Bill Text: TX SB12 | 2021 | 87th Legislature 2nd Special Session | Enrolled


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 and to the protection of school districts against the resulting loss in local revenue.

Spectrum: Moderate Partisan Bill (Republican 77-13)

Status: (Passed) 2021-09-17 - See remarks for effective date [SB12 Detail]

Download: Texas-2021-SB12-Enrolled.html
 
 
  S.B. No. 12
 
 
 
 
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 and to 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 11.26, Tax Code, is amended by adding
  Subsections (a-4), (a-5), (a-6), (a-7), (a-8), (a-9), and (a-10) 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 2023 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 2023 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);
               (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);
               (13)  multiplying the taxable value of the homestead in
  the 2022 tax year by a tax rate equal to the difference between the
  district's maximum compressed rate for the 2022 tax year and the
  district's maximum compressed rate for the 2023 tax year;
               (14)  subtracting the amount computed under
  Subdivision (13) from the amount computed under Subdivision (12);
  and
               (15)  adding any tax imposed in the 2023 tax year
  attributable to improvements made in the 2022 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (14).
         (a-6)  Notwithstanding the other provisions of this section,
  if in the 2023 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 2023
  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);
               (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);
               (10)  multiplying the taxable value of the homestead in
  the 2022 tax year by a tax rate equal to the difference between the
  district's maximum compressed rate for the 2022 tax year and the
  district's maximum compressed rate for the 2023 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 2023 tax year
  attributable to improvements made in the 2022 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (11).
         (a-7)  Notwithstanding the other provisions of this section,
  if in the 2023 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 2023
  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);
               (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);
               (7)  multiplying the taxable value of the homestead in
  the 2022 tax year by a tax rate equal to the difference between the
  district's maximum compressed rate for the 2022 tax year and the
  district's maximum compressed rate for the 2023 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 2023 tax year
  attributable to improvements made in the 2022 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (8).
         (a-8)  Notwithstanding the other provisions of this section,
  if in the 2023 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 2023
  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;
               (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);
               (4)  multiplying the taxable value of the homestead in
  the 2022 tax year by a tax rate equal to the difference between the
  school district's maximum compressed rate for the 2022 tax year and
  the district's maximum compressed rate for the 2023 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 2023 tax year
  attributable to improvements made in the 2022 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (5).
         (a-9)  Notwithstanding the other provisions of this section,
  if in the 2023 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 2022 tax year, the amount of
  the limitation provided by this section on the homestead in the 2023
  tax year is equal to the amount computed by:
               (1)  multiplying the taxable value of the homestead in
  the 2022 tax year by a tax rate equal to the difference between the
  school district's maximum compressed rate for the 2022 tax year and
  the district's maximum compressed rate for the 2023 tax year;
               (2)  subtracting the amount computed under Subdivision
  (1) from the amount of tax the district imposed on the homestead in
  the 2022 tax year; and
               (3)  adding any tax imposed in the 2023 tax year
  attributable to improvements made in the 2022 tax year as provided
  by Subsection (b) to the amount computed under Subdivision (2).
         (a-10)  Notwithstanding the other provisions of this
  section, if in the 2024 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), (a-9), and (a-10), 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), (a-9), and (a-10), 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
  2023 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), (a-9),
  and (a-10), 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, 2023, but only
  if the constitutional amendment proposed by the 87th Legislature,
  2nd 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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 12 passed the Senate on
  August 9, 2021, by the following vote: Yeas 29, Nays 0; and that
  the Senate concurred in House amendment on August 29, 2021, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 12 passed the House, with
  amendment, on August 27, 2021, by the following vote: Yeas 121,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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