Bill Text: TX SB515 | 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, 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 an elderly or disabled person to reflect the increased exemption amount, and the protection of school districts against the resulting loss in local revenue.

Spectrum: Partisan Bill (Republican 12-0)

Status: (Introduced - Dead) 2015-02-11 - Referred to Finance [SB515 Detail]

Download: Texas-2015-SB515-Introduced.html
  84R3125 SMH-F
 
  By: Bettencourt, et al. S.B. No. 515
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an increase in the amount of the residence homestead
  exemption from ad valorem taxation by a school district, 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 an
  elderly or disabled person to reflect the increased exemption
  amount, 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(b), Tax Code, is amended to read as
  follows:
         (b)  An adult is entitled to exemption from taxation by a
  school district of $30,000 [$15,000] of the appraised value of the
  adult's residence homestead, except that only $5,000 [$10,000] of
  the exemption applies [does not apply] to an entity operating under
  former 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.
         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 [1997] tax
  year, the amount of the limitation provided by this section is the
  amount of tax the school district imposed for the 2015 [1996] tax
  year less an amount equal to the amount determined by multiplying
  $15,000 [$10,000] times the tax rate of the school district for the
  2016 [1997] tax year, plus any 2016 [1997] tax attributable to
  improvements made in 2015 [1996], other than improvements made to
  comply with governmental regulations or repairs.
         SECTION 3.  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) Notwithstanding Section 42.2516 or any other provision of this
  chapter, a school district is entitled to additional state aid to
  the extent that state aid under this chapter based on the
  determination of the school district's taxable value of property as
  provided under Subchapter M, Chapter 403, Government Code, does not
  fully compensate the district for ad valorem tax revenue lost due to
  the increase in the homestead exemption under Section 1-b(c),
  Article VIII, Texas Constitution, as proposed by the joint
  resolution to amend that section adopted by the 84th Legislature,
  Regular Session, 2015, and the additional limitation on 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.
         (b)  The commissioner, using information provided by the
  comptroller, shall compute the amount of additional state aid to
  which a district is entitled under Subsection (a). A determination
  by the commissioner under this section is final and may not be
  appealed.
         (c)  Notwithstanding any other provision of this chapter, in
  computing state aid for the 2016-2017 school year, 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, as proposed by the joint resolution to amend that
  section adopted by the 84th Legislature, Regular Session, 2015, and
  the additional limitation on 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, had been in effect for the 2015 tax year.  
  This subsection expires September 1, 2018.
         SECTION 4.  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)  a final value for each school district computed on
  a residence homestead exemption under Section 1-b(c), Article VIII,
  Texas Constitution, of $5,000;
               (2)  a final value for each school district computed
  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; [and]
               (3)  a final value for each school district 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; and
               (4)  a final value for each school district computed
  on:
                     (A)  a residence homestead exemption under
  Section 1-b(c), Article VIII, Texas Constitution, of $30,000; and
                     (B)  the effect of the additional limitation on
  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.
         SECTION 5.  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 6.  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 $30,000 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 an elderly or
  disabled person to reflect the increased exemption amount is
  approved by the voters. If that constitutional amendment is not
  approved by the voters, this Act has no effect.
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