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.