HB670 - Relating to the authority of a taxing unit other than a school district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

  89R1568 CJC-D     By: Bucy H.B. No. 670       A BILL TO BE ENTITLED   AN ACT   relating to the authority of a taxing unit other than a school   district to establish a limitation on the amount of ad valorem taxes   that the taxing unit may impose on the residence homesteads of   individuals who are disabled or elderly and their surviving   spouses.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Section 11.261, Tax Code, is   amended to read as follows:          Sec. 11.261.  LIMITATION OF TAX IMPOSED BY TAXING UNIT OTHER   THAN SCHOOL DISTRICT  [ COUNTY, MUNICIPAL, OR JUNIOR COLLEGE DISTRICT   TAX ] ON HOMESTEADS OF INDIVIDUALS WHO ARE  DISABLED OR  [ AND ]   ELDERLY.          SECTION 2.  Sections 11.261(a), (b), (c), (d), (e), (g),   (h), (i), (j), (k), and (l), Tax Code, are amended to read as   follows:          (a)  This section applies only to a taxing unit that:                 (1)  is not a school  [ a county, municipality, or junior   college ] district ; and                 (2)   [ that ] has established a limitation on the total   amount of taxes that may be imposed by the taxing unit  [ county,   municipality, or junior college district ] on the residence   homestead of an  [ a disabled ] individual who is disabled  or is  [ an   individual ] 65 years of age or older under Section 1-b(h), Article   VIII, Texas Constitution.          (b)  The tax officials shall appraise the property to which   the limitation applies and calculate taxes as on other property,   but if the tax so calculated exceeds the limitation provided by this   section, the tax imposed by a taxing unit is the amount of the tax as   limited by this section, except as otherwise provided by this   section. The taxing unit [ county, municipality, or junior college   district ] may not increase the total annual amount of ad valorem   taxes the taxing unit [ county, municipality, or junior college   district ] imposes on the residence homestead of an  [ a disabled ]   individual who is disabled  or is  [ an individual ] 65 years of age or   older above the amount of the taxes the taxing unit [ county,   municipality, or junior college district ] imposed on the residence   homestead in the first tax year, other than a tax year preceding the   tax year in which the taxing unit [ county, municipality, or junior   college district ] established the limitation described by   Subsection (a), in which the individual qualified that residence   homestead for the exemption provided by Section 11.13(c) for an  [ a   disabled ] individual who is disabled  or is  [ an individual ] 65 years   of age or older. 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 exemption for   the next year, and if the [ county, municipal, or junior college   district ] taxes imposed by the taxing unit on the residence   homestead in the next year are less than the amount of taxes imposed   in that first year, the taxing unit [ a county, municipality, or   junior college district ] may not subsequently increase the total   annual amount of ad valorem taxes it imposes on the residence   homestead above the amount it imposed on the residence homestead in   the year immediately following the first year, other than a tax year   preceding the tax year in which the taxing unit [ county,   municipality, or junior college district ] established the   limitation described by Subsection (a), for which the individual   qualified that residence homestead for the exemption.          (c)  If an individual makes improvements to the individual's   residence homestead, other than repairs and other than improvements   required to comply with governmental requirements, the taxing unit   [ county, municipality, or junior college district ] may increase the   amount of taxes on the homestead in the first year the value of the   homestead is increased on the appraisal roll because of the   enhancement of value by the improvements. The amount of the tax   increase is determined by applying the current tax rate to the   difference between the appraised value of the homestead with the   improvements and the appraised value the homestead [ it ] would have   had without the improvements. A limitation provided by this   section then applies to the increased amount of [ county, municipal,   or junior college district ] taxes on the residence homestead until   more improvements, if any, are made.          (d)  A limitation on [ county, municipal, or junior college   district ] tax increases by a taxing unit provided by this section   expires if on January 1:                (1)  none of the owners of the structure who qualify for   the exemption provided by Section 11.13(c) for an  [ a disabled ]   individual who is disabled  or is  [ an individual ] 65 years of age or   older and who owned the structure when the limitation provided by   this section first took effect is using the structure as a residence   homestead; or                (2)  none of the owners of the structure qualifies for   the exemption provided by Section 11.13(c) for an  [ a disabled ]   individual who is disabled  or is  [ an individual ] 65 years of age or   older.          (e)  If the appraisal roll provides for taxation of appraised   value for a prior year because a residence homestead exemption for   [ disabled ] individuals who are disabled  or are  [ individuals ] 65   years of age or older was erroneously allowed, the tax assessor for   the applicable taxing unit  [ county, municipality, or junior college   district ] shall add, as back taxes due as provided by Section   26.09(d), the positive difference, if any, between the tax that   should have been imposed for that year and the tax that was imposed   because of the provisions of this section.          (g)  Except as provided by Subsection (c), if an individual   who receives a limitation on [ county, municipal, or junior college   district ] tax increases by a taxing unit  provided by this section   subsequently qualifies a different residence homestead in the same   taxing unit  [ county, municipality, or junior college district ] for   an exemption under Section 11.13, the taxing unit  [ county,   municipality, or junior college district ] may not impose ad valorem   taxes on the subsequently qualified homestead in a year in an amount   that exceeds the amount of taxes the taxing unit  [ county,   municipality, or junior college district ] would have imposed on the   subsequently qualified homestead in the first year in which the   individual receives that exemption for the subsequently qualified   homestead had the limitation on tax increases provided by this   section not been in effect, multiplied by a fraction the numerator   of which is the total amount of taxes the taxing unit  [ county,   municipality, or junior college district ] imposed on the former   homestead in the last year in which the individual received that   exemption for the former homestead and the denominator of which is   the total amount of taxes the taxing unit  [ county, municipality, or   junior college district ] would have imposed on the former homestead   in the last year in which the individual received that exemption for   the former homestead had the limitation on tax increases provided   by this section not been in effect.          (h)  An individual who receives a limitation on [ county,   municipal, or junior college district ] tax increases by a taxing   unit  under this section and who subsequently qualifies a different   residence homestead in the same taxing unit  [ county, municipality,   or junior college district ] for an exemption under Section 11.13,   or an agent of the individual, is entitled to receive from the chief   appraiser of the appraisal district in which the former homestead   was located a written certificate providing the information   necessary to determine whether the individual may qualify for a   limitation on the subsequently qualified homestead under   Subsection (g) and to calculate the amount of taxes the taxing unit     [ county, municipality, or junior college district ] may impose on   the subsequently qualified homestead.          (i)  If an individual who qualifies for a limitation on   [ county, municipal, or junior college district ] tax increases by a   taxing unit  under this section dies, the surviving spouse of the   individual is entitled to the limitation on taxes imposed by the   taxing unit  [ county, municipality, or junior college district ] on   the residence homestead of the individual if:                (1)  the surviving spouse is disabled or is 55 years of   age or older when the individual dies; and                (2)  the residence homestead of the individual:                      (A)  is the residence homestead of the surviving   spouse on the date that the individual dies; and                      (B)  remains the residence homestead of the   surviving spouse.          (j)  If an individual who is 65 years of age or older and   qualifies for a limitation on [ county, municipal, or junior college   district ] tax increases for the elderly under this section dies in   the first year in which the individual qualified for the limitation   and the individual first qualified for the limitation after the   beginning of that year, except as provided by Subsection (k), the   amount to which the surviving spouse's [ county, municipal, or   junior college district ] taxes are limited under Subsection (i) is   the amount of taxes imposed by the taxing unit to which the   limitation applies  [ county, municipality, or junior college   district, as applicable, ] on the residence homestead in that year   determined as if the individual qualifying for the exemption had   lived for the entire year.          (k)  If in the first tax year after the year in which an   individual who is 65 years of age or older dies under the   circumstances described by Subsection (j) the amount of taxes   imposed by a taxing unit  [ county, municipality, or junior college   district ] on the residence homestead of the surviving spouse is   less than the amount of taxes imposed by the taxing unit [ county,   municipality, or junior college district ] in the preceding year as   limited by Subsection (j), in a subsequent tax year the surviving   spouse's taxes imposed by the taxing unit  [ county, municipality, or   junior college district ] on that residence homestead are limited to   the amount of taxes imposed by the taxing unit  [ county,   municipality, or junior college district ] in that first tax year   after the year in which the individual dies.          (l)  Notwithstanding Subsection (d), a limitation on   [ county, municipal, or junior college district ] tax increases by a   taxing unit provided by this section does not expire if the owner of   the structure qualifies for an exemption under Section 11.13 under   the circumstances described by Section 11.135(a).          SECTION 3.  Section 23.19(g), Tax Code, is amended to read as   follows:          (g)  A tax bill or a separate statement accompanying the tax   bill to a cooperative housing corporation for which interests of   stockholders are separately appraised under this section must   state, in addition to the information required by Section 31.01,   the appraised value and taxable value of each interest separately   appraised. Each exemption claimed as provided by this title by a   person entitled to the exemption shall also be deducted from the   total appraised value of the property of the corporation. The total   tax imposed by a school district or other taxing unit  [ , county,   municipality, or junior college district ] shall be reduced by any   amount that represents an increase in taxes attributable to   separately appraised interests of the real property and   improvements that are subject to the limitation of taxes prescribed   by Section 11.26 or 11.261. The corporation shall apportion among   its stockholders liability for reimbursing the corporation for   property taxes according to the relative taxable values of their   interests.          SECTION 4.  Sections 26. [Text truncated for display. Full text available on Congress.gov.]