Bill Text: TX HB650 | 2021-2022 | 87th Legislature | Introduced


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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2021-03-01 - Referred to Ways & Means [HB650 Detail]

Download: Texas-2021-HB650-Introduced.html
  87R600 TJB-D
 
  By: Raymond H.B. No. 650
 
 
 
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.";
               (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.
         "(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, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  Regular Session, 2021, 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.
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