Bill Text: TX SB3 | 2023-2024 | 88th Legislature | Comm Sub

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Bill Title: Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.

Spectrum: Slight Partisan Bill (Republican 87-29)

Status: (Engrossed - Dead) 2023-05-26 - House appoints conferees-reported [SB3 Detail]

Download: Texas-2023-SB3-Comm_Sub.html

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88R30049 CJC/TJB/KJE-D
By: Bettencourt, et al. S.B. No. 3
(Meyer)
Substitute the following for S.B. No. 3: No.

A BILL TO BE ENTITLED
AN ACT
relating to providing property tax relief through the public school
finance system, exemptions, limitations on appraisals and taxes,
and property tax administration.
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
Relief Act.
ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
SECTION 2.01. 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 $0.15.
(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 school district that received an
adjustment under Section 48.257(b) for the 2022-2023 school year is
entitled to additional state aid for each school year in an amount
equal to the amount of that adjustment for the 2022-2023 school year
less the difference, if the difference is greater than zero,
between:
(1) the amount to which the district is entitled under
this chapter for the current school year; and
(2) the amount to which the district would be entitled
under this chapter 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. 3, Acts of the 88th Legislature, Regular
Session, 2023.
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 [$40,000] of the appraised value of the
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). [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.]
(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; [and]
(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)[, (a-3),] and (b), an
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 [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, 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,
Regular Session, 2023, had not occurred.
(b-1) Subject to Subsections (c-1), (d), and (e),
additional state aid under this section for [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, 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, Regular 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, 2022, 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), [and] (a-10), (a-11), and (a-12), Tax Code, as
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) [Sections 11.26(a-4),
(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
applicable].
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 [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, 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,
Regular 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), [and] (a-10), (a-11), and
(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 [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), and (a-10), Tax Code:
[(1)] each school district's maximum compressed rate,
as determined under Section 48.2551, for the current [each] tax
year and the preceding [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 3.09. 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. 3, 88th Legislature, Regular 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. 3, 88th Legislature, Regular 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. 3, 88th Legislature, Regular 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) [Sections 11.26(a-4), (a-5),
(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
(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. (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 3.16. 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. LIMITATION ON INCREASES IN VALUE OF REAL PROPERTY
SECTION 4.01. Section 1.12(d), Tax Code, is amended to read
as follows:
(d) For purposes of this section, the appraisal ratio of
property [a homestead] to which Section 23.23 applies is the ratio
of the property's market value as determined by the appraisal
district or appraisal review board, as applicable, to the market
value of the property according to law. The appraisal ratio is not
calculated according to the appraised value of the property as
limited by Section 23.23.
SECTION 4.02. The heading to Section 23.23, Tax Code, is
amended to read as follows:
Sec. 23.23. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY
[RESIDENCE HOMESTEAD].
SECTION 4.03. Section 23.23, Tax Code, is amended by
amending Subsections (a), (b), (c), and (e) and adding Subsections
(c-2), (c-3), (c-4), and (h) to read as follows:
(a) Notwithstanding the requirements of Section 25.18 and
regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an appraisal office may increase the appraised value of real
property [a residence homestead] for a tax year to an amount not to
exceed the lesser of:
(1) the market value of the property for the most
recent tax year that the market value was determined by the
appraisal office; or
(2) the sum of:
(A) five [10] percent of the appraised value of
the property for the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
(b) When appraising real property [a residence homestead],
the chief appraiser shall:
(1) appraise the property at its market value; and
(2) include in the appraisal records both the market
value of the property and the amount computed under Subsection
(a)(2).
(c) The limitation provided by Subsection (a) takes effect
on January 1 of the tax year following the first tax year in which
the owner owns the property on January 1 [as to a residence
homestead on January 1 of the tax year following the first tax year
the owner qualifies the property for an exemption under Section
11.13]. Except as provided by Subsection (c-2) or (c-3), the [The]
limitation expires on January 1 of the first tax year following the
year in which [that neither] the owner of the property ceases to own
the property.
(c-2) If property subject to a limitation under this section
qualifies for an exemption under Section 11.13 when the ownership
of the property is transferred to the owner's spouse or surviving
spouse, the limitation expires on January 1 of the first tax year
following the year in which [when the limitation took effect nor]
the owner's spouse or surviving spouse ceases to own the property,
unless the limitation is further continued under this subsection on
the subsequent transfer to a spouse or surviving spouse [qualifies
for an exemption under Section 11.13].
(c-3) If property subject to a limitation under Subsection
(a), other than a residence homestead, is owned by two or more
persons, the limitation expires on January 1 of the first tax year
following the year in which the ownership of at least a 50 percent
interest in the property is sold or otherwise transferred.
(c-4) For purposes of applying the limitation provided by
this section, a person who acquired real property in a tax year
before the 2023 tax year, other than property that qualified as the
residence homestead of the person under Section 11.13 in the 2023
tax year, is considered to have acquired the property on January 1,
2023.
(e) In this section, "new improvement" means an improvement
to real property [a residence homestead] made after the most recent
appraisal of the property that increases the market value of the
property and the value of which is not included in the appraised
value of the property for the preceding tax year. The term does not
include repairs to or ordinary maintenance of an existing structure
or the grounds or another feature of the property.
(h) In this section, "real property" includes a
manufactured home as that term is defined by Section 1201.003,
Occupations Code, that qualifies as a residence homestead under
Section 11.13 of this code, regardless of whether the owner of the
manufactured home elects to treat the manufactured home as real
property under Section 1201.2055, Occupations Code.
SECTION 4.04. Section 42.26(d), Tax Code, is amended to
read as follows:
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is [a
residence homestead] subject to the limitation on appraised value
imposed by Section 23.23.
SECTION 4.05. Sections 403.302(d) and (i), Government Code,
are amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by former Section 311.003(e), Tax Code, before May 31,
1999, and within the boundaries of the zone as those boundaries
existed on September 1, 1999, including subsequent improvements to
the property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(7) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(9) a portion of the market value of property not
otherwise fully taxable by the district at market value because of
action required by statute or the constitution of this state, other
than Section 11.311, Tax Code, that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted;
(10) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code;
(13) the amount by which the market value of property
[a residence homestead] to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section; and
(14) the total dollar amount of any exemptions granted
under Section 11.35, Tax Code.
(i) If the comptroller determines in the study that the
market value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is valid, the comptroller,
in determining the taxable value of property in the school district
under Subsection (d), shall for purposes of Subsection (d)(13)
subtract from the market value as determined by the appraisal
district of properties [residence homesteads] to which Section
23.23, Tax Code, applies the amount by which that amount exceeds the
appraised value of those properties as calculated by the appraisal
district under Section 23.23, Tax Code. If the comptroller
determines in the study that the market value of property in a
school district as determined by the appraisal district that
appraises property for the school district, less the total of the
amounts and values listed in Subsection (d) as determined by that
appraisal district, is not valid, the comptroller, in determining
the taxable value of property in the school district under
Subsection (d), shall for purposes of Subsection (d)(13) subtract
from the market value as estimated by the comptroller of properties
[residence homesteads] to which Section 23.23, Tax Code, applies
the amount by which that amount exceeds the appraised value of those
properties as calculated by the appraisal district under Section
23.23, Tax Code.
SECTION 4.06. Section 23.23(c-1), Tax Code, is repealed.
SECTION 4.07. This article applies only to the appraisal
for ad valorem tax purposes of property for a tax year that begins
on or after the effective date of this article.
ARTICLE 5. ESCROW ACCOUNTS
SECTION 5.01. Section 31.072(a), Tax Code, is amended to
read as follows:
(a) At the request of a property owner, the [The] collector
for a taxing unit shall [may] enter a contract with the [a] property
owner under which the property owner deposits money in an escrow
account maintained by the collector to provide for the payment of
property taxes collected by the collector on any property the
person owns.
SECTION 5.02. Sections 31.072(h) and (i), Tax Code, are
repealed.
SECTION 5.03. This article applies only to a tax year that
begins on or after the effective date of this article.
ARTICLE 6. TRANSITIONAL TAX YEAR PROVISIONS
SECTION 6.01. 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. 3, Acts of the 88th Legislature, Regular Session, 2023.
This subsection expires December 31, 2024.
SECTION 6.02. 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 taxing unit shall determine the total
taxable value of property taxable by the taxing unit and the taxable
value of new property as if the changes in law made by S.B. 3, Acts
of the 88th Legislature, Regular 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 taxing unit shall calculate the no-new-revenue tax rate
and the voter-approval tax rate of the taxing unit for the 2023 tax
year as if the changes in law made by S.B. 3, Acts of the 88th
Legislature, Regular Session, 2023, were in effect for that tax
year. This subsection expires December 31, 2024.
SECTION 6.03. Chapter 26, Tax Code, is amended by adding
Section 26.0401 to read as follows:
Sec. 26.0401. CALCULATION OF CERTAIN TAX RATES FOR 2023 TAX
YEAR. (a) For the purposes of calculating the no-new-revenue tax
rate, the voter-approval tax rate, and any related tax rate for the
2023 tax year, a taxing unit that calculates those rates under a
provision of law other than Section 26.04 or 26.08 shall calculate
those rates as if the changes in law made by S.B. 3, Acts of the 88th
Legislature, Regular Session, 2023, were in effect for that tax
year.
(b) This section expires December 31, 2024.
SECTION 6.04. 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. 3, Acts of the 88th
Legislature, Regular Session, 2023, were in effect for that tax
year. This subsection expires December 31, 2024.
SECTION 6.05. Section 26.09, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) The assessor for a taxing unit shall calculate the
amount of tax imposed by the taxing unit on real property for the
2023 tax year as if the changes in law made by S.B. 3, Acts of the
88th Legislature, Regular 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 6.06. Section 26.15, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) The assessor for a taxing unit shall correct the tax
roll for the taxing unit for the 2023 tax year to reflect the
results of the election to approve the constitutional amendment
proposed by S.J.R. 3, 88th Legislature, Regular Session, 2023.
This subsection expires December 31, 2024.
SECTION 6.07. 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 taxing unit on real property for the 2023
tax year and only if the changes in law made by S.B. 3, Acts of the
88th Legislature, Regular Session, 2023, would lower the taxes
imposed by the taxing unit on the property for that tax year. The
assessor for the taxing unit 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. 3, Acts of the 88th Legislature, Regular
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. 3, Acts of the 88th Legislature, Regular 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. 3, Acts of the 88th Legislature, Regular 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. 3, Acts of the 88th Legislature, Regular 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. 3, 88th Legislature,
Regular 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. 3, Acts of the 88th Legislature,
Regular 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 taxing unit
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. 3, 88th Legislature, Regular 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 taxing unit on
real property for the 2023 tax year is calculated as if the changes
in law made by S.B. 3, Acts of the 88th Legislature, Regular
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 taxing unit 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. 3, Acts of
the 88th Legislature, Regular 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 6.08. 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.
ARTICLE 7. EFFECTIVE DATES
SECTION 7.01. Except as otherwise provided by this article,
this Act takes effect September 1, 2023.
SECTION 7.02. (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. 3, 88th
Legislature, Regular 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, 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 7.03. Article 4 of this Act takes effect on the date
on which the constitutional amendment proposed by S.J.R. 3, 88th
Legislature, Regular Session, 2023, is approved by the voters. If
that amendment is not approved by the voters, Article 4 of this Act
has no effect.
SECTION 7.04. Article 5 of this Act takes effect January 1,
2024.
SECTION 7.05. Article 6 of this Act takes 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 that article to have immediate effect, Article 6 of
this Act takes effect on the 91st day after the last day of the
legislative session.