Bill Text: TX HB4317 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the adjustment of the limitation on the amount of ad valorem taxes imposed by a school district on the residence homestead of an elderly or disabled person if the school district adopts, changes the amount of, or rescinds a local option residence homestead exemption.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-29 - Referred to Ways & Means [HB4317 Detail]

Download: Texas-2021-HB4317-Introduced.html

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By: Stephenson H.B. No. 4317

A BILL TO BE ENTITLED
AN ACT
relating to the adjustment of the limitation on the amount of ad
valorem taxes imposed by a school district on the residence
homestead of an elderly or disabled person if the school district
adopts, changes the amount of, or rescinds a local option residence
homestead exemption.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.26, Tax Code, is amended by adding
Subsections (a-4), (a-5), (a-6), and (a-7) to read as follows:
(a-4) Notwithstanding the other provisions of this section,
if in the 2022 tax year or a subsequent tax year a school district
adopts an exemption under Section 11.13(n) for the first time, the
amount of the limitation on tax increases provided by this section
on the residence homestead of an individual who qualifies for the
limitation and who qualified for an exemption under Section
11.13(c) for that homestead for the preceding tax year is, for the
tax year in which the exemption is adopted, equal to the amount
computed by:
(1) multiplying the dollar amount of the appraised
value of the homestead exempted under Section 11.13(n) by the tax
rate of the district for the current tax year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the preceding tax year; and
(3) adding to the amount computed under Subdivision
(2) any tax imposed by the district on the homestead in the current
tax year attributable to improvements made in the preceding tax
year, as provided by Subsection (b).
(a-5) Except as provided by Subsections (a-6) and (b), a
limitation on tax increases provided by this section on a residence
homestead computed under Subsection (a-4) continues to apply to the
homestead in subsequent tax years until the limitation expires.
(a-6) Notwithstanding the other provisions of this section,
if a school district increases, decreases, or rescinds an exemption
under Section 11.13(n) that the district adopted for the first time
in the 2022 tax year or a subsequent tax year, the amount of the
limitation on tax increases provided by this section on the
residence homestead of an individual who qualifies for the
limitation and who qualified for an exemption under Section
11.13(c) for that homestead for the preceding tax year is, for the
tax year in which the exemption is increased, decreased, or
rescinded, equal to the amount computed by:
(1) multiplying the change, expressed as a positive
amount, in the dollar amount of the appraised value of the homestead
exempted under Section 11.13(n) as a result of the increase,
decrease, or rescission of that exemption by the tax rate of the
district for the current tax year;
(2) subtracting the amount computed under Subdivision
(1) from, or adding the amount computed under that subdivision to,
as applicable, the amount of tax the district imposed on the
homestead in the preceding tax year; and
(3) adding to the amount computed under Subdivision
(2) any tax imposed by the district on the homestead in the current
tax year attributable to improvements made in the preceding tax
year, as provided by Subsection (b).
(a-7) Except as provided by Subsection (b), a limitation on
tax increases provided by this section on a residence homestead
computed under Subsection (a-6) continues to apply to the homestead
in subsequent tax years until the limitation expires.
SECTION 2. The changes in law made by this Act apply only to
an ad valorem tax year that begins on or after January 1, 2022.
SECTION 3. 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 provide for
the adjustment of the limitation on the amount of ad valorem taxes
imposed by a school district on the residence homestead of an
elderly or disabled person if the school district adopts, changes
the amount of, or rescinds a local option residence homestead
exemption is approved by the voters. If that constitutional
amendment is not approved by the voters, this Act has no effect.