Bill Text: TX HB3973 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to an exemption from ad valorem taxation of a portion of the appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-20 - Referred to Ways & Means [HB3973 Detail]

Download: Texas-2023-HB3973-Introduced.html
  88R11030 MLH-D
 
  By: Cook H.B. No. 3973
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an exemption from ad valorem taxation of a portion of
  the appraised value of the residence homesteads of certain elderly
  persons and their surviving spouses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.13, Tax Code, is amended by amending
  Subsection (i) and adding Subsections (s) and (t) to read as
  follows:
         (i)  The assessor and collector for a taxing unit may
  disregard the exemptions authorized by Subsection (b), (c), (d),
  [or] (n), (s), or (t) [of this section] and assess and collect a tax
  pledged for payment of debt without deducting the amount of the
  exemption if:
               (1)  prior to adoption of the exemption, the taxing 
  unit pledged the taxes for the payment of a debt; and
               (2)  granting the exemption would impair the obligation
  of the contract creating the debt.
         (s)  In addition to any other exemptions provided by this
  section, an individual is entitled to an exemption from taxation of
  $150,000 of the appraised value of the individual's residence
  homestead if:
               (1)  the individual is 75 years of age or older; and
               (2)  the individual has received an exemption under
  this section for the residence homestead for at least the preceding
  10 years.
         (t)  The surviving spouse of an individual who qualified for
  an exemption under Subsection (s) is entitled to an exemption from
  taxation of $150,000 of the appraised value of the same property to
  which the deceased spouse's exemption applied if:
               (1)  the deceased spouse died in a year in which the
  deceased spouse qualified for the exemption;
               (2)  the surviving spouse was 55 years of age or older
  when the deceased spouse died; and
               (3)  the property was the residence homestead of the
  surviving spouse when the deceased spouse died and remains the
  residence homestead of the surviving spouse.
         SECTION 2.  Section 11.42(c), Tax Code, is amended to read as
  follows:
         (c)  An exemption authorized by Section 11.13(c), [or] (d),
  or (s), 11.132, 11.133, or 11.134 is effective as of January 1 of
  the tax year in which the person qualifies for the exemption and
  applies to the entire tax year.
         SECTION 3.  Sections 11.43(k), (l), (m), and (q), Tax Code,
  are amended to read as follows:
         (k)  A person who qualifies for an exemption authorized by
  Section 11.13(c), [or] (d), or (s) or 11.132 must apply for the
  exemption no later than the first anniversary of the date the person
  qualified for the exemption.
         (l)  The form for an application under Section 11.13 must
  include a space for the applicant to state the applicant's date of
  birth. Failure to provide the date of birth does not affect the
  applicant's eligibility for an exemption under that section, other
  than an exemption under Section 11.13(c) or (d) for an individual 65
  years of age or older or an exemption under Section 11.13(s) for an
  individual 75 years of age or older.
         (m)  Notwithstanding Subsections (a) and (k), a person who
  receives an exemption under Section 11.13, other than an exemption
  under Section 11.13(c) or (d) for an individual 65 years of age or
  older or an exemption under Section 11.13(s) for an individual 75
  years of age or older, in a tax year is entitled to receive an
  exemption under Section 11.13(c) or (d) for an individual 65 years
  of age or older or an exemption under Section 11.13(s) for an
  individual 75 years of age or older in the next tax year on the same
  property without applying for the exemption if the person becomes
  65 or 75 years of age, as applicable, in that next year as shown by:
               (1)  information in the records of the appraisal
  district that was provided to the appraisal district by the
  individual in an application for an exemption under Section 11.13
  on the property or in correspondence relating to the property; or
               (2)  the information provided by the Texas Department
  of Public Safety to the appraisal district under Section 521.049,
  Transportation Code.
         (q)  A chief appraiser may not cancel an exemption under
  Section 11.13 that is received by an individual who is 65 years of
  age or older without first providing written notice of the
  cancellation to the individual receiving the exemption. The notice
  must include a form on which the individual may indicate whether the
  individual is qualified to receive the exemption and a
  self-addressed postage prepaid envelope with instructions for
  returning the form to the chief appraiser. The chief appraiser
  shall consider the individual's response on the form in determining
  whether to continue to allow the exemption. If the chief appraiser
  does not receive a response on or before the 60th day after the date
  the notice is mailed, the chief appraiser may cancel the exemption
  on or after the 30th day after the expiration of the 60-day period,
  but only after making a reasonable effort to locate the individual
  and determine whether the individual is qualified to receive the
  exemption. For purposes of this subsection, sending an additional
  notice of cancellation that includes, in bold font equal to or
  greater in size than the surrounding text, the date on which the
  chief appraiser is authorized to cancel the exemption to the
  individual receiving the exemption immediately after the
  expiration of the 60-day period by first class mail in an envelope
  on which is written, in all capital letters, "RETURN SERVICE
  REQUESTED," or another appropriate statement directing the United
  States Postal Service to return the notice if it is not deliverable
  as addressed, or providing the additional notice in another manner
  that the chief appraiser determines is appropriate, constitutes a
  reasonable effort on the part of the chief appraiser. This
  subsection does not apply to an exemption under Section 11.13(c) or
  (d) for an individual 65 years of age or older or an exemption under
  Section 11.13(s) for an individual 75 years of age or older that is
  canceled because the chief appraiser determines that the individual
  receiving the exemption no longer owns the property subject to the
  exemption.
         SECTION 4.  Section 26.10(b), Tax Code, is amended to read as
  follows:
         (b)  If the appraisal roll shows that a residence homestead
  exemption under Section 11.13(c), [or] (d), or (s), 11.132, 11.133,
  or 11.134 applicable to a property on January 1 of a year terminated
  during the year and if the owner of the property qualifies a
  different property for one of those residence homestead exemptions
  during the same year, the tax due against the former residence
  homestead is calculated by:
               (1)  subtracting:
                     (A)  the amount of the taxes that otherwise would
  be imposed on the former residence homestead for the entire year had
  the owner qualified for the residence homestead exemption for the
  entire year; from
                     (B)  the amount of the taxes that otherwise would
  be imposed on the former residence homestead for the entire year had
  the owner not qualified for the residence homestead exemption
  during the year;
               (2)  multiplying the remainder determined under
  Subdivision (1) by a fraction, the denominator of which is 365 and
  the numerator of which is the number of days that elapsed after the
  date the exemption terminated; and
               (3)  adding the product determined under Subdivision
  (2) and the amount described by Subdivision (1)(A).
         SECTION 5.  Section 26.112, Tax Code, is amended to read as
  follows:
         Sec. 26.112.  CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
  CERTAIN PERSONS. (a) Except as provided by Section 26.10(b), if at
  any time during a tax year property is owned by an individual who
  qualifies for an exemption under Section 11.13(c), [or] (d), or
  (s), 11.133, or 11.134, the amount of the tax due on the property
  for the tax year is calculated as if the individual qualified for
  the exemption on January 1 and continued to qualify for the
  exemption for the remainder of the tax year.
         (b)  If an individual qualifies for an exemption under
  Section 11.13(c), [or] (d), or (s), 11.133, or 11.134 with respect
  to the property after the amount of the tax due on the property is
  calculated and the effect of the qualification is to reduce the
  amount of the tax due on the property, the assessor for each taxing
  unit shall recalculate the amount of the tax due on the property and
  correct the tax roll. If the tax bill has been mailed and the tax on
  the property has not been paid, the assessor shall mail a corrected
  tax bill to the person in whose name the property is listed on the
  tax roll or to the person's authorized agent. If the tax on the
  property has been paid, the tax collector for the taxing unit shall
  refund to the person who was the owner of the property on the date
  the tax was paid the amount by which the payment exceeded the tax
  due.
         SECTION 6.  Section 33.01(d), Tax Code, is amended to read as
  follows:
         (d)  In lieu of the penalty imposed under Subsection (a), a
  delinquent tax incurs a penalty of 50 percent of the amount of the
  tax without regard to the number of months the tax has been
  delinquent if the tax is delinquent because the property owner
  received an exemption under:
               (1)  Section 11.13 and the chief appraiser subsequently
  cancels the exemption because the residence was not the principal
  residence of the property owner and the property owner received an
  exemption for two or more additional residence homesteads for the
  tax year in which the tax was imposed;
               (2)  Section 11.13(c) or (d) for a person who is 65
  years of age or older and the chief appraiser subsequently cancels
  the exemption because the property owner was younger than 65 years
  of age; [or]
               (3)  Section 11.13(s) for a person who is 75 years of
  age or older and the chief appraiser subsequently cancels the
  exemption because the property owner was younger than 75 years of
  age; or
               (4)  Section 11.13(q) or (t) and the chief appraiser
  subsequently cancels the exemption because the property owner was
  younger than 55 years of age when the property owner's spouse died.
         SECTION 7.  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." In addition, in reduced type, the
  notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
  your local property tax database on which you can easily access
  information regarding your property taxes, including information
  about proposed tax rates and scheduled public hearings of each
  entity that taxes your property.";
               (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 48, would provide the
  same amount of maintenance and operations taxes and state funds
  distributed under Chapter 48 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 43, 46, and 48 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 disabled persons, [or]
  persons 65 years of age or older or their surviving spouses, or
  persons 75 years of age or older or their surviving spouses, and
  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 Voter-Approval Rate: The highest tax rate the district
  can adopt before requiring voter approval at an election is (the
  school district voter-approval rate determined under Section
  26.08, Tax Code). This election will be automatically held if the
  district adopts a rate in excess of the voter-approval rate of (the
  school district voter-approval 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 48 in
  the succeeding school year; and
               (10)  contain the following statement in bold print:
  "Under state law, $150,000 of the appraised value of the residence
  of a person 75 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, is exempt from taxes."
         SECTION 8.  The exemptions from ad valorem taxation of a
  residence homestead authorized by Sections 11.13(s) and (t), Tax
  Code, as added by this Act, apply only to taxes imposed beginning
  with the 2024 tax year.
         SECTION 9.  This Act takes effect January 1, 2024, but only
  if the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, to exempt from ad valorem taxation a portion
  of the market value of the residence homesteads of certain elderly
  persons and their surviving spouses is approved by the voters. If
  that amendment is not approved by the voters, this Act has no
  effect.
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