Texas SB 12: Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate.

Bill Text

By:AABettencourt, et al. S.B.ANo.A12
A BILL TO BE ENTITLED
AN ACT
relating to the reduction of the amount of a limitation on the total
amount of ad valorem taxes that may be imposed by a school district
on the residence homestead of an individual who is elderly or
disabled to reflect any reduction from the preceding tax year in the
district’s maximum compressed rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTIONA1.AASection 11.26, Tax Code, is amended by adding
Subsections (a-4), (a-5), (a-6), (a-7), (a-8), and (a-9) to read as
follows:
(a-4)AAIn this section, "maximum compressed rate" means the
maximum compressed rate of a school district as calculated under
Section 48.2551, Education Code.
(a-5)AANotwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual’s
residence homestead and the first tax year the individual or the
individual’s spouse qualified for an exemption under Section
11.13(c) for the same homestead was a tax year before the 2019 tax
year, the amount of the limitation provided by this section on the
homestead in the 2022 tax year is equal to the amount computed by:
(1)AAmultiplying the taxable value of the homestead in
the 2018 tax year by a tax rate equal to the difference between the
school district’s tier one maintenance and operations rate for the
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2018 tax year and the district’s maximum compressed rate for the
2019 tax year;
(2)AAsubtracting the greater of zero or the amount
computed under Subdivision (1) from the amount of tax the district
imposed on the homestead in the 2018 tax year;
(3)AAadding any tax imposed in the 2019 tax year
attributable to improvements made in the 2018 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
(4)AAmultiplying the taxable value of the homestead in
the 2019 tax year by a tax rate equal to the difference between the
district’s maximum compressed rate for the 2019 tax year and the
district’s maximum compressed rate for the 2020 tax year;
(5)AAsubtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3);
(6)AAadding any tax imposed in the 2020 tax year
attributable to improvements made in the 2019 tax year as provided
by Subsection (b) to the amount computed under Subdivision (5);
(7)AAmultiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
district’s maximum compressed rate for the 2020 tax year and the
district’s maximum compressed rate for the 2021 tax year;
(8)AAsubtracting the amount computed under Subdivision
(7) from the amount computed under Subdivision (6);
(9)AAadding any tax imposed in the 2021 tax year
attributable to improvements made in the 2020 tax year as provided
by Subsection (b) to the amount computed under Subdivision (8);
(10)AAmultiplying the taxable value of the homestead in
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S.B.ANo.A12
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the 2021 tax year by a tax rate equal to the difference between the
district’s maximum compressed rate for the 2021 tax year and the
district’s maximum compressed rate for the 2022 tax year;
(11)AAsubtracting the amount computed under
Subdivision (10) from the amount computed under Subdivision (9);
and
(12)AAadding any tax imposed in the 2022 tax year
attributable to improvements made in the 2021 tax year as provided
by Subsection (b) to the amount computed under Subdivision (11).
(a-6)AANotwithstanding the other provisions of this section,
if in the 2022 tax year an individual qualifies for a limitation on
tax increases provided by this section on the individual’s
residence homestead and the first tax year the individual or the
individual’s spouse qualified for an exemption under Section
11.13(c) for the same homestead was the 2019 tax year, the amount of
the limitation provided by this section on the homestead in the 2022
tax year is equal to the amount computed by:
(1)AAmultiplying the taxable value of the homestead in
the 2019 tax year by a tax rate equal to the difference between the
school district’s maximum compressed rate for the 2019 tax year and
the district’s maximum compressed rate for the 2020 tax year;
(2)AAsubtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the 2019 tax year;
(3)AAadding any tax imposed in the 2020 tax year
attributable to improvements made in the 2019 tax year as provided
by Subsection (b) to the amount computed under Subdivision (2);
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S.B.ANo.A12
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(4)AAmultiplying the taxable value of the homestead in
the 2020 tax year by a tax rate equal to the difference between the
district’s maximum compressed rate for the 2020 tax year and the
district’s maximum compressed rate for the