Bill Text: TX SB12 | 2021 | 87th Legislature 1st Special Session | Engrossed

Texas Senate Bill 12 (Prior Session Legislation)

Bill Title: Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate.

Sponsorship: Moderate Partisan Bill (Republican 16-2)

Status: (Engrossed - Dead) 2021-07-16 - Co-author authorized [SB12 Detail]

Download: Texas-2021-SB12-Engrossed.html



	By: Bettencourt, et al.	S.B. No. 12


	A BILL TO BE ENTITLED
	AN ACT
	relating to the reduction of the amount of a limitation on the total
	amount of ad valorem taxes that may be imposed by a school district
	on the residence homestead of an individual who is elderly or
	disabled to reflect any reduction from the preceding tax year in the
	district's maximum compressed rate.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 11.26, Tax Code, is amended by adding
	Subsections (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9) to read as
	follows:
	(a-4) In this section, "maximum compressed rate" means the
	maximum compressed rate of a school district as calculated under
	Section 48.2551, Education Code.
	(a-5) Notwithstanding the other provisions of this section,
	if in the 2022 tax year an individual qualifies for a limitation on
	tax increases provided by this section on the individual's
	residence homestead and the first tax year the individual or the
	individual's spouse qualified for an exemption under Section
	11.13(c) for the same homestead was a tax year before the 2019 tax
	year, the amount of the limitation provided by this section on the
	homestead in the 2022 tax year is equal to the amount computed by:
	(1) multiplying the taxable value of the homestead in
	the 2018 tax year by a tax rate equal to the difference between the
	school district's tier one maintenance and operations rate for the
	2018 tax year and the district's maximum compressed rate for the
	2019 tax year;
	(2) subtracting the greater of zero or the amount
	computed under Subdivision (1) from the amount of tax the district
	imposed on the homestead in the 2018 tax year;
	(3) adding any tax imposed in the 2019 tax year
	attributable to improvements made in the 2018 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (2);
	(4) multiplying the taxable value of the homestead in
	the 2019 tax year by a tax rate equal to the difference between the
	district's maximum compressed rate for the 2019 tax year and the
	district's maximum compressed rate for the 2020 tax year;
	(5) subtracting the amount computed under Subdivision
	(4) from the amount computed under Subdivision (3);
	(6) adding any tax imposed in the 2020 tax year
	attributable to improvements made in the 2019 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (5);
	(7) multiplying the taxable value of the homestead in
	the 2020 tax year by a tax rate equal to the difference between the
	district's maximum compressed rate for the 2020 tax year and the
	district's maximum compressed rate for the 2021 tax year;
	(8) subtracting the amount computed under Subdivision
	(7) from the amount computed under Subdivision (6);
	(9) adding any tax imposed in the 2021 tax year
	attributable to improvements made in the 2020 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (8);
	(10) multiplying the taxable value of the homestead in
	the 2021 tax year by a tax rate equal to the difference between the
	district's maximum compressed rate for the 2021 tax year and the
	district's maximum compressed rate for the 2022 tax year;
	(11) subtracting the amount computed under
	Subdivision (10) from the amount computed under Subdivision (9);
	and
	(12) adding any tax imposed in the 2022 tax year
	attributable to improvements made in the 2021 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (11).
	(a-6) Notwithstanding the other provisions of this section,
	if in the 2022 tax year an individual qualifies for a limitation on
	tax increases provided by this section on the individual's
	residence homestead and the first tax year the individual or the
	individual's spouse qualified for an exemption under Section
	11.13(c) for the same homestead was the 2019 tax year, the amount of
	the limitation provided by this section on the homestead in the 2022
	tax year is equal to the amount computed by:
	(1) multiplying the taxable value of the homestead in
	the 2019 tax year by a tax rate equal to the difference between the
	school district's maximum compressed rate for the 2019 tax year and
	the district's maximum compressed rate for the 2020 tax year;
	(2) subtracting the amount computed under Subdivision
	(1) from the amount of tax the district imposed on the homestead in
	the 2019 tax year;
	(3) adding any tax imposed in the 2020 tax year
	attributable to improvements made in the 2019 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (2);
	(4) multiplying the taxable value of the homestead in
	the 2020 tax year by a tax rate equal to the difference between the
	district's maximum compressed rate for the 2020 tax year and the
	district's maximum compressed rate for the 2021 tax year;
	(5) subtracting the amount computed under Subdivision
	(4) from the amount computed under Subdivision (3);
	(6) adding any tax imposed in the 2021 tax year
	attributable to improvements made in the 2020 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (5);
	(7) multiplying the taxable value of the homestead in
	the 2021 tax year by a tax rate equal to the difference between the
	district's maximum compressed rate for the 2021 tax year and the
	district's maximum compressed rate for the 2022 tax year;
	(8) subtracting the amount computed under Subdivision
	(7) from the amount computed under Subdivision (6); and
	(9) adding any tax imposed in the 2022 tax year
	attributable to improvements made in the 2021 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (8).
	(a-7) Notwithstanding the other provisions of this section,
	if in the 2022 tax year an individual qualifies for a limitation on
	tax increases provided by this section on the individual's
	residence homestead and the first tax year the individual or the
	individual's spouse qualified for an exemption under Section
	11.13(c) for the same homestead was the 2020 tax year, the amount of
	the limitation provided by this section on the homestead in the 2022
	tax year is equal to the amount computed by:
	(1) multiplying the taxable value of the homestead in
	the 2020 tax year by a tax rate equal to the difference between the
	school district's maximum compressed rate for the 2020 tax year and
	the district's maximum compressed rate for the 2021 tax year;
	(2) subtracting the amount computed under Subdivision
	(1) from the amount of tax the district imposed on the homestead in
	the 2020 tax year;
	(3) adding any tax imposed in the 2021 tax year
	attributable to improvements made in the 2020 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (2);
	(4) multiplying the taxable value of the homestead in
	the 2021 tax year by a tax rate equal to the difference between the
	district's maximum compressed rate for the 2021 tax year and the
	district's maximum compressed rate for the 2022 tax year;
	(5) subtracting the amount computed under Subdivision
	(4) from the amount computed under Subdivision (3); and
	(6) adding any tax imposed in the 2022 tax year
	attributable to improvements made in the 2021 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (5).
	(a-8) Notwithstanding the other provisions of this section,
	if in the 2022 tax year an individual qualifies for a limitation on
	tax increases provided by this section on the individual's
	residence homestead and the first tax year the individual or the
	individual's spouse qualified for an exemption under Section
	11.13(c) for the same homestead was the 2021 tax year, the amount of
	the limitation provided by this section on the homestead in the 2022
	tax year is equal to the amount computed by:
	(1) multiplying the taxable value of the homestead in
	the 2021 tax year by a tax rate equal to the difference between the
	school district's maximum compressed rate for the 2021 tax year and
	the district's maximum compressed rate for the 2022 tax year;
	(2) subtracting the amount computed under Subdivision
	(1) from the amount of tax the district imposed on the homestead in
	the 2021 tax year; and
	(3) adding any tax imposed in the 2022 tax year
	attributable to improvements made in the 2021 tax year as provided
	by Subsection (b) to the amount computed under Subdivision (2).
	(a-9) Notwithstanding the other provisions of this section,
	if in the 2023 or a subsequent tax year an individual qualifies for
	a limitation on tax increases provided by this section on the
	individual's residence homestead, the amount of the limitation
	provided by this section on the homestead is equal to the amount
	computed by:
	(1) multiplying the taxable value of the homestead in
	the preceding tax year by a tax rate equal to the difference between
	the school district's maximum compressed rate for the preceding tax
	year and the district's maximum compressed rate for the current tax
	year;
	(2) subtracting the amount computed under Subdivision
	(1) from the amount of tax the district imposed on the homestead in
	the preceding tax year; and
	(3) adding any tax imposed in the current tax year
	attributable to improvements made in the preceding tax year as
	provided by Subsection (b) to the amount computed under Subdivision
	(2).
	SECTION 2. Subchapter F, Chapter 48, Education Code, is
	amended by adding Section 48.2542 to read as follows:
	Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
	LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
	Notwithstanding any other provision of this chapter, if a school
	district is not fully compensated through state aid or the
	calculation of excess local revenue under this chapter based on the
	determination of the district's taxable value of property under
	Subchapter M, Chapter 403, Government Code, the district is
	entitled to additional state aid in the amount necessary to fully
	compensate the district for the amount of ad valorem tax revenue
	lost due to a reduction of the amount of the limitation on tax
	increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
	(a-8), and (a-9), Tax Code, as applicable.
	SECTION 3. Section 48.2551(d), Education Code, is amended
	to read as follows:
	(d) The agency shall:
	(1) calculate and make available school districts'
	maximum compressed rates, as determined under this section; and
	(2) post the information described by Section 48.2556
	on the agency's Internet website as required by that section.
	SECTION 4. Subchapter F, Chapter 48, Education Code, is
	amended by adding Section 48.2556 to read as follows:
	Sec. 48.2556. POSTING ON AGENCY WEBSITE OF INFORMATION
	RELATED TO REDUCTION OF LIMITATION OF TAX ON HOMESTEADS OF ELDERLY
	OR DISABLED. (a) The agency shall post the following information
	on the agency's Internet website for purposes of allowing the chief
	appraiser of each appraisal district and the assessor for each
	school district to make the calculations required by Sections
	11.26(a-5), (a-6), (a-7), (a-8), and (a-9), Tax Code:
	(1) each school district's maximum compressed rate, as
	determined under Section 48.2551, for each tax year beginning with
	the 2019 tax year; and
	(2) each school district's tier one maintenance and
	operations tax rate, as provided by Section 45.0032(a), for the
	2018 tax year.
	(b) The agency shall post each school district's maximum
	compressed rate for the current tax year, as determined under
	Section 48.2551, promptly after calculating the rate. If, for the
	2022 or a subsequent tax year, the agency calculates a preliminary
	rate before calculating a final rate, the agency shall post the
	preliminary rate, and the chief appraiser of each appraisal
	district and the assessor for each school district shall use the
	preliminary rate to make the calculations described by Subsection
	(a).
	(c) The agency shall notify the chief appraiser of each
	appraisal district and the assessor for each school district when
	the agency has complied with Subsection (b). The notice must
	include the location on the agency's Internet website at which the
	information required by this section to be posted may be found.
	SECTION 5. Section 403.302, Government Code, is amended by
	adding Subsection (j-1) to read as follows:
	(j-1) In the final certification of the study under
	Subsection (j), the comptroller shall separately identify the final
	taxable value for each school district as adjusted to account for
	the reduction of the amount of the limitation on tax increases
	provided by Sections 11.26(a-4), (a-5), (a-6), (a-7), (a-8), and
	(a-9), Tax Code, as applicable.
	SECTION 6. This Act applies only to ad valorem taxes imposed
	for a tax year beginning on or after the effective date of this Act.
	SECTION 7. This Act takes effect January 1, 2022, but only
	if the constitutional amendment proposed by the 87th Legislature,
	1st Called Session, 2021, authorizing the legislature to provide
	for the reduction of the amount of a limitation on the total amount
	of ad valorem taxes that may be imposed for general elementary and
	secondary public school purposes on the residence homestead of a
	person who is elderly or disabled to reflect any statutory
	reduction from the preceding tax year in the maximum compressed
	rate of the maintenance and operations taxes imposed for those
	purposes on the homestead is approved by the voters. If that
	amendment is not approved by the voters, this Act has no effect.