopted by the |
|
|
district is applied to it, produces an amount equal to the |
|
|
difference between the tax that the district would have imposed on |
|
|
the property if the property were fully taxable at market value and |
|
|
the tax that the district is actually authorized to impose on the |
|
|
property, if this subsection does not otherwise require that |
|
|
portion to be deducted; |
|
|
(10) the market value of all tangible personal |
|
|
property, other than manufactured homes, owned by a family or |
|
|
individual and not held or used for the production of income; |
|
|
(11) the appraised value of property the collection of |
|
|
delinquent taxes on which is deferred under Section 33.06, Tax |
|
|
Code; |
|
|
(12) the portion of the appraised value of property |
|
|
the collection of delinquent taxes on which is deferred under |
|
|
Section 33.065, Tax Code; |
|
|
(13) the amount by which the market value of a |
|
|
residence homestead to which Section 23.23, Tax Code, applies |
|
|
exceeds the appraised value of that property as calculated under |
|
|
that section; and |
|
|
(14) the total dollar amount of any exemptions granted |
|
|
under Section 11.35, Tax Code. |
|
|
SECTION 12. (a) This section takes effect only if the |
|
|
constitutional amendment proposed by H.J.R. 2, 88th Legislature, |
|
|
2nd Called Session, 2023, is not approved by the voters. |
|
|
(b) Section 403.302(d), Government Code, is amended to read |
|
|
as follows: |
|
|
(d) For the purposes of this section, "taxable value" means |
|
|
the market value of all taxable property less: |
|
|
(1) the total dollar amount of any residence homestead |
|
|
exemptions lawfully granted under Section 11.13(b) or (c), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(2) one-half of the total dollar amount of any |
|
|
residence homestead exemptions granted under Section 11.13(n), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(3) the total dollar amount of any exemptions granted |
|
|
before May 31, 1993, within a reinvestment zone under agreements |
|
|
authorized by Chapter 312, Tax Code; |
|
|
(4) subject to Subsection (e), the total dollar amount |
|
|
of any captured appraised value of property that: |
|
|
(A) is within a reinvestment zone created on or |
|
|
before May 31, 1999, or is proposed to be included within the |
|
|
boundaries of a reinvestment zone as the boundaries of the zone and |
|
|
the proposed portion of tax increment paid into the tax increment |
|
|
fund by a school district are described in a written notification |
|
|
provided by the municipality or the board of directors of the zone |
|
|
to the governing bodies of the other taxing units in the manner |
|
|
provided by former Section 311.003(e), Tax Code, before May 31, |
|
|
1999, and within the boundaries of the zone as those boundaries |
|
|
existed on September 1, 1999, including subsequent improvements to |
|
|
the property regardless of when made; |
|
|
(B) generates taxes paid into a tax increment |
|
|
fund created under Chapter 311, Tax Code, under a reinvestment zone |
|
|
financing plan approved under Section 311.011(d), Tax Code, on or |
|
|
before September 1, 1999; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(5) the total dollar amount of any captured appraised |
|
|
value of property that: |
|
|
(A) is within a reinvestment zone: |
|
|
(i) created on or before December 31, 2008, |
|
|
by a municipality with a population of less than 18,000; and |
|
|
(ii) the project plan for which includes |
|
|
the alteration, remodeling, repair, or reconstruction of a |
|
|
structure that is included on the National Register of Historic |
|
|
Places and requires that a portion of the tax increment of the zone |
|
|
be used for the improvement or construction of related facilities |
|
|
or for affordable housing; |
|
|
(B) generates school district taxes that are paid |
|
|
into a tax increment fund created under Chapter 311, Tax Code; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(6) the total dollar amount of any exemptions granted |
|
|
under Section 11.251 or 11.253, Tax Code; |
|
|
(7) the difference between the comptroller's estimate |
|
|
of the market value and the productivity value of land that |
|
|
qualifies for appraisal on the basis of its productive capacity, |
|
|
except that the productivity value estimated by the comptroller may |
|
|
not exceed the fair market value of the land; |
|
|
(8) the portion of the appraised value of residence |
|
|
homesteads of individuals who receive a tax limitation under |
|
|
Section 11.26, Tax Code, on which school district taxes are not |
|
|
imposed in the year that is the subject of the study, calculated as |
|
|
if the residence homesteads were appraised at the full value |
|
|
required by law; |
|
|
(9) a portion of the market value of property not |
|
|
otherwise fully taxable by the district at market value because of |
|
|
action required by statute or the constitution of this state, other |
|
|
than Section 11.311, Tax Code, that, if the tax rate adopted by the |
|
|
district is applied to it, produces an amount equal to the |
|
|
difference between the tax that the district would have imposed on |
|
|
the property if the property were fully taxable at market value and |
|
|
the tax that the district is actually authorized to impose on the |
|
|
property, if this subsection does not otherwise require that |
|
|
portion to be deducted; |
|
|
(10) the market value of all tangible personal |
|
|
property, other than manufactured homes, owned by a family or |
|
|
individual and not held or used for the production of income; |
|
|
(11) the appraised value of property the collection of |
|
|
delinquent taxes on which is deferred under Section 33.06, Tax |
|
|
Code; |
|
|
(12) the portion of the appraised value of property |
|
|
the collection of delinquent taxes on which is deferred under |
|
|
Section 33.065, Tax Code; |
|
|
(13) the amount by which the market value of a |
|
|
residence homestead to which Section 23.23, Tax Code, applies |
|
|
exceeds the appraised value of that property as calculated under |
|
|
that section; [and] |
|
|
(14) the total dollar amount of any exemptions granted |
|
|
under Section 11.35, Tax Code; and |
|
|
(15) the amount excluded from the current total value |
|
|
of the district under Section 26.012(6)(C), Tax Code. |
|
|
(c) Effective January 1, 2026, Section 403.302(d), |
|
|
Government Code, is amended to read as follows: |
|
|
(d) For the purposes of this section, "taxable value" means |
|
|
the market value of all taxable property less: |
|
|
(1) the total dollar amount of any residence homestead |
|
|
exemptions lawfully granted under Section 11.13(b) or (c), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(2) one-half of the total dollar amount of any |
|
|
residence homestead exemptions granted under Section 11.13(n), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(3) the total dollar amount of any exemptions granted |
|
|
before May 31, 1993, within a reinvestment zone under agreements |
|
|
authorized by Chapter 312, Tax Code; |
|
|
(4) subject to Subsection (e), the total dollar amount |
|
|
of any captured appraised value of property that: |
|
|
(A) is within a reinvestment zone created on or |
|
|
before May 31, 1999, or is proposed to be included within the |
|
|
boundaries of a reinvestment zone as the boundaries of the zone and |
|
|
the proposed portion of tax increment paid into the tax increment |
|
|
fund by a school district are described in a written notification |
|
|
provided by the municipality or the board of directors of the zone |
|
|
to the governing bodies of the other taxing units in the manner |
|
|
provided by former Section 311.003(e), Tax Code, before May 31, |
|
|
1999, and within the boundaries of the zone as those boundaries |
|
|
existed on September 1, 1999, including subsequent improvements to |
|
|
the property regardless of when made; |
|
|
(B) generates taxes paid into a tax increment |
|
|
fund created under Chapter 311, Tax Code, under a reinvestment zone |
|
|
financing plan approved under Section 311.011(d), Tax Code, on or |
|
|
before September 1, 1999; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(5) the total dollar amount of any captured appraised |
|
|
value of property that: |
|
|
(A) is within a reinvestment zone: |
|
|
(i) created on or before December 31, 2008, |
|
|
by a municipality with a population of less than 18,000; and |
|
|
(ii) the project plan for which includes |
|
|
the alteration, remodeling, repair, or reconstruction of a |
|
|
structure that is included on the National Register of Historic |
|
|
Places and requires that a portion of the tax increment of the zone |
|
|
be used for the improvement or construction of related facilities |
|
|
or for affordable housing; |
|
|
(B) generates school district taxes that are paid |
|
|
into a tax increment fund created under Chapter 311, Tax Code; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(6) the total dollar amount of any exemptions granted |
|
|
under Section 11.251 or 11.253, Tax Code; |
|
|
(7) the difference between the comptroller's estimate |
|
|
of the market value and the productivity value of land that |
|
|
qualifies for appraisal on the basis of its productive capacity, |
|
|
except that the productivity value estimated by the comptroller may |
|
|
not exceed the fair market value of the land; |
|
|
(8) the portion of the appraised value of residence |
|
|
homesteads of individuals who receive a tax limitation under |
|
|
Section 11.26, Tax Code, on which school district taxes are not |
|
|
imposed in the year that is the subject of the study, calculated as |
|
|
if the residence homesteads were appraised at the full value |
|
|
required by law; |
|
|
(9) a portion of the market value of property not |
|
|
otherwise fully taxable by the district at market value because of |
|
|
action required by statute or the constitution of this state, other |
|
|
than Section 11.311, Tax Code, that, if the tax rate adopted by the |
|
|
district is applied to it, produces an amount equal to the |
|
|
difference between the tax that the district would have imposed on |
|
|
the property if the property were fully taxable at market value and |
|
|
the tax that the district is actually authorized to impose on the |
|
|
property, if this subsection does not otherwise require that |
|
|
portion to be deducted; |
|
|
(10) the market value of all tangible personal |
|
|
property, other than manufactured homes, owned by a family or |
|
|
individual and not held or used for the production of income; |
|
|
(11) the appraised value of property the collection of |
|
|
delinquent taxes on which is deferred under Section 33.06, Tax |
|
|
Code; |
|
|
(12) the portion of the appraised value of property |
|
|
the collection of delinquent taxes on which is deferred under |
|
|
Section 33.065, Tax Code; |
|
|
(13) the amount by which the market value of a |
|
|
residence homestead to which Section 23.23, Tax Code, applies |
|
|
exceeds the appraised value of that property as calculated under |
|
|
that section; and |
|
|
(14) the total dollar amount of any exemptions granted |
|
|
under Section 11.35, Tax Code. |
|
|
SECTION 13. The changes in law made by this Act apply only |
|
|
to an ad valorem tax year that begins on or after the effective date |
|
|
of this Act. |
|
|
SECTION 14. Except as otherwise provided by this Act, this |
|
|
Act takes effect January 1, 2024. |