Bill Text: TX SB8 | 2021 | 87th Legislature 2nd Special Session | Engrossed

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Bill Title: Relating to the authority of a person who acquires a residence homestead to receive an ad valorem tax exemption for the homestead in the year in which the property is acquired and to the protection of school districts against the resulting loss in revenue.

Spectrum: Moderate Partisan Bill (Republican 79-12)

Status: (Passed) 2021-09-17 - Effective on . . . . . . . . . . . . . . . January 1, 2022 [SB8 Detail]

Download: Texas-2021-SB8-Engrossed.html

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By: Bettencourt, et al. S.B. No. 8

A BILL TO BE ENTITLED
AN ACT
relating to the authority of a person who acquires a residence
homestead to receive an ad valorem tax exemption for the homestead
in the year in which the property is acquired and to the protection
of school districts against the resulting loss in revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.42, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) A person who acquires property after January 1 of a tax
year may receive an exemption authorized by Section 11.13, other
than an exemption authorized by Section 11.13(c) or (d), for the
applicable portion of that tax year immediately on qualification
for the exemption if the preceding owner did not receive the same
exemption for that tax year.
SECTION 2. Section 11.43(d), Tax Code, is amended to read as
follows:
(d) To receive an exemption the eligibility for which is
determined by the claimant's qualifications on January 1 of the tax
year, a person required to claim an exemption must file a completed
exemption application form before May 1 and must furnish the
information required by the form. A person who after January 1 of a
tax year acquires property that qualifies for an exemption covered
by Section 11.42(d) or (f) must apply for the exemption for the
applicable portion of that tax year before the first anniversary of
the date the person acquires the property. For good cause shown the
chief appraiser may extend the deadline for filing an exemption
application by written order for a single period not to exceed 60
days.
SECTION 3. Section 23.23, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) For purposes of Subsection (c), an owner who receives
an exemption as provided by Section 11.42(f) is considered to have
qualified the property for the exemption as of January 1 of the tax
year following the tax year in which the owner acquired the
property.
SECTION 4. Chapter 26, Tax Code, is amended by adding
Section 26.1115 to read as follows:
Sec. 26.1115. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD
GENERALLY. (a) If an individual receives one or more exemptions
under Section 11.13 for a portion of a tax year as provided by
Section 11.42(f), except as provided by Subsection (b) of this
section, the amount of tax due on the property for that year is
calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
qualified for the exemptions for the entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
not qualified for the exemptions during the year;
(2) multiplying the remainder determined under
Subdivision (1) by a fraction, the denominator of which is 365 and
the numerator of which is the number of days in that year that
elapsed before the date the individual first qualified the property
for the exemptions; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
(b) If an individual receives one or more exemptions to
which Subsection (a) of this section applies for a portion of a tax
year as provided by Section 11.42(f) and the exemptions terminate
during the year in which the individual acquired the property, the
amount of tax due on the property for that year is calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
qualified for the exemptions for the entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the property for the entire year had the individual
not qualified for the exemptions during the year;
(2) multiplying the remainder determined under
Subdivision (1) by a fraction, the denominator of which is 365 and
the numerator of which is the sum of:
(A) the number of days in that year that elapsed
before the date the individual first qualified the property for the
exemptions; and
(B) the number of days in that year that elapsed
after the date the exemptions terminated; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
(c) If an individual qualifies to receive an exemption as
described by Subsection (a) with respect to a property after the
amount of tax due on the property is calculated and if the effect of
the qualification is to reduce the amount of tax due on the
property, the assessor for each taxing unit shall recalculate the
amount of the tax due on the property and correct the tax roll. If
the tax bill has been mailed and the tax on the property has not been
paid, the assessor shall mail a corrected tax bill to the individual
in whose name the property is listed on the tax roll or to the
individual's authorized agent. If the tax on the property has been
paid, the collector for the taxing unit shall refund to the
individual who paid the tax the amount by which the payment exceeded
the tax due.
SECTION 5. Section 39.082, Education Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) The system may not include an indicator under
Subsection (b) or any other performance measure that penalizes a
school district for failure to collect the amount of taxes equal to
the total amount of tax refunds provided under Section 26.1115(c),
Tax Code.
SECTION 6. Section 48.202, Education Code, is amended by
adding Subsection (e-1) to read as follows:
(e-1) For purposes of this section, the total amount of
maintenance and operations taxes collected by a school district
includes the amount of taxes refunded under Section 26.1115(c), Tax
Code.
SECTION 7. Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2541 to read as follows:
Sec. 48.2541. ADDITIONAL STATE AID FOR CERTAIN AD VALOREM
TAX REFUNDS. For each school year, a school district, including a
school district that is otherwise ineligible for state aid under
this chapter, is entitled to state aid in an amount equal to the
amount of all tax refunds provided under Section 26.1115(c), Tax
Code.
SECTION 8. This Act applies only to a residence homestead
acquired on or after the effective date of this Act.
SECTION 9. This Act takes effect January 1, 2022.