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A BILL TO BE ENTITLED
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AN ACT
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relating to a local option exemption from ad valorem taxation by a |
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taxing unit of all or part of the appraised value of the residence |
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homestead of a peace officer employed by the taxing unit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.13(i), Tax Code, is amended to read as |
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follows: |
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(i) The assessor and collector for a taxing unit may |
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disregard the exemptions authorized by Subsection (b), (c), (d), |
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[or] (n), or (s) [of this section] and assess and collect a tax |
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pledged for payment of debt without deducting the amount of the |
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exemption if: |
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(1) prior to adoption of the exemption, the taxing |
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unit pledged the taxes for the payment of a debt; and |
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(2) granting the exemption would impair the obligation |
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of the contract creating the debt. |
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SECTION 2. Section 11.13(m), Tax Code, is amended by adding |
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Subdivision (1-a) to read as follows: |
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(1-a) "Peace officer" means a peace officer described |
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by Article 2A.001, Code of Criminal Procedure. |
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SECTION 3. Section 11.13, Tax Code, is amended by adding |
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Subsection (s) to read as follows: |
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(s) In addition to any other exemptions provided by this |
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section, a peace officer who is employed by a taxing unit is |
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entitled to an exemption from taxation by the taxing unit of a |
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percentage of the appraised value of the individual's residence |
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homestead if the governing body of the taxing unit adopts the |
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exemption in the manner required by law for official action by the |
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governing body. An exemption authorized by this subsection exempts |
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from taxation by the taxing unit a percentage of the appraised value |
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of an individual's residence homestead as follows: |
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(1) 20 percent, if the individual has been employed by |
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the taxing unit as a peace officer for at least five years and less |
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than 10 years; |
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(2) 40 percent, if the individual has been employed by |
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the taxing unit as a peace officer for at least 10 years and less |
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than 15 years; |
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(3) 60 percent, if the individual has been employed by |
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the taxing unit as a peace officer for at least 15 years and less |
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than 20 years; |
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(4) 80 percent, if the individual has been employed by |
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the taxing unit as a peace officer for at least 20 years and less |
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than 25 years; or |
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(5) 100 percent, if the individual has been employed |
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by the taxing unit as a peace officer for 25 years or more. |
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SECTION 4. Section 403.302(d), Government Code, as |
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effective until January 1, 2027, is amended to read as follows: |
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(d) For the purposes of this section, "taxable value" means |
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the market value of all taxable property less: |
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(1) the total dollar amount of any residence homestead |
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exemptions lawfully granted under Section 11.13(b), [or] (c), or |
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(s), Tax Code, in the year that is the subject of the study for each |
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school district; |
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(2) one-half of the total dollar amount of any |
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residence homestead exemptions granted under Section 11.13(n), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(3) the total dollar amount of any exemptions granted |
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before May 31, 1993, within a reinvestment zone under agreements |
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authorized by Chapter 312, Tax Code; |
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(4) subject to Subsection (e), the total dollar amount |
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of any captured appraised value of property that: |
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(A) is within a reinvestment zone created on or |
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before May 31, 1999, or is proposed to be included within the |
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boundaries of a reinvestment zone as the boundaries of the zone and |
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the proposed portion of tax increment paid into the tax increment |
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fund by a school district are described in a written notification |
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provided by the municipality or the board of directors of the zone |
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to the governing bodies of the other taxing units in the manner |
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provided by former Section 311.003(e), Tax Code, before May 31, |
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1999, and within the boundaries of the zone as those boundaries |
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existed on September 1, 1999, including subsequent improvements to |
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the property regardless of when made; |
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(B) generates taxes paid into a tax increment |
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fund created under Chapter 311, Tax Code, under a reinvestment zone |
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financing plan approved under Section 311.011(d), Tax Code, on or |
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before September 1, 1999; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(5) the total dollar amount of any captured appraised |
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value of property that: |
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(A) is within a reinvestment zone: |
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(i) created on or before December 31, 2008, |
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by a municipality with a population of less than 18,000; and |
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(ii) the project plan for which includes |
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the alteration, remodeling, repair, or reconstruction of a |
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structure that is included on the National Register of Historic |
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Places and requires that a portion of the tax increment of the zone |
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be used for the improvement or construction of related facilities |
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or for affordable housing; |
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(B) generates school district taxes that are paid |
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into a tax increment fund created under Chapter 311, Tax Code; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(6) the total dollar amount of any exemptions granted |
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under Section 11.251 or 11.253, Tax Code; |
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(7) the difference between the comptroller's estimate |
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of the market value and the productivity value of land that |
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qualifies for appraisal on the basis of its productive capacity, |
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except that the productivity value estimated by the comptroller may |
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not exceed the fair market value of the land; |
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(8) the portion of the appraised value of residence |
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homesteads of individuals who receive a tax limitation under |
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Section 11.26, Tax Code, on which school district taxes are not |
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imposed in the year that is the subject of the study, calculated as |
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if the residence homesteads were appraised at the full value |
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required by law; |
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(9) a portion of the market value of property not |
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otherwise fully taxable by the district at market value because of |
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action required by statute or the constitution of this state, other |
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than Section 11.311, Tax Code, that, if the tax rate adopted by the |
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district is applied to it, produces an amount equal to the |
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difference between the tax that the district would have imposed on |
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the property if the property were fully taxable at market value and |
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the tax that the district is actually authorized to impose on the |
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property, if this subsection does not otherwise require that |
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portion to be deducted; |
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(10) the market value of all tangible personal |
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property, other than manufactured homes, owned by a family or |
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individual and not held or used for the production of income; |
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(11) the appraised value of property the collection of |
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delinquent taxes on which is deferred under Section 33.06, Tax |
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Code; |
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(12) the portion of the appraised value of property |
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the collection of delinquent taxes on which is deferred under |
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Section 33.065, Tax Code; |
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(13) the amount by which the market value of property |
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to which Section 23.23 or 23.231, Tax Code, applies exceeds the |
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appraised value of that property as calculated under Section 23.23 |
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or 23.231, Tax Code, as applicable; and |
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(14) the total dollar amount of any exemptions granted |
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under Section 11.35, Tax Code. |
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SECTION 5. Section 403.302(d), Government Code, as |
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effective January 1, 2027, is amended to read as follows: |
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(d) For the purposes of this section, "taxable value" means |
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the market value of all taxable property less: |
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(1) the total dollar amount of any residence homestead |
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exemptions lawfully granted under Section 11.13(b), [or] (c), or |
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|
(s), Tax Code, in the year that is the subject of the study for each |
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school district; |
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(2) one-half of the total dollar amount of any |
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residence homestead exemptions granted under Section 11.13(n), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(3) the total dollar amount of any exemptions granted |
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before May 31, 1993, within a reinvestment zone under agreements |
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authorized by Chapter 312, Tax Code; |
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(4) subject to Subsection (e), the total dollar amount |
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of any captured appraised value of property that: |
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(A) is within a reinvestment zone created on or |
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|
before May 31, 1999, or is proposed to be included within the |
|
|
boundaries of a reinvestment zone as the boundaries of the zone and |
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the proposed portion of tax increment paid into the tax increment |
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|
fund by a school district are described in a written notification |
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|
provided by the municipality or the board of directors of the zone |
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to the governing bodies of the other taxing units in the manner |
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|
provided by former Section 311.003(e), Tax Code, before May 31, |
|
|
1999, and within the boundaries of the zone as those boundaries |
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existed on September 1, 1999, including subsequent improvements to |
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the property regardless of when made; |
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(B) generates taxes paid into a tax increment |
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fund created under Chapter 311, Tax Code, under a reinvestment zone |
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financing plan approved under Section 311.011(d), Tax Code, on or |
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before September 1, 1999; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(5) the total dollar amount of any captured appraised |
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value of property that: |
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(A) is within a reinvestment zone: |
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(i) created on or before December 31, 2008, |
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by a municipality with a population of less than 18,000; and |
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(ii) the project plan for which includes |
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the alteration, remodeling, repair, or reconstruction of a |
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structure that is included on the National Register of Historic |
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|
Places and requires that a portion of the tax increment of the zone |
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be used for the improvement or construction of related facilities |
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or for affordable housing; |
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(B) generates school district taxes that are paid |
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into a tax increment fund created under Chapter 311, Tax Code; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(6) the total dollar amount of any exemptions granted |
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under Section 11.251 or 11.253, Tax Code; |
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(7) the difference between the comptroller's estimate |
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of the market value and the productivity value of land that |
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qualifies for appraisal on the basis of its productive capacity, |
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except that the productivity value estimated by the comptroller may |
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not exceed the fair market value of the land; |
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(8) the portion of the appraised value of residence |
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homesteads of individuals who receive a tax limitation under |
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Section 11.26, Tax Code, on which school district taxes are not |
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|
imposed in the year that is the subject of the study, calculated as |
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if the residence homesteads were appraised at the full value |
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required by law; |
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(9) a portion of the market value of property not |
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otherwise fully taxable by the district at market value because of |
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action required by statute or the constitution of this state, other |
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than Section 11.311, Tax Code, that, if the tax rate adopted by the |
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district is applied to it, produces an amount equal to the |
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difference between the tax that the district would have imposed on |
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the property if the property were fully taxable at market value and |
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the tax that the district is actually authorized to impose on the |
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property, if this subsection does not otherwise require that |
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portion to be deducted; |
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(10) the market value of all tangible personal |
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property, other than manufactured homes, owned by a family or |
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individual and not held or used for the production of income; |
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(11) the appraised value of property the collection of |
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|
delinquent taxes on which is deferred under Section 33.06, Tax |
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Code; |
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(12) the portion of the appraised value of property |
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the collection of delinquent taxes on which is deferred under |
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Section 33.065, Tax Code; |
|
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(13) the amount by which the market value of a |
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residence homestead to which Section 23.23, Tax Code, applies |
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exceeds the appraised value of that property as calculated under |
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that section; and |
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(14) the total dollar amount of any exemptions granted |
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under Section 11.35, Tax Code. |
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SECTION 6. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
|
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Act. |
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SECTION 7. This Act takes effect January 1, 2026, but only |
|
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if the constitutional amendment proposed by the 89th Legislature, |
|
|
Regular Session, 2025, authorizing a local option exemption from ad |
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valorem taxation by a political subdivision of all or part of the |
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appraised value of the residence homestead of a peace officer |
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employed by the political subdivision 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. |