Bill Text: TX HB72 | 2017 | 85th Legislature 1st Special Session | Comm Sub
Bill Title: Relating to an exemption from ad valorem taxation of the residence homestead of a Purple Heart recipient or the surviving spouse of a Purple Heart recipient.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Introduced - Dead) 2017-08-03 - Recommitted to committee [HB72 Detail]
Download: Texas-2017-HB72-Comm_Sub.html
| 85S10050 SMT-D | ||
| By: Bohac, Guillen | H.B. No. 72 | |
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| relating to an exemption from ad valorem taxation of the residence | ||
| homestead of a Purple Heart recipient or the surviving spouse of a | ||
| Purple Heart recipient. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. This Act may be cited as the Purple Heart | ||
| Homestead Act. | ||
| SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by | ||
| adding Section 11.137 to read as follows: | ||
| Sec. 11.137. RESIDENCE HOMESTEAD OF PURPLE HEART RECIPIENT. | ||
| (a) In this section: | ||
| (1) "Purple Heart recipient" means a person who has | ||
| been awarded the federal or Texas Purple Heart Medal. | ||
| (2) "Residence homestead" has the meaning assigned by | ||
| Section 11.13. | ||
| (3) "Surviving spouse" means the individual who was | ||
| married to a Purple Heart recipient at the time of the Purple Heart | ||
| recipient's death. | ||
| (b) A Purple Heart recipient is entitled to an exemption | ||
| from taxation of the total appraised value of the Purple Heart | ||
| recipient's residence homestead. | ||
| (c) The surviving spouse of a Purple Heart recipient who | ||
| qualified for an exemption under Subsection (b) when the Purple | ||
| Heart recipient died is entitled to an exemption from taxation of | ||
| the total appraised value of the same property to which the Purple | ||
| Heart recipient's exemption applied if: | ||
| (1) the surviving spouse has not remarried since the | ||
| death of the Purple Heart recipient; and | ||
| (2) the property: | ||
| (A) was the residence homestead of the surviving | ||
| spouse when the Purple Heart recipient died; and | ||
| (B) remains the residence homestead of the | ||
| surviving spouse. | ||
| (d) If a surviving spouse who qualifies for an exemption | ||
| under Subsection (c) subsequently qualifies a different property as | ||
| the surviving spouse's residence homestead, the surviving spouse is | ||
| entitled to an exemption from taxation of the subsequently | ||
| qualified homestead in an amount equal to the dollar amount of the | ||
| exemption from taxation of the former homestead under Subsection | ||
| (c) in the last year in which the surviving spouse received an | ||
| exemption under that subsection for that homestead if the surviving | ||
| spouse has not remarried since the death of the Purple Heart | ||
| recipient. The surviving spouse is entitled to receive from the | ||
| chief appraiser of the appraisal district in which the former | ||
| residence homestead was located a written certificate providing the | ||
| information necessary to determine the amount of the exemption to | ||
| which the surviving spouse is entitled on the subsequently | ||
| qualified homestead. | ||
| SECTION 3. Section 11.42(e), Tax Code, is amended to read as | ||
| follows: | ||
| (e) A person who qualifies for an exemption under Section | ||
| 11.131 or 11.137 after January 1 of a tax year may receive the | ||
| exemption for the applicable portion of that tax year immediately | ||
| on qualification for the exemption. | ||
| SECTION 4. (a) This section takes effect only if the | ||
| constitutional amendment proposed by S.J.R. 1, 85th Legislature, | ||
| Regular Session, 2017, is approved by the voters. | ||
| (b) Section 11.43(c), Tax Code, as amended by H.B. 1101, | ||
| Acts of the 85th Legislature, Regular Session, 2017, effective | ||
| January 1, 2018, and S.B. 15, Acts of the 85th Legislature, Regular | ||
| Session, 2017, effective January 1, 2018, is amended to read as | ||
| follows: | ||
| (c) An exemption provided by Section 11.13, 11.131, 11.132, | ||
| 11.133, 11.134, 11.137, 11.17, 11.18, 11.182, 11.1827, 11.183, | ||
| 11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), | ||
| 11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once | ||
| allowed, need not be claimed in subsequent years, and except as | ||
| otherwise provided by Subsection (e), the exemption applies to the | ||
| property until it changes ownership or the person's qualification | ||
| for the exemption changes. However, except as provided by | ||
| Subsection (r), the chief appraiser may require a person allowed | ||
| one of the exemptions in a prior year to file a new application to | ||
| confirm the person's current qualification for the exemption by | ||
| delivering a written notice that a new application is required, | ||
| accompanied by an appropriate application form, to the person | ||
| previously allowed the exemption. If the person previously allowed | ||
| the exemption is 65 years of age or older, the chief appraiser may | ||
| not cancel the exemption due to the person's failure to file the new | ||
| application unless the chief appraiser complies with the | ||
| requirements of Subsection (q), if applicable. | ||
| (c) Section 11.431(a), Tax Code, as amended by H.B. 626, | ||
| Acts of the 85th Legislature, Regular Session, 2017, effective | ||
| September 1, 2017, and S.B. 15, Acts of the 85th Legislature, | ||
| Regular Session, 2017, effective January 1, 2018, is amended to | ||
| read as follows: | ||
| (a) The chief appraiser shall accept and approve or deny an | ||
| application for a residence homestead exemption, including an | ||
| exemption under Section 11.131 or 11.132 for the residence | ||
| homestead of a disabled veteran or the surviving spouse of a | ||
| disabled veteran, an exemption under Section 11.133 for the | ||
| residence homestead of the surviving spouse of a member of the armed | ||
| services of the United States who is killed in action, [ |
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| exemption under Section 11.134 for the residence homestead of the | ||
| surviving spouse of a first responder who is killed or fatally | ||
| injured in the line of duty, or an exemption under Section 11.137 | ||
| for the residence homestead of a Purple Heart recipient or the | ||
| surviving spouse of a Purple Heart recipient, after the deadline | ||
| for filing it has passed if it is filed not later than two years | ||
| after the delinquency date for the taxes on the homestead. | ||
| (d) Section 403.302(d-1), Government Code, as amended by | ||
| S.B. 15, Acts of the 85th Legislature, Regular Session, 2017, | ||
| effective January 1, 2018, is amended to read as follows: | ||
| (d-1) For purposes of Subsection (d), a residence homestead | ||
| that receives an exemption under Section 11.131, 11.133, [ |
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| 11.134, or 11.137, Tax Code, in the year that is the subject of the | ||
| study is not considered to be taxable property. | ||
| SECTION 5. (a) This section takes effect only if the | ||
| constitutional amendment proposed by S.J.R. 1, 85th Legislature, | ||
| Regular Session, 2017, is not approved by the voters. | ||
| (b) Section 11.43(c), Tax Code, as amended by H.B. 1101, | ||
| Acts of the 85th Legislature, Regular Session, 2017, effective | ||
| January 1, 2018, is amended to read as follows: | ||
| (c) An exemption provided by Section 11.13, 11.131, 11.132, | ||
| 11.133, 11.137, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, | ||
| 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231, | ||
| 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once | ||
| allowed, need not be claimed in subsequent years, and except as | ||
| otherwise provided by Subsection (e), the exemption applies to the | ||
| property until it changes ownership or the person's qualification | ||
| for the exemption changes. However, except as provided by | ||
| Subsection (r), the chief appraiser may require a person allowed | ||
| one of the exemptions in a prior year to file a new application to | ||
| confirm the person's current qualification for the exemption by | ||
| delivering a written notice that a new application is required, | ||
| accompanied by an appropriate application form, to the person | ||
| previously allowed the exemption. If the person previously allowed | ||
| the exemption is 65 years of age or older, the chief appraiser may | ||
| not cancel the exemption due to the person's failure to file the new | ||
| application unless the chief appraiser complies with the | ||
| requirements of Subsection (q), if applicable. | ||
| (c) Section 11.431(a), Tax Code, as amended by H.B. 626, | ||
| Acts of the 85th Legislature, Regular Session, 2017, effective | ||
| September 1, 2017, is amended to read as follows: | ||
| (a) The chief appraiser shall accept and approve or deny an | ||
| application for a residence homestead exemption, including an | ||
| exemption under Section 11.131 or 11.132 for the residence | ||
| homestead of a disabled veteran or the surviving spouse of a | ||
| disabled veteran, [ |
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| residence homestead of the surviving spouse of a member of the armed | ||
| services of the United States who is killed in action, or an | ||
| exemption under Section 11.137 for the residence homestead of a | ||
| Purple Heart recipient or the surviving spouse of a Purple Heart | ||
| recipient, after the deadline for filing it has passed if it is | ||
| filed not later than two years after the delinquency date for the | ||
| taxes on the homestead. | ||
| (d) Section 403.302(d-1), Government Code, is amended to | ||
| read as follows: | ||
| (d-1) For purposes of Subsection (d), a residence homestead | ||
| that receives an exemption under Section 11.131, [ |
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| 11.137, Tax Code, in the year that is the subject of the study is not | ||
| considered to be taxable property. | ||
| SECTION 6. Section 26.10(c), Tax Code, is amended to read as | ||
| follows: | ||
| (c) If the appraisal roll shows that a residence homestead | ||
| exemption under Section 11.131 or 11.137 applicable to a property | ||
| on January 1 of a year terminated during the year, the tax due | ||
| against the residence homestead is calculated by multiplying the | ||
| amount of the taxes that otherwise would be imposed on the residence | ||
| homestead for the entire year had the individual not qualified for | ||
| the residence homestead exemption [ |
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| year by a fraction, the denominator of which is 365 and the | ||
| numerator of which is the number of days that elapsed after the date | ||
| the exemption terminated. | ||
| SECTION 7. Section 26.1125, Tax Code, is amended to read as | ||
| follows: | ||
| Sec. 26.1125. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD | ||
| OF 100 PERCENT OR TOTALLY DISABLED VETERAN OR PURPLE HEART | ||
| RECIPIENT. (a) If a person qualifies for an exemption under | ||
| Section 11.131 or 11.137 after the beginning of a tax year, the | ||
| amount of the taxes on the residence homestead of the person for the | ||
| tax year is calculated by multiplying the amount of the taxes that | ||
| otherwise would be imposed on the residence homestead for the | ||
| entire year had the person not qualified for the applicable | ||
| exemption [ |
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| which is 365 and the numerator of which is the number of days that | ||
| elapsed before the date the person qualified for the applicable | ||
| exemption [ |
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| (b) If a person qualifies for an exemption under Section | ||
| 11.131 or 11.137 with respect to the property after the amount of | ||
| the tax due on the property is calculated and the effect of the | ||
| qualification is to reduce the amount of the tax due on the | ||
| property, the assessor for each taxing unit shall recalculate the | ||
| amount of the tax due on the property and correct the tax roll. If | ||
| the tax bill has been mailed and the tax on the property has not been | ||
| paid, the assessor shall mail a corrected tax bill to the person in | ||
| whose name the property is listed on the tax roll or to the person's | ||
| authorized agent. If the tax on the property has been paid, the tax | ||
| collector for the taxing unit shall refund to the person who paid | ||
| the tax the amount by which the payment exceeded the tax due. | ||
| SECTION 8. The heading to Section 140.011, Local Government | ||
| Code, is amended to read as follows: | ||
| Sec. 140.011. LOCAL GOVERNMENTS DISPROPORTIONATELY | ||
| AFFECTED BY PROPERTY TAX RELIEF FOR CERTAIN MILITARY SERVICE | ||
| MEMBERS AND [ |
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| SECTION 9. Section 140.011(a)(3), Local Government Code, is | ||
| amended to read as follows: | ||
| (3) "Qualified local government" means a local | ||
| government entitled to a military exemption [ |
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| assistance payment under this section. | ||
| SECTION 10. Sections 140.011(b), (c), (d), (e), (f), and | ||
| (g), Local Government Code, are amended to read as follows: | ||
| (b) To serve the state purpose of ensuring that the cost of | ||
| providing ad valorem tax relief to certain military service members | ||
| and [ |
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| this state, a local government is entitled to a military exemption | ||
| [ |
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| fiscal year that the local government is a qualified local | ||
| government. A local government is a qualified local government for | ||
| a fiscal year if the amount of lost ad valorem tax revenue | ||
| calculated under Subsection (c) for that fiscal year is equal to or | ||
| greater than two percent of the local government's general fund | ||
| revenue for that fiscal year. | ||
| (c) For the purposes of this section, the amount of a local | ||
| government's lost ad valorem tax revenue for a fiscal year is | ||
| calculated by multiplying the ad valorem tax rate adopted by the | ||
| local government under Section 26.05, Tax Code, for the tax year in | ||
| which the fiscal year begins by the total appraised value of all | ||
| property located in the local government that is granted an | ||
| exemption from taxation under Section 11.131 or 11.137, Tax Code, | ||
| for that tax year. | ||
| (d) A military exemption [ |
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| payment made to a qualified local government for a fiscal year is | ||
| calculated by subtracting from the local government's lost ad | ||
| valorem tax revenue calculated under Subsection (c) for that fiscal | ||
| year an amount equal to one percent of the local government's | ||
| general fund revenue for that fiscal year. | ||
| (e) Not later than April 1 of the first year following the | ||
| end of a fiscal year for which a qualified local government is | ||
| entitled to a military exemption [ |
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| payment, a qualified local government may submit an application to | ||
| the comptroller to receive a military exemption [ |
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| assistance payment for that fiscal year. The application must be | ||
| made on a form prescribed by the comptroller. The comptroller may | ||
| require the qualified local government to submit an independent | ||
| audit otherwise required by law to be prepared for the local | ||
| government for the fiscal year for which a qualified local | ||
| government is entitled to the payment. | ||
| (f) A qualified local government that does not submit an | ||
| application to the comptroller by the date prescribed by Subsection | ||
| (e) is not entitled to a military exemption [ |
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| assistance payment for the fiscal year for which that deadline | ||
| applies. | ||
| (g) The comptroller shall review each application by a local | ||
| government to determine whether the local government is entitled to | ||
| a military exemption [ |
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| the comptroller determines that the local government is entitled to | ||
| the payment, the comptroller shall remit the payment from available | ||
| funds to the qualified local government not later than the 30th day | ||
| after the date the application for the payment is made. | ||
| SECTION 11. Section 11.137, Tax Code, as added by this Act, | ||
| applies only to ad valorem taxes imposed for a tax year beginning on | ||
| or after January 1, 2018. | ||
| SECTION 12. This Act takes effect January 1, 2018, but only | ||
| if the constitutional amendment proposed by the 85th Legislature, | ||
| 1st Called Session, 2017, authorizing the legislature to provide | ||
| for an exemption from ad valorem taxation of all or part of the | ||
| market value of the residence homestead of a Purple Heart recipient | ||
| or the surviving spouse of a Purple Heart recipient is approved by | ||
| the voters. If that constitutional amendment is not approved by the | ||
| voters, this Act has no effect. | ||
