Bill Text: TX HB160 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to an exemption from ad valorem taxation by certain taxing units of a portion of the appraised value of the residence homestead of the parent or guardian of a minor who is disabled and who resides with the parent or guardian.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-05-01 - Left pending in committee [HB160 Detail]
Download: Texas-2019-HB160-Introduced.html
86R633 TJB-D | ||
By: Raymond | H.B. No. 160 |
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relating to an exemption from ad valorem taxation by certain taxing | ||
units of a portion of the appraised value of the residence homestead | ||
of the parent or guardian of a minor who is disabled and who resides | ||
with the parent or guardian. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 11.13, Tax Code, is amended by amending | ||
Subsections (c), (d), and (h) and adding Subsection (d-1) to read as | ||
follows: | ||
(c) In addition to the exemption provided by Subsection (b) | ||
[ |
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parent or guardian of a minor who is disabled and who resides with | ||
the parent or guardian, or is 65 years of age or older is entitled to | ||
an exemption from taxation by a school district of $10,000 of the | ||
appraised value of the individual's [ |
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(d) In addition to the exemptions provided by Subsections | ||
(b) and (c) [ |
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parent or guardian of a minor who is disabled and who resides with | ||
the parent or guardian, or is 65 years of age or older is entitled to | ||
an exemption from taxation by a taxing unit of the [ |
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determined [ |
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Subsection (e) [ |
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individual's [ |
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by [ |
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(1) [ |
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(2) [ |
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qualified voters of the taxing unit at an election called by the | ||
governing body of the [ |
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(d-1) The [ |
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call an [ |
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petition of at least 20 percent of the number of qualified voters | ||
who voted in the preceding election of the taxing unit. | ||
(h) Joint, community, or successive owners may not each | ||
receive the same exemption provided by or pursuant to this section | ||
for the same residence homestead in the same year. An individual | ||
who is eligible for more than one [ |
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exemption under Subsection (d) is entitled to [ |
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receive only one exemption under each of those subsections | ||
[ |
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for more than one residence homestead in the same tax year. | ||
SECTION 2. Section 26.06(b), Tax Code, is amended to read as | ||
follows: | ||
(b) The notice of a public hearing may not be smaller than | ||
one-quarter page of a standard-size or a tabloid-size newspaper, | ||
and the headline on the notice must be in 24-point or larger | ||
type. The notice must contain a statement in the following form: | ||
"NOTICE OF PUBLIC HEARING ON TAX INCREASE | ||
"The (name of the taxing unit) will hold two public hearings | ||
on a proposal to increase total tax revenues from properties on the | ||
tax roll in the preceding tax year by (percentage by which proposed | ||
tax rate exceeds lower of rollback tax rate or effective tax rate | ||
calculated under this chapter) percent. Your individual taxes may | ||
increase at a greater or lesser rate, or even decrease, depending on | ||
the change in the taxable value of your property in relation to the | ||
change in taxable value of all other property and the tax rate that | ||
is adopted. | ||
"The first public hearing will be held on (date and time) at | ||
(meeting place). | ||
"The second public hearing will be held on (date and time) at | ||
(meeting place). | ||
"(Names of all members of the governing body, showing how | ||
each voted on the proposal to consider the tax increase or, if one | ||
or more were absent, indicating the absences.) | ||
"The average taxable value of a residence homestead in (name | ||
of taxing unit) last year was $____ (average taxable value of a | ||
residence homestead in the taxing unit for the preceding tax year, | ||
disregarding residence homestead exemptions available only to | ||
individuals who are disabled, are the parents or guardians of | ||
minors who are disabled and who reside with the parents or | ||
guardians, [ |
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older). Based on last year's tax rate of $____ (preceding year's | ||
adopted tax rate) per $100 of taxable value, the amount of taxes | ||
imposed last year on the average home was $____ (tax on average | ||
taxable value of a residence homestead in the taxing unit for the | ||
preceding tax year, disregarding residence homestead exemptions | ||
available only to individuals who are disabled, are the parents or | ||
guardians of minors who are disabled and who reside with the parents | ||
or guardians, [ |
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older). | ||
"The average taxable value of a residence homestead in (name | ||
of taxing unit) this year is $____ (average taxable value of a | ||
residence homestead in the taxing unit for the current tax year, | ||
disregarding residence homestead exemptions available only to | ||
individuals who are disabled, are the parents or guardians of | ||
minors who are disabled and who reside with the parents or | ||
guardians, [ |
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older). If the governing body adopts the effective tax rate for | ||
this year of $____ (effective tax rate) per $100 of taxable value, | ||
the amount of taxes imposed this year on the average home would be | ||
$____ (tax on average taxable value of a residence homestead in the | ||
taxing unit for the current tax year, disregarding residence | ||
homestead exemptions available only to individuals who are | ||
disabled, are the parents or guardians of minors who are disabled | ||
and who reside with the parents or guardians, [ |
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[ |
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"If the governing body adopts the proposed tax rate of $____ | ||
(proposed tax rate) per $100 of taxable value, the amount of taxes | ||
imposed this year on the average home would be $____ (tax on the | ||
average taxable value of a residence in the taxing unit for the | ||
current year disregarding residence homestead exemptions available | ||
only to individuals who are disabled, are the parents or guardians | ||
of minors who are disabled and who reside with the parents or | ||
guardians, [ |
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"Members of the public are encouraged to attend the hearings | ||
and express their views." | ||
SECTION 3. Section 44.004(c), Education Code, is amended to | ||
read as follows: | ||
(c) The notice of public meeting to discuss and adopt the | ||
budget and the proposed tax rate may not be smaller than one-quarter | ||
page of a standard-size or a tabloid-size newspaper, and the | ||
headline on the notice must be in 18-point or larger type. Subject | ||
to Subsection (d), the notice must: | ||
(1) contain a statement in the following form: | ||
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE | ||
"The (name of school district) will hold a public meeting at | ||
(time, date, year) in (name of room, building, physical location, | ||
city, state). The purpose of this meeting is to discuss the school | ||
district's budget that will determine the tax rate that will be | ||
adopted. Public participation in the discussion is invited." The | ||
statement of the purpose of the meeting must be in bold type. In | ||
reduced type, the notice must state: "The tax rate that is | ||
ultimately adopted at this meeting or at a separate meeting at a | ||
later date may not exceed the proposed rate shown below unless the | ||
district publishes a revised notice containing the same information | ||
and comparisons set out below and holds another public meeting to | ||
discuss the revised notice."; | ||
(2) contain a section entitled "Comparison of Proposed | ||
Budget with Last Year's Budget," which must show the difference, | ||
expressed as a percent increase or decrease, as applicable, in the | ||
amounts budgeted for the preceding fiscal year and the amount | ||
budgeted for the fiscal year that begins in the current tax year for | ||
each of the following: | ||
(A) maintenance and operations; | ||
(B) debt service; and | ||
(C) total expenditures; | ||
(3) contain a section entitled "Total Appraised Value | ||
and Total Taxable Value," which must show the total appraised value | ||
and the total taxable value of all property and the total appraised | ||
value and the total taxable value of new property taxable by the | ||
district in the preceding tax year and the current tax year as | ||
calculated under Section 26.04, Tax Code; | ||
(4) contain a statement of the total amount of the | ||
outstanding and unpaid bonded indebtedness of the school district; | ||
(5) contain a section entitled "Comparison of Proposed | ||
Rates with Last Year's Rates," which must: | ||
(A) show in rows the tax rates described by | ||
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of | ||
property, for columns entitled "Maintenance & Operations," | ||
"Interest & Sinking Fund," and "Total," which is the sum of | ||
"Maintenance & Operations" and "Interest & Sinking Fund": | ||
(i) the school district's "Last Year's | ||
Rate"; | ||
(ii) the "Rate to Maintain Same Level of | ||
Maintenance & Operations Revenue & Pay Debt Service," which: | ||
(a) in the case of "Maintenance & | ||
Operations," is the tax rate that, when applied to the current | ||
taxable value for the district, as certified by the chief appraiser | ||
under Section 26.01, Tax Code, and as adjusted to reflect changes | ||
made by the chief appraiser as of the time the notice is prepared, | ||
would impose taxes in an amount that, when added to state funds to | ||
be distributed to the district under Chapter 42, would provide the | ||
same amount of maintenance and operations taxes and state funds | ||
distributed under Chapter 42 per student in average daily | ||
attendance for the applicable school year that was available to the | ||
district in the preceding school year; and | ||
(b) in the case of "Interest & Sinking | ||
Fund," is the tax rate that, when applied to the current taxable | ||
value for the district, as certified by the chief appraiser under | ||
Section 26.01, Tax Code, and as adjusted to reflect changes made by | ||
the chief appraiser as of the time the notice is prepared, and when | ||
multiplied by the district's anticipated collection rate, would | ||
impose taxes in an amount that, when added to state funds to be | ||
distributed to the district under Chapter 46 and any excess taxes | ||
collected to service the district's debt during the preceding tax | ||
year but not used for that purpose during that year, would provide | ||
the amount required to service the district's debt; and | ||
(iii) the "Proposed Rate"; | ||
(B) contain fourth and fifth columns aligned with | ||
the columns required by Paragraph (A) that show, for each row | ||
required by Paragraph (A): | ||
(i) the "Local Revenue per Student," which | ||
is computed by multiplying the district's total taxable value of | ||
property, as certified by the chief appraiser for the applicable | ||
school year under Section 26.01, Tax Code, and as adjusted to | ||
reflect changes made by the chief appraiser as of the time the | ||
notice is prepared, by the total tax rate, and dividing the product | ||
by the number of students in average daily attendance in the | ||
district for the applicable school year; and | ||
(ii) the "State Revenue per Student," which | ||
is computed by determining the amount of state aid received or to be | ||
received by the district under Chapters 42, 43, and 46 and dividing | ||
that amount by the number of students in average daily attendance in | ||
the district for the applicable school year; and | ||
(C) contain an asterisk after each calculation | ||
for "Interest & Sinking Fund" and a footnote to the section that, in | ||
reduced type, states "The Interest & Sinking Fund tax revenue is | ||
used to pay for bonded indebtedness on construction, equipment, or | ||
both. The bonds, and the tax rate necessary to pay those bonds, were | ||
approved by the voters of this district."; | ||
(6) contain a section entitled "Comparison of Proposed | ||
Levy with Last Year's Levy on Average Residence," which must: | ||
(A) show in rows the information described by | ||
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns | ||
entitled "Last Year" and "This Year": | ||
(i) "Average Market Value of Residences," | ||
determined using the same group of residences for each year; | ||
(ii) "Average Taxable Value of Residences," | ||
determined after taking into account the limitation on the | ||
appraised value of residences under Section 23.23, Tax Code, and | ||
after subtracting all homestead exemptions applicable in each year, | ||
other than exemptions available only to individuals who are | ||
disabled, are the parents or guardians of minors who are disabled | ||
and who reside with the parents or guardians, [ |
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[ |
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using the same group of residences for each year; | ||
(iii) "Last Year's Rate Versus Proposed | ||
Rate per $100 Value"; and | ||
(iv) "Taxes Due on Average Residence," | ||
determined using the same group of residences for each year; and | ||
(B) contain the following | ||
information: "Increase (Decrease) in Taxes" expressed in dollars | ||
and cents, which is computed by subtracting the "Taxes Due on | ||
Average Residence" for the preceding tax year from the "Taxes Due on | ||
Average Residence" for the current tax year; | ||
(7) contain the following statement in bold | ||
print: "Under state law, the dollar amount of school taxes imposed | ||
on the residence of a person 65 years of age or older or of the | ||
surviving spouse of such a person, if the surviving spouse was 55 | ||
years of age or older when the person died, may not be increased | ||
above the amount paid in the first year after the person turned 65, | ||
regardless of changes in tax rate or property value."; | ||
(8) contain the following statement in bold | ||
print: "Notice of Rollback Rate: The highest tax rate the | ||
district can adopt before requiring voter approval at an election | ||
is (the school district rollback rate determined under Section | ||
26.08, Tax Code). This election will be automatically held if the | ||
district adopts a rate in excess of the rollback rate of (the school | ||
district rollback rate)."; and | ||
(9) contain a section entitled "Fund Balances," which | ||
must include the estimated amount of interest and sinking fund | ||
balances and the estimated amount of maintenance and operation or | ||
general fund balances remaining at the end of the current fiscal | ||
year that are not encumbered with or by corresponding debt | ||
obligation, less estimated funds necessary for the operation of the | ||
district before the receipt of the first payment under Chapter 42 in | ||
the succeeding school year. | ||
SECTION 4. Section 8876.152(b), Special District Local Laws | ||
Code, is amended to read as follows: | ||
(b) Sections 49.236(a)(1), (a)(2)(A)-(F), and (b) [ |
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the district. | ||
SECTION 5. Sections 49.236(a) and (d), Water Code, as added | ||
by Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular | ||
Session, 2003, are amended to read as follows: | ||
(a) Before the board adopts an ad valorem tax rate for the | ||
district for debt service, operation and maintenance purposes, or | ||
contract purposes, the board shall give notice of each meeting of | ||
the board at which the adoption of a tax rate will be considered. | ||
The notice must: | ||
(1) contain a statement in substantially the following | ||
form: | ||
"NOTICE OF PUBLIC HEARING ON TAX RATE | ||
"The (name of the district) will hold a public hearing on a | ||
proposed tax rate for the tax year (year of tax levy) on (date and | ||
time) at (meeting place). Your individual taxes may increase or | ||
decrease, depending on the change in the taxable value of your | ||
property in relation to the change in taxable value of all other | ||
property and the tax rate that is adopted. | ||
"(Names of all board members and, if a vote was taken, an | ||
indication of how each voted on the proposed tax rate and an | ||
indication of any absences.)"; | ||
(2) contain the following information: | ||
(A) the district's total adopted tax rate for the | ||
preceding year and the proposed tax rate, expressed as an amount per | ||
$100; | ||
(B) the difference, expressed as an amount per | ||
$100 and as a percent increase or decrease, as applicable, in the | ||
proposed tax rate compared to the adopted tax rate for the preceding | ||
year; | ||
(C) the average appraised value of a residence | ||
homestead in the district in the preceding year and in the current | ||
year; the district's total homestead exemption, other than an | ||
exemption available only to individuals who are disabled, are the | ||
parents or guardians of minors who are disabled and who reside with | ||
the parents or guardians, [ |
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or older, applicable to that appraised value in each of those years; | ||
and the average taxable value of a residence homestead in the | ||
district in each of those years, disregarding any homestead | ||
exemption available only to individuals who are disabled, are the | ||
parents or guardians of minors who are disabled and who reside with | ||
the parents or guardians, [ |
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or older; | ||
(D) the amount of tax that would have been | ||
imposed by the district in the preceding year on a residence | ||
homestead appraised at the average appraised value of a residence | ||
homestead in that year, disregarding any homestead exemption | ||
available only to individuals who are disabled, are the parents or | ||
guardians of minors who are disabled and who reside with the parents | ||
or guardians, [ |
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(E) the amount of tax that would be imposed by the | ||
district in the current year on a residence homestead appraised at | ||
the average appraised value of a residence homestead in that year, | ||
disregarding any homestead exemption available only to individuals | ||
who are disabled, are the parents or guardians of minors who are | ||
disabled and who reside with the parents or guardians, [ |
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are [ |
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adopted; [ |
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(F) the difference between the amounts of tax | ||
calculated under Paragraphs (D) and (E), expressed in dollars and | ||
cents and described as the annual percentage increase or decrease, | ||
as applicable, in the tax to be imposed by the district on the | ||
average residence homestead in the district in the current year if | ||
the proposed tax rate is adopted; and | ||
(G) if the proposed combined debt service, | ||
operation and maintenance, and contract tax rate would authorize | ||
the qualified voters of the district by petition to require a | ||
rollback election to be held in the district, a description of the | ||
purpose of the proposed tax increase; and | ||
(3) contain a statement in substantially the following | ||
form: | ||
"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION | ||
"If taxes on the average residence homestead increase by more | ||
than eight percent, the qualified voters of the district by | ||
petition may require that an election be held to determine whether | ||
to reduce the operation and maintenance tax rate to the rollback tax | ||
rate under Section 49.236(d), Water Code." | ||
(d) If the governing body of a district adopts a combined | ||
debt service, operation and maintenance, and contract tax rate that | ||
would impose more than 1.08 times the amount of tax imposed by the | ||
district in the preceding year on a residence homestead appraised | ||
at the average appraised value of a residence homestead in the | ||
district in that year, disregarding any homestead exemption | ||
available only to individuals who are disabled, are the parents or | ||
guardians of minors who are disabled and who reside with the parents | ||
or guardians, [ |
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the qualified voters of the district by petition may require that an | ||
election be held to determine whether or not to reduce the tax rate | ||
adopted for the current year to the rollback tax rate in accordance | ||
with the procedures provided by Sections 26.07(b)-(g) and 26.081, | ||
Tax Code. For purposes of Sections 26.07(b)-(g), Tax Code, and this | ||
subsection, the rollback tax rate is the current year's debt | ||
service and contract tax rates plus the operation and maintenance | ||
tax rate that would impose 1.08 times the amount of the operation | ||
and maintenance tax imposed by the district in the preceding year on | ||
a residence homestead appraised at the average appraised value of a | ||
residence homestead in the district in that year, disregarding any | ||
homestead exemption available only to individuals who are disabled, | ||
are the parents or guardians of minors who are disabled and who | ||
reside with the parents or guardians, [ |
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years of age or older. | ||
SECTION 6. The following provisions are repealed: | ||
(1) Section 49.236, Water Code, as added by Chapter | ||
248 (H.B. 1541), Acts of the 78th Legislature, Regular Session, | ||
2003; and | ||
(2) Section 49.2361, Water Code. | ||
SECTION 7. This Act applies only to ad valorem taxes imposed | ||
for a tax year that begins on or after the effective date of this | ||
Act. | ||
SECTION 8. This Act takes effect January 1, 2020, but only | ||
if the constitutional amendment proposed by the 86th Legislature, | ||
Regular Session, 2019, to provide for an exemption from ad valorem | ||
taxation by certain political subdivisions of a portion of the | ||
market value of the residence homestead of the parent or guardian of | ||
a minor who is disabled and who resides with the parent or guardian | ||
is approved by the voters. If that amendment is not approved by the | ||
voters, this Act has no effect. |