Bill Text: TX HB160 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to an exemption from ad valorem taxation by certain taxing units of a portion of the appraised value of the residence homestead of the parent or guardian of a minor who is disabled and who resides with the parent or guardian.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-05-01 - Left pending in committee [HB160 Detail]

Download: Texas-2019-HB160-Introduced.html

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86R633 TJB-D
By: Raymond H.B. No. 160

A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation by certain taxing
units of a portion of the appraised value of the residence homestead
of the parent or guardian of a minor who is disabled and who resides
with the parent or guardian.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13, Tax Code, is amended by amending
Subsections (c), (d), and (h) and adding Subsection (d-1) to read as
follows:
(c) In addition to the exemption provided by Subsection (b)
[of this section], an individual [adult] who is disabled, is the
parent or guardian of a minor who is disabled and who resides with
the parent or guardian, or is 65 years of age or older is entitled to
an exemption from taxation by a school district of $10,000 of the
appraised value of the individual's [his] residence homestead.
(d) In addition to the exemptions provided by Subsections
(b) and (c) [of this section], an individual who is disabled, is the
parent or guardian of a minor who is disabled and who resides with
the parent or guardian, or is 65 years of age or older is entitled to
an exemption from taxation by a taxing unit of the [a] portion
determined [(the amount of which is fixed] as provided by
Subsection (e) [of this section)] of the appraised value of the
individual's [his] residence homestead if the exemption is adopted
by [either]:
(1) [by] the governing body of the taxing unit; or
(2) [by] a favorable vote of a majority of the
qualified voters of the taxing unit at an election called by the
governing body of the [a] taxing unit.
(d-1) The [, and the] governing body of a taxing unit shall
call an [the] election described by Subsection (d)(2) on the
petition of at least 20 percent of the number of qualified voters
who voted in the preceding election of the taxing unit.
(h) Joint, community, or successive owners may not each
receive the same exemption provided by or pursuant to this section
for the same residence homestead in the same year. An individual
who is eligible for more than one [disabled person who is 65 or
older may not receive both a disabled and an elderly residence
homestead] exemption under Subsection (c) or more than one
exemption under Subsection (d) is entitled to [but may] choose and
receive only one exemption under each of those subsections
[either]. A person may not receive an exemption under this section
for more than one residence homestead in the same tax year.
SECTION 2. Section 26.06(b), Tax Code, is amended to read as
follows:
(b) The notice of a public hearing 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 24-point or larger
type. The notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"The (name of the taxing unit) will hold two public hearings
on a proposal to increase total tax revenues from properties on the
tax roll in the preceding tax year by (percentage by which proposed
tax rate exceeds lower of rollback tax rate or effective tax rate
calculated under this chapter) percent. Your individual taxes may
increase at a greater or lesser rate, or even decrease, depending on
the change in the taxable value of your property in relation to the
change in taxable value of all other property and the tax rate that
is adopted.
"The first public hearing will be held on (date and time) at
(meeting place).
"The second public hearing will be held on (date and time) at
(meeting place).
"(Names of all members of the governing body, showing how
each voted on the proposal to consider the tax increase or, if one
or more were absent, indicating the absences.)
"The average taxable value of a residence homestead in (name
of taxing unit) last year was $____ (average taxable value of a
residence homestead in the taxing unit for the preceding tax year,
disregarding residence homestead exemptions available only to
individuals who are disabled, are the parents or guardians of
minors who are disabled and who reside with the parents or
guardians, [persons] or are [persons] 65 years of age or
older). Based on last year's tax rate of $____ (preceding year's
adopted tax rate) per $100 of taxable value, the amount of taxes
imposed last year on the average home was $____ (tax on average
taxable value of a residence homestead in the taxing unit for the
preceding tax year, disregarding residence homestead exemptions
available only to individuals who are disabled, are the parents or
guardians of minors who are disabled and who reside with the parents
or guardians, [persons] or are [persons] 65 years of age or
older).
"The average taxable value of a residence homestead in (name
of taxing unit) this year is $____ (average taxable value of a
residence homestead in the taxing unit for the current tax year,
disregarding residence homestead exemptions available only to
individuals who are disabled, are the parents or guardians of
minors who are disabled and who reside with the parents or
guardians, [persons] or are [persons] 65 years of age or
older). If the governing body adopts the effective tax rate for
this year of $____ (effective tax rate) per $100 of taxable value,
the amount of taxes imposed this year on the average home would be
$____ (tax on average taxable value of a residence homestead in the
taxing unit for the current tax year, disregarding residence
homestead exemptions available only to individuals who are
disabled, are the parents or guardians of minors who are disabled
and who reside with the parents or guardians, [persons] or are
[persons] 65 years of age or older).
"If the governing body adopts the proposed tax rate of $____
(proposed tax rate) per $100 of taxable value, the amount of taxes
imposed this year on the average home would be $____ (tax on the
average taxable value of a residence in the taxing unit for the
current year disregarding residence homestead exemptions available
only to individuals who are disabled, are the parents or guardians
of minors who are disabled and who reside with the parents or
guardians, [persons] or are [persons] 65 years of age or older).
"Members of the public are encouraged to attend the hearings
and express their views."
SECTION 3. Section 44.004(c), Education Code, 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.";
(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 42, would provide the
same amount of maintenance and operations taxes and state funds
distributed under Chapter 42 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 42, 43, and 46 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 individuals who are
disabled, are the parents or guardians of minors who are disabled
and who reside with the parents or guardians, [persons] or are
[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 Rollback Rate: The highest tax rate the
district can adopt before requiring voter approval at an election
is (the school district rollback rate determined under Section
26.08, Tax Code). This election will be automatically held if the
district adopts a rate in excess of the rollback rate of (the school
district rollback 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 42 in
the succeeding school year.
SECTION 4. Section 8876.152(b), Special District Local Laws
Code, is amended to read as follows:
(b) Sections 49.236(a)(1), (a)(2)(A)-(F), and (b) [Section
49.236], Water Code, apply [as added by Chapter 248 (H.B. 1541),
Acts of the 78th Legislature, Regular Session, 2003, applies] to
the district.
SECTION 5. Sections 49.236(a) and (d), Water Code, as added
by Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular
Session, 2003, are amended to read as follows:
(a) Before the board adopts an ad valorem tax rate for the
district for debt service, operation and maintenance purposes, or
contract purposes, the board shall give notice of each meeting of
the board at which the adoption of a tax rate will be considered.
The notice must:
(1) contain a statement in substantially the following
form:
"NOTICE OF PUBLIC HEARING ON TAX RATE
"The (name of the district) will hold a public hearing on a
proposed tax rate for the tax year (year of tax levy) on (date and
time) at (meeting place). Your individual taxes may increase or
decrease, depending on the change in the taxable value of your
property in relation to the change in taxable value of all other
property and the tax rate that is adopted.
"(Names of all board members and, if a vote was taken, an
indication of how each voted on the proposed tax rate and an
indication of any absences.)";
(2) contain the following information:
(A) the district's total adopted tax rate for the
preceding year and the proposed tax rate, expressed as an amount per
$100;
(B) the difference, expressed as an amount per
$100 and as a percent increase or decrease, as applicable, in the
proposed tax rate compared to the adopted tax rate for the preceding
year;
(C) the average appraised value of a residence
homestead in the district in the preceding year and in the current
year; the district's total homestead exemption, other than an
exemption available only to individuals who are disabled, are the
parents or guardians of minors who are disabled and who reside with
the parents or guardians, [persons] or are [persons] 65 years of age
or older, applicable to that appraised value in each of those years;
and the average taxable value of a residence homestead in the
district in each of those years, disregarding any homestead
exemption available only to individuals who are disabled, are the
parents or guardians of minors who are disabled and who reside with
the parents or guardians, [persons] or are [persons] 65 years of age
or older;
(D) the amount of tax that would have been
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption
available only to individuals who are disabled, are the parents or
guardians of minors who are disabled and who reside with the parents
or guardians, [persons] or are [persons] 65 years of age or older;
(E) the amount of tax that would be imposed by the
district in the current year on a residence homestead appraised at
the average appraised value of a residence homestead in that year,
disregarding any homestead exemption available only to individuals
who are disabled, are the parents or guardians of minors who are
disabled and who reside with the parents or guardians, [persons] or
are [persons] 65 years of age or older, if the proposed tax rate is
adopted; [and]
(F) the difference between the amounts of tax
calculated under Paragraphs (D) and (E), expressed in dollars and
cents and described as the annual percentage increase or decrease,
as applicable, in the tax to be imposed by the district on the
average residence homestead in the district in the current year if
the proposed tax rate is adopted; and
(G) if the proposed combined debt service,
operation and maintenance, and contract tax rate would authorize
the qualified voters of the district by petition to require a
rollback election to be held in the district, a description of the
purpose of the proposed tax increase; and
(3) contain a statement in substantially the following
form:
"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
"If taxes on the average residence homestead increase by more
than eight percent, the qualified voters of the district by
petition may require that an election be held to determine whether
to reduce the operation and maintenance tax rate to the rollback tax
rate under Section 49.236(d), Water Code."
(d) If the governing body of a district adopts a combined
debt service, operation and maintenance, and contract tax rate that
would impose more than 1.08 times the amount of tax imposed by the
district in the preceding year on a residence homestead appraised
at the average appraised value of a residence homestead in the
district in that year, disregarding any homestead exemption
available only to individuals who are disabled, are the parents or
guardians of minors who are disabled and who reside with the parents
or guardians, [persons] or are [persons] 65 years of age or older,
the qualified voters of the district by petition may require that an
election be held to determine whether or not to reduce the tax rate
adopted for the current year to the rollback tax rate in accordance
with the procedures provided by Sections 26.07(b)-(g) and 26.081,
Tax Code. For purposes of Sections 26.07(b)-(g), Tax Code, and this
subsection, the rollback tax rate is the current year's debt
service and contract tax rates plus the operation and maintenance
tax rate that would impose 1.08 times the amount of the operation
and maintenance tax imposed by the district in the preceding year on
a residence homestead appraised at the average appraised value of a
residence homestead in the district in that year, disregarding any
homestead exemption available only to individuals who are disabled,
are the parents or guardians of minors who are disabled and who
reside with the parents or guardians, [persons] or are [persons] 65
years of age or older.
SECTION 6. The following provisions are repealed:
(1) Section 49.236, Water Code, as added by Chapter
248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
2003; and
(2) Section 49.2361, Water Code.
SECTION 7. 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 8. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, to provide for an exemption from ad valorem
taxation by certain political subdivisions of a portion of the
market value of the residence homestead of the parent or guardian of
a minor who is disabled and who resides with the parent or guardian
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.