Bill Text: TX SB26 | 2023 | 88th Legislature 1st Special Session | Engrossed
Bill Title: Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Spectrum: Slight Partisan Bill (Republican 18-9)
Status: (Engrossed - Dead) 2023-06-27 - Received from the Senate [SB26 Detail]
Download: Texas-2023-SB26-Engrossed.html
| By: Bettencourt, et al. | S.B. No. 26 | |
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| relating to providing property tax relief through the public school | ||
| finance system, exemptions, and limitations on taxes and providing | ||
| franchise tax relief. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| ARTICLE 1. SHORT TITLE | ||
| SECTION 1.01. This Act may be cited as the Property Tax and | ||
| Franchise Tax Relief Act. | ||
| ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION | ||
| SECTION 2.01. Section 48.255(b), Education Code, is amended | ||
| to read as follows: | ||
| (b) The state compression percentage is the lower of: | ||
| (1) 93 percent, or a lower percentage set by | ||
| appropriation for a school year; | ||
| (2) the percentage determined by the following | ||
| formula: | ||
| SCP = PYCP X 1.0175 [ |
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| (3) the percentage determined under this section for | ||
| the preceding school year. | ||
| SECTION 2.02. Section 48.2551(b), Education Code, is | ||
| amended to read as follows: | ||
| (b) Except as provided by Subsection (c), a district's | ||
| maximum compressed rate ("MCR") is the lesser of: | ||
| (1) the rate determined by the following applicable | ||
| formula: | ||
| (A) if "DPV" exceeds "PYDPV" by an amount equal | ||
| to or greater than 1.75 [ |
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| MCR = (1.0175 [ |
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| (B) if Paragraph (A) does not apply: | ||
| MCR = PYMCR; or | ||
| (2) the product of the state compression percentage, | ||
| as determined under Section 48.255, for the current tax year, | ||
| multiplied by $1.00. | ||
| SECTION 2.03. Subchapter F, Chapter 48, Education Code, is | ||
| amended by adding Sections 48.2555 and 48.283 to read as follows: | ||
| Sec. 48.2555. MAXIMUM COMPRESSED TAX RATE FOR 2023-2024 | ||
| SCHOOL YEAR. (a) Notwithstanding any other provision of this title | ||
| or Chapter 26, Tax Code, for the 2023-2024 school year, the | ||
| commissioner shall calculate the value of a school district's | ||
| maximum compressed tax rate by determining the district's maximum | ||
| compressed rate under Section 48.2551 or 48.2552(b), if applicable, | ||
| and reducing the tax rate determined under the applicable section | ||
| by $0.10. | ||
| (b) If a school district's maximum compressed tax rate as | ||
| calculated under Subsection (a) would be less than 90 percent of | ||
| another school district's maximum compressed tax rate under | ||
| Subsection (a), the district's maximum compressed tax rate is the | ||
| value at which the district's maximum compressed tax rate would be | ||
| equal to 90 percent of the other district's maximum compressed tax | ||
| rate. | ||
| (c) Notwithstanding any other provision of this title or | ||
| Chapter 26, Tax Code, for purposes of determining funding for | ||
| school districts for the 2023-2024 school year, a reference in any | ||
| of the following provisions of law to a school district's maximum | ||
| compressed tax rate or maximum compressed rate as determined under | ||
| Section 48.2551 means the maximum compressed tax rate determined | ||
| for the district under this section: | ||
| (1) Section 13.054(f); | ||
| (2) Section 45.003(d); | ||
| (3) Section 45.0032(a); | ||
| (4) Section 48.051(a); | ||
| (5) Sections 48.2553(a) and (e); and | ||
| (6) Section 26.08(n), Tax Code. | ||
| (d) For purposes of Section 30.003(f-1), a reference in that | ||
| section to Section 48.2551 includes this section. | ||
| (e) Notwithstanding any other provision of this title, for | ||
| purposes of determining a school district's maximum compressed tax | ||
| rate under Section 48.2551 for the 2024-2025 school year, the value | ||
| of the district's "PYMCR" is the maximum compressed tax rate | ||
| determined for the district under this section for the preceding | ||
| school year. | ||
| (f) This section expires September 1, 2025. | ||
| Sec. 48.283. ADDITIONAL STATE AID FOR CERTAIN DISTRICTS | ||
| IMPACTED BY COMPRESSION. (a) For the 2023-2024 and 2024-2025 | ||
| school years, a school district that received an adjustment under | ||
| Section 48.257(b) for the 2022-2023 school year is entitled to | ||
| additional state aid in an amount equal to the difference, if the | ||
| difference is greater than zero, between: | ||
| (1) the amount of state and local revenue that would | ||
| have been available to the district under this chapter and Chapter | ||
| 49 for the current school year if the district's maximum compressed | ||
| tax rate had not been reduced under Section 48.2555, as added by | ||
| S.B. 26, Acts of the 88th Legislature, 1st Called Session, 2023; and | ||
| (2) the amount of state and local revenue available to | ||
| the district under this chapter and Chapter 49 for the current | ||
| school year. | ||
| (b) This section expires September 1, 2026. | ||
| ARTICLE 3. SCHOOL DISTRICT RESIDENCE HOMESTEAD EXEMPTION | ||
| SECTION 3.01. 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 $100,000 [ |
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| adult's residence homestead, 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 3.02. Section 11.26, Tax Code, is amended by | ||
| amending Subsections (a), (a-10), and (o) and adding Subsections | ||
| (a-11) and (a-12) 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). [ |
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| (a-10) Notwithstanding the other provisions of this | ||
| section, if in the 2024 or a subsequent tax year an individual | ||
| qualifies for a limitation on tax increases provided by this | ||
| section on the individual's residence homestead, the amount of the | ||
| limitation provided by this section on the homestead is equal to the | ||
| amount computed by: | ||
| (1) multiplying the taxable value of the homestead in | ||
| the preceding tax year by a tax rate equal to the difference between | ||
| the school district's maximum compressed rate for the preceding tax | ||
| year and the district's maximum compressed rate for the current tax | ||
| year; | ||
| (2) subtracting the amount computed under Subdivision | ||
| (1) from the amount of tax the district imposed on the homestead in | ||
| the preceding tax year; [ |
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| (3) adding any tax imposed in the current tax year | ||
| attributable to improvements made in the preceding tax year as | ||
| provided by Subsection (b) to the amount computed under Subdivision | ||
| (2); | ||
| (4) multiplying the amount of any increase in the | ||
| current tax year as compared to the preceding tax year in the | ||
| aggregate amount of the exemptions to which the individual is | ||
| entitled under Sections 11.13(b) and (c) by the school district's | ||
| tax rate for the current tax year; and | ||
| (5) subtracting the amount computed under Subdivision | ||
| (4) from the amount computed under Subdivision (3). | ||
| (a-11) This subsection applies only to an individual who in | ||
| the 2023 tax year qualifies for a limitation under this section and | ||
| for whom the 2022 tax year or an earlier tax year was the first tax | ||
| year the individual or the individual's spouse qualified for an | ||
| exemption under Section 11.13(c). The amount of the limitation | ||
| provided by this section on the residence homestead of an | ||
| individual to which this subsection applies for the 2023 tax year is | ||
| the amount of the limitation as computed under Subsection (a-5), | ||
| (a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less | ||
| an amount equal to the product of $60,000 and the tax rate of the | ||
| school district for the 2023 tax year. This subsection expires | ||
| January 1, 2025. | ||
| (a-12) This subsection applies only to an individual who in | ||
| the 2023 tax year qualifies for a limitation under this section and | ||
| for whom the 2021 tax year or an earlier tax year was the first tax | ||
| year the individual or the individual's spouse qualified for an | ||
| exemption under Section 11.13(c). The amount of the limitation | ||
| provided by this section on the residence homestead of an | ||
| individual to which this subsection applies for the 2023 tax year is | ||
| the amount of the limitation as computed under Subsection (a-11) of | ||
| this section less an amount equal to the product of $15,000 and the | ||
| tax rate of the school district for the 2022 tax year. This | ||
| subsection expires January 1, 2025. | ||
| (o) Notwithstanding Subsections (a)[ |
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| improvement to property that would otherwise constitute an | ||
| improvement under Subsection (b) is not treated as an improvement | ||
| under that subsection if the improvement is a replacement structure | ||
| for a structure that was rendered uninhabitable or unusable by a | ||
| casualty or by wind or water damage. For purposes of appraising the | ||
| property in the tax year in which the structure would have | ||
| constituted an improvement under Subsection (b), the replacement | ||
| structure is considered to be an improvement under that subsection | ||
| only if: | ||
| (1) the square footage of the replacement structure | ||
| exceeds that of the replaced structure as that structure existed | ||
| before the casualty or damage occurred; or | ||
| (2) the exterior of the replacement structure is of | ||
| higher quality construction and composition than that of the | ||
| replaced structure. | ||
| SECTION 3.03. Section 46.071, Education Code, is amended by | ||
| amending Subsections (a-1) and (b-1) and adding Subsections (a-2), | ||
| (b-2), and (c-2) to read as follows: | ||
| (a-1) For [ |
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| 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, as proposed by the 87th Legislature, 3rd | ||
| Called Session, 2021, had not occurred. | ||
| (a-2) Beginning with the 2023-2024 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, 2022, if any increase in a 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 88th Legislature, | ||
| 1st Called Session, 2023, had not occurred. | ||
| (b-1) Subject to Subsections (c-1), (d), and (e), | ||
| additional state aid under this section for [ |
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| 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, as proposed by the 87th | ||
| Legislature, 3rd Called Session, 2021, is not offset by a gain in | ||
| state aid under this chapter. | ||
| (b-2) Subject to Subsections (c-2), (d), and (e), | ||
| additional state aid under this section beginning with the | ||
| 2023-2024 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 a 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 88th Legislature, 1st Called Session, 2023, is not | ||
| offset by a gain in state aid under this chapter. | ||
| (c-2) For the purpose of determining state aid under | ||
| Subsections (a-2) and (b-2), local interest and sinking revenue for | ||
| debt service is limited to revenue required to service debt | ||
| eligible under this chapter as of September 1, 2023, 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 3.04. Section 48.2542, Education Code, is amended | ||
| to read as follows: | ||
| Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF | ||
| LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED. | ||
| Notwithstanding any other provision of this chapter, if a school | ||
| district is not fully compensated through state aid or the | ||
| calculation of excess local revenue under this chapter based on the | ||
| determination of the district's taxable value of property under | ||
| Subchapter M, Chapter 403, Government Code, the district is | ||
| entitled to additional state aid in the amount necessary to fully | ||
| compensate the district for the amount of ad valorem tax revenue | ||
| lost due to a reduction of the amount of the limitation on tax | ||
| increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7), | ||
| (a-8), (a-9), [ |
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| applicable. | ||
| SECTION 3.05. Effective January 1, 2025, Section 48.2542, | ||
| Education Code, is amended to read as follows: | ||
| Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF | ||
| LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED. | ||
| Notwithstanding any other provision of this chapter, if a school | ||
| district is not fully compensated through state aid or the | ||
| calculation of excess local revenue under this chapter based on the | ||
| determination of the district's taxable value of property under | ||
| Subchapter M, Chapter 403, Government Code, the district is | ||
| entitled to additional state aid in the amount necessary to fully | ||
| compensate the district for the amount of ad valorem tax revenue | ||
| lost due to a reduction of the amount of the limitation on tax | ||
| increases provided by Section 11.26(a-10) [ |
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| SECTION 3.06. Section 48.2543, Education Code, is amended | ||
| to read as follows: | ||
| Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION. | ||
| (a) For [ |
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| 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, as proposed by the 87th Legislature, 3rd Called | ||
| Session, 2021, had not occurred. | ||
| (a-1) Beginning with the 2023-2024 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, 2022, if any increase in a 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 88th Legislature, | ||
| 1st Called Session, 2023, 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: | ||
| (1) the 2021 tax year is used for the purpose of | ||
| determining additional state aid under Subsection (a); and | ||
| (2) the 2022 tax year is used for the purpose of | ||
| determining additional state aid under Subsection (a-1). | ||
| SECTION 3.07. Section 48.2556(a), Education Code, is | ||
| amended to read as follows: | ||
| (a) The agency shall post the following information on the | ||
| agency's Internet website for purposes of allowing the chief | ||
| appraiser of each appraisal district and the assessor for each | ||
| school district to make the calculations required by Sections | ||
| 11.26(a-5), (a-6), (a-7), (a-8), (a-9), [ |
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| (a-12), Tax Code: | ||
| (1) each school district's maximum compressed rate, as | ||
| determined under Section 48.2551, for each tax year beginning with | ||
| the 2019 tax year; and | ||
| (2) each school district's tier one maintenance and | ||
| operations tax rate, as provided by Section 45.0032(a), for the | ||
| 2018 tax year. | ||
| SECTION 3.08. Effective January 1, 2025, Section | ||
| 48.2556(a), Education Code, is amended to read as follows: | ||
| (a) For purposes of allowing the chief appraiser of each | ||
| appraisal district and the assessor for each school district to | ||
| make the calculations required by Section 11.26(a-10), Tax Code, | ||
| the [ |
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| agency's Internet website [ |
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| [ |
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| as determined under Section 48.2551, for the current [ |
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| year and the preceding [ |
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| [ |
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| SECTION 3.09. Section 49.004, Education Code, is amended by | ||
| adding Subsections (a-1), (b-1), and (c-1) to read as follows: | ||
| (a-1) This subsection applies only if the constitutional | ||
| amendment proposed by S.J.R. 2, 88th Legislature, 1st Called | ||
| Session, 2023, is approved by the voters in an election held for | ||
| that purpose. As soon as practicable after receiving revised | ||
| property values that reflect adoption of the constitutional | ||
| amendment, the commissioner shall review the local revenue level of | ||
| districts in the state and revise as necessary the notifications | ||
| provided under Subsection (a) for the 2023-2024 school year. This | ||
| subsection expires September 1, 2024. | ||
| (b-1) This subsection applies only to a district that has | ||
| not previously held an election under this chapter. Notwithstanding | ||
| Subsection (b), a district that enters into an agreement to | ||
| exercise an option to reduce the district's local revenue level in | ||
| excess of entitlement under Section 49.002(3), (4), or (5) for the | ||
| 2023-2024 school year may request and, as provided by Section | ||
| 49.0042(a), receive approval from the commissioner to delay the | ||
| date of the election otherwise required to be ordered before | ||
| September 1. This subsection expires September 1, 2024. | ||
| (c-1) Notwithstanding Subsection (c), a district that | ||
| receives approval from the commissioner to delay an election as | ||
| provided by Subsection (b-1) may adopt a tax rate for the 2023 tax | ||
| year before the commissioner certifies that the district has | ||
| reduced its local revenue level to the level established by Section | ||
| 48.257. This subsection expires September 1, 2024. | ||
| SECTION 3.10. Subchapter A, Chapter 49, Education Code, is | ||
| amended by adding Section 49.0042 to read as follows: | ||
| Sec. 49.0042. TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD | ||
| EXEMPTIONS AND LIMITATION ON TAX INCREASES. (a) The commissioner | ||
| shall approve a district's request under Section 49.004(b-1) to | ||
| delay the date of an election required under this chapter if the | ||
| commissioner determines that the district would not have a local | ||
| revenue level in excess of entitlement if the constitutional | ||
| amendment proposed by S.J.R. 2, 88th Legislature, 1st Called | ||
| Session, 2023, were approved by the voters. | ||
| (b) The commissioner shall set a date by which each district | ||
| that receives approval under this section must order the election. | ||
| (c) Not later than the 2024-2025 school year, the | ||
| commissioner shall order detachment and annexation of property | ||
| under Subchapter G or consolidation under Subchapter H as necessary | ||
| to reduce the district's local revenue level to the level | ||
| established by Section 48.257 for a district that receives approval | ||
| under this section and subsequently: | ||
| (1) fails to hold the election; or | ||
| (2) does not receive voter approval at the election. | ||
| (d) This section expires September 1, 2025. | ||
| SECTION 3.11. Subchapter A, Chapter 49, Education Code, is | ||
| amended by adding Section 49.0121 to read as follows: | ||
| Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This | ||
| section applies only to an election under this chapter that occurs | ||
| during the 2023-2024 school year. | ||
| (b) Section 49.012 does not apply to a district that | ||
| receives approval of a request under Section 49.0042. The district | ||
| shall hold the election on a Tuesday or Saturday on or before a date | ||
| specified by the commissioner. Section 41.001, Election Code, does | ||
| not apply to the election. | ||
| (c) This section expires September 1, 2024. | ||
| SECTION 3.12. Section 49.154, Education Code, is amended by | ||
| adding Subsections (a-2) and (a-3) to read as follows: | ||
| (a-2) Notwithstanding Subsections (a) and (a-1), a district | ||
| that receives approval of a request under Section 49.0042 shall pay | ||
| for credit purchased: | ||
| (1) in equal monthly payments as determined by the | ||
| commissioner beginning March 15, 2024, and ending August 15, 2024; | ||
| or | ||
| (2) in the manner provided by Subsection (a)(2), | ||
| provided that the district notifies the commissioner of the | ||
| district's election to pay in that manner not later than March 15, | ||
| 2024. | ||
| (a-3) Subsection (a-2) and this subsection expire September | ||
| 1, 2024. | ||
| SECTION 3.13. Section 49.308, Education Code, is amended by | ||
| adding Subsection (a-1) to read as follows: | ||
| (a-1) Notwithstanding Subsection (a), for the 2023-2024 | ||
| school year, the commissioner shall order any detachments and | ||
| annexations of property under this subchapter as soon as | ||
| practicable after the canvass of the votes on the constitutional | ||
| amendment proposed by S.J.R. 2, 88th Legislature, 1st Called | ||
| Session, 2023. This subsection expires September 1, 2024. | ||
| SECTION 3.14. Section 403.302, Government Code, is amended | ||
| by amending Subsection (j-1) and adding Subsection (j-2) to read as | ||
| follows: | ||
| (j-1) In the final certification of the study under | ||
| Subsection (j), the comptroller shall separately identify the final | ||
| taxable value for each school district as adjusted to account for | ||
| the reduction of the amount of the limitation on tax increases | ||
| provided by Section 11.26(a-10) [ |
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| (j-2) In the final certification of the study under | ||
| Subsection (j), the comptroller shall separately identify the final | ||
| taxable value for each school district as adjusted to account for | ||
| the reduction of the amount of the limitation on tax increases | ||
| provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9), | ||
| (a-10), (a-11), and (a-12), Tax Code. This subsection expires | ||
| January 1, 2025. | ||
| SECTION 3.15. Section 25.23, Tax Code, is amended by adding | ||
| Subsection (a-1) to read as follows: | ||
| (a-1) This subsection applies only to the appraisal records | ||
| for the 2023 tax year. The chief appraiser shall prepare | ||
| supplemental appraisal records to account for the changes in law | ||
| made by S.B. 26, Acts of the 88th Legislature, 1st Called Session, | ||
| 2023. This subsection expires December 31, 2024. | ||
| SECTION 3.16. Section 26.04, Tax Code, is amended by adding | ||
| Subsections (a-1) and (c-1) to read as follows: | ||
| (a-1) On receipt of the appraisal roll for the 2023 tax | ||
| year, the assessor for a school district shall determine the total | ||
| taxable value of property taxable by the district and the taxable | ||
| value of new property as if the changes in law made by S.B. 26, Acts | ||
| of the 88th Legislature, 1st Called Session, 2023, were in effect | ||
| for that tax year. This subsection expires December 31, 2024. | ||
| (c-1) An officer or employee designated by the governing | ||
| body of a school district shall calculate the no-new-revenue tax | ||
| rate and the voter-approval tax rate of the district for the 2023 | ||
| tax year as if the changes in law made by S.B. 26, Acts of the 88th | ||
| Legislature, 1st Called Session, 2023, were in effect for that tax | ||
| year. This subsection expires December 31, 2024. | ||
| SECTION 3.17. Section 26.08, Tax Code, is amended by adding | ||
| Subsection (q) to read as follows: | ||
| (q) For purposes of this section, the voter-approval tax | ||
| rate of a school district for the 2023 tax year shall be calculated | ||
| as if the changes in law made by S.B. 26, Acts of the 88th | ||
| Legislature, 1st Called Session, 2023, were in effect for that tax | ||
| year. This subsection expires December 31, 2024. | ||
| SECTION 3.18. Section 26.09, Tax Code, is amended by adding | ||
| Subsection (c-1) to read as follows: | ||
| (c-1) The assessor for a school district shall calculate the | ||
| amount of tax imposed by the district on a residence homestead for | ||
| the 2023 tax year as if the changes in law made by S.B. 26, Acts of | ||
| the 88th Legislature, 1st Called Session, 2023, were in effect for | ||
| that tax year and also as if the changes in law made by that Act were | ||
| not in effect for that tax year. This subsection expires December | ||
| 31, 2024. | ||
| SECTION 3.19. Section 26.15, Tax Code, is amended by adding | ||
| Subsection (h) to read as follows: | ||
| (h) The assessor for a school district shall correct the tax | ||
| roll for the district for the 2023 tax year to reflect the results | ||
| of the election to approve the constitutional amendment proposed by | ||
| S.J.R. 2, 88th Legislature, 1st Called Session, 2023. This | ||
| subsection expires December 31, 2024. | ||
| SECTION 3.20. Section 31.01, Tax Code, is amended by adding | ||
| Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows: | ||
| (d-2) This subsection and Subsections (d-3) and (d-4) apply | ||
| only to taxes imposed by a school district on a residence homestead | ||
| for the 2023 tax year and only if the changes in law made by S.B. 26, | ||
| Acts of the 88th Legislature, 1st Called Session, 2023, would lower | ||
| the taxes imposed by the district on the property for that tax year. | ||
| The assessor for the district shall compute the amount of taxes | ||
| imposed and the other information required by this section as if the | ||
| changes in law made by S.B. 26, Acts of the 88th Legislature, 1st | ||
| Called Session, 2023, were in effect for that tax year. The tax | ||
| bill or the separate statement must indicate that the bill is a | ||
| provisional tax bill and include a statement in substantially the | ||
| following form: | ||
| "If the Texas Legislature had not enacted property tax relief | ||
| legislation during the 2023 legislative session, your tax bill | ||
| would have been $____ (insert amount of tax bill if the changes in | ||
| law made by S.B. 26, Acts of the 88th Legislature, 1st Called | ||
| Session, 2023, were not in effect for that tax year). Because of | ||
| action by the Texas Legislature, your tax bill has been lowered by | ||
| $____ (insert difference between amount of tax bill if the changes | ||
| in law made by S.B. 26, Acts of the 88th Legislature, 1st Called | ||
| Session, 2023, were not in effect for that tax year and amount of | ||
| tax bill if that Act were in effect for that tax year), resulting in | ||
| a lower tax bill of $____ (insert amount of tax bill if the changes | ||
| in law made by S.B. 26, Acts of the 88th Legislature, 1st Called | ||
| Session, 2023, were in effect for that tax year), contingent on the | ||
| approval by the voters at an election to be held November 7, 2023, | ||
| of the constitutional amendment proposed by S.J.R. 2, 88th | ||
| Legislature, 1st Called Session, 2023. If that constitutional | ||
| amendment is not approved by the voters at the election, a | ||
| supplemental tax bill in the amount of $____ (insert difference | ||
| between amount of tax bill if the changes in law made by S.B. 26, | ||
| Acts of the 88th Legislature, 1st Called Session, 2023, were not in | ||
| effect for that tax year and amount of tax bill if that Act were in | ||
| effect for that tax year) will be mailed to you." | ||
| (d-3) A tax bill prepared by the assessor for a school | ||
| district as provided by Subsection (d-2) and mailed as provided by | ||
| Subsection (a) is considered to be a provisional tax bill until the | ||
| canvass of the votes on the constitutional amendment proposed by | ||
| S.J.R. 2, 88th Legislature, 1st Called Session, 2023. If the | ||
| constitutional amendment is approved by the voters, the tax bill is | ||
| considered to be a final tax bill for the taxes imposed on the | ||
| property for the 2023 tax year, and no additional tax bill is | ||
| required to be mailed unless another provision of this title | ||
| requires the mailing of a corrected tax bill. If the constitutional | ||
| amendment is not approved by the voters: | ||
| (1) a tax bill prepared by the assessor as provided by | ||
| Subsection (d-2) is considered to be a final tax bill but only as to | ||
| the portion of the taxes imposed on the property for the 2023 tax | ||
| year that are included in the bill; | ||
| (2) the amount of taxes imposed by each school | ||
| district on a residence homestead for the 2023 tax year is | ||
| calculated as if the changes in law made by S.B. 26, Acts of the 88th | ||
| Legislature, 1st Called Session, 2023, were not in effect for that | ||
| tax year; and | ||
| (3) except as provided by Subsections (f), (i-1), and | ||
| (k), the assessor for each school district shall prepare and mail a | ||
| supplemental tax bill, by December 1 or as soon thereafter as | ||
| practicable, in an amount equal to the difference between the | ||
| amount of the tax bill if the changes in law made by S.B. 26, Acts of | ||
| the 88th Legislature, 1st Called Session, 2023, were not in effect | ||
| for that tax year and the amount of the tax bill if that Act were in | ||
| effect for that tax year. | ||
| (d-4) Except as otherwise provided by Subsection (d-3), the | ||
| provisions of this section other than Subsection (d-2) apply to a | ||
| supplemental tax bill mailed under Subsection (d-3). | ||
| (d-5) This subsection and Subsections (d-2), (d-3), and | ||
| (d-4) expire December 31, 2024. | ||
| SECTION 3.21. Section 31.02, Tax Code, is amended by adding | ||
| Subsection (a-1) to read as follows: | ||
| (a-1) Except as provided by Subsection (b) of this section | ||
| and Sections 31.03 and 31.04, taxes for which a supplemental tax | ||
| bill is mailed under Section 31.01(d-3) are due on receipt of the | ||
| tax bill and are delinquent if not paid before March 1 of the year | ||
| following the year in which imposed. This subsection expires | ||
| December 31, 2024. | ||
| SECTION 3.22. (a) Sections 11.26(a-1), (a-2), and (a-3), | ||
| Tax Code, are repealed. | ||
| (b) Effective January 1, 2025, Sections 11.26(a-5), (a-6), | ||
| (a-7), (a-8), and (a-9), Tax Code, are repealed. | ||
| SECTION 3.23. The changes in law made by this article to | ||
| Sections 11.13 and 11.26, Tax Code, apply beginning with the ad | ||
| valorem tax year that begins January 1, 2023. | ||
| ARTICLE 4. DETERMINATION AND REPORTING OF FRANCHISE TAX LIABILITY | ||
| SECTION 4.01. Section 171.002(d), Tax Code, is amended to | ||
| read as follows: | ||
| (d) A taxable entity is not required to pay any tax and is | ||
| not considered to owe any tax for a period if: | ||
| (1) the amount of tax computed for the taxable entity | ||
| is less than $1,000; or | ||
| (2) the amount of the taxable entity's total revenue | ||
| from its entire business is less than or equal to $2.47 [ |
||
| or the amount determined under Section 171.006 per 12-month period | ||
| on which margin is based. | ||
| SECTION 4.02. Section 171.204(b), Tax Code, is amended to | ||
| read as follows: | ||
| (b) The comptroller may not require a taxable entity that | ||
| does not owe any tax because of the application of Section | ||
| 171.002(d)(2) to file an [ |
||
| comptroller [ |
||
| SECTION 4.03. Section 171.204(d), Tax Code, is repealed. | ||
| SECTION 4.04. The changes in law made by this article apply | ||
| only to a report originally due on or after January 1, 2024. | ||
| ARTICLE 5. EFFECTIVE DATES | ||
| SECTION 5.01. Except as otherwise provided by this article, | ||
| this Act takes effect on the 91st day after the last day of the | ||
| legislative session. | ||
| SECTION 5.02. (a) Except as provided by Subsection (b) of | ||
| this section or as otherwise provided by Article 3 of this Act: | ||
| (1) Article 3 of this Act takes effect on the date on | ||
| which the constitutional amendment proposed by S.J.R. 2, 88th | ||
| Legislature, 1st Called Session, 2023, takes effect; and | ||
| (2) if that amendment is not approved by the voters, | ||
| Article 3 of this Act has no effect. | ||
| (b) Sections 49.004(a-1), (b-1), and (c-1), 49.0042, | ||
| 49.0121, 49.154(a-2) and (a-3), and 49.308(a-1), Education Code, | ||
| and Sections 25.23(a-1), 26.04(a-1) and (c-1), 26.08(q), | ||
| 26.09(c-1), 26.15(h), 31.01(d-2), (d-3), (d-4), and (d-5), and | ||
| 31.02(a-1), Tax Code, as added by Article 3 of this Act, take effect | ||
| immediately if this Act receives a vote of two-thirds of all the | ||
| members elected to each house, as provided by Section 39, Article | ||
| III, Texas Constitution. If this Act does not receive the vote | ||
| necessary for those sections to have immediate effect, those | ||
| sections take effect on the 91st day after the last day of the | ||
| legislative session. | ||
| SECTION 5.03. Article 4 of this Act takes effect January 1, | ||
| 2024. | ||
