Bill Text: TX HB288 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to an exemption from ad valorem taxation by a school district for maintenance and operations purposes of the total appraised value of a residence homestead and the offsetting of the resulting revenue loss to school districts with state sales and use tax revenue.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2021-02-25 - Referred to Ways & Means [HB288 Detail]

Download: Texas-2021-HB288-Introduced.html
  87R2178 SMT-D
 
  By: Stephenson H.B. No. 288
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an exemption from ad valorem taxation by a school
  district for maintenance and operations purposes of the total
  appraised value of a residence homestead and the offsetting of the
  resulting revenue loss to school districts with state sales and use
  tax revenue.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. SCHOOL DISTRICT MAINTENANCE AND OPERATIONS TAXES
         SECTION 1.01.  Section 11.13, Tax Code, is amended by adding
  Subsection (s) to read as follows:
         (s)  In addition to any other exemptions provided by this
  section, an adult is entitled to an exemption from taxation by a
  school district for maintenance and operations purposes of the
  total appraised value of the adult's residence homestead.
         SECTION 1.02.  Section 11.26, Tax Code, is amended by
  amending Subsections (a), (a-3), (b), and (e) and adding
  Subsections (a-4) and (a-5) to read as follows:
         (a)  The tax officials shall appraise [the] property to which
  this section applies and calculate taxes as on other residence
  homesteads [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 2015 tax year, the
  amount of the limitation provided by this section is the amount of
  tax the school district imposed for the 2014 tax year less an amount
  equal to the amount determined by multiplying $10,000 times the tax
  rate of the school district for the 2015 tax year, plus any 2015 tax
  attributable to improvements made in 2014, other than improvements
  made to comply with governmental regulations or repairs.
         (a-3)  Except as provided by Subsections (a-4) and 
  [Subsection] (b), a limitation on tax increases provided by this
  section on a residence homestead computed under Subsection (a-1) or
  (a-2) continues to apply to the homestead in subsequent tax years
  until the limitation expires.
         (a-4)  Notwithstanding the other provisions of this section,
  if in the 2022 tax year an individual qualifies for a limitation on
  tax increases provided by this section on the individual's
  residence homestead, the amount of the limitation provided by this
  section on the homestead in the 2022 tax year is equal to the amount
  computed by:
               (1)  multiplying the amount of tax the school district
  imposed on the homestead in the 2021 tax year by a fraction the
  numerator of which is the current debt rate of the district for the
  2022 tax year and the denominator of which is the tax rate of the
  district for the 2021 tax year; and
               (2)  adding any tax imposed in the 2022 tax year
  attributable to improvements made in the 2021 tax year as provided
  by Subsection (b) to the lesser of the amount computed under
  Subdivision (1) or the amount of tax the district imposed on the
  homestead in the 2021 tax year.
         (a-5)  Except as provided by Subsection (b), a limitation on
  tax increases provided by this section on a residence homestead
  computed under Subsection (a-4) continues to apply to the residence
  homestead in subsequent tax years until the limitation expires.
         (b)  If an individual makes improvements to the individual's
  residence homestead, other than improvements required to comply
  with governmental requirements or repairs, the school district may
  increase the tax 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 debt [tax] rate to
  the difference in the assessed value of the homestead with the
  improvements and the assessed value it would have had without the
  improvements. A limitation imposed by this section then applies to
  the increased amount of tax until more improvements, if any, are
  made.
         (e)  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 imposed by this section. That portion is calculated by
  determining the taxable value that, if multiplied by the current
  debt [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 residence homesteads
  if the limitation on tax increases imposed by 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 1.03.  Section 26.09, Tax Code, is amended by adding
  Subsection (f) to read as follows:
         (f)  For purposes of calculating the tax imposed on the
  residence homestead of an adult by a school district, the tax rate
  of the district is considered to be the district's current debt
  rate.
         SECTION 1.04.  This article applies only to ad valorem taxes
  imposed for a tax year beginning on or after the effective date of
  this Act.
  ARTICLE 2. SALES AND USE TAXES; PAYMENTS TO SCHOOL DISTRICTS
         SECTION 2.01.  Subchapter A, Chapter 151, Tax Code, is
  amended by adding Section 151.0021 to read as follows:
         Sec. 151.0021.  "ACCOUNTING AND AUDIT SERVICES."
  "Accounting and audit services" means the making and recording of
  business financial records and statements, the creation and
  implementation of accounting or bookkeeping systems, cost
  accounting or bookkeeping services, and services provided by a
  certified public accountant, enrolled agent, or bookkeeping firm in
  connection with the preparation of financial and auditing reports.
  The term includes financial planning services, tax return
  preparation, and budgeting services.
         SECTION 2.02.  Section 151.0028(b), Tax Code, is amended to
  read as follows:
         (b)  "Amusement services" includes:
               (1)  membership in a private club or organization that
  provides entertainment, recreational, sports, dining, or social
  facilities to its members; and
               (2)  an admission or ticket to a high school or
  collegiate sporting event.
         SECTION 2.03.  Subchapter A, Chapter 151, Tax Code, is
  amended by adding Sections 151.0037, 151.0041, and 151.0046 to read
  as follows:
         Sec. 151.0037.  "ENGINEERING SERVICES." "Engineering
  services" means an act or activity constituting the "practice of
  engineering" as that term is defined by Section 1001.003,
  Occupations Code, and any other act or activity provided to an
  engineer's client in relation to the practice of engineering.
         Sec. 151.0041.  "LEGAL SERVICES." "Legal services" means an
  act or activity constituting the practice of law and any other act
  or activity provided by an attorney-at-law licensed by the Supreme
  Court of Texas to a client in connection with the practice of law.
  The term also includes services provided by a paralegal or a legal
  secretary employed by an attorney-at-law and provided to the
  attorney's client in relation to the practice of law and lawyer
  referral services.
         Sec. 151.0046.  "REAL ESTATE BROKERAGE AND AGENCY SERVICES."  
  "Real estate brokerage and agency services" means acts or services
  described by Section 1101.002(1), (6), or (7), Occupations Code,
  that are performed by a person licensed or registered under Chapter
  1101, Occupations Code, including by a person described by Section
  1101.002(2) or (8) of that code.
         SECTION 2.04.  Section 151.0101(a), Tax Code, is amended to
  read as follows:
         (a)  "Taxable services" means:
               (1)  amusement services;
               (2)  cable television services;
               (3)  personal services;
               (4)  motor vehicle parking and storage services;
               (5)  the repair, remodeling, maintenance, and
  restoration of tangible personal property, except:
                     (A)  aircraft;
                     (B)  a ship, boat, or other vessel, other than:
                           (i)  a taxable boat or motor as defined by
  Section 160.001;
                           (ii)  a sports fishing boat; or
                           (iii)  any other vessel used for pleasure;
                     (C)  the repair, maintenance, and restoration of a
  motor vehicle; and
                     (D)  the repair, maintenance, creation, and
  restoration of a computer program, including its development and
  modification, not sold by the person performing the repair,
  maintenance, creation, or restoration service;
               (6)  telecommunications services;
               (7)  credit reporting services;
               (8)  debt collection services;
               (9)  insurance services;
               (10)  information services;
               (11)  real property services;
               (12)  data processing services;
               (13)  real property repair and remodeling;
               (14)  security services;
               (15)  telephone answering services;
               (16)  Internet access service; [and]
               (17)  a sale by a transmission and distribution
  utility, as defined in Section 31.002, Utilities Code, of
  transmission or delivery of service directly to an electricity
  end-use customer whose consumption of electricity is subject to
  taxation under this chapter;
               (18)  accounting and audit services;
               (19)  engineering services;
               (20)  legal services; and
               (21)  real estate brokerage and agency services.
         SECTION 2.05.  Section 151.801, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (c-4) to read as
  follows:
         (a)  Except for the amounts allocated under Subsections (b),
  (c), (c-2), [and] (c-3), and (c-4), all proceeds from the
  collection of the taxes imposed by this chapter shall be deposited
  to the credit of the general revenue fund.
         (c-4)  The amount of the proceeds from the collection of the
  taxes imposed by this chapter on the sale, storage, or use of
  taxable items not subject to the taxes on January 1, 2021, shall be
  deposited to the credit of the school district reimbursement trust
  fund under Section 151.802.
         SECTION 2.06.  Section 151.801(d), Tax Code, as effective
  September 1, 2021, is amended to read as follows:
         (d)  The comptroller shall determine the amount to be
  deposited to the state highway fund under Subsection (b) according
  to available statistical data indicating the estimated average or
  actual consumption or sales of lubricants used to propel motor
  vehicles over the public roadways. The comptroller shall determine
  the amounts to be deposited to the accounts under Subsection (c)
  according to available statistical data indicating the estimated or
  actual total receipts in this state from taxable sales of sporting
  goods, and according to the specific amounts provided in the
  General Appropriations Act in accordance with Subsection (c-1).
  The comptroller shall determine the amount to be deposited to the
  fund under Subsection (c-2) according to available statistical data
  indicating the estimated or actual total receipts in this state
  from taxes imposed on sales at retail of fireworks. The comptroller
  shall determine the amount to be deposited to the account under
  Subsection (c-3) according to available statistical data
  indicating the estimated or actual total receipts in this state
  from taxable sales of horse feed, horse supplements, horse tack,
  horse bedding and grooming supplies, and other taxable expenditures
  directly related to horse ownership, riding, or boarding. The
  comptroller shall determine the amount to be deposited to the fund
  under Subsection (c-4) according to available statistical data
  indicating the estimated or actual total receipts in this state
  from taxable sales of taxable items described by that subsection.
  If satisfactory data are not available, the comptroller may require
  taxpayers who make taxable sales or uses of those lubricants, of
  sporting goods, of fireworks, or of taxable items described by
  Subsection (c-4) or of horse feed, horse supplements, horse tack,
  horse bedding and grooming supplies, or other taxable expenditures
  directly related to horse ownership, riding, or boarding to report
  to the comptroller as necessary to make the allocation required by
  Subsection (b), (c), (c-2), [or] (c-3), or (c-4).
         SECTION 2.07.  Subchapter M, Chapter 151, Tax Code, is
  amended by adding Section 151.802 to read as follows:
         Sec. 151.802.  SCHOOL DISTRICT REIMBURSEMENT TRUST FUND.
  (a) The school district reimbursement trust fund is created as a
  trust fund outside the state treasury to be held with the
  comptroller in trust. The fund consists of money deposited to the
  credit of the fund under Section 151.801(c-4). The comptroller
  shall administer the fund as trustee on behalf of each school
  district in this state.
         (b)  Beginning in 2023, not later than April 1 of each year,
  the comptroller shall pay to each school district an amount equal to
  the revenue the school district was unable to collect in the
  preceding tax year because of the exemption under Section 11.13(s).
  A school district must apply for the payment authorized under this
  subsection on a form promulgated by the comptroller. If the
  comptroller determines that the balance of the fund in a year is not
  sufficient to pay the full amount of lost revenue to each school
  district that applies for a payment in that year, the comptroller
  shall proportionately reduce the amount of each payment made to a
  school district as necessary to prevent the fund from becoming
  insolvent.
         SECTION 2.08.  The following provisions of the Tax Code are
  repealed:
               (1)  Section 151.3021;
               (2)  Section 151.3071;
               (3)  Section 151.3101; and
               (4)  Section 151.311.
         SECTION 2.09.  The changes in law made by this article do not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
  ARTICLE 3. EFFECTIVE DATE
         SECTION 3.01.  This Act takes effect January 1, 2022, but
  only if the constitutional amendment proposed by the 87th
  Legislature, Regular Session, 2021, authorizing the legislature to
  exempt from ad valorem taxation by a school district for
  maintenance and operations purposes all or part of the appraised
  value of a residence homestead and to use state money to offset the
  resulting revenue loss to school districts is approved by the
  voters. If that amendment is not approved by the voters, this Act
  has no effect.
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