Relating to a one-time credit against the ad valorem taxes imposed by a taxing unit on the first property that a person purchases and qualifies as the person's residence homestead and to the effect of the credit on the determination of the taxable value of a school district.

89(R) HB 2133 - Introduced version - Bill Text

89R4787 LHC-F

By: Bhojani

H.B. No. 2133

A BILL TO BE ENTITLED

AN ACT

relating to a one-time credit against the ad valorem taxes imposed

by a taxing unit on the first property that a person purchases and

qualifies as the person's residence homestead and to the effect of

the credit on the determination of the taxable value of a school

district.

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

SECTION 1. Chapter 31, Tax Code, is amended by adding

Section 31.039 to read as follows:

Sec.

31.039.

TAX CREDIT FOR FIRST RESIDENCE HOMESTEAD.

(a)

In this section, "residence homestead" has the meaning assigned by

Section 11.13.

(b)

A person is entitled to a credit against the taxes

imposed by a taxing unit on the residence homestead of the person in

the first tax year following the year in which the person purchased

the property if the person has not previously qualified a property

as the person's residence homestead.

(c) The amount of the credit is equal to the lesser of:

(1)

the amount computed by multiplying $3,000 by a

fraction, the numerator of which is the amount of taxes imposed on

the residence homestead by the taxing unit and the denominator of

which is the total amount of taxes imposed on the residence

homestead by all of the taxing units that impose taxes on the

residence homestead; or

(2)

one-half of the amount of taxes imposed on the

residence homestead by the taxing unit.

(d)

To receive a credit under this section, a person must

file an application with the chief appraiser of the appraisal

district in which the property is located.

The application must

include an affidavit affirming that the applicant is qualified for

the credit. The application must be filed not later than the

deadline for filing an application for a residence homestead

exemption on the property for the tax year, including any provision

authorizing the filing of a late application.

(e)

The chief appraiser shall approve or deny an application

under this section for each taxing unit for which the appraisal

district appraises the property. A determination of the chief

appraiser is subject to protest and appeal in the same manner as a

determination to approve or deny an application for a residence

homestead exemption.

(f)

The chief appraiser shall forward a copy of the

application to the assessor for each taxing unit that imposes taxes

on the residence homestead and certify to the assessor whether the

chief appraiser has approved or denied the application.

(g)

The comptroller shall adopt rules for the

administration of this section, including rules prescribing the

documentation required to establish qualification for the credit.

(h)

A person who has previously received a credit under this

section may not receive a credit under this section in a subsequent

tax year.

SECTION 2. Section 403.302, Government Code, is amended by

adding Subsection (d-2) to read as follows:

(d-2)

For purposes of Subsection (d), taxable value does not

include an amount equal to the taxable value required to generate

revenue, when taxed at the school district's tax rate in the year

that is the subject of the study, in an amount that is equal to the

total amount of the credits provided by the district under Section

31.039, Tax Code, in that year.

SECTION 3. This Act applies only to ad valorem taxes imposed

for a tax year beginning on or after the effective date of this Act.

SECTION 4. This Act takes effect January 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, to authorize the legislature to provide for

a one-time credit against the ad valorem taxes imposed by a

political subdivision on the first property that a person purchases

and qualifies as the person's residence homestead and to provide

for the reimbursement of political subdivisions for the revenue

loss incurred as a result of the credit is approved by the voters.

If that amendment is not approved by the voters, this Act has no

effect.