Bill Text: TX HB132 | 2021 | 87th Legislature 3rd Special Session | Introduced


Bill Title: Relating to the ad valorem taxation of residential real property.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-10-06 - Referred to Ways & Means [HB132 Detail]

Download: Texas-2021-HB132-Introduced.html
  87S30409 SMH-D
 
  By: Allison H.B. No. 132
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the ad valorem taxation of residential real property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1.12(d), Tax Code, is amended to read as
  follows:
         (d)  For purposes of this section, the appraisal ratio of
  real 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 2.  Section 11.13, Tax Code, is amended by amending
  Subsection (i) and adding Subsection (s) to read as follows:
         (i)  The assessor and collector for a taxing unit may
  disregard the exemptions authorized by Subsection (b), (c), (d),
  [or] (n), or (s) [of this section] and assess and collect a tax
  pledged for payment of debt without deducting the amount of the
  exemption if:
               (1)  prior to adoption of the exemption, the taxing
  unit pledged the taxes for the payment of a debt; and
               (2)  granting the exemption would impair the obligation
  of the contract creating the debt.
         (s)  In addition to any other exemptions provided by this
  section, an individual who purchases property and qualifies the
  property as the individual's residence homestead is entitled to an
  exemption from taxation of the total appraised value of the
  property for the first tax year the individual qualifies the
  property as the individual's residence homestead if the property:
               (1)  is the first property the individual has ever
  qualified as the individual's residence homestead; and
               (2)  has an appraised value of less than $300,000 for
  that first tax year.
         SECTION 3.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.262 to read as follows:
         Sec. 11.262.  LIMITATION OF TAXES ON HOMESTEADS FOLLOWING
  CERTAIN PERIOD. (a) In this section, "residence homestead" has the
  meaning assigned by Section 11.13.
         (b)  The chief appraiser shall appraise, and the tax assessor
  for each taxing unit shall calculate the taxes on, each residence
  homestead in the manner provided by law for other property.
         (c)  Except as provided by Subsection (h), if an individual
  qualifies property as the individual's residence homestead for at
  least 25 consecutive tax years, a taxing unit may not impose taxes
  on that residence homestead in a subsequent tax year in an amount
  that exceeds the lesser of the following amounts:
               (1)  the amount of taxes calculated for the taxing unit
  for the current tax year under Subsection (b); or
               (2)  the amount of taxes imposed by the taxing unit for
  that 25th tax year.
         (d)  For purposes of this section, if the first tax year an
  individual qualified property as the individual's residence
  homestead was a tax year before the 1999 tax year, the individual is
  considered to have qualified the property as the individual's
  residence homestead for the first time in the 1999 tax year.
         (e)  If an individual who qualifies for a limitation under
  this section dies, the surviving spouse of the individual is
  entitled to continue receiving the limitation applicable to the
  residence homestead of the individual if the property:
               (1)  is the residence homestead of the surviving spouse
  on the date that the individual dies; and
               (2)  remains the residence homestead of the surviving
  spouse.
         (f)  Except as provided by Subsection (e) or (g), a
  limitation under this section expires on January 1 if the property
  is not the residence homestead of the individual entitled to the
  limitation for the preceding tax year.
         (g)  A limitation under this section does not expire if:
               (1)  an owner of an interest in the residence homestead
  conveys the interest to a qualifying trust as defined by Section
  11.13(j) and the owner or the owner's spouse is:
                     (A)  a trustor of the trust; and
                     (B)  entitled to occupy the property; or
               (2)  the owner of the structure qualifies for an
  exemption under Section 11.13 under the circumstances described by
  Section 11.135(a).
         (h)  Except as provided by Subsection (i), a taxing unit may
  increase the tax on a residence homestead subject to a limitation
  under this section in the first year the appraised value of the
  property is increased as the result of an improvement made to the
  property in the preceding tax year. The amount of the tax increase
  is determined by applying the current tax rate of the taxing unit to
  the difference in the taxable value of the property with the
  improvement and the taxable value the property would have had
  without the improvement. A limitation imposed by this section then
  applies to the increased amount of tax until another improvement is
  made to the property.
         (i)  An improvement to a residence homestead is not treated
  as an improvement under Subsection (h) if the improvement is:
               (1)  a repair;
               (2)  required to be made to comply with a governmental
  requirement; or
               (3)  subject to Subsection (j), a replacement structure
  for a structure that was rendered uninhabitable or unusable by a
  casualty or by wind or water damage.
         (j)  A replacement structure described by Subsection (i)(3)
  is considered to be an improvement under Subsection (h) only if:
               (1)  the square footage of the replacement structure
  exceeds the square footage of the replaced structure as the
  replaced 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.
         (k)  If the appraisal roll provides for taxation of appraised
  value for a prior year because a limitation under this section was
  erroneously allowed, the tax assessor for the taxing unit shall add
  as back taxes due, as provided by Section 26.09(d), the positive
  difference, if any, between the tax that should have been imposed
  for that tax year and the tax that was imposed because of the
  provisions of this section.
         (l)  For each school district in an appraisal district, the
  chief appraiser shall determine the portion of the appraised value
  of residence homesteads of individuals on which school district
  taxes are not imposed in a tax year because of the limitation under
  this section. That portion is calculated by determining the
  taxable value that, if multiplied by the tax rate adopted by the
  school district for the tax year, would produce an amount equal to
  the amount of tax that would have been imposed by the school
  district on those properties if the limitation under this section
  were not in effect, but that was not imposed because of that
  limitation. The chief appraiser shall determine that taxable value
  and certify it to the comptroller as soon as practicable for each
  tax year.
         SECTION 4.  Sections 23.19(b) and (g), Tax Code, are amended
  to read as follows:
         (b)  If an appraisal district receives a written request for
  the appraisal of real property and improvements of a cooperative
  housing corporation according to the separate interests of the
  corporation's stockholders, the chief appraiser shall separately
  appraise the interests described by Subsection (d) if the
  conditions required by Subsections (e) and (f) have been met.
  Separate appraisal under this section is for the purposes of
  administration of tax exemptions, determination of applicable
  limitations of taxes under Section 11.26, [or] 11.261, or 11.262,
  and apportionment by a cooperative housing corporation of property
  taxes among its stockholders but is not the basis for determining
  value on which a tax is imposed under this title. A stockholder
  whose interest is separately appraised under this section may
  protest and appeal the appraised value in the manner provided by
  this title for protest and appeal of the appraised value of other
  property.
         (g)  A tax bill or a separate statement accompanying the tax
  bill to a cooperative housing corporation for which interests of
  stockholders are separately appraised under this section must
  state, in addition to the information required by Section 31.01,
  the appraised value and taxable value of each interest separately
  appraised. Each exemption claimed as provided by this title by a
  person entitled to the exemption shall also be deducted from the
  total appraised value of the property of the corporation. The total
  tax imposed by a school district, county, municipality, or junior
  college district shall be reduced by any amount that represents an
  increase in taxes attributable to separately appraised interests of
  the real property and improvements that are subject to the
  limitation of taxes prescribed by Section 11.26, [or] 11.261, or
  11.262. The corporation shall apportion among its stockholders
  liability for reimbursing the corporation for property taxes
  according to the relative taxable values of their interests.
         SECTION 5.  The heading to Section 23.23, Tax Code, is
  amended to read as follows:
         Sec. 23.23.  LIMITATION ON APPRAISED VALUE OF RESIDENTIAL
  REAL PROPERTY [RESIDENCE HOMESTEAD].
         SECTION 6.  Section 23.23, Tax Code, is amended by amending
  Subsections (a), (b), (c), (e), and (f) and adding Subsections
  (c-2), (c-3), and (c-4) 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
  residential 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 residential 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 or, if the property
  qualifies as the [to a] residence homestead of the owner under
  Section 11.13 in the tax year in which the owner acquires the
  property, the limitation takes effect on January 1 of the tax year
  following that [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 in the first tax year after the 2022 tax year in which
  the property is appraised for taxation:
               (1)  the property is considered to have been appraised
  for taxation in the 2022 tax year at a market value equal to the
  appraised value of the property for that tax year;
               (2)  a person who acquired residential real property in
  a tax year before the 2022 tax year is considered to have acquired
  the property on January 1, 2022; and
               (3)  a person who qualified the property for an
  exemption under Section 11.13 as the person's residence homestead
  for any portion of the 2022 tax year is considered to have acquired
  the property in the 2022 tax year.
         (e)  In this section:
               (1)  "New [, "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.
               (2)  "Residential real property":
                     (A)  means real property that:
                           (i)  qualifies for an exemption under
  Section 11.13; or
                           (ii)  is designed or adapted for residential
  purposes, including the residential portion, not to exceed 20
  acres, of farm or ranch property; and
                     (B)  does not include real property on which a
  hotel, motel, or similar structure is located that is designed to
  provide temporary lodging or accommodations.
         (f)  Notwithstanding Subsections (a) and (e)(1) [(e)] and
  except as provided by Subdivision (2) of this subsection, an
  improvement to property that would otherwise constitute a new
  improvement is not treated as a new improvement 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 under Subsection (a) in the
  tax year in which the structure would have constituted a new
  improvement:
               (1)  the appraised value the property would have had in
  the preceding tax year if the casualty or damage had not occurred is
  considered to be the appraised value of the property for that year,
  regardless of whether that appraised value exceeds the actual
  appraised value of the property for that year as limited by
  Subsection (a); and
               (2)  the replacement structure is considered to be a
  new improvement only if:
                     (A)  the square footage of the replacement
  structure exceeds that of the replaced structure as that structure
  existed before the casualty or damage occurred; or
                     (B)  the exterior of the replacement structure is
  of higher quality construction and composition than that of the
  replaced structure.
         SECTION 7.  Sections 26.012(6), (13), and (14), Tax Code,
  are 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; and
                           (ii)  new property value of property that is
  subject to an agreement entered into under Chapter 313; [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; and
                     (C)  the current total value for a taxing unit
  excludes the total value of homesteads that qualify for a tax
  limitation as provided by Section 11.262.
               (13)  "Last year's levy" means the total of:
                     (A)  the amount of taxes that would be generated
  by multiplying the total tax rate adopted by the governing body in
  the preceding year by the total taxable value of property on the
  appraisal roll for the preceding year, including:
                           (i)  taxable value that was reduced in an
  appeal under Chapter 42;
                           (ii)  all appraisal roll supplements and
  corrections other than corrections made pursuant to Section
  25.25(d), as of the date of the calculation, except that last year's
  taxable value for a school district excludes the total value of
  homesteads that qualified for a tax limitation as provided by
  Section 11.26, [and] last year's taxable value for a county,
  municipality, or junior college district excludes the total value
  of homesteads that qualified for a tax limitation as provided by
  Section 11.261, and last year's taxable value for a taxing unit
  excludes the total value of homesteads that qualified for a tax
  limitation as provided by Section 11.262; and
                           (iii)  the portion of taxable value of
  property that is the subject of an appeal under Chapter 42 on July
  25 that is not in dispute; and
                     (B)  the amount of taxes refunded by the taxing
  unit in the preceding year for tax years before that year.
               (14)  "Last year's total value" means the total taxable
  value of property listed on the appraisal roll for the preceding
  year, including all appraisal roll supplements and corrections,
  other than corrections made pursuant to Section 25.25(d), as of the
  date of the calculation, except that:
                     (A)  last year's taxable value for a school
  district excludes the total value of homesteads that qualified for
  a tax limitation as provided by Section 11.26; [and]
                     (B)  last year's taxable value for a county,
  municipality, or junior college district excludes the total value
  of homesteads that qualified for a tax limitation as provided by
  Section 11.261; and
                     (C)  last year's taxable value for a taxing unit
  excludes the total value of homesteads that qualified for a tax
  limitation as provided by Section 11.262.
         SECTION 8.  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 9.  Section 44.004(c), Education Code, as amended by
  H.B. No. 2723, Acts of the 87th Legislature, Regular Session, 2021,
  is amended to read as follows:
         (c)  The notice of public meeting to discuss and adopt the
  budget and the proposed tax rate may not be smaller than one-quarter
  page of a standard-size or a tabloid-size newspaper, and the
  headline on the notice must be in 18-point or larger type. Subject
  to Subsection (d), the notice must:
               (1)  contain a statement in the following form:
  "NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
         "The (name of school district) will hold a public meeting at
  (time, date, year) in (name of room, building, physical location,
  city, state).  The purpose of this meeting is to discuss the school
  district's budget that will determine the tax rate that will be
  adopted.  Public participation in the discussion is invited." The
  statement of the purpose of the meeting must be in bold type.  In
  reduced type, the notice must state: "The tax rate that is
  ultimately adopted at this meeting or at a separate meeting at a
  later date may not exceed the proposed rate shown below unless the
  district publishes a revised notice containing the same information
  and comparisons set out below and holds another public meeting to
  discuss the revised notice."  In addition, in reduced type, the
  notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
  your local property tax database on which you can easily access
  information regarding your property taxes, including information
  about proposed tax rates and scheduled public hearings of each
  entity that taxes your property.";
               (2)  contain a section entitled "Comparison of Proposed
  Budget with Last Year's Budget," which must show the difference,
  expressed as a percent increase or decrease, as applicable, in the
  amounts budgeted for the preceding fiscal year and the amount
  budgeted for the fiscal year that begins in the current tax year for
  each of the following:
                     (A)  maintenance and operations;
                     (B)  debt service; and
                     (C)  total expenditures;
               (3)  contain a section entitled "Total Appraised Value
  and Total Taxable Value," which must show the total appraised value
  and the total taxable value of all property and the total appraised
  value and the total taxable value of new property taxable by the
  district in the preceding tax year and the current tax year as
  calculated under Section 26.04, Tax Code;
               (4)  contain a statement of the total amount of the
  outstanding and unpaid bonded indebtedness of the school district;
               (5)  contain a section entitled "Comparison of Proposed
  Rates with Last Year's Rates," which must:
                     (A)  show in rows the tax rates described by
  Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
  property, for columns entitled "Maintenance & Operations,"
  "Interest & Sinking Fund," and "Total," which is the sum of
  "Maintenance & Operations" and "Interest & Sinking Fund":
                           (i)  the school district's "Last Year's
  Rate";
                           (ii)  the "Rate to Maintain Same Level of
  Maintenance & Operations Revenue & Pay Debt Service," which:
                                 (a)  in the case of "Maintenance &
  Operations," is the tax rate that, when applied to the current
  taxable value for the district, as certified by the chief appraiser
  under Section 26.01, Tax Code, and as adjusted to reflect changes
  made by the chief appraiser as of the time the notice is prepared,
  would impose taxes in an amount that, when added to state funds to
  be distributed to the district under Chapter 48, would provide the
  same amount of maintenance and operations taxes and state funds
  distributed under Chapter 48 per student in average daily
  attendance for the applicable school year that was available to the
  district in the preceding school year; and
                                 (b)  in the case of "Interest & Sinking
  Fund," is the tax rate that, when applied to the current taxable
  value for the district, as certified by the chief appraiser under
  Section 26.01, Tax Code, and as adjusted to reflect changes made by
  the chief appraiser as of the time the notice is prepared, and when
  multiplied by the district's anticipated collection rate, would
  impose taxes in an amount that, when added to state funds to be
  distributed to the district under Chapter 46 and any excess taxes
  collected to service the district's debt during the preceding tax
  year but not used for that purpose during that year, would provide
  the amount required to service the district's debt; and
                           (iii)  the "Proposed Rate";
                     (B)  contain fourth and fifth columns aligned with
  the columns required by Paragraph (A) that show, for each row
  required by Paragraph (A):
                           (i)  the "Local Revenue per Student," which
  is computed by multiplying the district's total taxable value of
  property, as certified by the chief appraiser for the applicable
  school year under Section 26.01, Tax Code, and as adjusted to
  reflect changes made by the chief appraiser as of the time the
  notice is prepared, by the total tax rate, and dividing the product
  by the number of students in average daily attendance in the
  district for the applicable school year; and
                           (ii)  the "State Revenue per Student," which
  is computed by determining the amount of state aid received or to be
  received by the district under Chapters 43, 46, and 48 and dividing
  that amount by the number of students in average daily attendance in
  the district for the applicable school year; and
                     (C)  contain an asterisk after each calculation
  for "Interest & Sinking Fund" and a footnote to the section that, in
  reduced type, states "The Interest & Sinking Fund tax revenue is
  used to pay for bonded indebtedness on construction, equipment, or
  both.  The bonds, and the tax rate necessary to pay those bonds,
  were approved by the voters of this district.";
               (6)  contain a section entitled "Comparison of Proposed
  Levy with Last Year's Levy on Average Residence," which must:
                     (A)  show in rows the information described by
  Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
  entitled "Last Year" and "This Year":
                           (i)  "Average Market Value of Residences,"
  determined using the same group of residences for each year;
                           (ii)  "Average Taxable Value of Residences,"
  determined after taking into account the limitation on the
  appraised value of residences under Section 23.23, Tax Code, and
  after subtracting all homestead exemptions applicable in each year,
  other than exemptions available only to disabled persons or persons
  65 years of age or older or their surviving spouses, and using the
  same group of residences for each year;
                           (iii)  "Last Year's Rate Versus Proposed
  Rate per $100 Value"; and
                           (iv)  "Taxes Due on Average Residence,"
  determined using the same group of residences for each year; and
                     (B)  contain the following information: "Increase
  (Decrease) in Taxes" expressed in dollars and cents, which is
  computed by subtracting the "Taxes Due on Average Residence" for
  the preceding tax year from the "Taxes Due on Average Residence" for
  the current tax year;
               (7)  contain the following statement in bold print:
  "Under state law, the dollar amount of school taxes imposed on the
  residence of a person 65 years of age or older or of the surviving
  spouse of such a person, if the surviving spouse was 55 years of age
  or older when the person died, may not be increased above the amount
  paid in the first year after the person turned 65, regardless of
  changes in tax rate or property value.";
               (8)  contain the following statement in bold print:
  "Notice of Voter-Approval Rate: The highest tax rate the district
  can adopt before requiring voter approval at an election is (the
  school district voter-approval rate determined under Section
  26.08, Tax Code).  This election will be automatically held if the
  district adopts a rate in excess of the voter-approval rate of (the
  school district voter-approval rate)."; [and]
               (9)  contain a section entitled "Fund Balances," which
  must include the estimated amount of interest and sinking fund
  balances and the estimated amount of maintenance and operation or
  general fund balances remaining at the end of the current fiscal
  year that are not encumbered with or by corresponding debt
  obligation, less estimated funds necessary for the operation of the
  district before the receipt of the first payment under Chapter 48 in
  the succeeding school year; and
               (10)  contain the following statement in bold print:
  "Under state law, the dollar amount of school taxes imposed on a
  residence homestead that qualifies as the owner's residence
  homestead for at least 25 consecutive years may not be increased
  above the amount of school taxes imposed on the property in that
  25th consecutive year, regardless of changes in tax rate or
  property value."[.]
         SECTION 10.  Section 46.071, Education Code, is amended by
  adding Subsection (a-2) and amending Subsections (b) and (c) to
  read as follows:
         (a-2)  Beginning with the 2023-2024 school year, in addition
  to state aid a school district is entitled to under Subsection (a),
  a school district is also 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 the exemption
  for an individual's first residence homestead under Section 1-b(q),
  Article VIII, Texas Constitution, as proposed by the 87th
  Legislature, 3rd Called Session, 2021, had not been adopted.
         (b)  Subject to Subsections (c)-(e), additional state aid
  under this section 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, and the
  residence homestead exemption under Section 1-b(q), 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.
         (c)  For the purpose of determining state aid under
  Subsection (a) or (a-2) [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, or as of
  September 1, 2022, respectively, including refunding of the
  applicable [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 Subsection (a) or (a-2) [this section].
         SECTION 11.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Section 48.2543 to read as follows:
         Sec. 48.2543.  ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
  (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
  Chapter 49 and this chapter as those chapters existed on September
  1, 2022, if the exemption for an individual's first residence
  homestead under Section 1-b(q), Article VIII, Texas Constitution,
  as proposed by the joint resolution to add that subsection adopted
  by the 87th Legislature, 3rd Called Session, 2021, had not been
  adopted.
         (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 12.  Sections 403.302(d), (d-1), 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 or 11.262, 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 real
  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.
         (d-1)  For purposes of Subsection (d), a residence homestead
  that receives an exemption under Section 11.13(s), 11.131, 11.133,
  or 11.134, Tax Code, in the year that is the subject of the study is
  not considered to be taxable property.
         (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 13.  Section 11.13(s), Tax Code, as added by this
  Act, applies only to the appraisal for ad valorem tax purposes of
  residence homesteads for a tax year that begins on or after the
  effective date of this Act.
         SECTION 14.  Section 11.262, Tax Code, as added by this Act,
  applies only to ad valorem taxes imposed for a tax year that begins
  on or after the effective date of this Act.
         SECTION 15.  Section 23.23, Tax Code, as amended by this Act,
  applies only to the appraisal for ad valorem tax purposes of
  residential real property for a tax year that begins on or after the
  effective date of this Act.
         SECTION 16.  This Act takes effect January 1, 2023, but only
  if the constitutional amendment proposed by the 87th Legislature,
  3rd Called Session, 2021, authorizing the legislature to limit the
  maximum appraised value of residential real property for ad valorem
  tax purposes to 105 percent or more of the appraised value of the
  property for the preceding tax year, to exempt from ad valorem
  taxation the total appraised value of property purchased by an
  individual for the first tax year the individual qualifies the
  property as the individual's residence homestead if the property is
  the individual's first residence homestead and has an appraised
  value of less than $300,000, and to limit the total amount of ad
  valorem taxes that a political subdivision may impose on the
  residence homestead of an individual and the surviving spouse of
  the individual if the individual qualifies the property as the
  individual's residence homestead for at least 25 consecutive tax
  years is approved by the voters. If that constitutional amendment
  is not approved by the voters, this Act has no effect.
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