Bill Text: TX HB155 | 2021 | 87th Legislature 2nd Special Session | Introduced


Bill Title: Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2021-08-10 - Filed [HB155 Detail]

Download: Texas-2021-HB155-Introduced.html
  87S20552 CJC-D
 
  By: Wilson H.B. No. 155
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of a taxing unit other than a school
  district to establish a limitation on the amount of ad valorem taxes
  that the taxing unit may impose on the residence homesteads of
  individuals who are disabled or elderly and their surviving
  spouses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 11.261, Tax Code, is
  amended to read as follows:
         Sec. 11.261.  LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER
  THAN SCHOOL DISTRICT [COUNTY, MUNICIPAL, OR JUNIOR COLLEGE DISTRICT
  TAX] ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED OR [AND]
  ELDERLY.
         SECTION 2.  Sections 11.261(a), (b), (c), (d), (e), (g),
  (h), (i), (j), (k), and (l), Tax Code, are amended to read as
  follows:
         (a)  This section applies only to a taxing unit that:
               (1)  is not a school [a county, municipality, or junior
  college] district; and
               (2)  [that] has established a limitation on the total
  amount of taxes that may be imposed by the taxing unit [county,
  municipality, or junior college district] on the residence
  homestead of an [a disabled] individual who is disabled or is [an
  individual] 65 years of age or older under Section 1-b(h), Article
  VIII, Texas Constitution.
         (b)  The tax officials shall appraise the property to which
  the limitation applies and calculate taxes as on other property,
  but if the tax so calculated exceeds the limitation provided by this
  section, the tax imposed by a taxing unit is the amount of the tax as
  limited by this section, except as otherwise provided by this
  section. The taxing unit [county, municipality, or junior college
  district] may not increase the total annual amount of ad valorem
  taxes the taxing unit [county, municipality, or junior college
  district] imposes on the residence homestead of an [a disabled]
  individual who is disabled or is [an individual] 65 years of age or
  older above the amount of the taxes the taxing unit [county,
  municipality, or junior college district] imposed on the residence
  homestead in the first tax year, other than a tax year preceding the
  tax year in which the taxing unit [county, municipality, or junior
  college district] established the limitation described by
  Subsection (a), in which the individual qualified that residence
  homestead for the exemption provided by Section 11.13(c) for an [a
  disabled] individual who is disabled or is [an individual] 65 years
  of age or older. 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 exemption for
  the next year, and if the [county, municipal, or junior college
  district] taxes imposed by the taxing unit on the residence
  homestead in the next year are less than the amount of taxes imposed
  in that first year, the taxing unit [a county, municipality, or
  junior college district] may not subsequently increase the total
  annual amount of ad valorem taxes it imposes on the residence
  homestead above the amount it imposed on the residence homestead in
  the year immediately following the first year, other than a tax year
  preceding the tax year in which the taxing unit [county,
  municipality, or junior college district] established the
  limitation described by Subsection (a), for which the individual
  qualified that residence homestead for the exemption.
         (c)  If an individual makes improvements to the individual's
  residence homestead, other than repairs and other than improvements
  required to comply with governmental requirements, the taxing unit
  [county, municipality, or junior college district] may increase the
  amount of taxes on the homestead in the first year the value of the
  homestead is increased on the appraisal roll because of the
  enhancement of value by the improvements. The amount of the tax
  increase is determined by applying the current tax rate to the
  difference between the appraised value of the homestead with the
  improvements and the appraised value the homestead [it] would have
  had without the improvements. A limitation provided by this
  section then applies to the increased amount of [county, municipal,
  or junior college district] taxes on the residence homestead until
  more improvements, if any, are made.
         (d)  A limitation on [county, municipal, or junior college
  district] tax increases by a taxing unit provided by this section
  expires if on January 1:
               (1)  none of the owners of the structure who qualify for
  the exemption provided by Section 11.13(c) for an [a disabled]
  individual who is disabled or is [an individual] 65 years of age or
  older and who owned the structure when the limitation provided by
  this section first took effect is using the structure as a residence
  homestead; or
               (2)  none of the owners of the structure qualifies for
  the exemption provided by Section 11.13(c) for an [a disabled]
  individual who is disabled or is [an individual] 65 years of age or
  older.
         (e)  If the appraisal roll provides for taxation of appraised
  value for a prior year because a residence homestead exemption for
  [disabled] individuals who are disabled or are [individuals] 65
  years of age or older was erroneously allowed, the tax assessor for
  the applicable taxing unit [county, municipality, or junior college
  district] 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 year and the tax that was imposed
  because of the provisions of this section.
         (g)  Except as provided by Subsection (c), if an individual
  who receives a limitation on [county, municipal, or junior college
  district] tax increases by a taxing unit provided by this section
  subsequently qualifies a different residence homestead in the same
  taxing unit [county, municipality, or junior college district] for
  an exemption under Section 11.13, the taxing unit [county,
  municipality, or junior college district] may not impose ad valorem
  taxes on the subsequently qualified homestead in a year in an amount
  that exceeds the amount of taxes the taxing unit [county,
  municipality, or junior college district] would have imposed on the
  subsequently qualified homestead in the first year in which the
  individual receives that exemption for the subsequently qualified
  homestead had the limitation on tax increases provided by this
  section not been in effect, multiplied by a fraction the numerator
  of which is the total amount of taxes the taxing unit [county,
  municipality, or junior college district] imposed on the former
  homestead in the last year in which the individual received that
  exemption for the former homestead and the denominator of which is
  the total amount of taxes the taxing unit [county, municipality, or
  junior college district] would have imposed on the former homestead
  in the last year in which the individual received that exemption for
  the former homestead had the limitation on tax increases provided
  by this section not been in effect.
         (h)  An individual who receives a limitation on [county,
  municipal, or junior college district] tax increases by a taxing
  unit under this section and who subsequently qualifies a different
  residence homestead in the same taxing unit [county, municipality,
  or junior college district] for an exemption under Section 11.13,
  or an agent of the individual, is entitled to receive from the chief
  appraiser of the appraisal district in which the former homestead
  was located a written certificate providing the information
  necessary to determine whether the individual may qualify for a
  limitation on the subsequently qualified homestead under
  Subsection (g) and to calculate the amount of taxes the taxing unit 
  [county, municipality, or junior college district] may impose on
  the subsequently qualified homestead.
         (i)  If an individual who qualifies for a limitation on
  [county, municipal, or junior college district] tax increases by a
  taxing unit under this section dies, the surviving spouse of the
  individual is entitled to the limitation on taxes imposed by the
  taxing unit [county, municipality, or junior college district] on
  the residence homestead of the individual if:
               (1)  the surviving spouse is disabled or is 55 years of
  age or older when the individual dies; and
               (2)  the residence homestead of the individual:
                     (A)  is the residence homestead of the surviving
  spouse on the date that the individual dies; and
                     (B)  remains the residence homestead of the
  surviving spouse.
         (j)  If an individual who is 65 years of age or older and
  qualifies for a limitation on [county, municipal, or junior college
  district] tax increases for the elderly under this section dies in
  the first year in which the individual qualified for the limitation
  and the individual first qualified for the limitation after the
  beginning of that year, except as provided by Subsection (k), the
  amount to which the surviving spouse's [county, municipal, or
  junior college district] taxes are limited under Subsection (i) is
  the amount of taxes imposed by the taxing unit to which the
  limitation applies [county, municipality, or junior college
  district, as applicable,] on the residence homestead in that year
  determined as if the individual qualifying for the exemption had
  lived for the entire year.
         (k)  If in the first tax year after the year in which an
  individual who is 65 years of age or older dies under the
  circumstances described by Subsection (j) the amount of taxes
  imposed by a taxing unit [county, municipality, or junior college
  district] on the residence homestead of the surviving spouse is
  less than the amount of taxes imposed by the taxing unit [county,
  municipality, or junior college district] in the preceding year as
  limited by Subsection (j), in a subsequent tax year the surviving
  spouse's taxes imposed by the taxing unit [county, municipality, or
  junior college district] on that residence homestead are limited to
  the amount of taxes imposed by the taxing unit [county,
  municipality, or junior college district] in that first tax year
  after the year in which the individual dies.
         (l)  Notwithstanding Subsection (d), a limitation on
  [county, municipal, or junior college district] tax increases by a
  taxing unit provided by this section does not expire if the owner of
  the structure qualifies for an exemption under Section 11.13 under
  the circumstances described by Section 11.135(a).
         SECTION 3.  Section 23.19(g), Tax Code, is amended to read as
  follows:
         (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 or other taxing unit [, 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. 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 4.  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 taxing unit
  other than a school [county, municipality, or junior college]
  district excludes the total value of homesteads that qualify for a
  tax limitation provided by Section 11.261.
               (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 taxing unit other
  than a school [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
                           (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 taxing unit
  other than a school [county, municipality, or junior college]
  district excludes the total value of homesteads that qualified for
  a tax limitation as provided by Section 11.261.
         SECTION 5.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 6.  This Act takes effect January 1, 2023, but only
  if the constitutional amendment proposed by the 87th Legislature,
  2nd Called Session, 2021, to authorize a political subdivision
  other than a school district to establish a limitation on the amount
  of ad valorem taxes that the political subdivision may impose on the
  residence homesteads of persons who are disabled or elderly and
  their surviving spouses is approved by the voters. If that
  amendment is not approved by the voters, this Act has no effect.
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