By: Blanco S.B. No. 546
 
 
 
   
 
 
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 and to the
  authority of the governing body of any taxing unit that has adopted
  an exemption from ad valorem taxation of a percentage of the
  appraised value of an individual's residence homestead to reduce
  the amount of or repeal the exemption.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.13, Tax Code, is amended by amending
  Subsections (i) and (n) and adding Subsections (s), (t), (u), (v),
  and (w) 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 taxing
  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)  In addition to any other exemptions provided by this
  section, except for an exemption under Subsection (s), an
  individual is entitled to an exemption from taxation by a taxing
  unit of a percentage of the appraised value of his 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.  If the percentage set by the taxing unit
  produces an exemption in a tax year of less than $5,000 when applied
  to a particular residence homestead, the individual is entitled to
  an exemption of $5,000 of the appraised value.  The percentage
  adopted by the taxing unit may not exceed 20 percent.
         (s)  In addition to any other exemptions provided by this
  section, except for an exemption under Subsection (n), 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 $14,000 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 $70,000, 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, a change in the trustor or beneficiary of the trust,
  respectively.
         (u)  The governing body of any taxing unit that adopted an
  exemption under Subsection (n) for the 2022 tax year may not reduce
  the amount of or repeal the exemption. This subsection expires
  December 31, 2032.
         (v)  Notwithstanding Subsection (u), the governing body of a
  taxing unit other than a school district that adopted an exemption
  under Subsection (n) for the 2022 tax year may repeal the exemption
  if the governing body adopts an exemption under Subsection (s) in an
  amount greater than $14,000. This subsection expires December 31,
  2032.
         (w)  The exemption amounts described in Subsections (s) and
  (v) and the average market value of residence homesteads amount
  described in Subsection (s) apply to the 2024 tax year. For each
  subsequent tax year, the comptroller shall adjust those amounts to
  reflect inflation by using the index that the comptroller considers
  to most accurately report changes in the purchasing power of the
  dollar for consumers in this state and shall publicize the adjusted
  amounts.
         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.  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 4.  This Act takes effect January 1, 2024, but only
  if the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, 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 is approved by the voters. If that amendment is not
  approved by the voters, this Act has no effect.