88(R) HB 4029 - Introduced version - Bill Text

	88R2338 SMH/MEW-D
	By:  Schofield	H.B.  No.  4029

	A BILL TO BE ENTITLED
	AN ACT
	relating to an exemption from ad valorem taxation by a school
	district of a dollar amount or a percentage, whichever is greater,
	of the appraised value of a residence homestead, an adjustment of
	the limitation on the total amount of ad valorem taxes that may be
	imposed by a school district on the homestead of a person who is
	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 $40,000 of the appraised value of the adult's
	residence homestead or 26.7 percent of the appraised value of the
	adult's residence homestead, whichever is greater, 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.
	SECTION  2.    Section 11.26, Tax Code, is amended by amending
	Subsections (a), (a-10), and (o) and adding Subsections (a-11) and
	(a-12) 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 2015 tax year, the
	amount of the limitation provided by this section is the amount of
	tax the school district imposed for the 2014 tax year less an amount
	equal to the amount determined by multiplying $10,000 times the tax
	rate of the school district for the 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
	(3)    adding any tax imposed in the current tax year