85R9208 TJB-D     By: Neave H.B. No. 3584       A BILL TO BE ENTITLED   AN ACT   relating to a temporary limitation on the total amount of ad valorem   taxes that may be imposed by a taxing unit on a residence homestead   rendered uninhabitable or unusable as a result of a natural   disaster.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by   adding Section 11.262 to read as follows:          Sec. 11.262.  LIMITATION OF TAX ON HOMESTEADS DAMAGED IN   DISASTER AREA. (a) In this section, "residence homestead" has the   meaning assigned by Section 11.13.          (b)  This section applies only to a residence homestead that   is:                (1)  located in an area declared by the governor to be a   disaster area following a natural disaster; and                (2)  rendered uninhabitable or unusable as a result of   the disaster.          (c)  A taxing unit may not increase during the period   prescribed by Subsection (d) the total annual amount of ad valorem   taxes the taxing unit imposes on a residence homestead above the   amount of the taxes the taxing unit imposed on the residence   homestead for the tax year in which the residence homestead was   rendered uninhabitable or unusable as a result of a natural   disaster if:                (1)  the owner of the residence homestead submits an   application for the limitation to the chief appraiser of the   appraisal district in which the residence homestead is located not   later than the first anniversary of the date the residence   homestead is rendered uninhabitable or unusable; and                (2)  the chief appraiser determines that the residence   homestead was rendered uninhabitable or unusable as a result of the   natural disaster.          (d)  The limitation provided by this section:                (1)  takes effect on January 1 of the first tax year   following the tax year in which the natural disaster that renders   the residence homestead uninhabitable or unusable occurs; and                (2)  expires on January 1 of the earlier of:                       (A)  the first tax year following the tax year in   which the fifth anniversary of the natural disaster occurs; or                      (B)  the first tax year in which the property no   longer qualifies as the residence homestead of:                            (i)  the property owner claiming the   limitation under this section; or                            (ii)  the surviving spouse of the property   owner if the surviving spouse is entitled to the limitation under   this section.          (e)  If a property owner who qualifies for a limitation under   this section dies, the surviving spouse of the owner is entitled to   the limitation for the residence homestead of the owner for the   period prescribed by Subsection (d) if the residence homestead:                (1)  is the residence homestead of the surviving spouse   on the date that the owner dies; and                (2)  remains the residence homestead of the surviving   spouse.          (f)  This subsection applies only if a property owner submits   an application under this section to the chief appraiser after the   tax year in which the natural disaster occurs that renders the   owner's residence homestead uninhabitable or unusable and only if   the taxes imposed by a taxing unit on the residence homestead for   that tax year are greater than the taxes imposed by the taxing unit   for the preceding tax year. If the tax bill for the current tax year   has been mailed and the tax on the residence homestead has not been   paid, the assessor shall mail a corrected tax bill to the person in   whose name the residence homestead is listed on the tax roll or to   the person's authorized agent. If the tax on the residence   homestead for the current tax year has been paid, the tax collector   for the taxing unit shall refund to the person who paid the tax the   amount by which the payment exceeded the tax due.          (g)  For each school district in an appraisal district, the   chief appraiser shall determine the portion of the appraised value   of residence homesteads of individuals on which school district   taxes are not imposed in a tax year because of the limitation on tax   increases under this section. That portion is calculated by   determining the taxable value that, if multiplied by the tax rate   adopted by the school district for the tax year, would produce an   amount equal to the amount of tax that would have been imposed by   the school district on those homesteads if the limitation on tax   increases under this section were not in effect, but that was not   imposed because of that limitation. The chief appraiser shall   determine that taxable value and certify it to the comptroller as   soon as practicable for each tax year.          SECTION 2.  Sections 23.19(b) and (g), Tax Code, are amended   to read as follows:          (b)  If an appraisal district receives a written request for   the appraisal of real property and improvements of a cooperative   housing corporation according to the separate interests of the   corporation's stockholders, the chief appraiser shall separately   appraise the interests described by Subsection (d) if the   conditions required by Subsections (e) and (f) have been met.   Separate appraisal under this section is for the purposes of   administration of tax exemptions, determination of applicable   limitations of taxes under Section 11.26, [or] 11.261, or 11.262,   and apportionment by a cooperative housing corporation of property   taxes among its stockholders but is not the basis for determining   value on which a tax is imposed under this title. A stockholder   whose interest is separately appraised under this section may   protest and appeal the appraised value in the manner provided by   this title for protest and appeal of the appraised value of other   property.          (g)  A tax bill or a separate statement accompanying the tax   bill to a cooperative housing corporation for which interests of   stockholders are separately appraised under this section must   state, in addition to the information required by Section 31.01,   the appraised value and taxable value of each interest separately   appraised. Each exemption claimed as provided by this title by a   person entitled to the exemption shall also be deducted from the   total appraised value of the property of the corporation. The total   tax imposed by a taxing unit [school district, county,   municipality, or junior college district] shall be reduced by any   amount that represents an increase in taxes attributable to   separately appraised interests of the real property and   improvements that are subject to the limitation of taxes prescribed   by Section 11.26, [or] 11.261, or 11.262. The corporation shall   apportion among its stockholders liability for reimbursing the   corporation for property taxes according to the relative taxable   values of their interests.          SECTION 3.  Sections 26.012(6), (13), and (14), Tax Code,   are amended to read as follows:                (6)  "Current total value" means the total taxable   value of property listed on the appraisal roll for the current year,   including all appraisal roll supplements and corrections as of the   date of the calculation, less the taxable value of property   exempted for the current tax year for the first time under Section   11.31 or 11.315, except that:                      (A)  the current total value for a school district   excludes:                            (i)  the total value of homesteads that   qualify for a tax limitation as provided by Section 11.26; and                            (ii)  new property value of property that is   subject to an agreement entered into under Chapter 313; [and]                      (B)  the current total value for a county,   municipality, or junior college district excludes the total value   of homesteads that qualify for a tax limitation provided by Section   11.261 applicable to the taxing unit; and                      (C)  the current total value for a taxing unit   excludes the total value of homesteads that qualify for a tax   limitation provided by Section 11.262 applicable to the taxing   unit.                (13)  "Last year's levy" means the total of:                      (A)  the amount of taxes that would be generated   by multiplying the total tax rate adopted by the governing body in   the preceding year by the total taxable value of property on the   appraisal roll for the preceding year, including:                            (i)  taxable value that was reduced in an   appeal under Chapter 42; and                            (ii)  all appraisal roll supplements and   corrections other than corrections made pursuant to Section   25.25(d), as of the date of the calculation, except that last year's   taxable value for a school district excludes the total value of   homesteads that qualified for a tax limitation as provided by   Section 11.26, [and] last year's taxable value for a county,   municipality, or junior college district excludes the total value   of homesteads that qualified for a tax limitation as provided by   Section 11.261 applicable to the taxing unit, and last year's   taxable value for a taxing unit excludes the total value of   homesteads that qualified for a tax limitation as provided by   Section 11.262 applicable to the taxing unit; and                      (B)  the amount of taxes refunded by the taxing   unit in the preceding year for tax years before that year.                (14)  "Last year's total value" means the total taxable   value of property listed on the appraisal roll for the preceding   year, including all appraisal roll supplements and corrections,   other than corrections made pursuant to Section 25.25(d), as of the   date of the calculation, except that:                      (A)  last year's taxable value for a school   district excludes the total value of homesteads that qualified for   a tax limitation as provided by Section 11.26; [and]                      (B)  last year's taxable value for a county,   municipality, or junior college district excludes the total value   of homesteads that qualified for a tax limitation as provided by   Section 11.261 applicable to the taxing unit; and                      (C)  last year's taxable value for a taxing unit   excludes the total value of homesteads that qualified for a tax   limitation as provided by Section 11.262 applicable to the taxing   unit.          SECTION 4.  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 disabled persons or persons   65 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 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; and                (10)  contain the following statement in bold print:   "Under state law, the dollar amount of school taxes imposed on a   residence homestead rendered uninhabitable or unusable as a result   of a natural disaster may not for a temporary period be increased   above the amount of school taxes imposed on the property in the year   in which the natural disaster rendered the residence homestead   uninhabitable or unusable, regardless of changes in tax rate or   property value.".          SECTION 5.  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;                (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 or 11.262, 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 6.  The changes in law made by this Act apply only to   a residence homestead rendered uninhabitable or unusable by a   natural disaster that occurs on or after the effective date of this   Act.          SECTION 7.  This Act takes effect January 1, 2018, but only   if the constitutional amendment proposed by the 85th Legislature,   Regular Session, 2017, authorizing the legislature to limit for a   temporary period the total amount of ad valorem taxes that may be   imposed by a political subdivision on a residence homestead   rendered uninhabitable or unusable as a result of a natural   disaster is approved by the voters. If that amendment is not   approved by the voters, this Act has no effect.