Bill Text: TX SB1 | 2021 | 87th Legislature 3rd Special Session | Enrolled
Bill Title: Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against the resulting loss in local revenue.
Sponsorship: Broadly Bipartisan Bill
Status: (Passed) 2021-10-25 - See remarks for effective date [SB1 Detail]
Download: Texas-2021-SB1-Enrolled.html
| S.B. No. 1 | ||
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| relating to an increase in the amount of the exemption of residence | ||
| homesteads from ad valorem taxation by a school district 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 $40,000 [ |
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| adult's residence homestead, 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 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, as proposed by the 87th Legislature, 3rd Called | ||
| Session, 2021, had not occurred. | ||
| (b) Subject to Subsections (c), (d), and (e) [ |
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| 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, as proposed by the 87th | ||
| Legislature, 3rd 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) [ |
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| 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 3. Subchapter F, Chapter 48, Education Code, is | ||
| amended by adding Section 48.2543 to read as follows: | ||
| Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION. | ||
| (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, as proposed by | ||
| the 87th Legislature, 3rd 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 4. The comptroller of public accounts may adopt | ||
| rules for the purpose of implementing and administering the changes | ||
| in law made by this Act, including rules relating to the form of | ||
| certain information required to be provided by tax officials and | ||
| the date on which the information must be provided. | ||
| SECTION 5. Section 11.13, Tax Code, as amended by this Act, | ||
| applies beginning with the 2022 tax year. | ||
| SECTION 6. (a) Except as provided by Subsection (b) of this | ||
| section: | ||
| (1) this Act takes effect on the date on which the | ||
| constitutional amendment proposed by the 87th Legislature, 3rd | ||
| Called Session, 2021, increasing the amount of the residence | ||
| homestead exemption from ad valorem taxation for public school | ||
| purposes is approved by the voters; and | ||
| (2) if that amendment is not approved by the voters, | ||
| this Act has no effect. | ||
| (b) Section 4 of this Act takes effect immediately if this | ||
| Act receives a vote of two-thirds of all the members elected to each | ||
| house, as provided by Section 39, Article III, Texas Constitution. | ||
| If this Act does not receive the vote necessary for immediate | ||
| effect, Section 4 of this Act takes effect on the 91st day after the | ||
| last day of the legislative session. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 1 passed the Senate on | ||
| September 22, 2021, by the following vote: Yeas 30, Nays 1; | ||
| October 15, 2021, Senate refused to concur in House amendments and | ||
| requested appointment of Conference Committee; October 15, 2021, | ||
| House granted request of the Senate; October 18, 2021, Senate | ||
| adopted Conference Committee Report by the following | ||
| vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 1 passed the House, with | ||
| amendments, on October 15, 2021, by the following vote: Yeas 140, | ||
| Nays 4, one present not voting; October 15, 2021, House granted | ||
| request of the Senate for appointment of Conference Committee; | ||
| October 18, 2021, House adopted Conference Committee Report by the | ||
| following vote: Yeas 146, Nays 0, one present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
