Bill Text: TX SB196 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to the authority of the governing body of a taxing unit to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2023-03-15 - Co-author authorized [SB196 Detail]

Download: Texas-2023-SB196-Introduced.html
  88R744 TJB-D
 
  By: Eckhardt S.B. No. 196
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of the governing body of a taxing unit to
  adopt an exemption from ad valorem taxation of a portion, expressed
  as a dollar amount, of the appraised value of an individual's
  residence homestead.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.13, Tax Code, is amended by amending
  Subsection (i) and adding Subsection (n-1) to read as follows:
         (i)  The assessor and collector for a taxing unit may
  disregard the exemptions authorized by Subsection (b), (c), (d),
  [or] (n), or (n-1) [of this section] and assess and collect a tax
  pledged for payment of debt without deducting the amount of the
  exemption if:
               (1)  prior to adoption of the exemption, the unit
  pledged the taxes for the payment of a debt; and
               (2)  granting the exemption would impair the obligation
  of the contract creating the debt.
         (n-1)  The governing body of a taxing unit, in the manner
  provided by law for official action by the body, may adopt an
  exemption from taxation by the taxing unit of a portion, expressed
  as a dollar amount, of the appraised value of an individual's
  residence homestead.  The exemption must be adopted by the
  governing body before July 1 of the tax year in which the exemption
  applies. If the governing body adopts an exemption under this
  subsection, the amount of the exemption in a tax year may not be
  less than $5,000. An individual is entitled to an exemption adopted
  under this subsection in addition to any other exemptions provided
  by this section.
         SECTION 2.  Section 45.006(f), Education Code, is amended to
  read as follows:
         (f)  The governing body of a school district that adopts a
  tax rate that exceeds $1.50 per $100 valuation of taxable property
  may set the amount of the exemption from taxation authorized by
  Section 11.13(n) or (n-1), Tax Code, at any time before the date the
  governing body adopts the district's tax rate for the tax year in
  which the election approving the additional taxes is held.
         SECTION 3.  Section 48.259(a), Education Code, is amended to
  read as follows:
         (a)  In any school year, the commissioner may not provide
  funding under this chapter or Chapter 46 based on a school
  district's taxable value of property computed in accordance with
  Section 403.302(d)(2), Government Code, unless:
               (1)  funds are specifically appropriated for purposes
  of this section; or
               (2)  the commissioner determines that the total amount
  of state funds appropriated for purposes of the Foundation School
  Program for the school year exceeds the amount of state funds
  distributed to school districts in accordance with Section 48.266
  based on the taxable values of property in school districts
  computed in accordance with Section 403.302(d), Government Code,
  without any deduction for residence homestead exemptions granted
  under Section 11.13(n) or (n-1), Tax Code.
         SECTION 4.  Section 403.302(d), Government Code, is 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) or
  (n-1), 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;
               (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;
               (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;
               (6)  the total dollar amount of any exemptions granted
  under Section 11.251 or 11.253, Tax Code;
               (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;
               (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;
               (9)  a portion of the market value of property not
  otherwise fully taxable by the district at market value because of
  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;
               (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;
               (11)  the appraised value of property the collection of
  delinquent taxes on which is deferred under Section 33.06, Tax
  Code;
               (12)  the portion of the appraised value of property
  the collection of delinquent taxes on which is deferred under
  Section 33.065, Tax Code;
               (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; and
               (14)  the total dollar amount of any exemptions granted
  under Section 11.35, Tax Code.
         SECTION 5.  Section 25.23(a), Tax Code, is amended to read as
  follows:
         (a)  After submission of appraisal records, the chief
  appraiser shall prepare supplemental appraisal records listing:
               (1)  each taxable property the chief appraiser
  discovers that is not included in the records already submitted,
  including property that was omitted from an appraisal roll in a
  prior tax year;
               (2)  property on which the appraisal review board has
  not determined a protest at the time of its approval of the
  appraisal records; and
               (3)  property that qualifies for an exemption under
  Section 11.13(n) or (n-1) that was adopted by the governing body of
  a taxing unit after the date the appraisal records were submitted.
         SECTION 6.  This Act applies only to ad valorem taxes imposed
  for a tax year that begins on or after the effective date of this
  Act.
         SECTION 7.  This Act takes effect January 1, 2024, but only
  if the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, authorizing the governing body of a
  political subdivision to adopt an exemption from ad valorem
  taxation of a portion, expressed as a dollar amount, of the market
  value of an individual's residence homestead is approved by the
  voters. If that amendment is not approved by the voters, this Act
  has no effect.
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