Bill Text: TX HB223 | 2021 | 87th Legislature 1st Special Session | Introduced
Bill Title: Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate.
Spectrum: Partisan Bill (Republican 10-0)
Status: (Introduced - Dead) 2021-07-09 - Filed [HB223 Detail]
Download: Texas-2021-HB223-Introduced.html
| 87S10145 SMH-D | ||
| By: Shine | H.B. No. 223 | |
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| relating to the reduction of the amount of a limitation on the total | ||
| amount of ad valorem taxes that may be imposed by a school district | ||
| on the residence homestead of an individual who is elderly or | ||
| disabled to reflect any reduction from the preceding tax year in the | ||
| district's maximum compressed rate. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 11.26, Tax Code, is amended by adding | ||
| Subsections (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9) to read as | ||
| follows: | ||
| (a-4) In this section, "maximum compressed rate" means the | ||
| maximum compressed rate of a school district as calculated under | ||
| Section 48.2551, Education Code. | ||
| (a-5) Notwithstanding the other provisions of this section, | ||
| if in the 2022 tax year an individual qualifies for a limitation on | ||
| tax increases provided by this section on the individual's | ||
| residence homestead and the first tax year the individual or the | ||
| individual's spouse qualified for an exemption under Section | ||
| 11.13(c) for the same homestead was a tax year before the 2019 tax | ||
| year, the amount of the limitation provided by this section on the | ||
| homestead in the 2022 tax year is equal to the amount computed by: | ||
| (1) multiplying the taxable value of the homestead in | ||
| the 2018 tax year by a tax rate equal to the difference between the | ||
| school district's tier one maintenance and operations rate for the | ||
| 2018 tax year and the district's maximum compressed rate for the | ||
| 2019 tax year; | ||
| (2) subtracting the greater of zero or the amount | ||
| computed under Subdivision (1) from the amount of tax the district | ||
| imposed on the homestead in the 2018 tax year; | ||
| (3) adding any tax imposed in the 2019 tax year | ||
| attributable to improvements made in the 2018 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (2); | ||
| (4) multiplying the taxable value of the homestead in | ||
| the 2019 tax year by a tax rate equal to the difference between the | ||
| district's maximum compressed rate for the 2019 tax year and the | ||
| district's maximum compressed rate for the 2020 tax year; | ||
| (5) subtracting the amount computed under Subdivision | ||
| (4) from the amount computed under Subdivision (3); | ||
| (6) adding any tax imposed in the 2020 tax year | ||
| attributable to improvements made in the 2019 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (5); | ||
| (7) multiplying the taxable value of the homestead in | ||
| the 2020 tax year by a tax rate equal to the difference between the | ||
| district's maximum compressed rate for the 2020 tax year and the | ||
| district's maximum compressed rate for the 2021 tax year; | ||
| (8) subtracting the amount computed under Subdivision | ||
| (7) from the amount computed under Subdivision (6); | ||
| (9) adding any tax imposed in the 2021 tax year | ||
| attributable to improvements made in the 2020 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (8); | ||
| (10) multiplying the taxable value of the homestead in | ||
| the 2021 tax year by a tax rate equal to the difference between the | ||
| district's maximum compressed rate for the 2021 tax year and the | ||
| district's maximum compressed rate for the 2022 tax year; | ||
| (11) subtracting the amount computed under | ||
| Subdivision (10) from the amount computed under Subdivision (9); | ||
| and | ||
| (12) adding any tax imposed in the 2022 tax year | ||
| attributable to improvements made in the 2021 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (11). | ||
| (a-6) Notwithstanding the other provisions of this section, | ||
| if in the 2022 tax year an individual qualifies for a limitation on | ||
| tax increases provided by this section on the individual's | ||
| residence homestead and the first tax year the individual or the | ||
| individual's spouse qualified for an exemption under Section | ||
| 11.13(c) for the same homestead was the 2019 tax year, the amount of | ||
| the limitation provided by this section on the homestead in the 2022 | ||
| tax year is equal to the amount computed by: | ||
| (1) multiplying the taxable value of the homestead in | ||
| the 2019 tax year by a tax rate equal to the difference between the | ||
| school district's maximum compressed rate for the 2019 tax year and | ||
| the district's maximum compressed rate for the 2020 tax year; | ||
| (2) subtracting the amount computed under Subdivision | ||
| (1) from the amount of tax the district imposed on the homestead in | ||
| the 2019 tax year; | ||
| (3) adding any tax imposed in the 2020 tax year | ||
| attributable to improvements made in the 2019 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (2); | ||
| (4) multiplying the taxable value of the homestead in | ||
| the 2020 tax year by a tax rate equal to the difference between the | ||
| district's maximum compressed rate for the 2020 tax year and the | ||
| district's maximum compressed rate for the 2021 tax year; | ||
| (5) subtracting the amount computed under Subdivision | ||
| (4) from the amount computed under Subdivision (3); | ||
| (6) adding any tax imposed in the 2021 tax year | ||
| attributable to improvements made in the 2020 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (5); | ||
| (7) multiplying the taxable value of the homestead in | ||
| the 2021 tax year by a tax rate equal to the difference between the | ||
| district's maximum compressed rate for the 2021 tax year and the | ||
| district's maximum compressed rate for the 2022 tax year; | ||
| (8) subtracting the amount computed under Subdivision | ||
| (7) from the amount computed under Subdivision (6); and | ||
| (9) adding any tax imposed in the 2022 tax year | ||
| attributable to improvements made in the 2021 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (8). | ||
| (a-7) Notwithstanding the other provisions of this section, | ||
| if in the 2022 tax year an individual qualifies for a limitation on | ||
| tax increases provided by this section on the individual's | ||
| residence homestead and the first tax year the individual or the | ||
| individual's spouse qualified for an exemption under Section | ||
| 11.13(c) for the same homestead was the 2020 tax year, the amount of | ||
| the limitation provided by this section on the homestead in the 2022 | ||
| tax year is equal to the amount computed by: | ||
| (1) multiplying the taxable value of the homestead in | ||
| the 2020 tax year by a tax rate equal to the difference between the | ||
| school district's maximum compressed rate for the 2020 tax year and | ||
| the district's maximum compressed rate for the 2021 tax year; | ||
| (2) subtracting the amount computed under Subdivision | ||
| (1) from the amount of tax the district imposed on the homestead in | ||
| the 2020 tax year; | ||
| (3) adding any tax imposed in the 2021 tax year | ||
| attributable to improvements made in the 2020 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (2); | ||
| (4) multiplying the taxable value of the homestead in | ||
| the 2021 tax year by a tax rate equal to the difference between the | ||
| district's maximum compressed rate for the 2021 tax year and the | ||
| district's maximum compressed rate for the 2022 tax year; | ||
| (5) subtracting the amount computed under Subdivision | ||
| (4) from the amount computed under Subdivision (3); and | ||
| (6) adding any tax imposed in the 2022 tax year | ||
| attributable to improvements made in the 2021 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (5). | ||
| (a-8) Notwithstanding the other provisions of this section, | ||
| if in the 2022 tax year an individual qualifies for a limitation on | ||
| tax increases provided by this section on the individual's | ||
| residence homestead and the first tax year the individual or the | ||
| individual's spouse qualified for an exemption under Section | ||
| 11.13(c) for the same homestead was the 2021 tax year, the amount of | ||
| the limitation provided by this section on the homestead in the 2022 | ||
| tax year is equal to the amount computed by: | ||
| (1) multiplying the taxable value of the homestead in | ||
| the 2021 tax year by a tax rate equal to the difference between the | ||
| school district's maximum compressed rate for the 2021 tax year and | ||
| the district's maximum compressed rate for the 2022 tax year; | ||
| (2) subtracting the amount computed under Subdivision | ||
| (1) from the amount of tax the district imposed on the homestead in | ||
| the 2021 tax year; and | ||
| (3) adding any tax imposed in the 2022 tax year | ||
| attributable to improvements made in the 2021 tax year as provided | ||
| by Subsection (b) to the amount computed under Subdivision (2). | ||
| (a-9) Notwithstanding the other provisions of this section, | ||
| if in the 2023 or a subsequent tax year an individual qualifies for | ||
| a limitation on tax increases provided by this section on the | ||
| individual's residence homestead, the amount of the limitation | ||
| provided by this section on the homestead is equal to the amount | ||
| computed by: | ||
| (1) multiplying the taxable value of the homestead in | ||
| the preceding tax year by a tax rate equal to the difference between | ||
| the school district's maximum compressed rate for the preceding tax | ||
| year and the district's maximum compressed rate for the current tax | ||
| year; | ||
| (2) subtracting the amount computed under Subdivision | ||
| (1) from the amount of tax the district imposed on the homestead in | ||
| the preceding tax year; and | ||
| (3) adding any tax imposed in the current tax year | ||
| attributable to improvements made in the preceding tax year as | ||
| provided by Subsection (b) to the amount computed under Subdivision | ||
| (2). | ||
| SECTION 2. This Act applies only to ad valorem taxes imposed | ||
| for a tax year beginning on or after the effective date of this Act. | ||
| SECTION 3. This Act takes effect January 1, 2022, but only | ||
| if the constitutional amendment proposed by the 87th Legislature, | ||
| 1st Called Session, 2021, authorizing the legislature to provide | ||
| for the reduction of the amount of a limitation on the total amount | ||
| of ad valorem taxes that may be imposed for general elementary and | ||
| secondary public school purposes on the residence homestead of a | ||
| person who is elderly or disabled to reflect any statutory | ||
| reduction from the preceding tax year in the maximum compressed | ||
| rate of the maintenance and operations taxes imposed for those | ||
| purposes on the homestead is approved by the voters. If that | ||
| amendment is not approved by the voters, this Act has no effect. | ||
