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HomeMy WebLinkAboutCity Council Resolutions (R-03-2109)-03/04/2003 RESOLUTION R-03-2109 A RESOLUTION SUPPORTING LEGISLATION PROVIDING SUPPORT FOR HB 86 AND ALTERNATIVELY FOR A STATEWIDE ELECTION, TO APPLY TO ALL TAXING ENTITIES THAT PROPERTY TAX AND VALUATIONS ARE FROZEN FOR THOSE OWNERS OVER THE AGE OF 65, AS PROVIDED IN SECTION 11.26 OF THE STATE TAX CODE WHEREAS, current state law provides that School District property tax and valuations are frozen for those owners over the age of 65, as provided in Section 11 .26 of the state tax code; and WHEREAS, during the last several years, certain property owners have been supportive of the expansion of this tax code to apply to all taxing entities; and WHEREAS, the Northeast Tarrant County Senior Leadership is supportive of a statewide initiative to require a statewide election for November 2003 to freeze all taxing entities homestead tax and valuations for property owners over age 65; and WHEREAS, certain residents of Colleyville have requested the City Council to support this statewide election initiative; and WHEREAS, House of Representative McClendon has filed House Bill 86 mandating all taxing entities to provide for a freeze for property values and taxes for property owners over age 65; and, WHEREAS, the Texas legislature may consider legislation addressing over 65 property tax and valuations during the session. NOW, THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: Sec. 1. THAT the City of Colleyville strongly supports House Bill 86, as attached, providing for a freeze for both property valuation and taxes for owners 65 years and older. Sec. 2. THAT in the event that House Bill 86, (attached as Exhibit "A") fails, the City of Colleyville supports legislation providing for a statewide election, to apply to all taxing entities that property tax and valuations are frozen for those owners over the age of 65, as provided in Section 11.26 of the state tax code. Sec. 3. THAT a copy of this resolution be forwarded to all members of the Colleyville legislative delegation. Resolution R-03-2109 Page 2 of 2 AND IT IS SO RESOLVED: APPROVEO THIS 4ti DAY OF ~ 2003, BY A VOTE OF 5" AYES, 0 NAYS ANO 0 ABSTENTIONS. Crdit J~/~ Cynthia Singleton, TRMC City Secretary CITY OF COLLEYVILLE: ~ ATTEST: Mayor EXHIBIT "A" By: McClendon H.B, No. 86 A BILL TO BE ENTITLED AN ACT relating to taxes on the homesteads of the elderly. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 11.26, Tax Code, is amended to read as follows: Sec. 11.26. LIMITATION OF [SCHOOL] TAX ON HOMESTEADS OF ELDERL y~ (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 taxinq unit [sohool district] may not increase the total annual amount of ad valorem tax it imposes on the residence homestead of an individual 65 years or older above the amount of the tax it imposed in the first tax year in which the individual qualified that residence homestead for the exemption provided by Section 11.13(c) for an individual 65 years of age or older. 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 exemption for the next year, and if the taxinq unit [school distriot] taxes imposed on the residence homestead in the next year are less than the amount of taxes imposed in that first year, a taxinq unit [school distriot] 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 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) was a tax year before the 1997 tax year, the amount of the limitation provided by this section is the amount of tax the taxinq unit [school district] imposed for the 1996 tax year less an amount equal to the amount determined by multiplying $10,000 times the tax rate of the taxinq unit [sohool district] for the 1997 tax year, plus any 1997 tax attributable to improvements made in 1996, other than improvements made to comply with governmental regulations or repairs. (b) If an individual makes improvements to the individual's residence homestead, other than improvements required to comply with governmental requirements or repairs, the taxinq unit [66AeeI GistfiGt] may increase the tax on the homestead in the first year the value of the homestead is increased on the appraisal roll because of the enhancement of value by the improvements. The amount of the tax increase is determined by applying the current tax rate to the difference in the assessed value of the homestead with the improvements and the assessed value it would have had without the improvements, A limitation imposed by this section then applies to the increased amount of tax until more improvements, if any, are made. (c) The limitation on tax increases required by this section expires if on January 1: (1) none of the owners of the structure who qualify for the exemption and who owned the structure when the limitation first took effect is using the structure as a residence homestead; or (2) none of the owners of the structure qualifies for the exemption. (d) If the appraisal roll provides for taxation of appraised value for a prior year because a residence homestead exemption for persons 65 years or older was erroneously allowed, the tax assessor shall add, as back taxes due as provided by Subsection (d) of Section 26.09 of this code, the positive difference if any between the tax that should have been imposed for that year and the tax that was imposed because of the provisions of this section. (e) For each taxinq unit [school district] in an appraisal district, the chief appraiser shall determine the portion of the appraised value of residence homesteads of the elderly on which taxinq unit [school dictriot] taxes are not imposed in a tax year because of the limitation on tax increases imposed by this section. That portion is calculated by determining the taxable value that, if multiplied by the tax rate adopted by the taxinq unit [Gohool district] for the tax year, would produce an amount equal to the amount of tax that would have been imposed by the taxinq unit [school district] on residence homesteads of the elderly if the limitation on tax increases imposed by 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. (f) The limitation on tax increases required by this section does not expire because the owner of an interest in the structure conveys the interest to a qualifying trust as defined by Section 11.130) if the owner or the owner's spouse is a trustor of the trust and is entitled to occupy the structure, (g) Except as provided by Subsection (b), if an individual who receives a limitation on tax increases imposed by this section, including a surviving spouse who receives a limitation under Subsection (i), subsequently qualifies a different residence homestead for an exemption under Section 11.13, a taxinq unit [cchool district] may not impose ad valorem taxes on the subsequently qualified homestead in a year in an amount that exceeds the amount of taxes the taxinq unit [school district] would have imposed on the subsequently qualified homestead in the first year in which the individual receives that exemption for the subsequently qualified homestead had the limitation on tax increases imposed by this section not been in effect, multiplied by a fraction the numerator of which is the total amount of taxinq unit [cohool distriot] taxes imposed on the former homestead in the last year in which the individual received that exemption for the former homestead and the denominator of which is the total amount of taxinq unit [school district] taxes that would have been imposed on the former homestead in the last year in which the individual received that exemption for the former homestead had the limitation on tax increases imposed by this section not been in effect. (h) An individual who receives a limitation on tax increases under this section, including a surviving spouse who receives a limitation under Subsection (i), and who subsequently qualifies a different residence homestead for an exemption under Section 11.13, or an agent of the individual, is entitled to receive from the chief appraiser of the appraisal district in which the former homestead was located a written certificate providing the information necessary to determine whether the individual may qualify for a limitation on the subsequently qualified homestead under Subsection (g) and to calculate the amount of taxes the taxinq unit [school district] may impose on the subsequently qualified homestead. (i) If an individual who qualifies for the exemption provided by Section 11.13(c) for an individual 65 years of age or older dies, the surviving spouse of the individual is entitled to the limitation applicable to the residence homestead of the individual if: (1) the surviving spouse is 55 years of age or older when the individual dies; and (2) the residence homestead of the individual: (A) is the residence homestead of the surviving spouse on the date that the individual dies; and (8) remains the residence homestead of the surviving spouse. (j) If an individual who qualifies for an exemption provided by Section 11.13(c) for an individual 65 years of age or older dies in the first year in which the individual qualified for the exemption and the individual first qualified for the exemption after the beginning of that year, except as provided by Subsection (k), the amount to which the surviving spouse's taxinq unit [cohool dictriot] taxes are limited under Subsection (i) is the amount of taxinq unit [school district] taxes imposed on the residence homestead in that year determined as if the individual qualifying for the exemption had lived for the entire year. (k) If in the first tax year after the year in which an individual dies in the circumstances described by Subsection (j) the amount of taxinq unit [cohool dictrict] taxes imposed on the residence homestead of the surviving spouse is less than the amount of taxinq unit [school district] taxes imposed in the preceding year as limited by Subsection (j), in a subsequent tax year the surviving spouse's taxinq unit [school district] taxes on that residence homestead are limited to the amount of taxes imposed by the district in that first tax year after the year in which the individual dies. (I) For purposes of the limitation on tax increases provided by Subsection (g), the governing body of a taxinq unit [sohool district] in a county with a population of fewer than 75,000 in a manner provided by law for official action by the governing body may elect to apply the limitation provided by Subsection (g) to the residence homestead of an individual as if that subsection were in effect on January 1, 1993. The governing body must make the election before January 1, 1999. The election applies only to taxes imposed in a tax year that begins after the tax year in which the election is made. SECTION 2. This Act takes effect September 1, 2003.