Bill Text: TX SB1694 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to certain exemptions from ad valorem taxation.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-03-23 - Referred to Finance [SB1694 Detail]

Download: Texas-2015-SB1694-Introduced.html

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84R8904 SMH-D
By: Bettencourt S.B. No. 1694

A BILL TO BE ENTITLED
AN ACT
relating to certain exemptions from ad valorem taxation.
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 $30,000 [$15,000] of the appraised value of the
adult's residence homestead, except that only $5,000 [$10,000] of
the exemption applies [does not apply] 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. Sections 11.251(e), (g), and (k), Tax Code, are
amended to read as follows:
(e) In determining the market value of freeport goods that
in the preceding year were assembled, manufactured, repaired,
maintained, processed, or fabricated in this state or used by the
person who acquired or imported the property in the repair or
maintenance of aircraft operated by a certificated air carrier, the
chief appraiser shall exclude the cost of equipment, machinery, or
materials that entered into and became component parts of the
freeport goods but were not themselves freeport goods or that were
not transported outside the state before the expiration of 365
[175] days, or, if applicable, the greater number of days adopted by
the taxing unit as authorized by Subsection (l), after they were
brought into this state by the property owner or acquired by the
property owner in this state. For component parts held in bulk, the
chief appraiser may use the average length of time a component part
was held in this state by the property owner during the preceding
year in determining whether the component parts were transported
out of this state before the expiration of 365 [175] days or, if
applicable, the greater number of days adopted by the taxing unit as
authorized by Subsection (l).
(g) If the property owner or the chief appraiser
demonstrates that the method provided by Subsection (d)
significantly understates or overstates the market value of the
property qualified for an exemption under Subsection (b) in the
current year, the chief appraiser shall determine the market value
of the freeport goods to be exempt by determining, according to the
property owner's records and any other available information, the
market value of those freeport goods owned by the property owner on
January 1 of the current year, excluding the cost of equipment,
machinery, or materials that entered into and became component
parts of the freeport goods but were not themselves freeport goods
or that were not transported outside the state before the
expiration of 365 [175] days, or, if applicable, the greater number
of days adopted by the taxing unit as authorized by Subsection (l),
after they were brought into this state by the property owner or
acquired by the property owner in this state.
(k) Property that meets the requirements of Article VIII,
Sections 1-j(a)(1) and (2), of the Texas Constitution and that is
transported outside of this state not later than 365 [175] days, or,
if applicable, the greater number of days adopted by the taxing unit
as authorized by Subsection (l), after the date the person who owns
it on January 1 acquired it or imported it into this state is
freeport goods regardless of whether the person who owns it on
January 1 is the person who transports it outside of this state.
SECTION 3. 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 2016 [1997] tax
year, the amount of the limitation provided by this section is the
amount of tax the school district imposed for the 2015 [1996] tax
year less an amount equal to the amount determined by multiplying
$15,000 [$10,000] times the tax rate of the school district for the
2016 [1997] tax year, plus any 2016 [1997] tax attributable to
improvements made in 2015 [1996], other than improvements made to
comply with governmental regulations or repairs.
SECTION 4. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.2512 to read as follows:
Sec. 42.2512. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
(a) Notwithstanding Section 42.2516 or any other provision of this
chapter, a school district is entitled to additional state aid to
the extent that state aid under this chapter based on the
determination of the school district's taxable value of property as
provided under Subchapter M, Chapter 403, Government Code, does not
fully compensate the district for ad valorem tax revenue lost due to
the increase in the homestead exemption under Section 1-b(c),
Article VIII, Texas Constitution, as proposed by the joint
resolution to amend that section adopted by the 84th Legislature,
Regular Session, 2015, and the additional limitation on tax
increases under Section 1-b(d), Article VIII, Texas Constitution,
as proposed by the joint resolution to amend that section adopted by
the 84th Legislature, Regular Session, 2015.
(b) The commissioner, using information provided by the
comptroller, shall compute the amount of additional state aid to
which a district is entitled under Subsection (a). A determination
by the commissioner under this section is final and may not be
appealed.
(c) Notwithstanding any other provision of this chapter, in
computing state aid for the 2016-2017 school year, a school
district's taxable value of property under Subchapter M, Chapter
403, Government Code, is determined as if the increase in the
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, as proposed by the joint resolution to amend that
section adopted by the 84th Legislature, Regular Session, 2015, and
the additional limitation on tax increases under Section 1-b(d),
Article VIII, Texas Constitution, as proposed by the joint
resolution to amend that section adopted by the 84th Legislature,
Regular Session, 2015, had been in effect for the 2015 tax year.
This subsection expires September 1, 2018.
SECTION 5. Section 403.302(j), Government Code, is amended
to read as follows:
(j) For purposes of Chapter 42, Education Code, the
comptroller shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000;
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
Regular Session, 1997; [and]
(3) a final value for each school district computed on
the effect of the reduction of the limitation on tax increases to
reflect any reduction in the school district tax rate as provided by
Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable; and
(4) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $30,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by the joint resolution to amend that
section adopted by the 84th Legislature, Regular Session, 2015.
SECTION 6. The changes in law made by this Act to Sections
11.13, 11.251, and 11.26, Tax Code, apply only to an ad valorem tax
year that begins on or after January 1, 2016.
SECTION 7. This Act takes effect January 1, 2016, but only
if the constitutional amendment proposed by the 84th Legislature,
Regular Session, 2015, increasing the amount of the residence
homestead exemption from ad valorem taxation for public school
purposes from $15,000 to $30,000, 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, and
extending the number of days that certain tangible personal
property that is exempt from ad valorem taxation due to its
temporary location in this state may remain located in this state
before forfeiting the right to the exemption is approved by the
voters. If that constitutional amendment is not approved by the
voters, this Act has no effect.