Bill Text: TX HB72 | 2021 | 87th Legislature 1st Special Session | Introduced


Bill Title: Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a person who is elderly or disabled to reflect any increase in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-07-07 - Filed [HB72 Detail]

Download: Texas-2021-HB72-Introduced.html
  87S10211 SMH/CAE-D
 
  By: Schofield H.B. No. 72
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an exemption from ad valorem taxation by a school
  district of a dollar amount or a percentage, whichever is greater,
  of the appraised value of a residence homestead, a reduction of the
  limitation on the total amount of ad valorem taxes that may be
  imposed by a school district on the homestead of a person who is
  elderly or disabled to reflect any increase in the exemption
  amount, and the protection of school districts against the
  resulting loss in local revenue.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.13(b), Tax Code, is amended to read as
  follows:
         (b)  An adult is entitled to exemption from taxation by a
  school district of $25,000 of the appraised value of the adult's
  residence homestead or 16.7 percent of the appraised value of the
  adult's residence homestead, whichever is greater, except that only
  $5,000 of the exemption applies to an entity operating under former
  Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters
  existed on May 1, 1995, as permitted by Section 11.301, Education
  Code.
         SECTION 2.  Section 11.26(a), Tax Code, is amended to read as
  follows:
         (a)  The tax officials shall appraise the property to which
  this section applies and calculate taxes as on other property, but
  if the tax so calculated exceeds the limitation imposed by this
  section, the tax imposed is the amount of the tax as limited by this
  section, except as otherwise provided by this section.  A school
  district may not increase the total annual amount of ad valorem tax
  it imposes on the residence homestead of an individual 65 years of
  age or older or on the residence homestead of an individual who is
  disabled, as defined by Section 11.13, above the amount of the tax
  it imposed in the first tax year in which the individual qualified
  that residence homestead for the applicable exemption provided by
  Section 11.13(c) for an individual who is 65 years of age or older
  or is disabled.  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 same exemption
  for the next year, and if the school district taxes imposed on the
  residence homestead in the next year are less than the amount of
  taxes imposed in that first year, a school district may not
  subsequently increase the total annual amount of ad valorem taxes
  it imposes on the residence homestead above the amount it imposed in
  the year immediately following the first year for which the
  individual qualified that residence homestead for the same
  exemption, except as provided by Subsection (b).  If the first tax
  year the individual qualified the residence homestead for the
  exemption provided by Section 11.13(c) for individuals 65 years of
  age or older or disabled was a tax year before the 2015 tax year, the
  amount of the limitation provided by this section is the amount of
  tax the school district imposed for the 2014 tax year less an amount
  equal to the amount determined by multiplying $10,000 times the tax
  rate of the school district for the 2015 tax year, plus any 2015 tax
  attributable to improvements made in 2014, other than improvements
  made to comply with governmental regulations or repairs. If the
  first tax year the individual qualified the residence homestead for
  the exemption provided by Section 11.13(c) for individuals 65 years
  of age or older or disabled was a tax year before the 2022 tax year
  and the appraised value of the homestead for the 2022 tax year is
  more than $149,701, the amount of the limitation provided by this
  section is the amount of tax the school district imposed for the
  2021 tax year, less an amount equal to the amount computed by
  subtracting $25,000 from an amount equal to 16.7 percent of the
  appraised value of the homestead for the 2022 tax year and
  multiplying that amount by the tax rate of the school district for
  the 2022 tax year, plus any 2022 tax attributable to improvements
  made in 2021, other than improvements made to comply with
  governmental regulations or repairs. Except as provided by
  Subsection (b), a limitation on tax increases provided by this
  section on a residence homestead computed under this subsection
  continues to apply to the homestead in subsequent tax years until
  the limitation expires.
         SECTION 3.  Section 46.071, Education Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsections
  (a-1), (b-1), and (c-1) to read as follows:
         (a)  Beginning with the 2015-2016 school year and continuing
  through the 2021-2022 school year, a school district is entitled to
  additional state aid under this subchapter to the extent that state
  and local revenue used to service debt eligible under this chapter
  is less than the state and local revenue that would have been
  available to the district under this chapter as it existed on
  September 1, 2015, if the increase in the residence homestead
  exemption under Section 1-b(c), Article VIII, Texas Constitution,
  and the additional limitation on tax increases under Section 1-b(d)
  of that article as proposed by S.J.R. 1, 84th Legislature, Regular
  Session, 2015, had not occurred.
         (a-1)  Beginning with the 2022-2023 school year, a school
  district is entitled to additional state aid under this subchapter
  to the extent that state and local revenue used to service debt
  eligible under this chapter is less than the state and local revenue
  that would have been available to the district under this chapter as
  it existed on September 1, 2021, if any increase in the residence
  homestead exemption under Section 1-b(c), Article VIII, Texas
  Constitution, and any additional limitation on tax increases under
  Section 1-b(d) of that article as proposed by the 87th Legislature,
  1st Called Session, 2021, had not occurred.
         (b)  Subject to Subsections (c), (d), and (e) [(c)-(e)],
  additional state aid under this section through the 2021-2022
  school year is equal to the amount by which the loss of local
  interest and sinking revenue for debt service attributable to the
  increase in the residence homestead exemption under Section 1-b(c),
  Article VIII, Texas Constitution, and the additional limitation on
  tax increases under Section 1-b(d) of that article as proposed by
  S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
  a gain in state aid under this chapter.
         (b-1)  Subject to Subsections (c-1), (d), and (e),
  additional state aid under this section beginning with the
  2022-2023 school year is equal to the amount by which the loss of
  local interest and sinking revenue for debt service attributable to
  any increase in the residence homestead exemption under Section
  1-b(c), Article VIII, Texas Constitution, and any additional
  limitation on tax increases under Section 1-b(d) of that article as
  proposed by the 87th Legislature, 1st Called Session, 2021, is not
  offset by a gain in state aid under this chapter.
         (c)  For the purpose of determining state aid under
  Subsections (a) and (b) [this section], local interest and sinking
  revenue for debt service is limited to revenue required to service
  debt eligible under this chapter as of September 1, 2015, including
  refunding of that debt, subject to Section 46.061.  The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         (c-1)  For the purpose of determining state aid under
  Subsections (a-1) and (b-1), local interest and sinking revenue for
  debt service is limited to revenue required to service debt
  eligible under this chapter as of September 1, 2021, including
  refunding of that debt, subject to Section 46.061.  The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         SECTION 4.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Section 48.2541 to read as follows:
         Sec. 48.2541.  ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION
  AND LIMITATION ON TAX INCREASES. (a) Beginning with the 2022-2023
  school year, a school district is entitled to additional state aid
  to the extent that state and local revenue under this chapter and
  Chapter 49 is less than the state and local revenue that would have
  been available to the district under this chapter and Chapter 49 as
  those chapters existed on September 1, 2021, if any increase in the
  residence homestead exemption under Section 1-b(c), Article VIII,
  Texas Constitution, and any additional limitation on tax increases
  under Section 1-b(d) of that article as proposed by the 87th
  Legislature, 1st Called Session, 2021, had not occurred.
         (b)  The lesser of the school district's currently adopted
  maintenance and operations tax rate or the adopted maintenance and
  operations tax rate for the 2021 tax year is used for the purpose of
  determining additional state aid under Subsection (a).
         SECTION 5.  The changes in law made by this Act to Sections
  11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
  begins on or after January 1, 2022.
         SECTION 6.  This Act takes effect January 1, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  1st Called Session, 2021, providing for an exemption from ad
  valorem taxation for public school purposes of $25,000 or 16.7
  percent, whichever is greater, of the market value of a residence
  homestead and providing for a reduction of the limitation on the
  total amount of ad valorem taxes that may be imposed for those
  purposes on the homestead of a person who is elderly or disabled to
  reflect any increase in the exemption amount is approved by the
  voters. If that constitutional amendment is not approved by the
  voters, this Act has no effect.
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