Bill Text: TX SB24 | 2021 | 87th Legislature 3rd Special Session | Introduced


Bill Title: Relating to the calculation of a limitation on the total amount of ad valorem taxes that may be imposed by certain taxing units on the residence homestead of an individual who is elderly or disabled.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-09-08 - Filed [SB24 Detail]

Download: Texas-2021-SB24-Introduced.html
 
 
  By: Hall S.B. No. 24
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the calculation of a limitation on the total amount of
  ad valorem taxes that may be imposed by certain taxing units on the
  residence homestead of an individual who is elderly or disabled.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 11.26(a) and (g), Tax Code, are amended
  to read as follows:
         (a)  The tax officials shall appraise [the] property to which
  this section applies and calculate taxes as on other property, but
  if the tax so calculated exceeds the limitation imposed by this
  section, the tax imposed is the amount of the tax as limited by this
  section, except as otherwise provided by this section. A school
  district may not increase the total annual amount of ad valorem tax
  it imposes on the residence homestead of an individual 65 years of
  age or older or on the residence homestead of an individual who is
  disabled, as defined by Section 11.13, above the amount of the tax
  it imposed in the first tax year in which the individual qualified
  that residence homestead for the applicable exemption provided by
  Section 11.13(c) for an individual who is 65 years of age or older
  or is disabled. If the individual qualified that residence
  homestead for the exemption after the beginning of that first year
  and the residence homestead remains eligible for the same exemption
  for the next year, and if the school district taxes imposed on the
  residence homestead in the next year are less than the amount of
  taxes imposed in that first year, a school district may not
  subsequently increase the total annual amount of ad valorem taxes
  it imposes on the residence homestead above the amount it imposed in
  the year immediately following the first year for which the
  individual qualified that residence homestead for the same
  exemption[, except as provided by Subsection (b)]. If the first tax
  year the individual qualified the residence homestead for the
  exemption provided by Section 11.13(c) for individuals 65 years of
  age or older or disabled was a tax year before the 2022 [2015] tax
  year, the amount of the limitation provided by this section is the
  amount of tax the school district imposed for the 2022 [2014] tax
  year [less an amount equal to the amount determined by multiplying
  $10,000 times the tax rate of the school district for the 2015 tax
  year, plus any 2015 tax attributable to improvements made in 2014,
  other than improvements made to comply with governmental
  regulations or repairs].
         (g)  If [Except as provided by Subsection (b), if] an
  individual who receives a limitation on tax increases imposed by
  this section, including a surviving spouse who receives a
  limitation under Subsection (i), subsequently qualifies a
  different residence homestead for the same exemption under Section
  11.13, a school district may not impose ad valorem taxes on the
  subsequently qualified homestead in a year in an amount that
  exceeds the amount of taxes the school district would have imposed
  on the subsequently qualified homestead in the first year in which
  the individual receives that same exemption for the subsequently
  qualified homestead had the limitation on tax increases imposed by
  this section not been in effect, multiplied by a fraction the
  numerator of which is the total amount of school district taxes
  imposed on the former homestead in the last year in which the
  individual received that same exemption for the former homestead
  and the denominator of which is the total amount of school district
  taxes that would have been imposed on the former homestead in the
  last year in which the individual received that same exemption for
  the former homestead had the limitation on tax increases imposed by
  this section not been in effect.
         SECTION 2.  Sections 11.261(b) and (g), Tax Code, are
  amended to read as follows:
         (b)  The tax officials shall appraise [the] property to which
  the limitation applies and calculate taxes as on other property,
  but if the tax so calculated exceeds the limitation provided by this
  section, the tax imposed is the amount of the tax as limited by this
  section, except as otherwise provided by this section. The county,
  municipality, or junior college district may not increase the total
  annual amount of ad valorem taxes the county, municipality, or
  junior college district imposes on the residence homestead of a
  disabled individual or an individual 65 years of age or older above
  the amount of the taxes the county, municipality, or junior college
  district imposed on the residence homestead in the first tax year,
  other than a tax year preceding the tax year in which the county,
  municipality, or junior college district established the
  limitation described by Subsection (a), in which the individual
  qualified that residence homestead for the exemption provided by
  Section 11.13(c) for a disabled individual or an individual 65
  years of age or older. If the individual qualified that residence
  homestead for the exemption after the beginning of that first year
  and the residence homestead remains eligible for the exemption for
  the next year, and if the county, municipal, or junior college
  district taxes imposed on the residence homestead in the next year
  are less than the amount of taxes imposed in that first year, a
  county, municipality, or junior college district may not
  subsequently increase the total annual amount of ad valorem taxes
  it imposes on the residence homestead above the amount it imposed on
  the residence homestead in the year immediately following the first
  year, other than a tax year preceding the tax year in which the
  county, municipality, or junior college district established the
  limitation described by Subsection (a), for which the individual
  qualified that residence homestead for the exemption. If the first
  tax year the individual qualified the residence homestead for the
  exemption provided by Section 11.13(c) for an individual who is 65
  years of age or older or who is disabled was a tax year before the
  2022 tax year, the amount of the limitation provided by this section
  is the amount of tax the county, municipality, or junior college
  district imposed for the 2022 tax year.
         (g)  If [Except as provided by Subsection (c), if] an
  individual who receives a limitation on county, municipal, or
  junior college district tax increases provided by this section
  subsequently qualifies a different residence homestead in the same
  county, municipality, or junior college district for an exemption
  under Section 11.13, the county, municipality, or junior college
  district may not impose ad valorem taxes on the subsequently
  qualified homestead in a year in an amount that exceeds the amount
  of taxes the county, municipality, or junior college district would
  have imposed on the subsequently qualified homestead in the first
  year in which the individual receives that exemption for the
  subsequently qualified homestead had the limitation on tax
  increases provided by this section not been in effect, multiplied
  by a fraction the numerator of which is the total amount of taxes
  the county, municipality, or junior college district imposed on the
  former homestead in the last year in which the individual received
  that exemption for the former homestead and the denominator of
  which is the total amount of taxes the county, municipality, or
  junior college district would have imposed on the former homestead
  in the last year in which the individual received that exemption for
  the former homestead had the limitation on tax increases provided
  by this section not been in effect.
         SECTION 3.  The following provisions of the Tax Code are
  repealed:
               (1)  Sections 11.26(a-1), (a-2), (a-3), (b), and (o);
  and
               (2)  Sections 11.261(c) and (m).
         SECTION 4.  The changes in law made by this Act apply only to
  ad valorem taxes imposed for a tax year that begins on or after the
  effective date of this Act.
         SECTION 5.  This Act takes effect January 1, 2023, but only
  if the constitutional amendment proposed by the 87th Legislature,
  2nd Called Session, 2021, relating to the calculation of a
  limitation on the total amount of ad valorem taxes that may be
  imposed by certain political subdivisions on the residence
  homestead of a person who is elderly or disabled is approved by the
  voters. If that amendment is not approved by the voters, this Act
  has no effect.
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