HB1648 - Relating to the establishment of a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

  89R6361 MLH-F     By: Button H.B. No. 1648       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of a limitation on the total amount of   ad valorem taxes that a county 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 [ 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 [ county, ]   municipality[ , ] or junior college district that has established a   limitation on the total amount of taxes that may be imposed by the   [ county, ] municipality[ , ] or junior college district on the   residence homestead of an individual who is [ a ] disabled   [ individual ] 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   this section [ 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 is the amount of the tax   as limited by this section, except as otherwise provided by this   section.  The [ county, ] municipality[ , ] or junior college district   may not increase the total annual amount of ad valorem taxes the   [ county, ] municipality[ , ] or junior college district imposes on the   residence homestead of an individual who is [ a ] disabled   [ individual ] or is [ an individual ] 65 years of age or older above   the amount of the taxes the [ 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   [ 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 individual who is [ a ] disabled [ individual ]   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 on the   residence homestead in the next year are less than the amount of   taxes imposed in that first year, 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 [ 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 [ 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.   The [ 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 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 individual who is   [ a ] disabled [ individual ] 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 individual who is   [ a ] disabled [ individual ] 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   an individual who is disabled [ individuals ] or is [ individuals ] 65   years of age or older was erroneously allowed, the tax assessor for   the applicable [ 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   under [ 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 provided by this section   subsequently qualifies a different residence homestead in the same   [ county, ] municipality[ , ] or junior college district for an   exemption under Section 11.13, the [ 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 [ 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 [ 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 [ 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 under this   section and who subsequently qualifies a different residence   homestead in the same [ 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 [ 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   under this section dies, the surviving spouse of the individual is   entitled to the limitation on taxes imposed by the [ 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 [ 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 [ county, ] municipality[ , ] or junior college district   on the residence homestead of the surviving spouse is less than the   amount of taxes imposed by the [ 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 [ county, ] municipality[ , ] or junior college district on that   residence homestead are limited to the amount of taxes imposed by   the [ 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   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.  Subchapter B, Chapter 11, Tax Code, is amended by   adding Section 11.262 to read as follows:           Sec.   11.262.     LIMITATION OF COUNTY TAX ON HOMESTEADS OF   INDIVIDUALS WHO ARE DISABLED OR ELDERLY. (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 required by this section, the tax imposed is   the amount of the tax as limited by this section, except as   otherwise provided by this section.           (b)     A county may not increase the total annual amount of ad   valorem taxes the county imposes on the residence homestead of an   individual who is disabled or is 65 years of age or older above the   amount of the taxes the county imposed on the residence homestead in   the first tax year in which the individual qualified that residence   homestead for the exemption provided by Section 11.13(c) for an   individual who is disabled or is 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   taxes imposed by the county on the residence homestead in the next   year are less than the amount of those taxes imposed in that first   year, the county 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 for which the individual   qualified that residence homestead for the exemption.           (c)     If the first tax year the individual qualified the   residence homestead for the exemption provided by Section 11.13(c)   for individuals who are disabled or are 65 years of age or older was   a tax y [Text truncated for display. Full text available on Congress.gov.]