Bill Text: TX HB190 | 2017 | 85th Legislature 1st Special Session | Introduced


Bill Title: Relating to a temporary increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, a temporary reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount, and a temporary protection of school districts against the resulting temporary loss in local revenue.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-07-25 - Left pending in committee [HB190 Detail]

Download: Texas-2017-HB190-Introduced.html
  85S10647 CJC/MEW-D
 
  By: Raymond H.B. No. 190
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a temporary increase in the amount of the exemption of
  residence homesteads from ad valorem taxation by a school district,
  a temporary reduction in the amount of the limitation on school
  district ad valorem taxes imposed on the residence homesteads of
  the elderly or disabled to reflect the increased exemption amount,
  and a temporary protection of school districts against the
  resulting temporary 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 $71,000 [$25,000] of the appraised value of the
  adult's residence homestead, 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.  Effective January 1, 2019, 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, 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 3.  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 2018 [2015] tax
  year, the amount of the limitation provided by this section for the
  2018 tax year is the amount of tax the school district imposed for
  the 2017 [2014] tax year less an amount equal to the amount
  determined by multiplying $46,000 [$10,000] times the tax rate of
  the school district for the 2018 [2015] tax year, plus any 2018
  [2015] tax attributable to improvements made in 2017 [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 the 2018
  tax year or an earlier tax year, the amount of the limitation
  provided by this section for the 2019 and subsequent tax years is
  the amount of tax the school district imposed for the 2018 tax year
  plus an amount equal to the amount determined by multiplying
  $46,000 times the tax rate of the school district for the 2018 tax
  year, plus any 2019 tax attributable to improvements made in 2018,
  other than improvements made to comply with governmental
  regulations or repairs.
         SECTION 4.  Subchapter A, Chapter 41, Education Code, is
  amended by adding Section 41.0011 to read as follows:
         Sec. 41.0011.  COMPUTATION OF WEALTH PER STUDENT FOR
  2018-2019 SCHOOL YEAR.  Notwithstanding any other provision of
  this chapter, in computing a school district's wealth per student
  for the 2018-2019 school year, a school district's taxable value of
  property under Subchapter M, Chapter 403, Government Code, is
  determined as 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 in effect for the 2018 tax year as proposed by the 85th
  Legislature, 1st Called Session, 2017, had been in effect for the
  2017 tax year.  This section expires September 1, 2019.
         SECTION 5.  Section 42.2518, Education Code, as effective
  September 1, 2017, is amended by adding Subsections (a-1) and (b-1)
  to read as follows:
         (a-1)  Notwithstanding Subsection (a), for the 2018-2019
  school year, a school district is entitled to additional state aid
  to the extent that state and local revenue under this chapter and
  Chapter 41 is less than the state and local revenue that would have
  been available to the district under Chapter 41 and this chapter as
  those chapters existed on September 1, 2017, if the increase in the
  residence homestead exemption under Section 1-b(c), Article VIII,
  Texas Constitution, as proposed by the joint resolution to amend
  that subsection adopted by the 85th Legislature, 1st Called
  Session, 2017, and the additional limitation on tax increases under
  Section 1-b(d) of that article as proposed by the joint resolution
  to amend that subsection adopted by the 85th Legislature, 1st
  Called Session, 2017, had not occurred. This subsection expires
  September 1, 2019.
         (b-1)  Notwithstanding Subsection (b), for the 2018-2019
  school year, the lesser of the school district's currently adopted
  maintenance and operations tax rate or the adopted maintenance and
  operations tax rate for the 2017 tax year is used for the purpose of
  determining additional state aid under Subsection (a-1). This
  subsection expires September 1, 2019.
         SECTION 6.  Section 42.252, Education Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  Notwithstanding any other provision of this chapter, in
  computing each school district's local share of program cost under
  this section for the 2018-2019 school year, a school district's
  taxable value of property under Subchapter M, Chapter 403,
  Government Code, is determined as 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 in effect for the 2018 tax year as
  proposed by the 85th Legislature, 1st Called Session, 2017, had
  been in effect for the 2017 tax year. This subsection expires
  September 1, 2019.
         SECTION 7.  Section 42.302, Education Code, is amended by
  adding Subsection (g) to read as follows:
         (g)  Notwithstanding any other provision of this chapter, in
  computing a school district's enrichment tax rate ("DTR") and local
  revenue ("LR") for the 2018-2019 school year, a school district's
  taxable value of property under Subchapter M, Chapter 403,
  Government Code, is determined as 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 in effect for the 2018 tax year as
  proposed by the 85th Legislature, 1st Called Session, 2017, had
  been in effect for the 2017 tax year. This subsection expires
  September 1, 2019.
         SECTION 8.  Section 46.003, Education Code, is amended by
  adding Subsection (i) to read as follows:
         (i)  Notwithstanding any other provision of this chapter, in
  computing a district's bond tax rate ("BTR") and taxable value of
  property ("DPV") for the 2018-2019 school year, a school district's
  taxable value of property under Subchapter M, Chapter 403,
  Government Code, is determined as 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 in effect for the 2018 tax year as
  proposed by the 85th Legislature, 1st Called Session, 2017, had
  been in effect for the 2017 tax year. This subsection expires
  September 1, 2019.
         SECTION 9.  Section 46.032, Education Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  Notwithstanding any other provision of this chapter, in
  computing a district's existing debt tax rate ("EDTR") and taxable
  value of property ("DPV") for the 2018-2019 school year, a school
  district's taxable value of property under Subchapter M, Chapter
  403, Government Code, is determined as 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 in effect for the 2018 tax year
  as proposed by the 85th Legislature, 1st Called Session, 2017, had
  been in effect for the 2017 tax year. This subsection expires
  September 1, 2019.
         SECTION 10.  Section 46.071, Education Code, is amended by
  adding Subsections (a-1), (b-1), and (c-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a), for the 2018-2019
  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, 2017, 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 the 85th Legislature, 1st Called Session, 2017, had not
  occurred.  This subsection expires September 1, 2019.
         (b-1)  Notwithstanding Subsection (b), subject to
  Subsections (c-1), (d), and (e), additional state aid under this
  section for the 2018-2019 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 the 85th Legislature, 1st Called
  Session, 2017, is not offset by a gain in state aid under this
  chapter. This subsection expires September 1, 2019.
         (c-1)  Notwithstanding Subsection (c), 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, 2017, 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. This subsection expires September 1, 2019.
         SECTION 11.  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, 2018.
         SECTION 12.  This Act takes effect January 1, 2018, but only
  if the constitutional amendment proposed by the 85th Legislature,
  1st Called Session, 2017, to appropriate money from the economic
  stabilization fund to the foundation school fund and use the money
  to finance a temporary increase in the amount of the exemption of
  residence homesteads from ad valorem taxation by a school district
  and a temporary reduction in the amount of the limitation on school
  district ad valorem taxes imposed on the residence homesteads of
  the elderly or disabled to reflect the increased exemption amount
  is approved by the voters. If that constitutional amendment is not
  approved by the voters, this Act has no effect.
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