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 | |
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| 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 [ |
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| 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[ |
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| 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 [ |
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| year, the amount of the limitation provided by this section is the | ||
| amount of tax the school district imposed for the 2022 [ |
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| year [ |
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| (g) If [ |
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| 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 [ |
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| 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 [ |
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| 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. | ||
