84R7163 TJB-F
	By: Turner of Harris	H.B. No. 1518

	A BILL TO BE ENTITLED
	AN ACT
	relating to the authority of the governing body of a taxing unit to
	adopt a local option residence homestead 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(n), Tax Code, is amended to read as
	follows:
	(n)  The [In addition to any other exemptions provided by
	this section, an individual is entitled to an exemption from
	taxation by a taxing unit of a percentage of the appraised value of
	his residence homestead if the exemption is adopted by the]
	governing body of a [the] taxing unit, [before July 1] in the manner
	provided by law for official action by the body, may adopt an
	exemption from taxation by the taxing unit of either a percentage of
	the appraised value of an individual's residence homestead or a
	portion, expressed as a dollar amount, of the appraised value of an
	individual's residence homestead, but not both. 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 a
	percentage exemption and the percentage set by the body [taxing
	unit] produces an exemption in a tax year of less than $5,000 when
	applied to a particular residence homestead, the individual is
	entitled to an exemption of $5,000 of the appraised value. A [The]
	percentage exemption adopted by the governing body [taxing unit]
	may not exceed 20 percent. If the governing body adopts an
	exemption of a portion, expressed as a dollar amount, of the
	appraised value of a residence homestead, 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 42.2516(f-1), Education Code, is amended
	to read as follows:
	(f-1)  The commissioner shall, in accordance with rules
	adopted by the commissioner, adjust the amount of a school
	district's local revenue derived from maintenance and operations
	tax collections, as calculated for purposes of determining the
	amount of state revenue to which the district is entitled under this
	section, if the district, for the 2010 tax year or a subsequent tax
	year:
	(1)  adopts a percentage [an] exemption under Section
	11.13(n), Tax Code, that was not in effect for the 2009 tax year, or
	eliminates an exemption under Section 11.13(n), Tax Code, that was
	in effect for the 2009 tax year;
	(2)  adopts a percentage [an] exemption under Section
	11.13(n), Tax Code, at a greater or lesser percentage than the
	percentage in effect for the district for the 2009 tax year;
	(3)  grants an exemption under an agreement authorized
	by Chapter 312, Tax Code, that was not in effect for the 2009 tax
	year, or ceases to grant an exemption authorized by that chapter
	that was in effect for the 2009 tax year; or
	(4)  agrees to deposit taxes into a tax increment fund
	created under Chapter 311, Tax Code, under a reinvestment zone
	financing plan that was not in effect for the 2009 tax year, or
	ceases depositing taxes into a tax increment fund created under
	that chapter under a reinvestment zone financing plan that was in
	effect for the 2009 tax year.
	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;
	(2)  one-half of the total dollar amount of any
	residence homestead percentage 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.  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 5.  This Act takes effect January 1, 2016, but only
	if the constitutional amendment proposed by the 84th Legislature,
	Regular Session, 2015, authorizing the governing body of a
	political subdivision to adopt a local option residence homestead
	exemption from ad valorem taxation of a portion, expressed as a
	dollar amount, of the market value of an individual's residence
	homestead is approved by the voters. If that amendment is not
	approved by the voters, this Act has no effect.