bill extending homestead exemptions to caregivers of disabled people

The text as introduced · 4,174 words

89R202 TJB-D

By: Raymond
H.B. No. 1548

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation by certain taxing

units of a portion of the appraised value of the residence homestead

of the parent or guardian of a person who is disabled and who

resides with the parent or guardian.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 11.13, Tax Code, is amended by amending

Subsections (c), (d), and (h) and adding Subsection (d-1) to read as

follows:

(c) In addition to the exemption provided by Subsection (b)

[ of this section ], an individual [ adult ] who is disabled , is the

parent or guardian of a person who is disabled and who resides with

the parent or guardian, or is 65 years of age or older is entitled to

an exemption from taxation by a school district of $10,000 of the

appraised value of the individual's [ his ] residence homestead.

(d) In addition to the exemptions provided by Subsections

(b) and (c) [ of this section ], an individual who is disabled , is the

parent or guardian of a person who is disabled and who resides with

the parent or guardian, or is 65 years of age or older is entitled to

an exemption from taxation by a taxing unit of the [ a ] portion

determined [ (the amount of which is fixed ] as provided by

Subsection (e) [ of this section) ] of the appraised value of the

individual's [ his ] residence homestead if the exemption is adopted

by [ either ]:

(1) [ by ] the governing body of the taxing unit; or

(2) [ by ] a favorable vote of a majority of the

qualified voters of the taxing unit at an election called by the

governing body of the [ a ] taxing unit .

(d-1) The [ , and the ] governing body of a taxing unit shall

call an [ the ] election described by Subsection (d)(2) on the

petition of at least 20 percent of the number of qualified voters

who voted in the preceding election of the taxing unit.

(h) Joint, community, or successive owners may not each

receive the same exemption provided by or pursuant to this section

for the same residence homestead in the same tax year. An individual

who is eligible for more than one [ disabled person who is 65 or

older may not receive both a disabled and an elderly residence

homestead ] exemption under Subsection (c) or more than one

exemption under Subsection (d) from the same taxing unit in the same

tax year is entitled to [ but may ] choose and receive from that

taxing unit in that tax year only one exemption under each of those

subsections [ either if a taxing unit has adopted both ]. An

individual who is eligible for more than one [ disabled person who is

65 or older may receive both a disabled and an elderly residence

homestead ] exemption under Subsection (c) or (d) in the same tax

year is entitled to receive each of those exemptions if the person

receives the exemptions with respect to taxes levied by different

taxing units. A person may not receive an exemption under this

section for more than one residence homestead in the same tax year.

An heir property owner who qualifies heir property as the owner's

residence homestead under this chapter is considered the sole

recipient of any exemption granted to the owner for the residence

homestead by or pursuant to this section.

SECTION 2. Section 25.19(l), Tax Code, is amended to read as

follows:

(l) In addition to the information required by Subsection

(b), the chief appraiser shall include with a notice required by

Subsection (a) a brief explanation of each total or partial

exemption of property from taxation required or authorized by this

title that is available to:

(1) a disabled veteran or the veteran's surviving

spouse or child;

(2) an individual who is 65 years of age or older or

the individual's surviving spouse;

(3) an individual who is disabled or the individual's

surviving spouse;

(4) an individual who is the parent or guardian of a

person who is disabled and who resides with the parent or guardian;

(5) the surviving spouse of a member of the armed

services of the United States who is killed in action; or

(6) [ (5) ] the surviving spouse of a first responder

who is killed or fatally injured in the line of duty.

SECTION 3. Section 26.062(h), Tax Code, is amended to read

as follows:

(h) In calculating the average taxable value of a residence

homestead in the taxing unit for the preceding tax year and the

current tax year for purposes of Subsections (e) and (f), any

residence homestead exemption available only to individuals who are

disabled [ persons ], are the parents or guardians of persons who are

disabled and who reside with the parents or guardians, or are

[ persons ] 65 years of age or older[ , ] or their surviving spouses

must be disregarded.

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." In addition, in reduced type, the

notice must state: "Visit Texas.gov/PropertyTaxes to find a link to

your local property tax database on which you can easily access

information regarding your property taxes, including information

about proposed tax rates and scheduled public hearings of each

entity that taxes your property.";

(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 48, would provide the

same amount of maintenance and operations taxes and state funds

distributed under Chapter 48 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 43, 46, and 48 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 individuals who are

disabled , are the parents or guardians of persons who are disabled

and who reside with the parents or guardians, [ persons ] or are

[ 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 Voter-Approval Rate: The highest tax rate the district

can adopt before requiring voter approval at an election is (the

school district voter-approval rate determined under Section

26.08, Tax Code). This election will be automatically held if the

district adopts a rate in excess of the voter-approval rate of (the

school district voter-approval 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 48 in

the succeeding school year.

SECTION 5. Section 49.236(a), Water Code, is amended to

read as follows:

(a) Before the board adopts an ad valorem tax rate for the

district for debt service, operation and maintenance purposes, or

contract purposes, the board shall give notice of each meeting of

the board at which the adoption of a tax rate will be considered.

The notice must:

(1) contain a statement in substantially the following

form:

"NOTICE OF PUBLIC HEARING ON TAX RATE

"The (name of the district) will hold a public hearing on a

proposed tax rate for the tax year (year of tax levy) on (date and

time) at (meeting place). Your individual taxes may increase at a

greater or lesser rate, or even decrease, depending on the tax rate

that is adopted and on the change in the taxable value of your

property in relation to the change in taxable value of all other

property. The change in the taxable value of your property in

relation to the change in the taxable value of all other property

determines the distribution of the tax burden among all property

owners.

"Visit Texas.gov/PropertyTaxes to find a link to your local

property tax database on which you can easily access information

regarding your property taxes, including information about

proposed tax rates and scheduled public hearings of each entity

that taxes your property.

"(Names of all board members and, if a vote was taken, an

indication of how each voted on the proposed tax rate and an

indication of any absences.)";

(2) contain the following information:

(A) the district's total adopted tax rate for the

preceding year and the proposed tax rate, expressed as an amount per

$100;

(B) the difference, expressed as an amount per

$100 and as a percent increase or decrease, as applicable, in the

proposed tax rate compared to the adopted tax rate for the preceding

year;

(C) the average appraised value of a residence

homestead in the district in the preceding year and in the current

year; the district's total homestead exemption, other than an

exemption available only to individuals who are disabled , are the

parents or guardians of persons who are disabled and who reside with

the parents or guardians, [ persons ] or are [ persons ] 65 years of age

or older, applicable to that appraised value in each of those years;

and the average taxable value of a residence homestead in the

district in each of those years, disregarding any homestead

exemption available only to individuals who are disabled , are the

parents or guardians of persons who are disabled and who reside with

the parents or guardians, [ persons ] or are [ persons ] 65 years of age

or older;

(D) the amount of tax that would have been

imposed by the district in the preceding year on a residence

homestead appraised at the average appraised value of a residence

homestead in that year, disregarding any homestead exemption

available only to individuals who are disabled , are the parents or

guardians of persons who are disabled and who reside with the

parents or guardians, [ persons ] or are [ persons ] 65 years of age or

older;

(E) the amount of tax that would be imposed by the

district in the current year on a residence homestead appraised at

the average appraised value of a residence homestead in that year,

disregarding any homestead exemption available only to individuals

who are disabled , are the parents or guardians of persons who are

disabled and who reside with the parents or guardians, [ persons ] or

are [ persons ] 65 years of age or older, if the proposed tax rate is

adopted;

(F) the difference between the amounts of tax

calculated under Paragraphs (D) and (E), expressed in dollars and

cents and described as the annual percentage increase or decrease,

as applicable, in the tax to be imposed by the district on the

average residence homestead in the district in the current year if

the proposed tax rate is adopted; and

(G) if the proposed combined debt service,

operation and maintenance, and contract tax rate requires or

authorizes an election to approve or reduce the tax rate, as

applicable, a description of the purpose of the proposed tax

increase;

(3) contain a statement in substantially the following

form, as applicable:

(A) if the district is a district described by

Section 49.23601:

"NOTICE OF VOTE ON TAX RATE

"If the district adopts a combined debt service, operation

and maintenance, and contract tax rate that would result in the

taxes on the average residence homestead increasing by more than

eight percent, an election must be held to determine whether to

approve the operation and maintenance tax rate under Section

49.23601, Water Code.";

(B) if the district is a district described by

Section 49.23602:

"NOTICE OF VOTE ON TAX RATE

"If the district adopts a combined debt service, operation

and maintenance, and contract tax rate that would result in the

taxes on the average residence homestead increasing by more than

3.5 percent, an election must be held to determine whether to

approve the operation and maintenance tax rate under Section

49.23602, Water Code."; or

(C) if the district is a district described by

Section 49.23603:

"NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE TAX RATE

"If the district adopts a combined debt service, operation

and maintenance, and contract tax rate that would result in the

taxes on the average residence homestead increasing by more than

eight percent, the qualified voters of the district by petition may

require that an election be held to determine whether to reduce the

operation and maintenance tax rate to the voter-approval tax rate

under Section 49.23603, Water Code."; and

(4) include the following statement: "The 86th Texas

Legislature modified the manner in which the voter-approval tax

rate is calculated to limit the rate of growth of property taxes in

the state.".

SECTION 6. Sections 49.23601(a) and (c), Water Code, are

amended to read as follows:

(a) In this section, "voter-approval tax rate" means the

rate equal to the sum of the following tax rates for the district:

(1) the current year's debt service tax rate;

(2) the current year's contract tax rate; and

(3) the operation and maintenance tax rate that would

impose 1.08 times the amount of the operation and maintenance tax

imposed by the district in the preceding year on a residence

homestead appraised at the average appraised value of a residence

homestead in the district in that year, disregarding any homestead

exemption available only to individuals who are disabled , are the

parents or guardians of persons who are disabled and who reside with

the parents or guardians, [ persons ] or are [ persons ] 65 years of age

or older.

(c) If the board of a district adopts a combined debt

service, contract, and operation and maintenance tax rate that

would impose more than 1.08 times the amount of tax imposed by the

district in the preceding year on a residence homestead appraised

at the average appraised value of a residence homestead in the

district in that year, disregarding any homestead exemption

available only to individuals who are disabled , are the parents or

guardians of persons who are disabled and who reside with the

parents or guardians, [ persons ] or are [ persons ] 65 years of age or

older, an election must be held in accordance with the procedures

provided by Sections 26.07(c)-(g), Tax Code, to determine whether

to approve the adopted tax rate. If the adopted tax rate is not

approved at the election, the district's tax rate is the

voter-approval tax rate.

SECTION 7. Sections 49.23602(a)(2) and (4), Water Code, are

amended to read as follows:

(2) "Mandatory tax election rate" means the rate equal

to the sum of the following tax rates for the district:

(A) the rate that would impose 1.035 times the

amount of tax imposed by the district in the preceding year on a

residence homestead appraised at the average appraised value of a

residence homestead in the district in that year, disregarding any

homestead exemption available only to individuals who are disabled ,

are the parents or guardians of persons who are disabled and who

reside with the parents or guardians, [ persons ] or are [ persons ] 65

years of age or older; and

(B) the unused increment rate.

(4) "Voter-approval tax rate" means the rate equal to

the sum of the following tax rates for the district:

(A) the current year's debt service tax rate;

(B) the current year's contract tax rate;

(C) the operation and maintenance tax rate that

would impose 1.035 times the amount of the operation and

maintenance tax imposed by the district in the preceding year on a

residence homestead appraised at the average appraised value of a

residence homestead in the district in that year, disregarding any

homestead exemption available only to individuals who are disabled ,

are the parents or guardians of persons who are disabled and who

reside with the parents or guardians, [ persons ] or are [ persons ] 65

years of age or older; and

(D) the unused increment rate.

SECTION 8. Sections 49.23603(a) and (c), Water Code, are

amended to read as follows:

(a) In this section, "voter-approval tax rate" means the

rate equal to the sum of the following tax rates for the district:

(1) the current year's debt service tax rate;

(2) the current year's contract tax rate; and

(3) the operation and maintenance tax rate that would

impose 1.08 times the amount of the operation and maintenance tax

imposed by the district in the preceding year on a residence

homestead appraised at the average appraised value of a residence

homestead in the district in that year, disregarding any homestead

exemption available only to individuals who are disabled , are the

parents or guardians of persons who are disabled and who reside with

the parents or guardians, [ persons ] or are [ persons ] 65 years of age

or older.

(c) If the board of a district adopts a combined debt

service, contract, and operation and maintenance tax rate that

would impose more than 1.08 times the amount of tax imposed by the

district in the preceding year on a residence homestead appraised

at the average appraised value of a residence homestead in the

district in that year, disregarding any homestead exemption

available only to individuals who are disabled , are the parents or

guardians of persons who are disabled and who reside with the

parents or guardians, [ persons ] or are [ persons ] 65 years of age or

older, the qualified voters of the district by petition may require

that an election be held to determine whether to reduce the tax rate

adopted for the current year to the voter-approval tax rate in

accordance with the procedures provided by Sections 26.075 and

26.081, Tax Code.

SECTION 9. 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 10. This Act takes effect January 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, to provide for an exemption from ad valorem

taxation by certain political subdivisions of a portion of the

market value of the residence homestead of the parent or guardian of

a person who is disabled and who resides with the parent or guardian

is approved by the voters. If that amendment is not approved by the

voters, this Act has no effect.