Bill Text: TX HB261 | 2017 | 85th Legislature 1st Special Session | Introduced
Bill Title: Relating to a temporary limitation on the total amount of ad valorem taxes that may be imposed by a taxing unit on a residence homestead rendered uninhabitable or unusable as a result of a natural disaster.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-07-21 - Referred to Ways & Means [HB261 Detail]
Download: Texas-2017-HB261-Introduced.html
| 85S10111 TJB-D | ||
| By: Neave | H.B. No. 261 | |
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| relating to a temporary limitation on the total amount of ad valorem | ||
| taxes that may be imposed by a taxing unit on a residence homestead | ||
| rendered uninhabitable or unusable as a result of a natural | ||
| disaster. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by | ||
| adding Section 11.262 to read as follows: | ||
| Sec. 11.262. LIMITATION OF TAX ON HOMESTEADS DAMAGED IN | ||
| DISASTER AREA. (a) In this section, "residence homestead" has the | ||
| meaning assigned by Section 11.13. | ||
| (b) This section applies only to a residence homestead that | ||
| is: | ||
| (1) located in an area declared by the governor to be a | ||
| disaster area following a natural disaster; and | ||
| (2) rendered uninhabitable or unusable as a result of | ||
| the disaster. | ||
| (c) A taxing unit may not increase during the period | ||
| prescribed by Subsection (d) the total annual amount of ad valorem | ||
| taxes the taxing unit imposes on a residence homestead above the | ||
| amount of the taxes the taxing unit imposed on the residence | ||
| homestead for the tax year in which the residence homestead was | ||
| rendered uninhabitable or unusable as a result of a natural | ||
| disaster if: | ||
| (1) the owner of the residence homestead submits an | ||
| application for the limitation to the chief appraiser of the | ||
| appraisal district in which the residence homestead is located not | ||
| later than the first anniversary of the date the residence | ||
| homestead is rendered uninhabitable or unusable; and | ||
| (2) the chief appraiser determines that the residence | ||
| homestead was rendered uninhabitable or unusable as a result of the | ||
| natural disaster. | ||
| (d) The limitation provided by this section: | ||
| (1) takes effect on January 1 of the first tax year | ||
| following the tax year in which the natural disaster that renders | ||
| the residence homestead uninhabitable or unusable occurs; and | ||
| (2) expires on January 1 of the earlier of: | ||
| (A) the first tax year following the tax year in | ||
| which the fifth anniversary of the natural disaster occurs; or | ||
| (B) the first tax year in which the property no | ||
| longer qualifies as the residence homestead of: | ||
| (i) the property owner claiming the | ||
| limitation under this section; or | ||
| (ii) the surviving spouse of the property | ||
| owner if the surviving spouse is entitled to the limitation under | ||
| this section. | ||
| (e) If a property owner who qualifies for a limitation under | ||
| this section dies, the surviving spouse of the owner is entitled to | ||
| the limitation for the residence homestead of the owner for the | ||
| period prescribed by Subsection (d) if the residence homestead: | ||
| (1) is the residence homestead of the surviving spouse | ||
| on the date that the owner dies; and | ||
| (2) remains the residence homestead of the surviving | ||
| spouse. | ||
| (f) This subsection applies only if a property owner submits | ||
| an application under this section to the chief appraiser after the | ||
| tax year in which the natural disaster occurs that renders the | ||
| owner's residence homestead uninhabitable or unusable, the chief | ||
| appraiser approves the application, and the taxes imposed by a | ||
| taxing unit on the residence homestead for that tax year are greater | ||
| than the taxes imposed by the taxing unit for the preceding tax | ||
| year. If the tax bill for the current tax year has been mailed and | ||
| the tax on the residence homestead has not been paid, the assessor | ||
| shall mail a corrected tax bill to the person in whose name the | ||
| residence homestead is listed on the tax roll or to the person's | ||
| authorized agent. If the tax on the residence homestead for the | ||
| current tax year has been paid, the tax collector for the taxing | ||
| unit shall refund to the person who paid the tax the amount by which | ||
| the payment exceeded the tax due. | ||
| (g) 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 on tax | ||
| increases 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 homesteads if the limitation on tax | ||
| increases 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 2. 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, [ |
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| 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 taxing unit [ |
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| 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, [ |
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| apportion among its stockholders liability for reimbursing the | ||
| corporation for property taxes according to the relative taxable | ||
| values of their interests. | ||
| SECTION 3. 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; [ |
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| (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 applicable to the taxing unit; and | ||
| (C) the current total value for a taxing unit | ||
| excludes the total value of homesteads that qualify for a tax | ||
| limitation provided by Section 11.262 applicable to the taxing | ||
| unit. | ||
| (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; and | ||
| (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, [ |
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| municipality, or junior college district excludes the total value | ||
| of homesteads that qualified for a tax limitation as provided by | ||
| Section 11.261 applicable to the taxing unit, 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 applicable to the taxing unit; 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; [ |
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| (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 applicable to the taxing unit; 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 applicable to the taxing | ||
| unit. | ||
| SECTION 4. Section 31.01, Tax Code, is amended by adding | ||
| Subsection (c-3) to read as follows: | ||
| (c-3) This subsection applies only to taxes imposed on a | ||
| residence homestead subject to the limitation authorized by Section | ||
| 11.262 for the tax year preceding the tax year in which the | ||
| limitation expires under Section 11.262(d)(2)(A). The tax bill or | ||
| separate statement described by Subsection (c) must include | ||
| notification that the limitation will expire and that the amount of | ||
| taxes imposed on the property may increase in the following tax | ||
| year. | ||
| SECTION 5. 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 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 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)."; [ |
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| (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; and | ||
| (10) contain the following statement in bold print: | ||
| "Under state law, the dollar amount of school taxes imposed on a | ||
| residence homestead rendered uninhabitable or unusable as a result | ||
| of a natural disaster may not for a temporary period be increased | ||
| above the amount of school taxes imposed on the property in the year | ||
| in which the natural disaster rendered the residence homestead | ||
| uninhabitable or unusable, regardless of changes in tax rate or | ||
| property value.". | ||
| SECTION 6. Section 403.302(d), Government Code, is 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: | ||
| (A) 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; or | ||
| (B) action taken by the district under Subchapter | ||
| B or C, Chapter 313, Tax Code, before the expiration of the | ||
| subchapter; | ||
| (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; and | ||
| (13) the amount by which the market value of a | ||
| residence homestead to which Section 23.23, Tax Code, applies | ||
| exceeds the appraised value of that property as calculated under | ||
| that section. | ||
| SECTION 7. The changes in law made by this Act apply only to | ||
| a residence homestead rendered uninhabitable or unusable by a | ||
| natural disaster that occurs on or after the effective date of this | ||
| Act. | ||
| SECTION 8. This Act takes effect January 1, 2018, but only | ||
| if the constitutional amendment proposed by the 85th Legislature, | ||
| 1st Called Session, 2017, authorizing the legislature to limit for | ||
| a temporary period the total amount of ad valorem taxes that may be | ||
| imposed by a political subdivision on a residence homestead | ||
| rendered uninhabitable or unusable as a result of a natural | ||
| disaster is approved by the voters. If that amendment is not | ||
| approved by the voters, this Act has no effect. | ||
