85R3167 SMH-D
	By: Watson	S.B. No. 418

	A BILL TO BE ENTITLED
	AN ACT
	relating to the authority of the governing body of a taxing unit
	other than a school district to adopt an exemption from ad valorem
	taxation of a portion, expressed as a dollar amount, of the
	appraised value of an individual's residence homestead, the
	authority of the governing body of certain taxing units that have
	adopted such an exemption to reduce the amount of or repeal certain
	other exemptions, and the treatment of such an exemption in the
	calculation of certain ad valorem tax rates.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 11.13, Tax Code, is amended by amending
	Subsection (i) and adding Subsections (n-2), (s), and (t) to read as
	follows:
	(i)  The assessor and collector for a taxing unit may
	disregard the exemptions authorized by Subsection (b), (c), (d),
	[or] (n), or (s) [of this section] and assess and collect a tax
	pledged for payment of debt without deducting the amount of the
	exemption if:
	(1)  prior to adoption of the exemption, the unit
	pledged the taxes for the payment of a debt; and
	(2)  granting the exemption would impair the obligation
	of the contract creating the debt.
	(n-2)  Notwithstanding Subsection (n-1), the governing body
	of a municipality or county that adopted an exemption under
	Subsection (n) for the 2014 tax year may repeal the exemption if the
	governing body adopts an exemption under Subsection (s) in an
	amount greater than $5,000. This subsection expires December 31,
	2019.
	(s)  In addition to any other exemptions provided by this
	section, an individual is entitled to an exemption from taxation by
	a taxing unit other than a school district of a portion of the
	appraised value of the individual's residence homestead if the
	exemption is adopted by the governing body of the taxing unit before
	July 1 in the manner provided by law for official action by the
	body. The amount of the exemption is $5,000 of the appraised value
	of the residence homestead, except that if the average market value
	of residence homesteads in the taxing unit in the tax year in which
	the exemption is adopted exceeds $25,000, as calculated based on
	the appraisal records prepared by the chief appraiser of each
	appraisal district in which the taxing unit participates, the
	governing body may authorize an exemption in a larger dollar amount
	not to exceed an amount equal to 20 percent of the average market
	value of residence homesteads in the taxing unit in the tax year in
	which the exemption is adopted.
	(t)  This subsection applies only to a taxing unit the
	governing body of which has ceased granting an exemption under
	Subsection (n) and has adopted an exemption under Subsection (s).
	An individual who would have been entitled to an exemption from
	taxation by the taxing unit under Subsection (n) had the governing
	body not ceased granting an exemption under that subsection is
	entitled to continue to receive an exemption under that subsection
	in lieu of the exemption under Subsection (s) if the individual
	otherwise qualifies for the exemption under Subsection (n) and the
	amount of the exemption under that subsection exceeds the amount of
	the exemption under Subsection (s). The exemption applies only to
	property for which the individual received an exemption under
	Subsection (n) in the last year in which the governing body granted
	an exemption under that subsection.  The exemption expires in the
	event of a change in ownership of the property or, if the property
	is owned by a qualifying trust and the trustor of the trust or a
	beneficiary of the trust has the right to use and occupy the
	property as the trustor's or beneficiary's principal residential
	property, there is a change in the trustor or beneficiary of the
	trust, respectively.
	SECTION 2.  Section 25.23(a), Tax Code, is amended to read as
	follows:
	(a)  After submission of appraisal records, the chief
	appraiser shall prepare supplemental appraisal records listing:
	(1)  each taxable property the chief appraiser
	discovers that is not included in the records already submitted,
	including property that was omitted from an appraisal roll in a
	prior tax year;
	(2)  property on which the appraisal review board has
	not determined a protest at the time of its approval of the
	appraisal records; and
	(3)  property that qualifies for an exemption under
	Section 11.13(n) or (s) that was adopted by the governing body of a
	taxing unit after the date the appraisal records were submitted.
	SECTION 3.  Sections 26.012(6) and (15), Tax Code, are
	amended to read as follows:
	(6)  "Current total value" means the total taxable
	value of property listed on the appraisal roll for the current year,
	including all appraisal roll supplements and corrections as of the
	date of the calculation, less the taxable value of property
	exempted for the current tax year for the first time under Section
	11.31 or 11.315, except that:
	(A)  the current total value for a school district
	excludes:
	(i)  the total value of homesteads that
	qualify for a tax limitation as provided by Section 11.26; and
	(ii)  new property value of property that is
	subject to an agreement entered into under Chapter 313; [and]
	(B)  the current total value for a county,
	municipality, or junior college district excludes the total value
	of homesteads that qualify for a tax limitation provided by Section
	11.261; and
	(C)  the current total value for a taxing unit the
	governing body of which has adopted an exemption under Section
	11.13(s) includes, with regard to homesteads other than those
	described by Paragraph (B) of this subdivision, the total dollar
	amount of the exemptions granted under that subsection.
	(15)  "Lost property levy" means the amount of taxes
	levied in the preceding year on property value that was taxable in
	the preceding year but is not taxable in the current year because
	the property is exempt in the current year under a provision of this
	code other than Section 11.13(s), 11.251, or 11.253, the property
	has qualified for special appraisal under Chapter 23 in the current
	year, or the property is located in territory that has ceased to be
	a part of the unit since the preceding year.
	SECTION 4.  This Act applies 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, 2018, but only
	if the constitutional amendment proposed by the 85th Legislature,
	Regular Session, 2017, authorizing the governing body of a
	political subdivision other than a school district to adopt an
	exemption from ad valorem taxation of a portion, expressed as a
	dollar amount, of the market value of an individual's residence
	homestead and authorizing the legislature to prohibit the governing
	body of a political subdivision that adopts such an exemption from
	reducing the amount of or repealing the exemption is approved by the
	voters. If that amendment is not approved by the voters, this Act
	has no effect.