Bill Text: TX HB291 | 2021 | 87th Legislature 1st Special Session | Introduced
Bill Title: Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2021-07-17 - Filed [HB291 Detail]
Download: Texas-2021-HB291-Introduced.html
| 87S10214 CJC-D | ||
| By: Wilson | H.B. No. 291 | |
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| relating to the authority of a taxing unit other than a school | ||
| district to establish a limitation on the amount of ad valorem taxes | ||
| that the taxing unit may impose on the residence homesteads of | ||
| individuals who are disabled or elderly and their surviving | ||
| spouses. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The heading to Section 11.261, Tax Code, is | ||
| amended to read as follows: | ||
| Sec. 11.261. LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER | ||
| THAN SCHOOL DISTRICT [ |
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| ELDERLY. | ||
| SECTION 2. Sections 11.261(a), (b), (c), (d), (e), (g), | ||
| (h), (i), (j), (k), and (l), Tax Code, are amended to read as | ||
| follows: | ||
| (a) This section applies only to a taxing unit that: | ||
| (1) is not a school [ |
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| (2) [ |
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| amount of taxes that may be imposed by the taxing unit [ |
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| homestead of an [ |
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| VIII, Texas Constitution. | ||
| (b) The tax officials shall appraise the property to which | ||
| the limitation applies and calculate taxes as on other property, | ||
| but if the tax so calculated exceeds the limitation provided by this | ||
| section, the tax imposed by a taxing unit is the amount of the tax as | ||
| limited by this section, except as otherwise provided by this | ||
| section. The taxing unit [ |
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| taxes the taxing unit [ |
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| individual who is disabled or is [ |
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| older above the amount of the taxes the taxing unit [ |
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| homestead in the first tax year, other than a tax year preceding the | ||
| tax year in which the taxing unit [ |
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| Subsection (a), in which the individual qualified that residence | ||
| homestead for the exemption provided by Section 11.13(c) for an [ |
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| of age or older. 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 exemption for | ||
| the next year, and if the [ |
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| homestead in the next year are less than the amount of taxes imposed | ||
| in that first year, the taxing unit [ |
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| annual amount of ad valorem taxes it imposes on the residence | ||
| homestead above the amount it imposed on the residence homestead in | ||
| the year immediately following the first year, other than a tax year | ||
| preceding the tax year in which the taxing unit [ |
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| limitation described by Subsection (a), for which the individual | ||
| qualified that residence homestead for the exemption. | ||
| (c) If an individual makes improvements to the individual's | ||
| residence homestead, other than repairs and other than improvements | ||
| required to comply with governmental requirements, the taxing unit | ||
| [ |
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| amount of taxes 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 tax rate to the | ||
| difference between the appraised value of the homestead with the | ||
| improvements and the appraised value the homestead [ |
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| had without the improvements. A limitation provided by this | ||
| section then applies to the increased amount of [ |
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| more improvements, if any, are made. | ||
| (d) A limitation on [ |
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| expires if on January 1: | ||
| (1) none of the owners of the structure who qualify for | ||
| the exemption provided by Section 11.13(c) for an [ |
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| individual who is disabled or is [ |
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| older and who owned the structure when the limitation provided by | ||
| this section first took effect is using the structure as a residence | ||
| homestead; or | ||
| (2) none of the owners of the structure qualifies for | ||
| the exemption provided by Section 11.13(c) for an [ |
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| individual who is disabled or is [ |
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| older. | ||
| (e) If the appraisal roll provides for taxation of appraised | ||
| value for a prior year because a residence homestead exemption for | ||
| [ |
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| years of age or older was erroneously allowed, the tax assessor for | ||
| the applicable taxing unit [ |
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| 26.09(d), the positive difference, if any, between the tax that | ||
| should have been imposed for that year and the tax that was imposed | ||
| because of the provisions of this section. | ||
| (g) Except as provided by Subsection (c), if an individual | ||
| who receives a limitation on [ |
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| subsequently qualifies a different residence homestead in the same | ||
| taxing unit [ |
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| an exemption under Section 11.13, the taxing unit [ |
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| taxes on the subsequently qualified homestead in a year in an amount | ||
| that exceeds the amount of taxes the taxing unit [ |
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| subsequently qualified homestead in the first year in which the | ||
| individual receives that exemption for the subsequently qualified | ||
| homestead had the limitation on tax increases provided by this | ||
| section not been in effect, multiplied by a fraction the numerator | ||
| of which is the total amount of taxes the taxing unit [ |
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| homestead in the last year in which the individual received that | ||
| exemption for the former homestead and the denominator of which is | ||
| the total amount of taxes the taxing unit [ |
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| in the last year in which the individual received that exemption for | ||
| the former homestead had the limitation on tax increases provided | ||
| by this section not been in effect. | ||
| (h) An individual who receives a limitation on [ |
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| unit under this section and who subsequently qualifies a different | ||
| residence homestead in the same taxing unit [ |
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| or an agent of the individual, is entitled to receive from the chief | ||
| appraiser of the appraisal district in which the former homestead | ||
| was located a written certificate providing the information | ||
| necessary to determine whether the individual may qualify for a | ||
| limitation on the subsequently qualified homestead under | ||
| Subsection (g) and to calculate the amount of taxes the taxing unit | ||
| [ |
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| the subsequently qualified homestead. | ||
| (i) If an individual who qualifies for a limitation on | ||
| [ |
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| taxing unit under this section dies, the surviving spouse of the | ||
| individual is entitled to the limitation on taxes imposed by the | ||
| taxing unit [ |
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| the residence homestead of the individual if: | ||
| (1) the surviving spouse is disabled or is 55 years of | ||
| age or older when the individual dies; and | ||
| (2) the residence homestead of the individual: | ||
| (A) is the residence homestead of the surviving | ||
| spouse on the date that the individual dies; and | ||
| (B) remains the residence homestead of the | ||
| surviving spouse. | ||
| (j) If an individual who is 65 years of age or older and | ||
| qualifies for a limitation on [ |
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| the first year in which the individual qualified for the limitation | ||
| and the individual first qualified for the limitation after the | ||
| beginning of that year, except as provided by Subsection (k), the | ||
| amount to which the surviving spouse's [ |
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| the amount of taxes imposed by the taxing unit to which the | ||
| limitation applies [ |
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| determined as if the individual qualifying for the exemption had | ||
| lived for the entire year. | ||
| (k) If in the first tax year after the year in which an | ||
| individual who is 65 years of age or older dies under the | ||
| circumstances described by Subsection (j) the amount of taxes | ||
| imposed by a taxing unit [ |
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| less than the amount of taxes imposed by the taxing unit [ |
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| limited by Subsection (j), in a subsequent tax year the surviving | ||
| spouse's taxes imposed by the taxing unit [ |
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| the amount of taxes imposed by the taxing unit [ |
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| after the year in which the individual dies. | ||
| (l) Notwithstanding Subsection (d), a limitation on | ||
| [ |
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| taxing unit provided by this section does not expire if the owner of | ||
| the structure qualifies for an exemption under Section 11.13 under | ||
| the circumstances described by Section 11.135(a). | ||
| SECTION 3. Section 23.19(g), Tax Code, is amended to read as | ||
| follows: | ||
| (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 school district or other 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 or 11.261. The corporation shall apportion among | ||
| its stockholders liability for reimbursing the corporation for | ||
| property taxes according to the relative taxable values of their | ||
| interests. | ||
| SECTION 4. 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; and | ||
| (B) the current total value for a taxing unit | ||
| other than a school [ |
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| district excludes the total value of homesteads that qualify for a | ||
| tax limitation provided by Section 11.261. | ||
| (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; | ||
| (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 and last year's taxable value for a taxing unit other | ||
| than a school [ |
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| excludes the total value of homesteads that qualified for a tax | ||
| limitation as provided by Section 11.261; and | ||
| (iii) the portion of taxable value of | ||
| property that is the subject of an appeal under Chapter 42 on July | ||
| 25 that is not in dispute; 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; and | ||
| (B) last year's taxable value for a taxing unit | ||
| other than a school [ |
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| district excludes the total value of homesteads that qualified for | ||
| a tax limitation as provided by Section 11.261. | ||
| SECTION 5. This Act applies only to ad valorem taxes imposed | ||
| for a tax year beginning on or after the effective date of this Act. | ||
| SECTION 6. This Act takes effect January 1, 2022, but only | ||
| if the constitutional amendment proposed by the 87th Legislature, | ||
| 1st Called Session, 2021, to authorize a political subdivision | ||
| other than a school district to establish a limitation on the amount | ||
| of ad valorem taxes that the political subdivision may impose on the | ||
| residence homesteads of persons who are disabled or elderly and | ||
| their surviving spouses is approved by the voters. If that | ||
| amendment is not approved by the voters, this Act has no effect. | ||
