Bill Text: TX HB130 | 2021 | 87th Legislature 2nd Special Session | Introduced

Texas House Bill 130 (Prior Session Legislation)

Introduced

Bill Title: Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, 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 a person who is elderly or disabled to reflect any increase in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

Sponsorship: Partisan Bill (Republican 3)

Status: (Introduced - Dead) 2021-08-23 - Referred to Ways & Means [HB130 Detail]

Download: Texas-2021-HB130-Introduced.html

	87S20018 SMH/CAE-D

	By: Schofield	H.B. No. 130



	A BILL TO BE ENTITLED
	AN ACT
	relating to an exemption from ad valorem taxation by a school
	district of a dollar amount or a percentage, whichever is greater,
	of the appraised value of a residence homestead, 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 a person who is
	elderly or disabled to reflect any increase in the 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 $25,000 of the appraised value of the adult's
	residence homestead or 16.7 percent of the appraised value of the
	adult's residence homestead, whichever is greater, 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 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 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. 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 2023 tax year
	and the appraised value of the homestead for the 2023 tax year is
	more than $149,701, the amount of the limitation provided by this
	section is the amount of tax the school district imposed for the
	2022 tax year, less an amount equal to the amount computed by
	subtracting $25,000 from an amount equal to 16.7 percent of the
	appraised value of the homestead for the 2023 tax year and
	multiplying that amount by the tax rate of the school district for
	the 2023 tax year, plus any 2023 tax attributable to improvements
	made in 2022, other than improvements made to comply with
	governmental regulations or repairs. Except as provided by
	Subsection (b), a limitation on tax increases provided by this
	section on a residence homestead computed under this subsection
	continues to apply to the homestead in subsequent tax years until
	the limitation expires.
	SECTION 3. Section 46.071, Education Code, is amended by
	amending Subsections (a), (b), and (c) and adding Subsections
	(a-1), (b-1), and (c-1) to read as follows:
	(a) Beginning with the 2015-2016 school year and continuing
	through 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, 2015, if the increase in the residence homestead
	exemption under Section 1-b(c), Article VIII, Texas Constitution,
	and the additional limitation on tax increases under Section 1-b(d)
	of that article as proposed by S.J.R. 1, 84th Legislature, Regular
	Session, 2015, had not occurred.
	(a-1) 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 the 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 87th Legislature,
	2nd Called Session, 2021, had not occurred.
	(b) Subject to Subsections (c), (d), and (e) [~~(c)-(e)~~],
	additional state aid under this section through 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 the
	increase in the residence homestead exemption under Section 1-b(c),
	Article VIII, Texas Constitution, and the additional limitation on
	tax increases under Section 1-b(d) of that article as proposed by
	S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
	a gain in state aid under this chapter.
	(b-1) Subject to Subsections (c-1), (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 the 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 87th Legislature, 2nd Called Session, 2021, is not
	offset by a gain in state aid under this chapter.
	(c) For the purpose of determining state aid under
	Subsections (a) and (b) [~~this section~~], local interest and sinking
	revenue for debt service is limited to revenue required to service
	debt eligible under this chapter as of September 1, 2015, 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.
	(c-1) For the purpose of determining state aid under
	Subsections (a-1) and (b-1), 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 4. Subchapter F, Chapter 48, Education Code, is
	amended by adding Section 48.2541 to read as follows:
	Sec. 48.2541. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION
	AND LIMITATION ON TAX INCREASES. (a) 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 the
	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 87th
	Legislature, 2nd Called Session, 2021, 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 the 2022 tax year is used for the purpose of
	determining additional state aid under Subsection (a).
	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, 2023.
	SECTION 6. This Act takes effect January 1, 2023, but only
	if the constitutional amendment proposed by the 87th Legislature,
	2nd Called Session, 2021, providing for an exemption from ad
	valorem taxation for public school purposes of $25,000 or 16.7
	percent, whichever is greater, of the market value of a residence
	homestead 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 a person who is elderly or disabled to
	reflect any increase in the exemption amount is approved by the
	voters. If that constitutional amendment is not approved by the
	voters, this Act has no effect.