83R3457 SMH-D
	By: King of Taylor	H.B. No. 862

	A BILL TO BE ENTITLED
	AN ACT
	relating to the transfer of the limitation on school district,
	county, municipal, or junior college district ad valorem taxes on
	the residence homestead of a person who is elderly or disabled to a
	subsequent homestead of that person.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 11.26, Tax Code, is amended by amending
	Subsection (g) and adding Subsection (g-1) to read as follows:
	(g)  Except as provided by Subsections [Subsection] (b) and
	(g-1), if an individual who receives a limitation on tax increases
	imposed by this section, including a surviving spouse who receives
	a limitation under Subsection (i), subsequently qualifies a
	different residence homestead for the same exemption under Section
	11.13, a school district may not impose ad valorem taxes on the
	subsequently qualified homestead in a year in an amount that
	exceeds the amount of taxes the school district would have imposed
	on the subsequently qualified homestead in the first year in which
	the individual receives that same exemption for the subsequently
	qualified homestead had the limitation on tax increases imposed by
	this section not been in effect, multiplied by a fraction the
	numerator of which is the total amount of school district taxes
	imposed on the former homestead in the last year in which the
	individual received that same exemption for the former homestead
	and the denominator of which is the total amount of school district
	taxes that would have been imposed on the former homestead in the
	last year in which the individual received that same exemption for
	the former homestead had the limitation on tax increases imposed by
	this section not been in effect.
	(g-1)  The limitation provided by Subsection (g) does not
	apply to a subsequently qualified residence homestead of an
	individual if:
	(1)  the individual received a limitation on tax
	increases imposed by this section on the individual's former
	homestead in the last tax year in which the individual received an
	exemption for the homestead under Section 11.13;
	(2)  no school district ad valorem taxes were imposed
	on the former homestead in that year; and
	(3)  the taxable value of the subsequently qualified
	homestead in the tax year in which the individual first receives an
	exemption under Section 11.13 for that homestead exceeds the
	average taxable value of the homesteads in the school district in
	which that homestead is located in that tax year.
	SECTION 2.  Section 11.261, Tax Code, is amended by amending
	Subsection (g) and adding Subsection (g-1) to read as follows:
	(g)  Except as provided by Subsections [Subsection] (c) and
	(g-1), if an individual who receives a limitation on county,
	municipal, or junior college district tax increases provided by
	this section subsequently qualifies a different residence
	homestead in the same county, municipality, or junior college
	district for an exemption under Section 11.13, the county,
	municipality, or junior college district may not impose ad valorem
	taxes on the subsequently qualified homestead in a year in an amount
	that exceeds the amount of taxes the county, municipality, or
	junior college district would have imposed on the 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 county, municipality, or junior
	college district imposed on the former 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 county, municipality, or junior college district would have
	imposed on the former homestead 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.
	(g-1)  The limitation provided by Subsection (g) does not
	apply to a subsequently qualified residence homestead of an
	individual if:
	(1)  the individual received a limitation on tax
	increases imposed by this section on the individual's former
	homestead in the last tax year in which the individual received an
	exemption for the homestead under Section 11.13;
	(2)  no county, municipal, or junior college district
	ad valorem taxes were imposed on the former homestead in that year;
	and
	(3)  the taxable value of the subsequently qualified
	homestead in the tax year in which the individual first receives an
	exemption under Section 11.13 for that homestead exceeds the
	average taxable value of the homesteads in the county,
	municipality, or junior college district, as applicable, in that
	tax year.
	SECTION 3.  This Act applies to the calculation of the
	limitation on school district, county, municipal, or junior college
	district ad valorem taxes on the residence homestead of a person who
	is elderly or disabled only for a tax year beginning on or after
	January 1, 2014, and only if the first tax year in which the person
	qualified the homestead for an exemption under Section 11.13, Tax
	Code, was a tax year beginning on or after that date.
	SECTION 4.  This Act takes effect January 1, 2014.