85S10037 SMH-D
	By: Schofield	H.B. No. 55

	A BILL TO BE ENTITLED
	AN ACT
	relating to an exemption from ad valorem taxation by a school
	district of a dollar amount or a percentage, whichever is greater,
	of the appraised value of a residence homestead and a reduction of
	the limitation on the total amount of ad valorem taxes that may be
	imposed by a school district on the homestead of an elderly or
	disabled person to reflect any increase in the exemption amount.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 11.13(b), Tax Code, is amended to read as
	follows:
	(b)  An adult is entitled to exemption from taxation by a
	school district of $25,000 of the appraised value of the adult's
	residence homestead or 13 percent of the appraised value of the
	adult's residence homestead, whichever is greater, except that only
	$5,000 of the exemption applies to an entity operating under former
	Chapter 17, 18, 25, 26, 27, or 28, Education Code, as those chapters
	existed on May 1, 1995, as permitted by Section 11.301, Education
	Code.
	SECTION 2.  Section 11.26(a), Tax Code, is amended to read as
	follows:
	(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 imposed by this
	section, the tax imposed is the amount of the tax as limited by this
	section, except as otherwise provided by this section.  A school
	district may not increase the total annual amount of ad valorem tax
	it imposes on the residence homestead of an individual 65 years of
	age or older or on the residence homestead of an individual who is
	disabled, as defined by Section 11.13, above the amount of the tax
	it imposed in the first tax year in which the individual qualified
	that residence homestead for the applicable exemption provided by
	Section 11.13(c) for an individual who is 65 years of age or older
	or is disabled.  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 same exemption
	for the next year, and if the school district taxes imposed on the
	residence homestead in the next year are less than the amount of
	taxes imposed in that first year, a school district may not
	subsequently increase the total annual amount of ad valorem taxes
	it imposes on the residence homestead above the amount it imposed in
	the year immediately following the first year for which the
	individual qualified that residence homestead for the same
	exemption, except as provided by Subsection (b).  If the first tax
	year the individual qualified the residence homestead for the
	exemption provided by Section 11.13(c) for individuals 65 years of
	age or older or disabled was a tax year before the 2015 tax year, the
	amount of the limitation provided by this section is the amount of
	tax the school district imposed for the 2014 tax year less an amount
	equal to the amount determined by multiplying $10,000 times the tax
	rate of the school district for the 2015 tax year, plus any 2015 tax
	attributable to improvements made in 2014, other than improvements
	made to comply with governmental regulations or repairs. If the
	first tax year the individual qualified the residence homestead for
	the exemption provided by Section 11.13(c) for individuals 65 years
	of age or older or disabled was a tax year before the 2018 tax year
	and the appraised value of the homestead for the 2018 tax year is
	more than $192,308, the amount of the limitation provided by this
	section is the amount of tax the school district imposed for the
	2017 tax year, less an amount equal to the amount computed by
	subtracting $25,000 from an amount equal to 13 percent of the
	appraised value of the homestead for the 2018 tax year and
	multiplying that amount by the tax rate of the school district for
	the 2018 tax year, plus any 2018 tax attributable to improvements
	made in 2017, other than improvements made to comply with
	governmental regulations or repairs. Except as provided by
	Subsection (b), a limitation on tax increases provided by this
	section on a residence homestead computed under this subsection
	continues to apply to the homestead in subsequent tax years until
	the limitation expires.
	SECTION 3.  Section 403.302(d), Government Code, 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, computed on the basis of an exemption of $25,000 of the
	appraised value of each residence homestead;
	(1-a) the total dollar amount of any residence
	homestead exemptions lawfully granted under Section 11.13(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), 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:
	(A)  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; or
	(B)  action taken by the district under Subchapter
	B or C, Chapter 313, Tax Code, before the expiration of the
	subchapter;
	(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; and
	(13)  the amount by which the market value of a
	residence homestead to which Section 23.23, Tax Code, applies
	exceeds the appraised value of that property as calculated under
	that section.
	SECTION 4.  The changes in law made by this Act to Sections
	11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
	begins on or after January 1, 2018.
	SECTION 5.  This Act takes effect January 1, 2018, but only
	if the constitutional amendment proposed by the 85th Legislature,
	1st Called Session, 2017, providing for an exemption from ad
	valorem taxation for public school purposes of $25,000 or 13
	percent, whichever is greater, of the market value of a residence
	homestead and providing for a reduction of the limitation on the
	total amount of ad valorem taxes that may be imposed for those
	purposes on the homestead of an elderly or disabled person to
	reflect any increase in the exemption amount is approved by the
	voters. If that constitutional amendment is not approved by the
	voters, this Act has no effect.