Bill Text: TX HB968 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to the provision of funding under the foundation school program on the basis of property values that do not take into account optional homestead exemptions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-02-25 - Referred to Public Education [HB968 Detail]

Download: Texas-2019-HB968-Introduced.html
  86R7019 SMT-D
 
  By: González of El Paso H.B. No. 968
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the provision of funding under the foundation school
  program on the basis of property values that do not take into
  account optional homestead exemptions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 7.062(c), Education Code, is amended to
  read as follows:
         (c)  Except as otherwise provided by this subsection, if the
  commissioner certifies that the amount appropriated for a state
  fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
  the amount to which school districts are entitled under those
  subchapters for that year, the commissioner shall use the excess
  funds, in an amount not to exceed $20 million in any state fiscal
  year, for the purpose of making grants under this section. The use
  of excess funds under this subsection has priority over any
  provision of Chapter 42 that permits or directs the use of excess
  foundation school program funds, including Sections 42.2517,
  42.2521, [42.2522,] and 42.2531. The commissioner is required to
  use excess funds as provided by this subsection only if the
  commissioner is not required to reduce the total amount of state
  funds allocated to school districts under Section 42.253(h).
         SECTION 2.  Sections 403.302(d), (e), (e-1), (i), and (m),
  Government Code, are amended to read as follows:
         (d)  For the purposes of this section, "taxable value" means
  the market value of all taxable property less:
               (1)  the total dollar amount of any residence homestead
  exemptions lawfully granted under Section 11.13(b) or (c), Tax
  Code, in the year that is the subject of the study for each school
  district;
               (2)  [one-half of the total dollar amount of any
  residence homestead exemptions granted under Section 11.13(n), Tax
  Code, in the year that is the subject of the study for each school
  district;
               [(3)]  the total dollar amount of any exemptions
  granted before May 31, 1993, within a reinvestment zone under
  agreements authorized by Chapter 312, Tax Code;
               (3) [(4)]  subject to Subsection (e), the total dollar
  amount of any captured appraised value of property that:
                     (A)  is within a reinvestment zone created on or
  before May 31, 1999, or is proposed to be included within the
  boundaries of a reinvestment zone as the boundaries of the zone and
  the proposed portion of tax increment paid into the tax increment
  fund by a school district are described in a written notification
  provided by the municipality or the board of directors of the zone
  to the governing bodies of the other taxing units in the manner
  provided by former Section 311.003(e), Tax Code, before May 31,
  1999, and within the boundaries of the zone as those boundaries
  existed on September 1, 1999, including subsequent improvements to
  the property regardless of when made;
                     (B)  generates taxes paid into a tax increment
  fund created under Chapter 311, Tax Code, under a reinvestment zone
  financing plan approved under Section 311.011(d), Tax Code, on or
  before September 1, 1999; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (4) [(5)]  the total dollar amount of any captured
  appraised value of property that:
                     (A)  is within a reinvestment zone:
                           (i)  created on or before December 31, 2008,
  by a municipality with a population of less than 18,000; and
                           (ii)  the project plan for which includes
  the alteration, remodeling, repair, or reconstruction of a
  structure that is included on the National Register of Historic
  Places and requires that a portion of the tax increment of the zone
  be used for the improvement or construction of related facilities
  or for affordable housing;
                     (B)  generates school district taxes that are paid
  into a tax increment fund created under Chapter 311, Tax Code; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (5) [(6)]  the total dollar amount of any exemptions
  granted under Section 11.251 or 11.253, Tax Code;
               (6) [(7)]  the difference between the comptroller's
  estimate of the market value and the productivity value of land that
  qualifies for appraisal on the basis of its productive capacity,
  except that the productivity value estimated by the comptroller may
  not exceed the fair market value of the land;
               (7) [(8)]  the portion of the appraised value of
  residence homesteads of individuals who receive a tax limitation
  under Section 11.26, Tax Code, on which school district taxes are
  not imposed in the year that is the subject of the study, calculated
  as if the residence homesteads were appraised at the full value
  required by law;
               (8) [(9)]  a portion of the market value of property
  not otherwise fully taxable by the district at market value because
  of:
                     (A)  action required by statute or the
  constitution of this state, other than Section 11.311, Tax Code,
  that, if the tax rate adopted by the district is applied to it,
  produces an amount equal to the difference between the tax that the
  district would have imposed on the property if the property were
  fully taxable at market value and the tax that the district is
  actually authorized to impose on the property, if this subsection
  does not otherwise require that portion to be deducted; or
                     (B)  action taken by the district under Subchapter
  B or C, Chapter 313, Tax Code, before the expiration of the
  subchapter;
               (9) [(10)]  the market value of all tangible personal
  property, other than manufactured homes, owned by a family or
  individual and not held or used for the production of income;
               (10) [(11)]  the appraised value of property the
  collection of delinquent taxes on which is deferred under Section
  33.06, Tax Code;
               (11) [(12)]  the portion of the appraised value of
  property the collection of delinquent taxes on which is deferred
  under Section 33.065, Tax Code; and
               (12) [(13)]  the amount by which the market value of a
  residence homestead to which Section 23.23, Tax Code, applies
  exceeds the appraised value of that property as calculated under
  that section.
         (e)  The total dollar amount deducted in each year as
  required by Subsection (d)(3) [(d)(4)] in a reinvestment zone
  created after January 1, 1999, may not exceed the captured
  appraised value estimated for that year as required by Section
  311.011(c)(8), Tax Code, in the reinvestment zone financing plan
  approved under Section 311.011(d), Tax Code, before September 1,
  1999. The number of years for which the total dollar amount may be
  deducted under Subsection (d)(3) [(d)(4)] shall for any zone,
  including those created on or before January 1, 1999, be limited to
  the duration of the zone as specified as required by Section
  311.011(c)(9), Tax Code, in the reinvestment zone financing plan
  approved under Section 311.011(d), Tax Code, before September 1,
  1999. The total dollar amount deducted under Subsection (d)(3)
  [(d)(4)] for any zone, including those created on or before January
  1, 1999, may not be increased by any reinvestment zone financing
  plan amendments that occur after August 31, 1999. The total dollar
  amount deducted under Subsection (d)(3) [(d)(4)] for any zone,
  including those created on or before January 1, 1999, may not be
  increased by a change made after August 31, 1999, in the portion of
  the tax increment retained by the school district.
         (e-1)  This subsection applies only to a reinvestment zone
  created by a municipality that has a population of 70,000 or less
  and is located in a county in which all or part of a military
  installation is located.  Notwithstanding Subsection (e), if on or
  after January 1, 2017, the municipality adopts an ordinance
  designating a termination date for the zone that is later than the
  termination date designated in the ordinance creating the zone, the
  number of years for which the total dollar amount may be deducted
  under Subsection (d)(3) [(d)(4)] is limited to the duration of the
  zone as determined under Section 311.017, Tax Code.
         (i)  If the comptroller determines in the study that the
  market value of property in a school district as determined by the
  appraisal district that appraises property for the school district,
  less the total of the amounts and values listed in Subsection (d) as
  determined by that appraisal district, is valid, the comptroller,
  in determining the taxable value of property in the school district
  under Subsection (d), shall for purposes of Subsection (d)(12)
  [(d)(13)] subtract from the market value as determined by the
  appraisal district of residence homesteads to which Section 23.23,
  Tax Code, applies the amount by which that amount exceeds the
  appraised value of those properties as calculated by the appraisal
  district under Section 23.23, Tax Code.  If the comptroller
  determines in the study that the market value of property in a
  school district as determined by the appraisal district that
  appraises property for the school district, less the total of the
  amounts and values listed in Subsection (d) as determined by that
  appraisal district, is not valid, the comptroller, in determining
  the taxable value of property in the school district under
  Subsection (d), shall for purposes of Subsection (d)(12) [(d)(13)]
  subtract from the market value as estimated by the comptroller of
  residence homesteads to which Section 23.23, Tax Code, applies the
  amount by which that amount exceeds the appraised value of those
  properties as calculated by the appraisal district under Section
  23.23, Tax Code.
         (m)  Subsection (d)(8) [(d)(9)] does not apply to property
  that was the subject of an application under Subchapter B or C,
  Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
  recommended should be disapproved.
         SECTION 3.  Section 311.011(h), Tax Code, is amended to read
  as follows:
         (h)  Unless specifically provided otherwise in the plan, all
  amounts contained in the project plan or reinvestment zone
  financing plan, including amounts of expenditures relating to
  project costs and amounts relating to participation by taxing
  units, are considered estimates and do not act as a limitation on
  the described items, but the amounts contained in the project plan
  or reinvestment zone financing plan may not vary materially from
  the estimates.  This subsection may not be construed to increase the
  amount of any reduction under Section 403.302(d)(3) 
  [403.302(d)(4)], Government Code, in the total taxable value of the
  property in a school district that participates in the zone as
  computed under Section 403.302(d) of that code.
         SECTION 4.  Section 311.013(n), Tax Code, is amended to read
  as follows:
         (n)  This subsection applies only to a school district whose
  taxable value computed under Section 403.302(d), Government Code,
  is reduced in accordance with Subdivision (3) [(4)] of that
  subsection.  In addition to the amount otherwise required to be paid
  into the tax increment fund, the district shall pay into the fund an
  amount equal to the amount by which the amount of taxes the district
  would have been required to pay into the fund in the current year if
  the district levied taxes at the rate the district levied in 2005
  exceeds the amount the district is otherwise required to pay into
  the fund in the year of the reduction.  This additional amount may
  not exceed the amount the school district receives in state aid for
  the current tax year under Section 42.2514, Education Code.  The
  school district shall pay the additional amount after the district
  receives the state aid to which the district is entitled for the
  current tax year under Section 42.2514, Education Code.
         SECTION 5.  Section 42.2522, Education Code, is repealed.
         SECTION 6.  Section 403.302, Government Code, as amended by
  this Act, applies only to a school district property value study
  conducted for a tax year that begins on or after January 1, 2020.
         SECTION 7.  This Act takes effect September 1, 2019.
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