Bill Text: TX HB72 | 2021 | 87th Legislature 1st Special Session | Introduced
Bill Title: Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, 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 a person who is elderly or disabled to reflect any increase in the exemption amount, and the protection of school districts against the resulting loss in local revenue.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-07-07 - Filed [HB72 Detail]
Download: Texas-2021-HB72-Introduced.html
| 87S10211 SMH/CAE-D | ||
| By: Schofield | H.B. No. 72 | |
|
|
||
|
|
||
| relating to an exemption from ad valorem taxation by a school | ||
| district of a dollar amount or a percentage, whichever is greater, | ||
| of the appraised value of a residence homestead, 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 a person who is | ||
| elderly or disabled to reflect any increase in the exemption | ||
| amount, and the protection of school districts against the | ||
| 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 $25,000 of the appraised value of the adult's | ||
| residence homestead or 16.7 percent of the appraised value of the | ||
| adult's residence homestead, whichever is greater, 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. | ||
| 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 2015 tax year, the | ||
| amount of the limitation provided by this section is the amount of | ||
| tax the school district imposed for the 2014 tax year less an amount | ||
| equal to the amount determined by multiplying $10,000 times the tax | ||
| rate of the school district for the 2015 tax year, plus any 2015 tax | ||
| attributable to improvements made in 2014, other than improvements | ||
| made to comply with governmental regulations or repairs. 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 2022 tax year | ||
| and the appraised value of the homestead for the 2022 tax year is | ||
| more than $149,701, the amount of the limitation provided by this | ||
| section is the amount of tax the school district imposed for the | ||
| 2021 tax year, less an amount equal to the amount computed by | ||
| subtracting $25,000 from an amount equal to 16.7 percent of the | ||
| appraised value of the homestead for the 2022 tax year and | ||
| multiplying that amount by the tax rate of the school district for | ||
| the 2022 tax year, plus any 2022 tax attributable to improvements | ||
| made in 2021, other than improvements made to comply with | ||
| governmental regulations or repairs. Except as provided by | ||
| Subsection (b), a limitation on tax increases provided by this | ||
| section on a residence homestead computed under this subsection | ||
| continues to apply to the homestead in subsequent tax years until | ||
| the limitation expires. | ||
| SECTION 3. 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 2021-2022 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 2022-2023 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, 2021, if any increase in 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 87th Legislature, | ||
| 1st Called Session, 2021, had not occurred. | ||
| (b) Subject to Subsections (c), (d), and (e) [ |
||
| additional state aid under this section through the 2021-2022 | ||
| 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 | ||
| 2022-2023 school year is equal to the amount by which the loss of | ||
| local interest and sinking revenue for debt service attributable to | ||
| any increase in 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 87th Legislature, 1st Called Session, 2021, 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) [ |
||
| 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, 2021, 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 4. Subchapter F, Chapter 48, Education Code, is | ||
| amended by adding Section 48.2541 to read as follows: | ||
| Sec. 48.2541. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION | ||
| AND LIMITATION ON TAX INCREASES. (a) Beginning with the 2022-2023 | ||
| school year, a school district is entitled to additional state aid | ||
| to the extent that state and local revenue under this chapter and | ||
| Chapter 49 is less than the state and local revenue that would have | ||
| been available to the district under this chapter and Chapter 49 as | ||
| those chapters existed on September 1, 2021, if any increase in 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 87th | ||
| Legislature, 1st Called Session, 2021, 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 the 2021 tax year is used for the purpose of | ||
| determining additional state aid under Subsection (a). | ||
| SECTION 5. 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, 2022. | ||
| SECTION 6. This Act takes effect January 1, 2022, but only | ||
| if the constitutional amendment proposed by the 87th Legislature, | ||
| 1st Called Session, 2021, providing for an exemption from ad | ||
| valorem taxation for public school purposes of $25,000 or 16.7 | ||
| percent, whichever is greater, of the market value of a residence | ||
| homestead 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 a person who is elderly or disabled to | ||
| reflect any increase in the exemption amount is approved by the | ||
| voters. If that constitutional amendment is not approved by the | ||
| voters, this Act has no effect. | ||
