Bill Text: TX SB278 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-04 - Left pending in committee [SB278 Detail]
Download: Texas-2015-SB278-Introduced.html
84R1648 SMH-D | ||
By: Watson | S.B. No. 278 |
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relating to an increase in the amount of the residence homestead | ||
exemption from ad valorem taxation by a school district and the | ||
increase of the exemption amount in subsequent years to reflect | ||
inflation, a reduction of the limitation on the total amount of ad | ||
valorem taxes that may be imposed by a school district on the | ||
homestead of a disabled or elderly person to reflect the increased | ||
exemption amounts, and the protection of school districts against | ||
the resulting loss in local revenue. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 11.13, Tax Code, is amended by amending | ||
Subsection (b) and adding Subsection (b-1) to read as follows: | ||
(b) An adult is entitled to exemption from taxation by a | ||
school district of a portion [ |
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adult's residence homestead in the amount provided by this | ||
subsection, except that only $5,000 [ |
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applies [ |
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Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters | ||
existed on May 1, 1995, as permitted by Section 11.301, Education | ||
Code. For the 2016 tax year, the amount of the exemption is $25,000. | ||
For each subsequent tax year, the amount of the exemption shall be | ||
calculated by the comptroller by multiplying the amount of the | ||
exemption under this subsection for the preceding tax year by the | ||
inflation rate and adding that amount to the amount of that | ||
exemption for the preceding tax year. Each year, not later than | ||
March 15, the comptroller shall calculate the amount of the | ||
exemption for the current tax year and publish that amount in the | ||
Texas Register. | ||
(b-1) In this section: | ||
(1) "Consumer price index" means the average over a | ||
calendar year of the index that the comptroller considers to most | ||
accurately report changes in the purchasing power of the dollar for | ||
consumers in this state. | ||
(2) "Inflation rate" means the positive amount, if | ||
any, expressed in decimal form rounded to the nearest thousandth, | ||
computed by determining the percentage change in the consumer price | ||
index for the preceding calendar year as compared to the consumer | ||
price index for the calendar year preceding that calendar year. | ||
SECTION 2. Section 11.26(a), Tax Code, is 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 2016 [ |
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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 2015 [ |
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year less an amount equal to the amount determined by multiplying | ||
$10,000 times the tax rate of the school district for the 2016 | ||
[ |
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improvements made in 2015 [ |
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comply with governmental regulations or repairs. 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 a tax year in which | ||
the amount of the exemption provided by Section 11.13(b) is | ||
increased to reflect inflation, the amount of the limitation | ||
provided by this section is the amount of tax the school district | ||
imposed for the tax year preceding the tax year in which the amount | ||
of the exemption is increased less an amount equal to the amount | ||
determined by multiplying the amount of the increase times the tax | ||
rate of the school district for the year in which the amount of the | ||
exemption is increased, plus any tax for the tax year in which the | ||
amount of the exemption is increased attributable to improvements | ||
made in the preceding tax year, other than improvements made to | ||
comply with governmental regulations or repairs. Except as provided | ||
by Subsection (b), a limitation on tax increases provided by this | ||
section on a residence homestead computed under this subsection | ||
continues to apply to the homestead in subsequent tax years until | ||
the limitation expires. | ||
SECTION 3. Subchapter A, Chapter 41, Education Code, is | ||
amended by adding Section 41.0011 to read as follows: | ||
Sec. 41.0011. COMPUTATION OF WEALTH PER STUDENT FOR SCHOOL | ||
YEAR IN WHICH HOMESTEAD EXEMPTION INCREASED. Notwithstanding any | ||
other provision of this chapter, in computing a school district's | ||
wealth per student for a school year that begins in a tax year in | ||
which the amount of the residence homestead exemption under Section | ||
1-b(c), Article VIII, Texas Constitution, is increased and the | ||
amount of the limitation on tax increases under Section 1-b(d), | ||
Article VIII, Texas Constitution, is reduced to reflect the | ||
increased exemption amount, a school district's taxable value of | ||
property under Subchapter M, Chapter 403, Government Code, is | ||
determined as if the increase in the homestead exemption under | ||
Section 1-b(c), Article VIII, Texas Constitution, and the | ||
additional limitation on tax increases under Section 1-b(d), | ||
Article VIII, Texas Constitution, had been in effect for the | ||
preceding tax year. | ||
SECTION 4. Subchapter E, Chapter 42, Education Code, is | ||
amended by adding Section 42.2512 to read as follows: | ||
Sec. 42.2512. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION. | ||
(a) This section applies only to a school year that begins in a tax | ||
year in which the amount of the residence homestead exemption under | ||
Section 1-b(c), Article VIII, Texas Constitution, is increased and | ||
the amount of the limitation on tax increases under Section 1-b(d), | ||
Article VIII, Texas Constitution, is reduced to reflect the | ||
increased exemption amount. | ||
(b) Notwithstanding any other provision of this chapter, in | ||
computing state aid to a school district for a school year to which | ||
this section applies, the district's taxable value of property | ||
under Subchapter M, Chapter 403, Government Code, is determined as | ||
if the increase in the residence homestead exemption and the | ||
additional limitation on tax increases described by Subsection (a) | ||
had been in effect for the preceding tax year. | ||
(c) A school district is entitled to additional state aid | ||
for a school year to which this section applies to the extent that | ||
state aid under this chapter based on the determination of the | ||
district's taxable value of property as provided by Subsection (b) | ||
does not fully compensate the district for ad valorem tax revenue | ||
lost due to the increase in the residence homestead exemption and | ||
the additional limitation on tax increases described by Subsection | ||
(a). The commissioner, using information provided by the | ||
comptroller, shall compute the amount of additional state aid to | ||
which a district is entitled under this subsection. A determination | ||
by the commissioner under this subsection is final and may not be | ||
appealed. | ||
SECTION 5. Chapter 46, Education Code, is amended by adding | ||
Subchapter D to read as follows: | ||
SUBCHAPTER D. ADDITIONAL STATE ASSISTANCE | ||
Sec. 46.101. ADDITIONAL STATE ASSISTANCE FOR HOMESTEAD | ||
EXEMPTION. (a) A school district that does not receive state | ||
assistance under Subchapter B for the district's tax effort to pay | ||
the principal of and interest on eligible bonds, as defined by | ||
Section 46.033, is entitled to state assistance to fully compensate | ||
the district for ad valorem tax revenue for that tax effort lost due | ||
to an increase in the residence homestead exemption under Section | ||
1-b(c), Article VIII, Texas Constitution, and a reduction of the | ||
amount of the limitation on tax increases under Section 1-b(d), | ||
Article VIII, Texas Constitution, to reflect the increased | ||
exemption amount. | ||
(b) The commissioner shall compute the amount of assistance | ||
to which a school district is entitled under Subsection (a). A | ||
determination by the commissioner under this section is final and | ||
may not be appealed. | ||
SECTION 6. Section 403.302(j), Government Code, is amended | ||
to read as follows: | ||
(j) For purposes of Chapter 42, Education Code, the | ||
comptroller shall certify to the commissioner of education: | ||
(1) [ |
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on: | ||
(A) a residence homestead exemption under | ||
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and | ||
(B) the effect of the additional limitation on | ||
tax increases under Section 1-b(d), Article VIII, Texas | ||
Constitution, as proposed by H.J.R. No. 4, 75th Legislature, | ||
Regular Session, 1997; [ |
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(2) [ |
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computed on the effect of the reduction of the limitation on tax | ||
increases to reflect any reduction in the school district tax rate | ||
as provided by Section 11.26(a-1), (a-2), or (a-3), Tax Code, as | ||
applicable; | ||
(3) for the 2016 tax year, a final value for each | ||
school district computed on: | ||
(A) a residence homestead exemption under | ||
Section 1-b(c), Article VIII, Texas Constitution, of $25,000; and | ||
(B) the effect of the additional limitation on ad | ||
valorem tax increases under Section 1-b(d), Article VIII, Texas | ||
Constitution, as proposed by the joint resolution to amend that | ||
section adopted by the 84th Legislature, Regular Session, 2015; and | ||
(4) for each tax year after the 2016 tax year, a final | ||
value for each school district computed on: | ||
(A) the amount of the residence homestead | ||
exemption under Section 1-b(c), Article VIII, Texas Constitution, | ||
in effect for that tax year; and | ||
(B) the effect of any reduction of the limitation | ||
on ad valorem tax increases under Section 1-b(d), Article VIII, | ||
Texas Constitution, to reflect any increase in the amount of the | ||
exemption from the amount in effect for the 2016 tax year. | ||
SECTION 7. The changes in law made by this Act to Sections | ||
11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that | ||
begins on or after January 1, 2016. | ||
SECTION 8. This Act takes effect January 1, 2016, but only | ||
if the constitutional amendment proposed by the 84th Legislature, | ||
Regular Session, 2015, increasing the amount of the residence | ||
homestead exemption from ad valorem taxation for public school | ||
purposes from $15,000 to $25,000, providing for the increase of the | ||
exemption amount in subsequent years to reflect inflation, and | ||
providing for a reduction of the limitation on the total amount of | ||
ad valorem taxes that may be imposed for those purposes on the | ||
homestead of a disabled or elderly person to reflect the increased | ||
exemption amounts is approved by the voters. If that constitutional | ||
amendment is not approved by the voters, this Act has no effect. |