84R3125 SMH-F
	By: Bettencourt, et al.	S.B. No. 515

	A BILL TO BE ENTITLED
	AN ACT
	relating to an increase in the amount of the residence homestead
	exemption from ad valorem taxation by a school district, a
	reduction of the limitation on the total amount of ad valorem taxes
	that may be imposed by a school district on the homestead of an
	elderly or disabled person to reflect the increased exemption
	amount, and the protection of school districts against the
	resulting loss in local revenue.
	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.  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 3.  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 4.  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 5.  The changes in law made by this Act to Sections
	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
	begins on or after January 1, 2016.
	SECTION 6.  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 and 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 is
	approved by the voters. If that constitutional amendment is not
	approved by the voters, this Act has no effect.