Bill Text: TX HB716 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to the exemption from ad valorem taxation of part of the appraised value of the residence homestead of a severely disabled veteran or the surviving spouse of a severely disabled veteran based on the disability rating of the veteran.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-01-10 - Filed [HB716 Detail]

Download: Texas-2019-HB716-Introduced.html
 
 
  By: Leach H.B. No. 716
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from ad valorem taxation of part of the
  appraised value of the residence homestead of a severely disabled
  veteran or the surviving spouse of a severely disabled veteran
  based on the disability rating of the veteran.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.136 to read as follows:
         Sec. 11.136.  RESIDENCE HOMESTEAD OF CERTAIN SEVERELY
  DISABLED VETERANS. (a) In this section:
               (1)  "Disability rating" and "disabled veteran" have
  the meanings assigned by Section 11.22.
               (2)  "Residence homestead" has the meaning assigned by
  Section 11.13.
               (3)  "Surviving spouse" has the meaning assigned by
  Section 11.131.
         (b)  A "Severely Disabled Veteran" is a disabled veteran who
  has a disability rating of at least 80 percent but less than 100
  percent is entitled to an exemption from taxation of a percentage of
  the appraised value of the disabled veteran's residence homestead
  equal to the disabled veteran's disability rating.
         (c)  The surviving spouse of a Severely Disabled Veteran who
  qualified for an exemption under Subsection (b) of a percentage of
  the appraised value of the Severely Disabled Veteran's residence
  homestead when the Severely Disabled Veteran died is entitled to an
  exemption from taxation of the same percentage of the appraised
  value of the same property to which the Severely Disabled Veteran's
  exemption applied if:
               (1)  the surviving spouse has not remarried since the
  death of the Severely Disabled Veteran; and
               (2)  the property:
                     (A)  was the residence homestead of the surviving
  spouse when the Severely Disabled Veteran died; and
                     (B)  remains the residence homestead of the
  surviving spouse.
         (d)  If a surviving spouse who qualifies for an exemption
  under Subsection (c) subsequently qualifies a different property as
  the surviving spouse's residence homestead, the surviving spouse is
  entitled to an exemption from taxation of the subsequently
  qualified residence homestead in an amount equal to the dollar
  amount of the exemption from taxation of the former residence
  homestead under Subsection (c) in the last year in which the
  surviving spouse received an exemption under that subsection for
  that residence homestead if the surviving spouse has not remarried
  since the death of the Severely Disabled Veteran. The surviving
  spouse is entitled to receive from the chief appraiser of the
  appraisal district in which the former residence homestead was
  located a written certificate providing the information necessary
  to determine the amount of the exemption to which the surviving
  spouse is entitled on the subsequently qualified residence
  homestead.
         SECTION 2.  (a) Section 11.42(c), Tax Code, is amended to
  read as follows:
         (c)  An exemption authorized by Section 11.13(c) or (d),
  11.132, 11.133, [or] 11.134, or 11.136 is effective as of January 1
  of the tax year in which the person qualifies for the exemption and
  applies to the entire tax year.
         (b)  Section 11.43(c), Tax Code, is reenacted and amended to
  read as follows:
         (c)  An exemption provided by Section 11.13, 11.131, 11.132,
  11.133, 11.134, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183,
  11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),
  11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, or 11.315, once
  allowed, need not be claimed in subsequent years, and except as
  otherwise provided by Subsection (e), the exemption applies to the
  property until it changes ownership or the person's qualification
  for the exemption changes. However, except as provided by
  Subsection (r), the chief appraiser may require a person allowed
  one of the exemptions in a prior year to file a new application to
  confirm the person's current qualification for the exemption by
  delivering a written notice that a new application is required,
  accompanied by an appropriate application form, to the person
  previously allowed the exemption. If the person previously allowed
  the exemption is 65 years of age or older, the chief appraiser may
  not cancel the exemption due to the person's failure to file the new
  application unless the chief appraiser complies with the
  requirements of Subsection (q), if applicable.
         (c)  Section 11.431(a), Tax Code, is reenacted and amended to
  read as follows:
         (a)  The chief appraiser shall accept and approve or deny an
  application for a residence homestead exemption, including an
  exemption under Section 11.131, [or] 11.132, or 11.136 for the
  residence homestead of a Severely Disabled Veteran or the surviving
  spouse of a Severely Disabled Veteran, an exemption under Section
  11.133 for the residence homestead of the surviving spouse of a
  member of the armed services of the United States who is killed in
  action, or an exemption under Section 11.134 for the residence
  homestead of the surviving spouse of a first responder who is killed
  or fatally injured in the line of duty, after the deadline for
  filing it has passed if it is filed not later than two years after
  the delinquency date for the taxes on the homestead.
         (d)  Section 26.10(b), Tax Code, is amended to read as
  follows:
         (b)  If the appraisal roll shows that a residence homestead
  exemption under Section 11.13(c) or (d), 11.132, 11.133, [or]
  11.134, or 11.136 applicable to a property on January 1 of a year
  terminated during the year and if the owner of the property
  qualifies a different property for one of those residence homestead
  exemptions during the same year, the tax due against the former
  residence homestead is calculated by:
               (1)  subtracting:
                     (A)  the amount of the taxes that otherwise would
  be imposed on the former residence homestead for the entire year had
  the owner qualified for the residence homestead exemption for the
  entire year; from
                     (B)  the amount of the taxes that otherwise would
  be imposed on the former residence homestead for the entire year had
  the owner not qualified for the residence homestead exemption
  during the year;
               (2)  multiplying the remainder determined under
  Subdivision (1) by a fraction, the denominator of which is 365 and
  the numerator of which is the number of days that elapsed after the
  date the exemption terminated; and
               (3)  adding the product determined under Subdivision
  (2) and the amount described by Subdivision (1)(A).
         SECTION 3.  Section 11.43(k), Tax Code, is amended to read as
  follows:
         (k)  A person who qualifies for an exemption authorized by
  Section 11.13(c) or (d), [or] 11.132, or 11.136 must apply for the
  exemption no later than the first anniversary of the date the person
  qualified for the exemption.
         SECTION 4.  Section 26.1127, Tax Code, is amended to read as
  follows:
         Sec. 26.1127.  CALCULATION OF TAXES ON [DONATED] RESIDENCE
  HOMESTEAD OF CERTAIN DISABLED VETERANS [VETERAN] OR SURVIVING
  SPOUSE OF CERTAIN DISABLED VETERANS [VETERAN]. (a) Except as
  provided by Section 26.10(b), if at any time during a tax year
  property is owned by an individual who qualifies for an exemption
  under Section 11.132 or 11.136, the amount of the tax due on the
  property for the tax year is calculated as if the individual
  qualified for the exemption on January 1 and continued to qualify
  for the exemption for the remainder of the tax year.
         (b)  If an individual qualifies for an exemption under
  Section 11.132 or 11.136 with respect to the property after the
  amount of the tax due on the property is calculated and the effect
  of the qualification is to reduce the amount of the tax due on the
  property, the assessor for each taxing unit shall recalculate the
  amount of the tax due on the property and correct the tax roll. If
  the tax bill has been mailed and the tax on the property has not been
  paid, the assessor shall mail a corrected tax bill to the individual
  in whose name the property is listed on the tax roll or to the
  individual's authorized agent. If the tax on the property has been
  paid, the tax collector for the taxing unit shall refund to the
  individual who paid the tax the amount by which the payment exceeded
  the tax due.
         SECTION 5.  Section 31.031(a), Tax Code, is amended to read
  as follows:
         (a)  This section applies only to:
               (1)  an individual who is:
                     (A)  disabled or at least 65 years of age; and
                     (B)  qualified for an exemption under Section
  11.13(c); or
               (2)  an individual who is:
                     (A)  a Severely Disabled Veteran or the unmarried
  surviving spouse of a Severely Disabled Veteran; and
                     (B)  qualified for an exemption under Section
  11.132, 11.136, or 11.22.
         SECTION 6.  Section 140.011(a)(2), Local Government Code, is
  amended to read as follows:
               (2)  "Local government" means:
                     (A)  a municipality adjacent to or within twenty
  miles of a military installation; and,
                     (B)  a county in which a United States military
  installation is wholly or partly located.
         SECTION 7.  Section 140.011(c), Local Government Code, is
  amended to read as follows:
         (c)  For the purposes of this section, the amount of a local
  government's lost ad valorem tax revenue for a fiscal year is
  calculated by multiplying the ad valorem tax rate adopted by the
  local government under Section 26.05, Tax Code, for the tax year in
  which the fiscal year begins by the sum of:
               (1)  the total appraised value of all property located
  in the local government that is exempt [granted an exemption] from
  taxation under Section 11.131, Tax Code, for that tax year; and
               (2)  the total dollar amount of the portion of the
  appraised value of all property located in the local government
  that is exempt from taxation under Section 11.136, Tax Code, for
  that tax year.
         SECTION 8.  This Act applies only to ad valorem taxes imposed
  for an ad valorem tax year that begins on or after the effective
  date of this Act.
         SECTION 9.  This Act takes effect January 1, 2020, but only
  if the constitutional amendment proposed by the 86th Legislature,
  Regular Session, 2019, authorizing the legislature to provide for
  an exemption from ad valorem taxation of part of the market value of
  the residence homestead of a Severely Disabled Veteran or the
  surviving spouse of a Severely Disabled Veteran based on the
  disability rating of the veteran and harmonizing certain related
  provisions of the constitution is approved by the voters. If that
  amendment is not approved by the voters, this Act has no effect.
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