Bill Text: TX HB2 | 2023-2024 | 88th Legislature | Engrossed


Bill Title: Relating to providing property tax relief through the public school finance system and property tax appraisal and administration.

Spectrum: Moderate Partisan Bill (Republican 81-13)

Status: (Engrossed - Dead) 2023-05-02 - Referred to Local Government [HB2 Detail]

Download: Texas-2023-HB2-Engrossed.html
  88R18893 CJC/TJB/KJE-F
 
  By: Meyer, Bonnen, Burrows, Thierry, Raymond, H.B. No. 2
      et al.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to providing property tax relief through the public school
  finance system and property tax appraisal and administration.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. SHORT TITLE
         SECTION 1.01.  This Act may be cited as the Property Tax
  Relief Act.
  ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
         SECTION 2.01.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Section 48.2555 to read as follows:
         Sec. 48.2555.  MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
  SCHOOL YEAR.  (a)  Notwithstanding any other provision of this title
  or Chapter 26, Tax Code, for the 2023-2024 school year, the
  commissioner shall calculate the value of a school district's
  maximum compressed tax rate by determining the district's maximum
  compressed rate under Section 48.2551 or 48.2552(b), if applicable,
  and reducing the tax rate determined under the applicable section
  by $0.15.
         (b)  If a school district's maximum compressed tax rate as
  calculated under Subsection (a) would be less than 90 percent of
  another school district's maximum compressed tax rate under
  Subsection (a), the district's maximum compressed tax rate is the
  value at which the district's maximum compressed tax rate would be
  equal to 90 percent of the other district's maximum compressed tax
  rate.
         (c)  Notwithstanding any other provision of this title or
  Chapter 26, Tax Code, for purposes of determining funding for
  school districts for the 2023-2024 school year, a reference in any
  of the following provisions of law to a school district's maximum
  compressed tax rate or maximum compressed rate as determined under
  Section 48.2551 means the maximum compressed tax rate determined
  for the district under this section:
               (1)  Section 13.054(f);
               (2)  Section 45.003(d);
               (3)  Section 45.0032(a);
               (4)  Section 48.051(a);
               (5)  Sections 48.2553(a) and (e); and
               (6)  Section 26.08(n), Tax Code.
         (d)  For purposes of Section 30.003(f-1), a reference in that
  section to Section 48.2551 includes this section.
         (e)  Notwithstanding any other provision of this title, for
  purposes of determining a school district's maximum compressed tax
  rate under Section 48.2551 for the 2024-2025 school year, the value
  of the district's "PYMCR" is the maximum compressed tax rate
  determined for the district under this section for the preceding
  school year.
         (f)  This section expires September 1, 2025.
  ARTICLE 3. ESCROW ACCOUNTS
         SECTION 3.01.  Section 31.072(a), Tax Code, is amended to
  read as follows:
         (a)  At the request of a property owner, the [The] collector
  for a taxing unit shall [may] enter a contract with the [a] property
  owner under which the property owner deposits money in an escrow
  account maintained by the collector to provide for the payment of
  property taxes collected by the collector on any property the
  person owns.
         SECTION 3.02.  Sections 31.072(h) and (i), Tax Code, are
  repealed.
         SECTION 3.03.  This article applies only to a tax year that
  begins on or after the effective date of this article.
  ARTICLE 4. LIMITATION ON INCREASES IN VALUE OF REAL PROPERTY
         SECTION 4.01.  Section 1.12(d), Tax Code, is amended to read
  as follows:
         (d)  For purposes of this section, the appraisal ratio of
  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 4.02.  The heading to Section 23.23, Tax Code, is
  amended to read as follows:
         Sec. 23.23.  LIMITATION ON APPRAISED VALUE OF REAL PROPERTY
  [RESIDENCE HOMESTEAD].
         SECTION 4.03.  Section 23.23, Tax Code, is amended by
  amending Subsections (a), (b), (c), and (e) and adding Subsections
  (c-2), (c-3), (c-4), and (h) 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 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 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 [as to a residence
  homestead on January 1 of the tax year following 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, a person who acquired real property in a tax year
  before the 2023 tax year, other than property that qualified as the
  residence homestead of the person under Section 11.13 in the 2023
  tax year, is considered to have acquired the property on January 1,
  2023.
         (e)  In this section, "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.
         (h)  In this section, "real property" includes a
  manufactured home as that term is defined by Section 1201.003,
  Occupations Code, that qualifies as a residence homestead under
  Section 11.13 of this code, regardless of whether the owner of the
  manufactured home elects to treat the manufactured home as real
  property under Section 1201.2055, Occupations Code.
         SECTION 4.04.  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 4.05.  Sections 403.302(d) 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, 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 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.
         (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 4.06.  Section 23.23(c-1), Tax Code, is repealed.
         SECTION 4.07.  This article applies only to the appraisal
  for ad valorem tax purposes of property for a tax year that begins
  on or after the effective date of this article.
  ARTICLE 5. EFFECTIVE DATES
         SECTION 5.01.  Except as otherwise provided by this article,
  this Act takes effect September 1, 2023.
         SECTION 5.02.  Article 3 of this Act takes effect January 1,
  2024.
         SECTION 5.03.  Article 4 of this Act takes effect January 1,
  2024, but only if the constitutional amendment proposed by the 88th
  Legislature, Regular Session, 2023, to authorize the legislature to
  limit the maximum appraised value of real property for ad valorem
  tax purposes and to except certain appropriations to pay for ad
  valorem tax relief from the constitutional limitation on the rate
  of growth of appropriations is approved by the voters. If that
  amendment is not approved by the voters, Article 4 of this Act has
  no effect.
feedback