Bill Text: TX HB78 | 2021 | 87th Legislature 1st Special Session | Introduced
Bill Title: Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-07-07 - Filed [HB78 Detail]
Download: Texas-2021-HB78-Introduced.html
By: Bucy | H.B. No. 78 |
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relating to the authority of a taxing unit other than a school | ||
district to establish a limitation on the amount of ad valorem taxes | ||
that the taxing unit may impose on the residence homesteads of | ||
individuals who are disabled or elderly and their surviving | ||
spouses. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Section 11.261, Tax Code, is | ||
amended to read as follows: | ||
Sec. 11.261. LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER | ||
THAN SCHOOL DISTRICT [ |
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ELDERLY. | ||
SECTION 2. Sections 11.261(a), (b), (c), (d), (e), (g), | ||
(h), (i), (j), (k), and (l), Tax Code, are amended to read as | ||
follows: | ||
(a) This section applies only to a taxing unit that: | ||
(1) is not a school [ |
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(2) [ |
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amount of taxes that may be imposed by the taxing unit [ |
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homestead of an [ |
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VIII, Texas Constitution. | ||
(b) The tax officials shall appraise the property to which | ||
the limitation applies and calculate taxes as on other property, | ||
but if the tax so calculated exceeds the limitation provided by this | ||
section, the tax imposed by a taxing unit is the amount of the tax as | ||
limited by this section, except as otherwise provided by this | ||
section. The taxing unit [ |
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taxes the taxing unit [ |
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individual who is disabled or is [ |
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older above the amount of the taxes the taxing unit [ |
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homestead in the first tax year, other than a tax year preceding the | ||
tax year in which the taxing unit [ |
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Subsection (a), in which the individual qualified that residence | ||
homestead for the exemption provided by Section 11.13(c) for an [ |
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of age or older. 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 exemption for | ||
the next year, and if the [ |
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homestead in the next year are less than the amount of taxes imposed | ||
in that first year, the taxing unit [ |
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annual amount of ad valorem taxes it imposes on the residence | ||
homestead above the amount it imposed on the residence homestead in | ||
the year immediately following the first year, other than a tax year | ||
preceding the tax year in which the taxing unit [ |
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limitation described by Subsection (a), for which the individual | ||
qualified that residence homestead for the exemption. | ||
(c) If an individual makes improvements to the individual's | ||
residence homestead, other than repairs and other than improvements | ||
required to comply with governmental requirements, the taxing unit | ||
[ |
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amount of taxes on the homestead in the first year the value of the | ||
homestead is increased on the appraisal roll because of the | ||
enhancement of value by the improvements. The amount of the tax | ||
increase is determined by applying the current tax rate to the | ||
difference between the appraised value of the homestead with the | ||
improvements and the appraised value the homestead [ |
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had without the improvements. A limitation provided by this | ||
section then applies to the increased amount of [ |
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more improvements, if any, are made. | ||
(d) A limitation on [ |
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expires if on January 1: | ||
(1) none of the owners of the structure who qualify for | ||
the exemption provided by Section 11.13(c) for an [ |
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individual who is disabled or is [ |
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older and who owned the structure when the limitation provided by | ||
this section first took effect is using the structure as a residence | ||
homestead; or | ||
(2) none of the owners of the structure qualifies for | ||
the exemption provided by Section 11.13(c) for an [ |
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individual who is disabled or is [ |
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older. | ||
(e) If the appraisal roll provides for taxation of appraised | ||
value for a prior year because a residence homestead exemption for | ||
[ |
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years of age or older was erroneously allowed, the tax assessor for | ||
the applicable taxing unit [ |
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26.09(d), the positive difference, if any, between the tax that | ||
should have been imposed for that year and the tax that was imposed | ||
because of the provisions of this section. | ||
(g) Except as provided by Subsection (c), if an individual | ||
who receives a limitation on [ |
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subsequently qualifies a different residence homestead in the same | ||
taxing unit [ |
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an exemption under Section 11.13, the taxing unit [ |
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taxes on the subsequently qualified homestead in a year in an amount | ||
that exceeds the amount of taxes the taxing unit [ |
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subsequently qualified homestead in the first year in which the | ||
individual receives that exemption for the subsequently qualified | ||
homestead had the limitation on tax increases provided by this | ||
section not been in effect, multiplied by a fraction the numerator | ||
of which is the total amount of taxes the taxing unit [ |
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homestead in the last year in which the individual received that | ||
exemption for the former homestead and the denominator of which is | ||
the total amount of taxes the taxing unit [ |
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in the last year in which the individual received that exemption for | ||
the former homestead had the limitation on tax increases provided | ||
by this section not been in effect. | ||
(h) An individual who receives a limitation on [ |
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unit under this section and who subsequently qualifies a different | ||
residence homestead in the same taxing unit [ |
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or an agent of the individual, is entitled to receive from the chief | ||
appraiser of the appraisal district in which the former homestead | ||
was located a written certificate providing the information | ||
necessary to determine whether the individual may qualify for a | ||
limitation on the subsequently qualified homestead under | ||
Subsection (g) and to calculate the amount of taxes the taxing unit | ||
[ |
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the subsequently qualified homestead. | ||
(i) If an individual who qualifies for a limitation on | ||
[ |
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taxing unit under this section dies, the surviving spouse of the | ||
individual is entitled to the limitation on taxes imposed by the | ||
taxing unit [ |
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the residence homestead of the individual if: | ||
(1) the surviving spouse is disabled or is 55 years of | ||
age or older when the individual dies; and | ||
(2) the residence homestead of the individual: | ||
(A) is the residence homestead of the surviving | ||
spouse on the date that the individual dies; and | ||
(B) remains the residence homestead of the | ||
surviving spouse. | ||
(j) If an individual who is 65 years of age or older and | ||
qualifies for a limitation on [ |
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the first year in which the individual qualified for the limitation | ||
and the individual first qualified for the limitation after the | ||
beginning of that year, except as provided by Subsection (k), the | ||
amount to which the surviving spouse's [ |
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the amount of taxes imposed by the taxing unit to which the | ||
limitation applies [ |
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determined as if the individual qualifying for the exemption had | ||
lived for the entire year. | ||
(k) If in the first tax year after the year in which an | ||
individual who is 65 years of age or older dies under the | ||
circumstances described by Subsection (j) the amount of taxes | ||
imposed by a taxing unit [ |
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less than the amount of taxes imposed by the taxing unit [ |
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limited by Subsection (j), in a subsequent tax year the surviving | ||
spouse's taxes imposed by the taxing unit [ |
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the amount of taxes imposed by the taxing unit [ |
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after the year in which the individual dies. | ||
(l) Notwithstanding Subsection (d), a limitation on | ||
[ |
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taxing unit provided by this section does not expire if the owner of | ||
the structure qualifies for an exemption under Section 11.13 under | ||
the circumstances described by Section 11.135(a). | ||
SECTION 3. Section 23.19(g), Tax Code, is amended to read as | ||
follows: | ||
(g) A tax bill or a separate statement accompanying the tax | ||
bill to a cooperative housing corporation for which interests of | ||
stockholders are separately appraised under this section must | ||
state, in addition to the information required by Section 31.01, | ||
the appraised value and taxable value of each interest separately | ||
appraised. Each exemption claimed as provided by this title by a | ||
person entitled to the exemption shall also be deducted from the | ||
total appraised value of the property of the corporation. The total | ||
tax imposed by a school district or other taxing unit [ |
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amount that represents an increase in taxes attributable to | ||
separately appraised interests of the real property and | ||
improvements that are subject to the limitation of taxes prescribed | ||
by Section 11.26 or 11.261. The corporation shall apportion among | ||
its stockholders liability for reimbursing the corporation for | ||
property taxes according to the relative taxable values of their | ||
interests. | ||
SECTION 4. Sections 26.012(6), (13), and (14), Tax Code, | ||
are amended to read as follows: | ||
(6) "Current total value" means the total taxable | ||
value of property listed on the appraisal roll for the current year, | ||
including all appraisal roll supplements and corrections as of the | ||
date of the calculation, less the taxable value of property | ||
exempted for the current tax year for the first time under Section | ||
11.31 or 11.315, except that: | ||
(A) the current total value for a school district | ||
excludes: | ||
(i) the total value of homesteads that | ||
qualify for a tax limitation as provided by Section 11.26; and | ||
(ii) new property value of property that is | ||
subject to an agreement entered into under Chapter 313; and | ||
(B) the current total value for a taxing unit | ||
other than a school [ |
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district excludes the total value of homesteads that qualify for a | ||
tax limitation provided by Section 11.261. | ||
(13) "Last year's levy" means the total of: | ||
(A) the amount of taxes that would be generated | ||
by multiplying the total tax rate adopted by the governing body in | ||
the preceding year by the total taxable value of property on the | ||
appraisal roll for the preceding year, including: | ||
(i) taxable value that was reduced in an | ||
appeal under Chapter 42; | ||
(ii) all appraisal roll supplements and | ||
corrections other than corrections made pursuant to Section | ||
25.25(d), as of the date of the calculation, except that last year's | ||
taxable value for a school district excludes the total value of | ||
homesteads that qualified for a tax limitation as provided by | ||
Section 11.26 and last year's taxable value for a taxing unit other | ||
than a school [ |
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excludes the total value of homesteads that qualified for a tax | ||
limitation as provided by Section 11.261; and | ||
(iii) the portion of taxable value of | ||
property that is the subject of an appeal under Chapter 42 on July | ||
25 that is not in dispute; and | ||
(B) the amount of taxes refunded by the taxing | ||
unit in the preceding year for tax years before that year. | ||
(14) "Last year's total value" means the total taxable | ||
value of property listed on the appraisal roll for the preceding | ||
year, including all appraisal roll supplements and corrections, | ||
other than corrections made pursuant to Section 25.25(d), as of the | ||
date of the calculation, except that: | ||
(A) last year's taxable value for a school | ||
district excludes the total value of homesteads that qualified for | ||
a tax limitation as provided by Section 11.26; and | ||
(B) last year's taxable value for a taxing unit | ||
other than a school [ |
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district excludes the total value of homesteads that qualified for | ||
a tax limitation as provided by Section 11.261. | ||
SECTION 5. This Act applies only to ad valorem taxes imposed | ||
for a tax year beginning on or after the effective date of this Act. | ||
SECTION 6. This Act takes effect January 1, 2023, but only | ||
if the constitutional amendment to authorize a political | ||
subdivision other than a school district to establish a limitation | ||
on the amount of ad valorem taxes that the political subdivision may | ||
impose on the residence homesteads of persons who are disabled or | ||
elderly and their surviving spouses is approved by the voters. If | ||
that amendment is not approved by the voters, this Act has no | ||
effect. |