87(R) HB 183 - Introduced version - Bill Text

	87R1115 TJB-D
	By:  Bernal	H.B.  No.  183

	A BILL TO BE ENTITLED
	AN ACT
	relating to a limitation on the total amount of ad valorem taxes
	that a school district may impose on certain residence homesteads
	following a substantial school tax increase.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION  1.    Subchapter B, Chapter 11, Tax Code, is amended by
	adding Section 11.262 to read as follows:
	Sec.  11.262.    LIMITATION OF SCHOOL TAXES ON CERTAIN
	HOMESTEADS FOLLOWING SUBSTANTIAL TAX INCREASE. (a) In this
	section, "residence homestead" has the meaning assigned by Section
	11.13.
	(b)    The chief appraiser shall appraise, and the tax assessor
	for each school district shall calculate the taxes on, each
	residence homestead in the manner provided by law for other
	property.
	(c)    Except as provided by Subsection (g), if an individual
	qualifies property as the individual's residence homestead for at
	least 15 consecutive tax years and the total amount of school
	district taxes imposed on the property in that 15th tax year is at
	least 120 percent greater than the total amount of those taxes
	imposed in the first of those tax years, not including taxes imposed
	on the appraised value of all improvements made to the property
	during that period, a school district may not impose taxes on that
	residence homestead in a subsequent tax year in an amount that
	exceeds the least of the following amounts:
	(1)    the amount of school taxes calculated for the
	current tax year under Subsection (b);
	(2)    the amount of school taxes imposed for that 15th
	tax year; or
	(3)    the amount of school taxes as limited under
	Section 11.26, if applicable.
	(c-1)    An individual may not receive a limitation on taxes
	under Subsection (c) based on an increase in taxes for any period
	that began before the 2008 tax year.
	(d)    If an individual who qualifies for a limitation under
	this section dies, the surviving spouse of the individual is
	entitled to continue receiving the limitation on school taxes
	imposed by a school district on the residence homestead of the
	individual if the property:
	(1)    is the residence homestead of the surviving spouse
	on the date that the individual dies; and
	(2)    remains the residence homestead of the surviving
	spouse.
	(e)    Except as provided by Subsection (d) or (f), a
	limitation under this section expires on January 1 if the property
	is not the residence homestead of the individual entitled to the
	limitation for the preceding tax year.
	(f)    A limitation under this section does not expire if:
	(1)    an owner of an interest in the residence homestead
	conveys the interest to a qualifying trust as defined by Section
	11.13(j) and the owner or the owner's spouse is:
	(A)    a trustor of the trust; and
	(B)    entitled to occupy the property; or
	(2)    the owner of the structure qualifies for an
	exemption under Section 11.13 under the circumstances described by
	Section 11.135(a).
	(g)    Except as provided by Subsection (h), a school district
	may increase the tax on a residence homestead subject to a
	limitation under this section in the first year the appraised value
	of the property is increased as the result of an improvement made to
	the property in the preceding tax year. The amount of the tax
	increase is determined by applying the current tax rate of the
	school district to the difference in the taxable value of the
	property with the improvement and the taxable value the property
	would have had without the improvement. A limitation imposed by
	this section then applies to the increased amount of tax until
	another improvement is made to the property.
	(h)    An improvement to a residence homestead is not treated
	as an improvement under Subsection (g) if the improvement is:
	(1)    a repair;
	(2)    required to be made to comply with a governmental
	requirement; or
	(3)    subject to Subsection (i), a replacement structure
	for a structure that was rendered uninhabitable or unusable by a
	casualty or by wind or wate