Bill Text: TX SB42 | 2023 | 88th Legislature 3rd Special Session | Introduced
Bill Title: Relating to the calculation of certain ad valorem tax rates of a taxing unit for a year in which a property owner provides notice that the owner intends to appeal an order of an appraisal review board determining a protest by the owner regarding the appraisal of the owner's property.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2023-10-12 - Co-author authorized [SB42 Detail]
Download: Texas-2023-SB42-Introduced.html
| 88S30057 TJB-F | ||
| By: Hinojosa | S.B. No. 42 | |
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| relating to the calculation of certain ad valorem tax rates of a | ||
| taxing unit for a year in which a property owner provides notice | ||
| that the owner intends to appeal an order of an appraisal review | ||
| board determining a protest by the owner regarding the appraisal of | ||
| the owner's property. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. (a) Section 26.012, Tax Code, is amended by | ||
| adding Subdivisions (1-a), (1-b), (1-c), (2-a), and (20) to read as | ||
| follows: | ||
| (1-a) "Affected taxing unit" means a taxing unit: | ||
| (A) that is wholly or partly located in a county | ||
| that: | ||
| (i) has a population of less than 500,000; | ||
| and | ||
| (ii) is located on the Gulf of Mexico; and | ||
| (B) in which one or more parcels of property are | ||
| located that are included as part of anticipated substantial | ||
| litigation. | ||
| (1-b) "Anticipated substantial litigation" means one | ||
| or more appeals filed or intended to be filed under Chapter 42 for a | ||
| tax year by a single property owner or by one or more associated | ||
| business entities of a single property owner of one or more orders | ||
| of an appraisal review board determining one or more protests by the | ||
| owner or entities of the taxable value of one or more parcels of | ||
| property located in an affected taxing unit that have an aggregate | ||
| contested taxable value of more than $1 billion. | ||
| (1-c) "Associated business entity" means a subsidiary | ||
| or other associated business entity of a property owner. | ||
| (2-a) "Contested taxable value" means the portion of | ||
| the taxable value of property that is in dispute. | ||
| (20) "Uncontested taxable value" means the portion of | ||
| the taxable value of property that is not in dispute. | ||
| (b) Sections 26.012(1-a), (1-b), (1-c), (2-a), and (20), | ||
| Tax Code, as added by this Act, expire December 31, 2025. | ||
| SECTION 2. Section 26.012(6), Tax Code, as effective | ||
| January 1, 2024, is amended to read as follows: | ||
| (6) "Current total value" means the total taxable | ||
| value of property listed on the appraisal roll for the current year, | ||
| including all appraisal roll supplements and corrections as of the | ||
| date of the calculation, less the taxable value of property | ||
| exempted for the current tax year for the first time under Section | ||
| 11.31 or 11.315, except that: | ||
| (A) the current total value for a school district | ||
| excludes: | ||
| (i) the total value of homesteads that | ||
| qualify for a tax limitation as provided by Section 11.26; | ||
| (ii) new property value of property that is | ||
| subject to an agreement entered into under former Subchapter B or C, | ||
| Chapter 313; and | ||
| (iii) new property value of property that | ||
| is subject to an agreement entered into under Subchapter T, Chapter | ||
| 403, Government Code; [ |
||
| (B) the current total value for a county, | ||
| municipality, or junior college district excludes the total value | ||
| of homesteads that qualify for a tax limitation provided by Section | ||
| 11.261; and | ||
| (C) the current total value of an affected taxing | ||
| unit excludes the portion of the aggregate taxable value of all of | ||
| the property located in the taxing unit that is included as part of | ||
| anticipated substantial litigation that consists of contested | ||
| taxable value. | ||
| SECTION 3. Effective January 1, 2026, Section 26.012(6), | ||
| Tax Code, as effective January 1, 2024, is amended to read as | ||
| follows: | ||
| (6) "Current total value" means the total taxable | ||
| value of property listed on the appraisal roll for the current year, | ||
| including all appraisal roll supplements and corrections as of the | ||
| date of the calculation, less the taxable value of property | ||
| exempted for the current tax year for the first time under Section | ||
| 11.31 or 11.315, except that: | ||
| (A) the current total value for a school district | ||
| excludes: | ||
| (i) the total value of homesteads that | ||
| qualify for a tax limitation as provided by Section 11.26; | ||
| (ii) new property value of property that is | ||
| subject to an agreement entered into under former Subchapter B or C, | ||
| Chapter 313; and | ||
| (iii) new property value of property that | ||
| is subject to an agreement entered into under Subchapter T, Chapter | ||
| 403, Government Code; and | ||
| (B) the current total value for a county, | ||
| municipality, or junior college district excludes the total value | ||
| of homesteads that qualify for a tax limitation provided by Section | ||
| 11.261. | ||
| SECTION 4. Section 26.04(d-3), Tax Code, is amended to read | ||
| as follows: | ||
| (d-3) As soon as practicable after the designated officer or | ||
| employee calculates the no-new-revenue tax rate and the | ||
| voter-approval tax rate of the taxing unit, the designated officer | ||
| or employee shall submit the tax rate calculation forms used in | ||
| calculating the rates to the county assessor-collector for each | ||
| county in which all or part of the territory of the taxing unit is | ||
| located. If an amount described by Section 26.012(6)(C) is excluded | ||
| from the current total value of an affected taxing unit for a tax | ||
| year, the designated officer or employee for the taxing unit shall | ||
| include as an addendum to the tax rate calculation forms for that | ||
| tax year documentation that supports the exclusion. | ||
| SECTION 5. Effective January 1, 2026, Section 26.04(d-3), | ||
| Tax Code, is amended to read as follows: | ||
| (d-3) As soon as practicable after the designated officer or | ||
| employee calculates the no-new-revenue tax rate and the | ||
| voter-approval tax rate of the taxing unit, the designated officer | ||
| or employee shall submit the tax rate calculation forms used in | ||
| calculating the rates to the county assessor-collector for each | ||
| county in which all or part of the territory of the taxing unit is | ||
| located. | ||
| SECTION 6. Section 26.16(d-1), Tax Code, is amended to read | ||
| as follows: | ||
| (d-1) In addition to posting the information described by | ||
| Subsection (a), the county assessor-collector shall post on the | ||
| Internet website of the county for each taxing unit all or part of | ||
| the territory of which is located in the county: | ||
| (1) the tax rate calculation forms used by the | ||
| designated officer or employee of each taxing unit to calculate the | ||
| no-new-revenue and voter-approval tax rates of the taxing unit for | ||
| the most recent five tax years beginning with the 2020 tax year, as | ||
| certified by the designated officer or employee under Section | ||
| 26.04(d-2), along with the addendum to those forms required by | ||
| Section 26.04(d-3), if applicable; and | ||
| (2) the name and official contact information for each | ||
| member of the governing body of the taxing unit. | ||
| SECTION 7. Effective January 1, 2026, Section 26.16(d-1), | ||
| Tax Code, is amended to read as follows: | ||
| (d-1) In addition to posting the information described by | ||
| Subsection (a), the county assessor-collector shall post on the | ||
| Internet website of the county for each taxing unit all or part of | ||
| the territory of which is located in the county: | ||
| (1) the tax rate calculation forms used by the | ||
| designated officer or employee of each taxing unit to calculate the | ||
| no-new-revenue and voter-approval tax rates of the taxing unit for | ||
| the most recent five tax years beginning with the 2020 tax year, as | ||
| certified by the designated officer or employee under Section | ||
| 26.04(d-2); and | ||
| (2) the name and official contact information for each | ||
| member of the governing body of the taxing unit. | ||
| SECTION 8. Sections 26.17(e) and (f), Tax Code, are amended | ||
| to read as follows: | ||
| (e) The officer or employee designated by the governing body | ||
| of each taxing unit in which the property is located to calculate | ||
| the no-new-revenue tax rate and the voter-approval tax rate for the | ||
| taxing unit must electronically incorporate into the database: | ||
| (1) the information described by Subsections (b)(5), | ||
| (6), (7), (12), and (13), as applicable, as the information becomes | ||
| available; and | ||
| (2) the tax rate calculation forms prepared under | ||
| Section 26.04(d-1), along with the addendum to those forms required | ||
| by Section 26.04(d-3), if applicable, at the same time the | ||
| designated officer or employee submits the tax rates to the | ||
| governing body of the taxing unit under Section 26.04(e). | ||
| (f) The chief appraiser shall make the information | ||
| described by Subsection (e)(1) and the tax rate calculation forms, | ||
| along with the addendum to those forms required by Section | ||
| 26.04(d-3), if applicable, described by Subsection (e)(2) | ||
| available to the public not later than the third business day after | ||
| the date the information and forms are incorporated into the | ||
| database. | ||
| SECTION 9. Effective January 1, 2026, Sections 26.17(e) and | ||
| (f), Tax Code, are amended to read as follows: | ||
| (e) The officer or employee designated by the governing body | ||
| of each taxing unit in which the property is located to calculate | ||
| the no-new-revenue tax rate and the voter-approval tax rate for the | ||
| taxing unit must electronically incorporate into the database: | ||
| (1) the information described by Subsections (b)(5), | ||
| (6), (7), (12), and (13), as applicable, as the information becomes | ||
| available; and | ||
| (2) the tax rate calculation forms prepared under | ||
| Section 26.04(d-1) at the same time the designated officer or | ||
| employee submits the tax rates to the governing body of the taxing | ||
| unit under Section 26.04(e). | ||
| (f) The chief appraiser shall make the information | ||
| described by Subsection (e)(1) and the tax rate calculation forms | ||
| described by Subsection (e)(2) available to the public not later | ||
| than the third business day after the date the information and forms | ||
| are incorporated into the database. | ||
| SECTION 10. Subchapter C, Chapter 41, Tax Code, is amended | ||
| by adding Section 41.48 to read as follows: | ||
| Sec. 41.48. NOTICE OF CERTAIN APPEALS. (a) In this section, | ||
| "affected taxing unit," "anticipated substantial litigation," | ||
| "associated business entity," and "uncontested taxable value" have | ||
| the meanings assigned by Section 26.012. | ||
| (b) A property owner or associated business entity of the | ||
| owner that intends to file an appeal under Chapter 42 that is part | ||
| of anticipated substantial litigation shall submit to the collector | ||
| for each affected taxing unit in which the property included in the | ||
| litigation is located the total amount of uncontested taxable value | ||
| of all property located in the taxing unit that may be the subject | ||
| of an appeal by the property owner or entity and that is part of the | ||
| litigation. | ||
| (c) A property owner or associated business entity of the | ||
| property owner must submit the information required to be submitted | ||
| under this section not later than the earlier of August 7 or the | ||
| 21st day after the date the first hearing regarding a protest of the | ||
| value of any property included in the anticipated substantial | ||
| litigation is conducted under this chapter. | ||
| (d) This section expires December 31, 2025. | ||
| SECTION 11. (a) This section takes effect only if the | ||
| constitutional amendment proposed by H.J.R. 2, 88th Legislature, | ||
| 2nd Called Session, 2023, is approved by the voters. | ||
| (b) Section 403.302(d), Government Code, is 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 | ||
| to which Section 23.23 or 23.231, Tax Code, applies exceeds the | ||
| appraised value of that property as calculated under Section 23.23 | ||
| or 23.231, Tax Code, as applicable; [ |
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| (14) the total dollar amount of any exemptions granted | ||
| under Section 11.35, Tax Code; and | ||
| (15) the amount excluded from the current total value | ||
| of the district under Section 26.012(6)(C), Tax Code. | ||
| (c) Effective January 1, 2026, Section 403.302(d), | ||
| Government Code, is 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 | ||
| to which Section 23.23 or 23.231, Tax Code, applies exceeds the | ||
| appraised value of that property as calculated under Section 23.23 | ||
| or 23.231, Tax Code, as applicable; and | ||
| (14) the total dollar amount of any exemptions granted | ||
| under Section 11.35, Tax Code. | ||
| (d) Effective January 1, 2027, Section 403.302(d), | ||
| Government Code, is 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 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. | ||
| SECTION 12. (a) This section takes effect only if the | ||
| constitutional amendment proposed by H.J.R. 2, 88th Legislature, | ||
| 2nd Called Session, 2023, is not approved by the voters. | ||
| (b) Section 403.302(d), Government Code, is 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 a | ||
| residence homestead to which Section 23.23, Tax Code, applies | ||
| exceeds the appraised value of that property as calculated under | ||
| that section; [ |
||
| (14) the total dollar amount of any exemptions granted | ||
| under Section 11.35, Tax Code; and | ||
| (15) the amount excluded from the current total value | ||
| of the district under Section 26.012(6)(C), Tax Code. | ||
| (c) Effective January 1, 2026, Section 403.302(d), | ||
| Government Code, is 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 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. | ||
| SECTION 13. The changes in law made by this Act apply only | ||
| to an ad valorem tax year that begins on or after the effective date | ||
| of this Act. | ||
| SECTION 14. Except as otherwise provided by this Act, this | ||
| Act takes effect January 1, 2024. | ||
