Bill Text: TX HB288 | 2017 | 85th Legislature 1st Special Session | Introduced


Bill Title: Relating to an exemption from ad valorem taxation by a school district of a portion of the appraised value of a residence homestead based on the median market value of all residence homesteads in this state, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of an elderly or disabled person to reflect any increase in the exemption amount, and the protection of school districts against any resulting loss in local revenue.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-07-25 - Referred to Ways & Means [HB288 Detail]

Download: Texas-2017-HB288-Introduced.html
  85S10598 SMH/CAE-D
 
  By: White H.B. No. 288
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an exemption from ad valorem taxation by a school
  district of a portion of the appraised value of a residence
  homestead based on the median market value of all residence
  homesteads in this state, a reduction of the limitation on the total
  amount of ad valorem taxes that may be imposed by a school district
  on the homestead of an elderly or disabled person to reflect any
  increase in the exemption amount, and the protection of school
  districts against any resulting loss in local revenue.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.13(b), Tax Code, is amended to read as
  follows:
         (b)  An adult is entitled to exemption from taxation by a
  school district of a portion [$25,000] of the appraised value of the
  adult's residence homestead equal to 25 percent of the highest
  median market value for any tax year beginning with the 2017 tax
  year of all residence homesteads in the state, except that only
  $5,000 of the exemption applies to an entity operating under former
  Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters
  existed on May 1, 1995, as permitted by Section 11.301, Education
  Code. For purposes of this subsection, not later than March 1 of
  each year the Legislative Budget Board shall determine the median
  market value of all residence homesteads in the state as of the
  preceding tax year and publish in the Texas Register the highest
  median market value for any preceding tax year beginning with the
  2017 tax year of all residence homesteads in the state. The
  Legislative Budget Board shall make the determination based on
  information provided to the board by each appraisal district. Each
  appraisal district shall provide to the Legislative Budget Board
  the information requested by the board that the board determines to
  be necessary to make the determination.
         SECTION 2.  Section 11.26(a), Tax Code, is amended to read as
  follows:
         (a)  The tax officials shall appraise the property to which
  this section applies and calculate taxes as on other property, but
  if the tax so calculated exceeds the limitation imposed by this
  section, the tax imposed is the amount of the tax as limited by this
  section, except as otherwise provided by this section.  A school
  district may not increase the total annual amount of ad valorem tax
  it imposes on the residence homestead of an individual 65 years of
  age or older or on the residence homestead of an individual who is
  disabled, as defined by Section 11.13, above the amount of the tax
  it imposed in the first tax year in which the individual qualified
  that residence homestead for the applicable exemption provided by
  Section 11.13(c) for an individual who is 65 years of age or older
  or is disabled.  If the individual qualified that residence
  homestead for the exemption after the beginning of that first year
  and the residence homestead remains eligible for the same exemption
  for the next year, and if the school district taxes imposed on the
  residence homestead in the next year are less than the amount of
  taxes imposed in that first year, a school district may not
  subsequently increase the total annual amount of ad valorem taxes
  it imposes on the residence homestead above the amount it imposed in
  the year immediately following the first year for which the
  individual qualified that residence homestead for the same
  exemption, except as provided by Subsection (b).  If the first tax
  year the individual qualified the residence homestead for the
  exemption provided by Section 11.13(c) for individuals 65 years of
  age or older or disabled was a tax year before the 2018 [2015] tax
  year, the amount of the limitation provided by this section is the
  amount of tax the school district imposed for the 2017 [2014] tax
  year less an amount equal to the amount determined by subtracting
  $25,000 from the amount of the exemption under Section 11.13(b) for
  the 2018 tax year and multiplying that amount by [$10,000 times] the
  tax rate of the school district for the 2018 [2015] tax year, plus
  any 2018 [2015] tax attributable to improvements made in 2017
  [2014], other than improvements made to comply with governmental
  regulations or repairs.
         SECTION 3.  Subchapter A, Chapter 41, Education Code, is
  amended by adding Section 41.0011 to read as follows:
         Sec. 41.0011.  COMPUTATION OF WEALTH PER STUDENT FOR
  2018-2019 SCHOOL YEAR.  Notwithstanding any other provision of
  this chapter, in computing a school district's wealth per student
  for the 2018-2019 school year, a school district's taxable value of
  property under Subchapter M, Chapter 403, Government Code, is
  determined as if any change in the amount of the residence homestead
  exemption under Section 1-b(c), Article VIII, Texas Constitution,
  and any additional limitation on tax increases under Section 1-b(d)
  of that article in effect for the 2018 tax year as proposed by the
  85th Legislature, 1st Called Session, 2017, had been in effect for
  the 2017 tax year. This section expires September 1, 2019.
         SECTION 4.  Section 42.2518, Education Code, as effective
  September 1, 2017, is amended by amending Subsections (a) and (b)
  and adding Subsection (a-1) to read as follows:
         (a)  For [Beginning with] the 2017-2018 school year, a school
  district is entitled to additional state aid to the extent that
  state and local revenue under this chapter and Chapter 41 is less
  than the state and local revenue that would have been available to
  the district under Chapter 41 and this chapter as those chapters
  existed on September 1, 2015, excluding any state aid that would
  have been provided under former Section 42.2516, if the increase in
  the residence homestead exemption under Section 1-b(c), Article
  VIII, Texas Constitution, and the additional limitation on tax
  increases under Section 1-b(d) of that article as proposed by
  S.J.R. 1, 84th Legislature, Regular Session, 2015, had not
  occurred.
         (a-1)  Beginning with the 2018-2019 school year, a school
  district is entitled to additional state aid to the extent that
  state and local revenue under this chapter and Chapter 41 is less
  than the state and local revenue that would have been available to
  the district under Chapter 41 and this chapter as those chapters
  existed on September 1, 2017, if any change in the amount of the
  residence homestead exemption under Section 1-b(c), Article VIII,
  Texas Constitution, as proposed by the joint resolution to amend
  that subsection adopted by the 85th Legislature, 1st Called
  Session, 2017, and any additional limitation on tax increases under
  Section 1-b(d) of that article as proposed by the joint resolution
  to amend that subsection adopted by the 85th Legislature, 1st
  Called Session, 2017, had not occurred.
         (b)  The lesser of the school district's currently adopted
  maintenance and operations tax rate or the adopted maintenance and
  operations tax rate for:
               (1)  the 2014 tax year is used for the purpose of
  determining additional state aid under Subsection (a); and
               (2)  the 2017 tax year is used for the purpose of
  determining additional state aid under Subsection (a-1) [this
  section].
         SECTION 5.  Section 42.252, Education Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  Notwithstanding any other provision of this chapter, in
  computing each school district's local share of program cost under
  this section for the 2018-2019 school year, a school district's
  taxable value of property under Subchapter M, Chapter 403,
  Government Code, is determined as if any change in the amount of the
  residence homestead exemption under Section 1-b(c), Article VIII,
  Texas Constitution, and any additional limitation on tax increases
  under Section 1-b(d) of that article in effect for the 2018 tax year
  as proposed by the 85th Legislature, 1st Called Session, 2017, had
  been in effect for the 2017 tax year. This subsection expires
  September 1, 2019.
         SECTION 6.  Section 42.302, Education Code, is amended by
  adding Subsection (g) to read as follows:
         (g)  Notwithstanding any other provision of this chapter, in
  computing a school district's enrichment tax rate ("DTR") and local
  revenue ("LR") for the 2018-2019 school year, a school district's
  taxable value of property under Subchapter M, Chapter 403,
  Government Code, is determined as if any change in the amount of the
  residence homestead exemption under Section 1-b(c), Article VIII,
  Texas Constitution, and any additional limitation on tax increases
  under Section 1-b(d) of that article in effect for the 2018 tax year
  as proposed by the 85th Legislature, 1st Called Session, 2017, had
  been in effect for the 2017 tax year. This subsection expires
  September 1, 2019.
         SECTION 7.  Section 46.003, Education Code, is amended by
  adding Subsection (i) to read as follows:
         (i)  Notwithstanding any other provision of this chapter, in
  computing a district's bond tax rate ("BTR") and taxable value of
  property ("DPV") for the 2018-2019 school year, a school district's
  taxable value of property under Subchapter M, Chapter 403,
  Government Code, is determined as if any change in the amount of
  the residence homestead exemption under Section 1-b(c), Article
  VIII, Texas Constitution, and any additional limitation on tax
  increases under Section 1-b(d) of that article in effect for the
  2018 tax year as proposed by the 85th Legislature, 1st Called
  Session, 2017, had been in effect for the 2017 tax year. This
  subsection expires September 1, 2019.
         SECTION 8.  Section 46.032, Education Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  Notwithstanding any other provision of this chapter, in
  computing a district's existing debt tax rate ("EDTR") and taxable
  value of property ("DPV") for the 2018-2019 school year, a school
  district's taxable value of property under Subchapter M, Chapter
  403, Government Code, is determined as if any change in the amount
  of the residence homestead exemption under Section 1-b(c), Article
  VIII, Texas Constitution, and any additional limitation on tax
  increases under Section 1-b(d) of that article in effect for the
  2018 tax year as proposed by the 85th Legislature, 1st Called
  Session, 2017, had been in effect for the 2017 tax year. This
  subsection expires September 1, 2019.
         SECTION 9.  Section 46.071, Education Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsections
  (a-1), (b-1), and (c-1) to read as follows:
         (a)  Beginning with the 2015-2016 school year and continuing
  through the 2017-2018 school year, a school district is entitled to
  additional state aid under this subchapter to the extent that state
  and local revenue used to service debt eligible under this chapter
  is less than the state and local revenue that would have been
  available to the district under this chapter as it existed on
  September 1, 2015, if the increase in the residence homestead
  exemption under Section 1-b(c), Article VIII, Texas Constitution,
  and the additional limitation on tax increases under Section 1-b(d)
  of that article as proposed by S.J.R. 1, 84th Legislature, Regular
  Session, 2015, had not occurred.
         (a-1)  Beginning with the 2018-2019 school year, a school
  district is entitled to additional state aid under this subchapter
  to the extent that state and local revenue used to service debt
  eligible under this chapter is less than the state and local revenue
  that would have been available to the district under this chapter as
  it existed on September 1, 2017, if any change in the amount of the
  residence homestead exemption under Section 1-b(c), Article VIII,
  Texas Constitution, and any additional limitation on tax increases
  under Section 1-b(d) of that article as proposed by the 85th
  Legislature, 1st Called Session, 2017, had not occurred.
         (b)  Subject to Subsections (c), (d), and (e) [(c)-(e)],
  additional state aid under this section through the 2017-2018
  school year is equal to the amount by which the loss of local
  interest and sinking revenue for debt service attributable to the
  increase in the residence homestead exemption under Section 1-b(c),
  Article VIII, Texas Constitution, and the additional limitation on
  tax increases under Section 1-b(d) of that article as proposed by
  S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
  a gain in state aid under this chapter.
         (b-1)  Subject to Subsections (c-1), (d), and (e),
  additional state aid under this section beginning with the
  2018-2019 school year is equal to the amount by which the loss of
  local interest and sinking revenue for debt service attributable to
  any change in the amount of the residence homestead exemption under
  Section 1-b(c), Article VIII, Texas Constitution, and any
  additional limitation on tax increases under Section 1-b(d) of that
  article as proposed by the 85th Legislature, 1st Called Session,
  2017, is not offset by a gain in state aid under this chapter.
         (c)  For the purpose of determining state aid under
  Subsections (a) and (b) [this section], local interest and sinking
  revenue for debt service is limited to revenue required to service
  debt eligible under this chapter as of September 1, 2015, including
  refunding of that debt, subject to Section 46.061.  The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         (c-1)  For the purpose of determining state aid under
  Subsections (a-1) and (b-1), local interest and sinking revenue for
  debt service is limited to revenue required to service debt
  eligible under this chapter as of September 1, 2017, including
  refunding of that debt, subject to Section 46.061.  The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         SECTION 10.  The changes in law made by this Act to Sections
  11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
  begins on or after January 1, 2018.
         SECTION 11.  This Act takes effect January 1, 2018, but only
  if the constitutional amendment proposed by the 85th Legislature,
  1st Called Session, 2017, providing for an exemption from ad
  valorem taxation for public school purposes of a portion of the
  market value of a residence homestead based on the median market
  value of all residence homesteads in the state and providing for a
  reduction of the limitation on the total amount of ad valorem taxes
  that may be imposed for those purposes on the homestead of an
  elderly or disabled person to reflect the increased exemption
  amount is approved by the voters. If that constitutional amendment
  is not approved by the voters, this Act has no effect.
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