Bill Text: TX HB1095 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2021-03-04 - Referred to Ways & Means [HB1095 Detail]

Download: Texas-2021-HB1095-Introduced.html
  87R862 SMH-D
 
  By: Howard H.B. No. 1095
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the reduction of the amount of a limitation on the total
  amount of ad valorem taxes that may be imposed by a school district
  on the residence homestead of an individual who is elderly or
  disabled to reflect any reduction from the preceding tax year in the
  district's maximum compressed rate.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.26, Tax Code, is amended by adding
  Subsections (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9) to read as
  follows:
         (a-4)  In this section, "maximum compressed rate" means the
  maximum compressed rate of a school district as calculated under
  Section 48.2551, Education Code.
         (a-5)  Notwithstanding the other provisions of this section,
  if in the 2022 tax year an individual qualifies for a limitation on
  tax increases provided by this section on the individual's
  residence homestead and the first tax year the individual or the
  individual's spouse qualified for an exemption under Section
  11.13(c) for the same homestead was a tax year before the 2019 tax
  year, the amount of the limitation provided by this section on the
  homestead in the 2022 tax year is equal to the amount computed by:
               (1)  multiplying the taxable value of the homestead in
  the 2018 tax year by a tax rate equal to the difference between the
  school district's tier one maintenance and operations rate for the
  2018 tax year and the district's maximum compressed rate for the
  2019 tax year;
               (2)  subtracting the greater of zero or the amount
  computed under Subdivision (1) from the amount of tax the district
  imposed on the homestead in the 2018 tax year;
               (3)  adding any tax imposed in the 2019 tax year
  attributable to improvements made in the 2018 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (2);
               (4)  multiplying the taxable value of the homestead in
  the 2019 tax year by a tax rate equal to the difference between the
  district's maximum compressed rate for the 2019 tax year and the
  district's maximum compressed rate for the 2020 tax year;
               (5)  subtracting the amount computed under Subdivision
  (4) from the amount computed under Subdivision (3);
               (6)  adding any tax imposed in the 2020 tax year
  attributable to improvements made in the 2019 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (5);
               (7)  multiplying the taxable value of the homestead in
  the 2020 tax year by a tax rate equal to the difference between the
  district's maximum compressed rate for the 2020 tax year and the
  district's maximum compressed rate for the 2021 tax year;
               (8)  subtracting the amount computed under Subdivision
  (7) from the amount computed under Subdivision (6);
               (9)  adding any tax imposed in the 2021 tax year
  attributable to improvements made in the 2020 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (8);
               (10)  multiplying the taxable value of the homestead in
  the 2021 tax year by a tax rate equal to the difference between the
  district's maximum compressed rate for the 2021 tax year and the
  district's maximum compressed rate for the 2022 tax year;
               (11)  subtracting the amount computed under
  Subdivision (10) from the amount computed under Subdivision (9);
  and
               (12)  adding any tax imposed in the 2022 tax year
  attributable to improvements made in the 2021 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (11).
         (a-6)  Notwithstanding the other provisions of this section,
  if in the 2022 tax year an individual qualifies for a limitation on
  tax increases provided by this section on the individual's
  residence homestead and the first tax year the individual or the
  individual's spouse qualified for an exemption under Section
  11.13(c) for the same homestead was the 2019 tax year, the amount of
  the limitation provided by this section on the homestead in the 2022
  tax year is equal to the amount computed by:
               (1)  multiplying the taxable value of the homestead in
  the 2019 tax year by a tax rate equal to the difference between the
  school district's maximum compressed rate for the 2019 tax year and
  the district's maximum compressed rate for the 2020 tax year;
               (2)  subtracting the amount computed under Subdivision
  (1) from the amount of tax the district imposed on the homestead in
  the 2019 tax year;
               (3)  adding any tax imposed in the 2020 tax year
  attributable to improvements made in the 2019 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (2);
               (4)  multiplying the taxable value of the homestead in
  the 2020 tax year by a tax rate equal to the difference between the
  district's maximum compressed rate for the 2020 tax year and the
  district's maximum compressed rate for the 2021 tax year;
               (5)  subtracting the amount computed under Subdivision
  (4) from the amount computed under Subdivision (3);
               (6)  adding any tax imposed in the 2021 tax year
  attributable to improvements made in the 2020 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (5);
               (7)  multiplying the taxable value of the homestead in
  the 2021 tax year by a tax rate equal to the difference between the
  district's maximum compressed rate for the 2021 tax year and the
  district's maximum compressed rate for the 2022 tax year;
               (8)  subtracting the amount computed under Subdivision
  (7) from the amount computed under Subdivision (6); and
               (9)  adding any tax imposed in the 2022 tax year
  attributable to improvements made in the 2021 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (8).
         (a-7)  Notwithstanding the other provisions of this section,
  if in the 2022 tax year an individual qualifies for a limitation on
  tax increases provided by this section on the individual's
  residence homestead and the first tax year the individual or the
  individual's spouse qualified for an exemption under Section
  11.13(c) for the same homestead was the 2020 tax year, the amount of
  the limitation provided by this section on the homestead in the 2022
  tax year is equal to the amount computed by:
               (1)  multiplying the taxable value of the homestead in
  the 2020 tax year by a tax rate equal to the difference between the
  school district's maximum compressed rate for the 2020 tax year and
  the district's maximum compressed rate for the 2021 tax year;
               (2)  subtracting the amount computed under Subdivision
  (1) from the amount of tax the district imposed on the homestead in
  the 2020 tax year;
               (3)  adding any tax imposed in the 2021 tax year
  attributable to improvements made in the 2020 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (2);
               (4)  multiplying the taxable value of the homestead in
  the 2021 tax year by a tax rate equal to the difference between the
  district's maximum compressed rate for the 2021 tax year and the
  district's maximum compressed rate for the 2022 tax year;
               (5)  subtracting the amount computed under Subdivision
  (4) from the amount computed under Subdivision (3); and
               (6)  adding any tax imposed in the 2022 tax year
  attributable to improvements made in the 2021 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (5).
         (a-8)  Notwithstanding the other provisions of this section,
  if in the 2022 tax year an individual qualifies for a limitation on
  tax increases provided by this section on the individual's
  residence homestead and the first tax year the individual or the
  individual's spouse qualified for an exemption under Section
  11.13(c) for the same homestead was the 2021 tax year, the amount of
  the limitation provided by this section on the homestead in the 2022
  tax year is equal to the amount computed by:
               (1)  multiplying the taxable value of the homestead in
  the 2021 tax year by a tax rate equal to the difference between the
  school district's maximum compressed rate for the 2021 tax year and
  the district's maximum compressed rate for the 2022 tax year;
               (2)  subtracting the amount computed under Subdivision
  (1) from the amount of tax the district imposed on the homestead in
  the 2021 tax year; and
               (3)  adding any tax imposed in the 2022 tax year
  attributable to improvements made in the 2021 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (2).
         (a-9)  Notwithstanding the other provisions of this section,
  if in the 2023 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).
         SECTION 2.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  Regular Session, 2021, authorizing the legislature to provide for
  the reduction of the amount of a limitation on the total amount of
  ad valorem taxes that may be imposed for general elementary and
  secondary public school purposes on the residence homestead of a
  person who is elderly or disabled to reflect any statutory
  reduction from the preceding tax year in the maximum compressed
  rate of the maintenance and operations taxes imposed for those
  purposes on the homestead is approved by the voters. If that
  amendment is not approved by the voters, this Act has no effect.
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