SB634 - Relating to the authority of the governing body of a taxing unit to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead.

  89R4377 CS-D     By: Eckhardt, Gutierrez S.B. No. 634       A BILL TO BE ENTITLED   AN ACT   relating to the authority of the governing body of a taxing unit to   adopt an exemption from ad valorem taxation of a portion, expressed   as a dollar amount, of the appraised value of an individual's   residence homestead.          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 Subsection (n-2) 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) , or (n-2) [ 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 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.           (n-2)     The governing body of a taxing unit, in the manner   provided by law for official action by the body, may adopt an   exemption from taxation by the taxing unit of a portion, expressed   as a dollar amount, of the appraised value of an individual's   residence homestead.   The exemption must be adopted by the   governing body before July 1 of the tax year in which the exemption   applies. If the governing body adopts an exemption under this   subsection, the amount of the exemption in a tax year may not be   less than $5,000. An individual is entitled to an exemption adopted   under this subsection in addition to any other exemptions provided   by this section.          SECTION 2.  Section 45.006(f), Education Code, is amended to   read as follows:          (f)  The governing body of a school district that adopts a   tax rate that exceeds $1.50 per $100 valuation of taxable property   may set the amount of the exemption from taxation authorized by   Section 11.13(n) or (n-2) , Tax Code, at any time before the date the   governing body adopts the district's tax rate for the tax year in   which the election approving the additional taxes is held.          SECTION 3.  Section 48.259(a), Education Code, is amended to   read as follows:          (a)  In any school year, the commissioner may not provide   funding under this chapter or Chapter 46 based on a school   district's taxable value of property computed in accordance with   Section 403.302(d)(2), Government Code, unless:                (1)  funds are specifically appropriated for purposes   of this section; or                (2)  the commissioner determines that the total amount   of state funds appropriated for purposes of the Foundation School   Program for the school year exceeds the amount of state funds   distributed to school districts in accordance with Section 48.266   based on the taxable values of property in school districts   computed in accordance with Section 403.302(d), Government Code,   without any deduction for residence homestead exemptions granted   under Section 11.13(n) or (n-2) , Tax Code.          SECTION 4.  Section 403.302(d), Government Code, effective   until January 1, 2027, is amended to read as follows:          (d)  For the purposes of this section, "taxable value" means   the market value of all taxable property less:                (1)  the total dollar amount of any residence homestead   exemptions lawfully granted under Section 11.13(b) or (c), Tax   Code, in the year that is the subject of the study for each school   district;                (2)  one-half of the total dollar amount of any   residence homestead exemptions granted under Section 11.13(n) or   (n-2) , Tax Code, in the year that is the subject of the study for   each school district;                (3)  the total dollar amount of any exemptions granted   before May 31, 1993, within a reinvestment zone under agreements   authorized by Chapter 312, Tax Code;                (4)  subject to Subsection (e), the total dollar amount   of any captured appraised value of property that:                      (A)  is within a reinvestment zone created on or   before May 31, 1999, or is proposed to be included within the   boundaries of a reinvestment zone as the boundaries of the zone and   the proposed portion of tax increment paid into the tax increment   fund by a school district are described in a written notification   provided by the municipality or the board of directors of the zone   to the governing bodies of the other taxing units in the manner   provided by former Section 311.003(e), Tax Code, before May 31,   1999, and within the boundaries of the zone as those boundaries   existed on September 1, 1999, including subsequent improvements to   the property regardless of when made;                      (B)  generates taxes paid into a tax increment   fund created under Chapter 311, Tax Code, under a reinvestment zone   financing plan approved under Section 311.011(d), Tax Code, on or   before September 1, 1999; and                      (C)  is eligible for tax increment financing under   Chapter 311, Tax Code;                (5)  the total dollar amount of any captured appraised   value of property that:                      (A)  is within a reinvestment zone:                            (i)  created on or before December 31, 2008,   by a municipality with a population of less than 18,000; and                            (ii)  the project plan for which includes   the alteration, remodeling, repair, or reconstruction of a   structure that is included on the National Register of Historic   Places and requires that a portion of the tax increment of the zone   be used for the improvement or construction of related facilities   or for affordable housing;                      (B)  generates school district taxes that are paid   into a tax increment fund created under Chapter 311, Tax Code; and                      (C)  is eligible for tax increment financing under   Chapter 311, Tax Code;                (6)  the total dollar amount of any exemptions granted   under Section 11.251 or 11.253, Tax Code;                (7)  the difference between the comptroller's estimate   of the market value and the productivity value of land that   qualifies for appraisal on the basis of its productive capacity,   except that the productivity value estimated by the comptroller may   not exceed the fair market value of the land;                (8)  the portion of the appraised value of residence   homesteads of individuals who receive a tax limitation under   Section 11.26, Tax Code, on which school district taxes are not   imposed in the year that is the subject of the study, calculated as   if the residence homesteads were appraised at the full value   required by law;                (9)  a portion of the market value of property not   otherwise fully taxable by the district at market value because of   action required by statute or the constitution of this state, other   than Section 11.311, Tax Code, that, if the tax rate adopted by the   district is applied to it, produces an amount equal to the   difference between the tax that the district would have imposed on   the property if the property were fully taxable at market value and   the tax that the district is actually authorized to impose on the   property, if this subsection does not otherwise require that   portion to be deducted;                (10)  the market value of all tangible personal   property, other than manufactured homes, owned by a family or   individual and not held or used for the production of income;                (11)  the appraised value of property the collection of   delinquent taxes on which is deferred under Section 33.06, Tax   Code;                (12)  the portion of the appraised value of property   the collection of delinquent taxes on which is deferred under   Section 33.065, Tax Code;                (13)  the amount by which the market value of property   to which Section 23.23 or 23.231, Tax Code, applies exceeds the   appraised value of that property as calculated under Section 23.23   or 23.231, Tax Code, as applicable; and                (14)  the total dollar amount of any exemptions granted   under Section 11.35, Tax Code.          SECTION 5.  Section 403.302(d), Government Code, as   effective January 1, 2027, is amended to read as follows:          (d)  For the purposes of this section, "taxable value" means   the market value of all taxable property less:                (1)  the total dollar amount of any residence homestead   exemptions lawfully granted under Section 11.13(b) or (c), Tax   Code, in the year that is the subject of the study for each school   district;                (2)  one-half of the total dollar amount of any   residence homestead exemptions granted under Section 11.13(n) or   (n-2) , Tax Code, in the year that is the subject of the study for   each school district;                (3)  the total dollar amount of any exemptions granted   before May 31, 1993, within a reinvestment zone under agreements   authorized by Chapter 312, Tax Code;                (4)  subject to Subsection (e), the total dollar amount   of any captured appraised value of property that:                      (A)  is within a reinvestment zone created on or   before May 31, 1999, or is proposed to be included within the   boundaries of a reinvestment zone as the boundaries of the zone and   the proposed portion of tax increment paid into the tax increment   fund by a school district are described in a written notification   provided by the municipality or the board of directors of the zone   to the governing bodies of the other taxing units in the manner   provided by former Section 311.003(e), Tax Code, before May 31,   1999, and within the boundaries of the zone as those boundaries   existed on September 1, 1999, including subsequent improvements to   the property regardless of when made;                      (B)  generates taxes paid into a tax increment   fund created under Chapter 311, Tax Code, under a reinvestment zone   financing plan approved under Section 311.011(d), Tax Code, on or   before September 1, 1999; and                      (C)  is eligible for tax increment financing under   Chapter 311, Tax Code;                (5)  the total dollar amount of any captured appraised   value of property that:                      (A)&#x [Text truncated for display. 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