Bill Text: TX SB20 | 2021 | 87th Legislature 1st Special Session | Introduced

Texas Senate Bill 20 (Prior Session Legislation)

Introduced

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: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2021-07-07 - Filed [SB20 Detail]

Download: Texas-2021-SB20-Introduced.html

	87S10145 SMH-D

	By: Kolkhorst	S.B. No. 20



	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. This Act applies only to ad valorem taxes imposed
	for a tax year beginning on or after the effective date of this Act.
	SECTION 3. 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.