By: Zwiener H.B. No. 3205
 
 
A BILL TO BE ENTITLED
AN ACT
relating to an increase in the amount of the exemption of residence
homesteads from ad valorem taxation by a school district, an
adjustment in the amount of the limitation on school district ad
valorem taxes imposed on the residence homesteads of the elderly or
disabled to reflect increases in the 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 $75,000 [$40,000] of the appraised value of the
adult's residence homestead, except that only $5,000 of the
exemption applies 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.
       (c)  Beginning in 2024 tax year, this amount is increased
annually by an amount equal to the amount exempted in the prior tax
year, multiplied by the percentage change since the prior year in
the average appraised value of homesteads statewide, as calculated
by the Comptroller, rounded to the nearest $100. If the change is
negative, then the amount of the exemption will be unchanged.
       SECTION 2.  Section 11.26, Tax Code, is amended by amending
Subsections (a), (a-10), and (o) and adding Subsection (a-11) 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 2024 [2015] tax
year, the amount of the limitation provided by this section for the
2024 tax year is the amount of the limitation as computed under
Subsection (a-10) of this section [tax the school district imposed
for the 2014 tax year] less an amount equal to the product of
$10,000 and [amount determined by multiplying $10,000 times] the
tax rate of the school district for the 2024 [2015] tax year[, plus
any 2015 tax attributable to improvements made in 2014, other than
improvements made to comply with governmental regulations or
repairs].
       (a-10)  For purposes of this section, "maximum compressed
rate" means the maximum compressed rate of a school district as
calculated under Section 48.2551, Education Code. Notwithstanding
the other provisions of this section, if in the 2024 or a subsequent
tax year an individual qualifies for a limitation on tax increases
provided by this section on the individual's residence homestead,
the amount of the limitation provided by this section on the
homestead is equal to the amount computed by:
             (1)  multiplying the taxable value of the homestead in
the preceding tax year by a tax rate equal to the difference between
the school district's maximum compressed rate for the preceding tax
year and the district's maximum compressed rate for the current tax
year;
             (2)  subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the preceding tax year; and

Statutes affected:
Introduced: Tax Code 11.13, Tax Code 11.26, Education Code 46.071, Education Code 48.2542, Education Code 48.2543, Education Code 48.2556, Government Code 403.302 (Education Code 48, Government Code 403, Education Code 46, Tax Code 11)