88R1589 DRS-D
 
  By: Slaton H.B. No. 2889
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a credit against the ad valorem taxes imposed by a
  taxing unit on the residence homestead of a married couple that
  increases in amount based upon the number of children of the couple
  and reimbursement to taxing units for the revenue loss incurred as a
  result of the credit.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 31, Tax Code, is amended by adding
  Section 31.038 to read as follows:
         Sec. 31.038.  HOMESTEAD TAX CREDIT FOR CERTAIN MARRIED
  COUPLES. (a) In this section:
               (1)  "Qualifying child" means a child of any age who is:
                     (A)  a natural child of both spouses of a
  qualifying married couple born after the date on which the
  qualifying married couple married;
                     (B)  an adopted child of both spouses of a
  qualifying married couple adopted after the date on which the
  qualifying married couple married; or
                     (C)  the adopted child of one spouse of a
  qualifying married couple adopted after the date on which the
  qualifying married couple married if the child is the natural or
  adopted child of the other spouse and that other spouse was a widow
  or widower before the date on which the qualifying married couple
  married.
               (2)  "Qualifying married couple" means a man and a
  woman who are legally married to each other, neither of whom have
  ever been divorced.
               (3)  "Residence homestead" has the meaning assigned by
  Section 11.13.
         (b)  A qualifying married couple is entitled to a credit
  against the taxes imposed in a tax year by a taxing unit on the
  residence homestead of the couple in which both spouses reside.
  Subject to Subsection (c), the amount of the credit is equal to the
  amount, expressed in decimal form rounded to the nearest hundredth,
  computed by multiplying the amount of taxes imposed by the taxing
  unit in the applicable tax year on the qualifying married couple's
  residence homestead by 10 percent.
         (c)  A qualifying married couple with four or more qualifying
  children may substitute the following, as applicable, for 10
  percent when computing the amount of credit to which the couple is
  entitled under Subsection (b):
               (1)  40 percent, if the qualifying married couple have
  four qualifying children;
               (2)  50 percent, if the qualifying married couple have
  five qualifying children;
               (3)  60 percent, if the qualifying married couple have
  six qualifying children;
               (4)  70 percent, if the qualifying married couple have
  seven qualifying children;
               (5)  80 percent, if the qualifying married couple have
  eight qualifying children;
               (6)  90 percent, if the qualifying married couple have
  nine qualifying children; or
               (7)  100 percent, if the qualifying married couple have
  10 or more qualifying children.
         (d)  A qualifying married couple is entitled to compute the
  amount of the credit authorized under this section in the manner
  provided by Subsection (c) regardless of whether:
               (1)  the qualifying children reside in the same
  residence homestead in which both spouses of the qualifying married
  couple reside; or
               (2)  one or more of the qualifying children dies.
         (e)  If one spouse of a qualifying married couple that is
  entitled to a credit under this section dies, the surviving spouse
  is entitled to receive the credit authorized by this section for as
  long as the surviving spouse remains unmarried.
         (f)  Notwithstanding Subsection (c), the amount of the
  credit against the taxes imposed by a taxing unit to which a
  qualifying married couple is entitled under this section in any tax
  year may not exceed the amount of taxes imposed by the taxing unit
  on the qualifying married couple's residence homestead in that tax
  year.
         (g)  To receive a credit under this section, a qualifying
  married couple or surviving spouse must file an application each
  year with the chief appraiser of the appraisal district in which the
  qualifying married couple's or spouse's residence homestead is
  located. The application for a married couple must include an
  affidavit affirming that the applicants are a qualifying married
  couple under Subsection (a)(2). The application for a surviving
  spouse must include an affidavit affirming that the surviving
  spouse was a member of a qualifying couple. An application must
  state the number of qualifying children of the qualifying married
  couple or surviving spouse, if applicable, accompanied by:
               (1)  a copy of the qualifying married couple's or
  surviving spouse's marriage license; and
               (2)  a copy of the birth certificate or adoption order
  for each qualifying child, if applicable.
         (h)  The chief appraiser shall forward a copy of the
  application to the assessor for each taxing unit that taxes the
  residence homestead.
         (i)  The comptroller shall adopt rules for the
  administration of this section.
         SECTION 2.  Chapter 140, Local Government Code, is amended
  by adding Section 140.014 to read as follows:
         Sec. 140.014.  MARRIED COUPLE TAX CREDIT REIMBURSEMENT
  PAYMENTS. (a) In this section, "taxing unit" and "tax year" have
  the meanings assigned by Section 1.04, Tax Code.
         (b)  A taxing unit is entitled to a married couple tax credit
  reimbursement payment from the state for a tax year for which the
  chief appraiser of the appraisal district in which the taxing unit
  participates approves an application for a credit under Section
  31.038, Tax Code.
         (c)  The amount of the married couple tax credit
  reimbursement payment is equal to the revenue loss incurred by the
  taxing unit as a result of the credit under Section 31.038, Tax
  Code, in the year for which the married couple tax credit
  reimbursement payment is sought.
         (d)  Not later than April 1 of the year following a tax year
  for which a married couple tax credit reimbursement payment is
  sought, a taxing unit may submit an application to the comptroller
  on a form prescribed by the comptroller to receive a married couple
  tax credit reimbursement payment for that tax year. A taxing unit
  that does not submit the application by the date prescribed by this
  subsection is not entitled to a married couple tax credit
  reimbursement payment for the preceding tax year.
         (e)  The comptroller shall review each application by a
  taxing unit to determine whether the taxing unit is entitled to a
  married couple tax credit reimbursement payment. If the
  comptroller determines that the taxing unit is entitled to the
  payment, the comptroller shall, using available funds, remit the
  payment to the taxing unit not later than the 30th day after the
  date the comptroller receives the application for the payment.
         SECTION 3.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 4.  This Act takes effect January 1, 2024, but only
  if the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, to authorize the legislature to provide for
  a credit against the ad valorem taxes imposed by a political
  subdivision on the residence homestead of a married couple that may
  be increased based on the number of children of the couple and to
  provide for the reimbursement of political subdivisions for the
  revenue loss incurred as a result of the credit is approved by the
  voters. If that amendment is not approved by the voters, this Act
  has no effect.