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S.B. No. 163

AN ACT relating to an exemption from ad valorem taxation of the residence
homestead of the surviving spouse of a member of the armed services
of the United States who is killed in action.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.132 to read as follows:
Sec. 11.132. RESIDENCE HOMESTEAD OF SURVIVING SPOUSE OF
MEMBER OF ARMED SERVICES KILLED IN ACTION. (a) In this section:
(1) “Residence homestead” has the meaning assigned by
Section 11.13.
(2) “Surviving spouse” means the individual who was
married to a member of the armed services of the United States at
the time of the member’s death.
(b) The surviving spouse of a member of the armed services
of the United States who is killed in action is entitled to an
exemption from taxation of the total appraised value of the
surviving spouse’s residence homestead if the surviving spouse has
not remarried since the death of the member of the armed services.
(c) A surviving spouse who receives an exemption under
Subsection (b) for a residence homestead is entitled to receive an
exemption from taxation of a property that the surviving spouse
subsequently qualifies as the surviving spouse’s residence
homestead in an amount equal to the dollar amount of the exemption
from taxation of the first property for which the surviving spouse
received the exemption under Subsection (b) in the last year in
which the surviving spouse received that exemption if the surviving
spouse has not remarried since the death of the member of the armed
services. The surviving spouse is entitled to receive from the
chief appraiser of the appraisal district in which the first
property for which the surviving spouse claimed the exemption was
located a written certificate providing the information necessary
to determine the amount of the exemption to which the surviving
spouse is entitled on the subsequently qualified homestead.
SECTION 2. Subsection (c), Section 11.42, Tax Code, is
amended to read as follows:
(c) An exemption authorized by Section 11.13(c) or (d) or
11.132 is effective as of January 1 of the tax year in which the
person qualifies for the exemption and applies to the entire tax
year.
SECTION 3. Subsection (c), Section 11.43, Tax Code, is
amended to read as follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.17, 11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22,
11.23(h), (j), or (j-1), 11.231, 11.254, 11.29, 11.30, or 11.31,
once allowed, need not be claimed in subsequent years, and except as
otherwise provided by Subsection (e), the exemption applies to the
property until it changes ownership or the person’s qualification
for the exemption changes. However, the chief appraiser may
require a person allowed one of the exemptions in a prior year to
file a new application to confirm the person’s current
qualification for the exemption by delivering a written notice that
a new application is required, accompanied by an appropriate
application form, to the person previously allowed the exemption.
SECTION 4. Subsection (a), Section 11.431, Tax Code, is
amended to read as follows:
(a) The chief appraiser shall accept and approve or deny an
application for a residence homestead exemption, including an
exemption under Section 11.131 for the residence homestead of a
disabled veteran or the surviving spouse of a disabled veteran or an
exemption under Section 11.132 for the residence homestead of the
surviving spouse of a member of the armed services of the United
States who is killed in action, after the deadline for filing it has
passed if it is filed not later than one year after the delinquency
date for the taxes on the homestead.
SECTION 5. Subsection (b), Section 26.10, Tax Code, is
amended to read as follows:
(b) If the appraisal roll shows that a residence homestead
exemption under Section 11.13(c) or (d) or 11.132 [for an
individual 65 years of age or older or a residence homestead
exemption for a disabled individual] applicable to a property on
January 1 of a year terminated during the year and if the owner of
the property qualifies a different property for one of those
residence homestead exemptions during the same year, the tax due
against the former residence homestead is calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the former residence homestead for the entire year had
the owner [individual] qualified for the residence homestead
exemption for the entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the former residence homestead for the entire year had
the owner [individual] not qualified for the residence homestead
exemption during the year;
(2) multiplying the remainder determined under
Subdivision (1) by a fraction, the denominator of which is 365 and
the numerator of which is the number of days that elapsed after the
date the exemption terminated; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
SECTION 6. Section 26.112, Tax Code, is amended to read as
follows:
Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF
CERTAIN PERSONS [ELDERLY OR DISABLED PERSON]. (a) Except as
provided by Section 26.10(b), if at any time during a tax year
property is owned by an individual who qualifies for an exemption
under Section 11.13(c) or (d) or 11.132, the amount of the tax due
on the property for the tax year is calculated as if the individual
[person] qualified for the exemption on January 1 and continued to
qualify for the exemption for the remainder of the tax year.
(b) If an individual [a person] qualifies for an exemption
under Section 11.13(c) or (d) or 11.132 with respect to the property
after the amount of the tax due on the property is calculated and
the effect of the qualification is to reduce the amount of the tax
due on the property, the assessor for each taxing unit shall
recalculate the amount of the tax due on the property and correct
the tax roll. If the tax bill has been mailed and the tax on the
property has not been paid, the assessor shall mail a corrected tax
bill to the person in whose name the property is listed on the tax
roll or to the person’s authorized agent. If the tax on the
property has been paid, the tax collector for the taxing unit shall
refund to the person who paid the tax the amount by which the
payment exceeded the tax due.
SECTION 7. Subsection (d-1), Section 403.302, Government
Code, is amended to read as follows:
(d-1) For purposes of Subsection (d), a residence homestead
that receives an exemption under Section 11.131 or 11.132, Tax
Code, in the year that is the subject of the study is not considered
to be taxable property.
SECTION 8. Section 11.132, Tax Code, as added by this Act,
applies only to a tax year beginning on or after January 1, 2014.
SECTION 9. This Act takes effect January 1, 2014, but only
if the constitutional amendment proposed by the 83rd Legislature,
Regular Session, 2013, authorizing the legislature to provide for
an exemption from ad valorem taxation of all or part of the market
value of the residence homestead of the surviving spouse of a member
of the armed services of the United States who is killed in action
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.

______________________________ ______________________________
President of the Senate           Speaker of the House

I hereby certify that S.B. No. 163 passed the Senate on
May 1, 2013, by the following vote: Yeas 31, Nays 0; and that the
Senate concurred in House amendment on May 24, 2013, by the
following vote: Yeas 31, Nays 0.

______________________________
Secretary of the Senate

I hereby certify that S.B. No. 163 passed the House, with
amendment, on May 21, 2013, by the following vote: Yeas 146,
Nays 0, two present not voting.

______________________________
Chief Clerk of the House

Approved:

______________________________
Date

______________________________
Governor

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