Bill Text: TX HB582 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to an exemption from ad valorem taxation by certain taxing units of a portion of the appraised value of the residence homestead of the parent or guardian of a person who is disabled and who resides with the parent or guardian.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2023-02-23 - Referred to Ways & Means [HB582 Detail]

Download: Texas-2023-HB582-Introduced.html

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88R2655 TJB-D
By: Raymond H.B. No. 582

A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation by certain taxing
units of a portion of the appraised value of the residence homestead
of the parent or guardian of a person who is disabled and who
resides with the parent or guardian.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13, Tax Code, is amended by amending
Subsections (c), (d), and (h) and adding Subsection (d-1) to read as
follows:
(c) In addition to the exemption provided by Subsection (b)
[of this section], an individual [adult] who is disabled, is the
parent or guardian of a person who is disabled and who resides with
the parent or guardian, or is 65 years of age or older is entitled to
an exemption from taxation by a school district of $10,000 of the
appraised value of the individual's [his] residence homestead.
(d) In addition to the exemptions provided by Subsections
(b) and (c) [of this section], an individual who is disabled, is the
parent or guardian of a person who is disabled and who resides with
the parent or guardian, or is 65 years of age or older is entitled to
an exemption from taxation by a taxing unit of the [a] portion
determined [(the amount of which is fixed] as provided by
Subsection (e) [of this section)] of the appraised value of the
individual's [his] residence homestead if the exemption is adopted
by [either]:
(1) [by] the governing body of the taxing unit; or
(2) [by] a favorable vote of a majority of the
qualified voters of the taxing unit at an election called by the
governing body of the [a] taxing unit.
(d-1) The [, and the] governing body of a taxing unit shall
call an [the] election described by Subsection (d)(2) on the
petition of at least 20 percent of the number of qualified voters
who voted in the preceding election of the taxing unit.
(h) Joint, community, or successive owners may not each
receive the same exemption provided by or pursuant to this section
for the same residence homestead in the same tax year. An individual
who is eligible for more than one [disabled person who is 65 or
older may not receive both a disabled and an elderly residence
homestead] exemption under Subsection (c) or more than one
exemption under Subsection (d) from the same taxing unit in the same
tax year is entitled to [but may] choose and receive from that
taxing unit in that tax year only one exemption under each of those
subsections [either if a taxing unit has adopted both]. An
individual who is eligible for more than one [disabled person who is
65 or older may receive both a disabled and an elderly residence
homestead] exemption under Subsection (c) or (d) in the same tax
year is entitled to receive each of those exemptions if the person
receives the exemptions with respect to taxes levied by different
taxing units. A person may not receive an exemption under this
section for more than one residence homestead in the same tax year.
An heir property owner who qualifies heir property as the owner's
residence homestead under this chapter is considered the sole
recipient of any exemption granted to the owner for the residence
homestead by or pursuant to this section.
SECTION 2. Section 25.19(l), Tax Code, is amended to read as
follows:
(l) In addition to the information required by Subsection
(b), the chief appraiser shall include with a notice required by
Subsection (a) a brief explanation of each total or partial
exemption of property from taxation required or authorized by this
title that is available to:
(1) a disabled veteran or the veteran's surviving
spouse or child;
(2) an individual who is 65 years of age or older or
the individual's surviving spouse;
(3) an individual who is disabled or the individual's
surviving spouse;
(4) an individual who is the parent or guardian of a
person who is disabled and who resides with the parent or guardian;
(5) the surviving spouse of a member of the armed
services of the United States who is killed in action; or
(6) [(5)] the surviving spouse of a first responder
who is killed or fatally injured in the line of duty.
SECTION 3. Section 26.062(h), Tax Code, is amended to read
as follows:
(h) In calculating the average taxable value of a residence
homestead in the taxing unit for the preceding tax year and the
current tax year for purposes of Subsections (e) and (f), any
residence homestead exemption available only to individuals who are
disabled [persons], are the parents or guardians of persons who are
disabled and who reside with the parents or guardians, or are
[persons] 65 years of age or older[,] or their surviving spouses
must be disregarded.
SECTION 4. 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." In addition, in reduced type, the
notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
your local property tax database on which you can easily access
information regarding your property taxes, including information
about proposed tax rates and scheduled public hearings of each
entity that taxes your property.";
(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 48, would provide the
same amount of maintenance and operations taxes and state funds
distributed under Chapter 48 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 43, 46, and 48 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 individuals who are
disabled, are the parents or guardians of persons who are disabled
and who reside with the parents or guardians, [persons] or are
[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 Voter-Approval Rate: The highest tax rate the district
can adopt before requiring voter approval at an election is (the
school district voter-approval rate determined under Section
26.08, Tax Code). This election will be automatically held if the
district adopts a rate in excess of the voter-approval rate of (the
school district voter-approval rate)."; and
(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 48 in
the succeeding school year.
SECTION 5. Section 49.236(a), Water Code, is amended to
read as follows:
(a) Before the board adopts an ad valorem tax rate for the
district for debt service, operation and maintenance purposes, or
contract purposes, the board shall give notice of each meeting of
the board at which the adoption of a tax rate will be considered.
The notice must:
(1) contain a statement in substantially the following
form:
"NOTICE OF PUBLIC HEARING ON TAX RATE
"The (name of the district) will hold a public hearing on a
proposed tax rate for the tax year (year of tax levy) on (date and
time) at (meeting place). Your individual taxes may increase at a
greater or lesser rate, or even decrease, depending on the tax rate
that is adopted and on the change in the taxable value of your
property in relation to the change in taxable value of all other
property. The change in the taxable value of your property in
relation to the change in the taxable value of all other property
determines the distribution of the tax burden among all property
owners.
"Visit Texas.gov/PropertyTaxes to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"(Names of all board members and, if a vote was taken, an
indication of how each voted on the proposed tax rate and an
indication of any absences.)";
(2) contain the following information:
(A) the district's total adopted tax rate for the
preceding year and the proposed tax rate, expressed as an amount per
$100;
(B) the difference, expressed as an amount per
$100 and as a percent increase or decrease, as applicable, in the
proposed tax rate compared to the adopted tax rate for the preceding
year;
(C) the average appraised value of a residence
homestead in the district in the preceding year and in the current
year; the district's total homestead exemption, other than an
exemption available only to individuals who are disabled, are the
parents or guardians of persons who are disabled and who reside with
the parents or guardians, [persons] or are [persons] 65 years of age
or older, applicable to that appraised value in each of those years;
and the average taxable value of a residence homestead in the
district in each of those years, disregarding any homestead
exemption available only to individuals who are disabled, are the
parents or guardians of persons who are disabled and who reside with
the parents or guardians, [persons] or are [persons] 65 years of age
or older;
(D) the amount of tax that would have been
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption
available only to individuals who are disabled, are the parents or
guardians of persons who are disabled and who reside with the
parents or guardians, [persons] or are [persons] 65 years of age or
older;
(E) the amount of tax that would be imposed by the
district in the current year on a residence homestead appraised at
the average appraised value of a residence homestead in that year,
disregarding any homestead exemption available only to individuals
who are disabled, are the parents or guardians of persons who are
disabled and who reside with the parents or guardians, [persons] or
are [persons] 65 years of age or older, if the proposed tax rate is
adopted;
(F) the difference between the amounts of tax
calculated under Paragraphs (D) and (E), expressed in dollars and
cents and described as the annual percentage increase or decrease,
as applicable, in the tax to be imposed by the district on the
average residence homestead in the district in the current year if
the proposed tax rate is adopted; and
(G) if the proposed combined debt service,
operation and maintenance, and contract tax rate requires or
authorizes an election to approve or reduce the tax rate, as
applicable, a description of the purpose of the proposed tax
increase;
(3) contain a statement in substantially the following
form, as applicable:
(A) if the district is a district described by
Section 49.23601:
"NOTICE OF VOTE ON TAX RATE
"If the district adopts a combined debt service, operation
and maintenance, and contract tax rate that would result in the
taxes on the average residence homestead increasing by more than
eight percent, an election must be held to determine whether to
approve the operation and maintenance tax rate under Section
49.23601, Water Code.";
(B) if the district is a district described by
Section 49.23602:
"NOTICE OF VOTE ON TAX RATE
"If the district adopts a combined debt service, operation
and maintenance, and contract tax rate that would result in the
taxes on the average residence homestead increasing by more than
3.5 percent, an election must be held to determine whether to
approve the operation and maintenance tax rate under Section
49.23602, Water Code."; or
(C) if the district is a district described by
Section 49.23603:
"NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE TAX RATE
"If the district adopts a combined debt service, operation
and maintenance, and contract tax rate that would result in the
taxes on the average residence homestead increasing by more than
eight percent, the qualified voters of the district by petition may
require that an election be held to determine whether to reduce the
operation and maintenance tax rate to the voter-approval tax rate
under Section 49.23603, Water Code."; and
(4) include the following statement: "The 86th Texas
Legislature modified the manner in which the voter-approval tax
rate is calculated to limit the rate of growth of property taxes in
the state.".
SECTION 6. Sections 49.23601(a) and (c), Water Code, are
amended to read as follows:
(a) In this section, "voter-approval tax rate" means the
rate equal to the sum of the following tax rates for the district:
(1) the current year's debt service tax rate;
(2) the current year's contract tax rate; and
(3) the operation and maintenance tax rate that would
impose 1.08 times the amount of the operation and maintenance tax
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in the district in that year, disregarding any homestead
exemption available only to individuals who are disabled, are the
parents or guardians of persons who are disabled and who reside with
the parents or guardians, [persons] or are [persons] 65 years of age
or older.
(c) If the board of a district adopts a combined debt
service, contract, and operation and maintenance tax rate that
would impose more than 1.08 times the amount of tax imposed by the
district in the preceding year on a residence homestead appraised
at the average appraised value of a residence homestead in the
district in that year, disregarding any homestead exemption
available only to individuals who are disabled, are the parents or
guardians of persons who are disabled and who reside with the
parents or guardians, [persons] or are [persons] 65 years of age or
older, an election must be held in accordance with the procedures
provided by Sections 26.07(c)-(g), Tax Code, to determine whether
to approve the adopted tax rate. If the adopted tax rate is not
approved at the election, the district's tax rate is the
voter-approval tax rate.
SECTION 7. Sections 49.23602(a)(2) and (4), Water Code, are
amended to read as follows:
(2) "Mandatory tax election rate" means the rate equal
to the sum of the following tax rates for the district:
(A) the rate that would impose 1.035 times the
amount of tax imposed by the district in the preceding year on a
residence homestead appraised at the average appraised value of a
residence homestead in the district in that year, disregarding any
homestead exemption available only to individuals who are disabled,
are the parents or guardians of persons who are disabled and who
reside with the parents or guardians, [persons] or are [persons] 65
years of age or older; and
(B) the unused increment rate.
(4) "Voter-approval tax rate" means the rate equal to
the sum of the following tax rates for the district:
(A) the current year's debt service tax rate;
(B) the current year's contract tax rate;
(C) the operation and maintenance tax rate that
would impose 1.035 times the amount of the operation and
maintenance tax imposed by the district in the preceding year on a
residence homestead appraised at the average appraised value of a
residence homestead in the district in that year, disregarding any
homestead exemption available only to individuals who are disabled,
are the parents or guardians of persons who are disabled and who
reside with the parents or guardians, [persons] or are [persons] 65
years of age or older; and
(D) the unused increment rate.
SECTION 8. Sections 49.23603(a) and (c), Water Code, are
amended to read as follows:
(a) In this section, "voter-approval tax rate" means the
rate equal to the sum of the following tax rates for the district:
(1) the current year's debt service tax rate;
(2) the current year's contract tax rate; and
(3) the operation and maintenance tax rate that would
impose 1.08 times the amount of the operation and maintenance tax
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in the district in that year, disregarding any homestead
exemption available only to individuals who are disabled, are the
parents or guardians of persons who are disabled and who reside with
the parents or guardians, [persons] or are [persons] 65 years of age
or older.
(c) If the board of a district adopts a combined debt
service, contract, and operation and maintenance tax rate that
would impose more than 1.08 times the amount of tax imposed by the
district in the preceding year on a residence homestead appraised
at the average appraised value of a residence homestead in the
district in that year, disregarding any homestead exemption
available only to individuals who are disabled, are the parents or
guardians of persons who are disabled and who reside with the
parents or guardians, [persons] or are [persons] 65 years of age or
older, the qualified voters of the district by petition may require
that an election be held to determine whether to reduce the tax rate
adopted for the current year to the voter-approval tax rate in
accordance with the procedures provided by Sections 26.075 and
26.081, Tax Code.
SECTION 9. This Act applies only to ad valorem taxes imposed
for a tax year that begins on or after the effective date of this
Act.
SECTION 10. This Act takes effect January 1, 2024, but only
if the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, to provide for an exemption from ad valorem
taxation by certain political subdivisions of a portion of the
market value of the residence homestead of the parent or guardian of
a person who is disabled and who resides with the parent or guardian
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.