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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a limitation on the total amount of |
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ad valorem taxes that certain taxing units may impose on the |
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residence homesteads of individuals who are disabled or elderly and |
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their surviving spouses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 11.261, Tax Code, is |
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amended to read as follows: |
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Sec. 11.261. LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER |
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THAN SCHOOL DISTRICT [COUNTY, MUNICIPAL, OR JUNIOR COLLEGE DISTRICT |
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TAX] ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED OR [AND] |
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ELDERLY. |
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SECTION 2. Section 11.261, Tax Code, is amended by amending |
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Subsections (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), |
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and (l) and adding Subsections (b-1) and (b-2) to read as follows: |
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(a) This section applies only to a taxing unit other than a |
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school district [county, municipality, or junior college district |
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that has established a limitation on the total amount of taxes that |
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may be imposed by the county, municipality, or junior college |
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district on the residence homestead of a disabled individual or an |
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individual 65 years of age or older under Section 1-b(h), Article |
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VIII, Texas Constitution]. |
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(b) The tax officials shall appraise the property to which |
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this section [the limitation] applies and calculate taxes as on |
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other property, but if the tax so calculated exceeds the limitation |
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required [provided] by this section, the tax imposed by a taxing |
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unit is the amount of the tax as limited by this section, except as |
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otherwise provided by this section. A taxing unit [The county, |
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municipality, or junior college district] may not increase the |
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total annual amount of ad valorem taxes the taxing unit [county, |
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municipality, or junior college district] imposes on the residence |
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homestead of an individual who is [a] disabled [individual] or is |
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[an individual] 65 years of age or older above the amount of the |
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taxes the taxing unit [county, municipality, or junior college |
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district] imposed on the residence homestead in the first tax |
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year[, other than a tax year preceding the tax year in which the |
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county, municipality, or junior college district established the |
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limitation described by Subsection (a),] in which the individual |
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qualified that residence homestead for the exemption provided by |
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Section 11.13(c) for an individual who is [a] disabled [individual] |
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or is [an individual] 65 years of age or older. If the individual |
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qualified that residence homestead for the exemption after the |
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beginning of that first year and the residence homestead remains |
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eligible for the exemption for the next year, and if the [county, |
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municipal, or junior college district] taxes imposed by the taxing |
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unit on the residence homestead in the next year are less than the |
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amount of taxes imposed in that first year, the taxing unit [a |
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county, municipality, or junior college district] may not |
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subsequently increase the total annual amount of ad valorem taxes |
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it imposes on the residence homestead above the amount it imposed on |
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the residence homestead in the year immediately following the first |
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year[, other than a tax year preceding the tax year in which the |
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county, municipality, or junior college district established the |
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limitation described by Subsection (a),] for which the individual |
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qualified that residence homestead for the exemption. |
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(b-1) If the first tax year the individual qualified the |
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residence homestead for the exemption provided by Section 11.13(c) |
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for individuals who are disabled or are 65 years of age or older was |
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a tax year before the 2024 tax year and the homestead qualified for |
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a limitation on county, municipal, or junior college district taxes |
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under this section for that tax year, the amount of the limitation |
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on county, municipal, or junior college district taxes, as |
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applicable, required by this section is the amount of the tax |
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imposed by the applicable taxing unit for the 2023 tax year, plus |
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any 2024 tax attributable to improvements made in 2023, other than |
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improvements made to comply with governmental regulations or |
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repairs. |
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(b-2) Except as provided by Subsection (b-1), for the |
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purpose of calculating a limitation on tax increases by a taxing |
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unit under this section, an individual who qualified a residence |
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homestead before January 1, 2024, for an exemption under Section |
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11.13(c) for individuals who are disabled or are 65 years of age or |
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older is considered to have qualified the homestead for that |
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exemption on January 1, 2024. |
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(c) If an individual makes improvements to the individual's |
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residence homestead, other than repairs and other than improvements |
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required to comply with governmental requirements, the taxing unit |
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[county, municipality, or junior college district] may increase the |
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amount of taxes on the homestead in the first year the value of the |
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homestead is increased on the appraisal roll because of the |
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enhancement of value by the improvements. The amount of the tax |
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increase is determined by applying the current tax rate to the |
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difference between the appraised value of the homestead with the |
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improvements and the appraised value the homestead [it] would have |
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had without the improvements. The [A] limitation required |
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[provided] by this section then applies to the increased amount of |
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[county, municipal, or junior college district] taxes on the |
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residence homestead until more improvements, if any, are made. |
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(d) A limitation on [county, municipal, or junior college |
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district] tax increases by a taxing unit required [provided] by |
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this section expires if on January 1: |
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(1) none of the owners of the structure who qualify for |
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the exemption provided by Section 11.13(c) for an individual who is |
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[a] disabled [individual] or is [an individual] 65 years of age or |
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older and who owned the structure when the limitation [provided by |
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this section] first took effect is using the structure as a |
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residence homestead; or |
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(2) none of the owners of the structure qualifies for |
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the exemption provided by Section 11.13(c) for an individual who is |
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[a] disabled [individual] or is [an individual] 65 years of age or |
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older. |
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(e) If the appraisal roll provides for taxation of appraised |
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value for a prior year because a residence homestead exemption for |
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an individual who is disabled [individuals] or is [individuals] 65 |
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years of age or older was erroneously allowed, the tax assessor for |
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the applicable taxing unit [county, municipality, or junior college |
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district] shall add, as back taxes due as provided by Section |
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26.09(d), the positive difference, if any, between the tax that |
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should have been imposed for that year and the tax that was imposed |
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because of the provisions of this section. |
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(f) A limitation on tax increases by a taxing unit required |
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[provided] by this section does not expire because the owner of an |
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interest in the structure conveys the interest to a qualifying |
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trust as defined by Section 11.13(j) if the owner or the owner's |
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spouse is a trustor of the trust and is entitled to occupy the |
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structure. |
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(g) Except as provided by Subsection (c), if an individual |
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who receives a limitation on [county, municipal, or junior college |
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district] tax increases by a taxing unit required [provided] by |
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this section subsequently qualifies a different residence |
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homestead in the same taxing unit [county, municipality, or junior |
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college district] for an exemption under Section 11.13, the taxing |
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unit [county, municipality, or junior college district] may not |
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impose ad valorem taxes on the subsequently qualified homestead in |
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a year in an amount that exceeds the amount of taxes the taxing unit |
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[county, municipality, or junior college district] would have |
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imposed on the subsequently qualified homestead in the first year |
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in which the individual receives that exemption for the |
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subsequently qualified homestead had the limitation on tax |
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increases required [provided] by this section not been in effect, |
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multiplied by a fraction the numerator of which is the total amount |
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of taxes the taxing unit [county, municipality, or junior college |
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district] imposed on the former homestead in the last year in which |
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the individual received that exemption for the former homestead and |
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the denominator of which is the total amount of taxes the taxing |
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unit [county, municipality, or junior college district] would have |
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imposed on the former homestead in the last year in which the |
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individual received that exemption for the former homestead had the |
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limitation on tax increases required [provided] by this section not |
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been in effect. |
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(h) An individual who receives a limitation on [county, |
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municipal, or junior college district] tax increases by a taxing |
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unit under this section and who subsequently qualifies a different |
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residence homestead in the same taxing unit [county, municipality, |
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or junior college district] for an exemption under Section 11.13, |
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or an agent of the individual, is entitled to receive from the chief |
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appraiser of the appraisal district in which the former homestead |
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was located a written certificate providing the information |
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necessary to determine whether the individual may qualify for a |
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limitation on the subsequently qualified homestead under |
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Subsection (g) and to calculate the amount of taxes the taxing unit |
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[county, municipality, or junior college district] may impose on |
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the subsequently qualified homestead. |
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(i) If an individual who qualifies for a limitation on |
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[county, municipal, or junior college district] tax increases by a |
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taxing unit under this section dies, the surviving spouse of the |
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individual is entitled to the limitation on taxes imposed by the |
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taxing unit [county, municipality, or junior college district] on |
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the residence homestead of the individual if: |
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(1) the surviving spouse is disabled or is 55 years of |
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age or older when the individual dies; and |
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(2) the residence homestead of the individual: |
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(A) is the residence homestead of the surviving |
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spouse on the date that the individual dies; and |
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(B) remains the residence homestead of the |
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surviving spouse. |
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(j) If an individual who is 65 years of age or older and |
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qualifies for a limitation on [county, municipal, or junior college |
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district] tax increases for the elderly under this section dies in |
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the first year in which the individual qualified for the limitation |
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and the individual first qualified for the limitation after the |
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beginning of that year, except as provided by Subsection (k), the |
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amount to which the surviving spouse's [county, municipal, or |
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junior college district] taxes are limited under Subsection (i) is |
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the amount of taxes imposed by the taxing unit to which the |
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limitation applies [county, municipality, or junior college |
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district, as applicable,] on the residence homestead in that year |
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determined as if the individual qualifying for the exemption had |
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lived for the entire year. |
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(k) If in the first tax year after the year in which an |
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individual who is 65 years of age or older dies under the |
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circumstances described by Subsection (j) the amount of taxes |
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imposed by a taxing unit [county, municipality, or junior college |
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district] on the residence homestead of the surviving spouse is |
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less than the amount of taxes imposed by the taxing unit [county, |
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municipality, or junior college district] in the preceding year as |
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limited by Subsection (j), in a subsequent tax year the surviving |
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spouse's taxes imposed by the taxing unit [county, municipality, or |
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junior college district] on that residence homestead are limited to |
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the amount of taxes imposed by the taxing unit [county, |
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municipality, or junior college district] in that first tax year |
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after the year in which the individual dies. |
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(l) Notwithstanding Subsection (d), a limitation on |
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[county, municipal, or junior college district] tax increases by a |
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taxing unit required [provided] by this section does not expire if |
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the owner of the structure qualifies for an exemption under Section |
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11.13 under the circumstances described by Section 11.135(a). |
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SECTION 3. Section 23.19(g), Tax Code, is amended to read as |
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follows: |
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(g) A tax bill or a separate statement accompanying the tax |
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bill to a cooperative housing corporation for which interests of |
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stockholders are separately appraised under this section must |
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state, in addition to the information required by Section 31.01, |
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the appraised value and taxable value of each interest separately |
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appraised. Each exemption claimed as provided by this title by a |
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person entitled to the exemption shall also be deducted from the |
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total appraised value of the property of the corporation. The total |
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tax imposed by a school district or other taxing unit [, county, |
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municipality, or junior college district] shall be reduced by any |
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amount that represents an increase in taxes attributable to |
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separately appraised interests of the real property and |
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improvements that are subject to the limitation of taxes prescribed |
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by Section 11.26 or 11.261. The corporation shall apportion among |
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its stockholders liability for reimbursing the corporation for |
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property taxes according to the relative taxable values of their |
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interests. |
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SECTION 4. Sections 26.012(6), (13), and (14), Tax Code, |
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are 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; and |
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(ii) new property value of property that is |
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subject to an agreement entered into under Chapter 313; and |
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(B) the current total value for a taxing unit |
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other than a school district [county, municipality, or junior |
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college district] excludes the total value of homesteads that |
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qualify for a tax limitation as provided by Section 11.261. |
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(13) "Last year's levy" means the total of: |
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(A) the amount of taxes that would be generated |
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by multiplying the total tax rate adopted by the governing body in |
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the preceding year by the total taxable value of property on the |
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appraisal roll for the preceding year, including: |
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(i) taxable value that was reduced in an |
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appeal under Chapter 42; |
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(ii) all appraisal roll supplements and |
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corrections other than corrections made pursuant to Section |
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25.25(d), as of the date of the calculation, except that last year's |
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taxable value for a school district excludes the total value of |
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homesteads that qualified for a tax limitation as provided by |
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Section 11.26 and last year's taxable value for a taxing unit other |
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than a school district [county, municipality, or junior college |
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district] excludes the total value of homesteads that qualified for |
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a tax limitation as provided by Section 11.261; and |
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(iii) the portion of taxable value of |
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property that is the subject of an appeal under Chapter 42 on July |
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25 that is not in dispute; and |
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(B) the amount of taxes refunded by the taxing |
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unit in the preceding year for tax years before that year. |
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(14) "Last year's total value" means the total taxable |
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value of property listed on the appraisal roll for the preceding |
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year, including all appraisal roll supplements and corrections, |
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other than corrections made pursuant to Section 25.25(d), as of the |
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date of the calculation, except that: |
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(A) last year's taxable value for a school |
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district excludes the total value of homesteads that qualified for |
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a tax limitation as provided by Section 11.26; and |
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(B) last year's taxable value for a taxing unit |
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other than a school district [county, municipality, or junior |
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college district] excludes the total value of homesteads that |
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qualified for a tax limitation as provided by Section 11.261. |
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SECTION 5. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 6. This Act takes effect January 1, 2024, but only |
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if the constitutional amendment proposed by the 88th Legislature, |
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Regular Session, 2023, establishing a limitation on the total |
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amount of ad valorem taxes that certain political subdivisions may |
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impose on the residence homesteads of persons who are disabled or |
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elderly and their surviving spouses is approved by the voters. If |
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that amendment is not approved by the voters, this Act has no |
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effect. |