§ 7. AD VALOREM TAX

A.

TAX ADMINISTRATION

The administration of all ad valorem tax functions will be performed in accordance with the state property tax code, and should any provision of this section conflict therewith, the provisions of said state code shall prevail.

(Provision for inclusion of section 7, subsection A above provided for in ordinance adopting this Code of Ordinances.)

B.

TAX RATE

Ad valorem property taxes on all real and personal property located within the corporate limits of the City of Santa Fe, as of January 1, of the applicable tax year, shall be taxed at a rate to be fixed by ordinance annually by the Santa Fe City Council, subject to all exceptions and exemptions provided by the constitution and statutes of the State of Texas and subsection E of this section.

C.

ASSESSMENT

All property to be assessed under or in compliance with this section shall hereby be assessed at one hundred percent (100%) of the actual market value.

(Ordinance No. 13-79 of August 13, 1979, as amended)

D.

DUE DATE, DELINQUENCY, PENALTIES AND INTEREST

(1)

Ad valorem property taxes levied by the city council each year shall become due on the first day of October of the year for which the levy is made and may be paid up to the following January 31 without penalty. Such taxes shall be deemed delinquent if not paid on the following day, February 1. Penalty and interest shall accrue on delinquent taxes as provided for in the State Property Tax Code.

(Ordinance No. 19-82 of December 6, 1982)

(2)

A delinquent tax incurs a penalty of six percent (6%) of the amount of the tax for the first calendar month it is delinquent plus one percent (1%) for each additional month or portion of a month the tax remains unpaid prior to July 1 of the current year. However, a tax delinquent on July 1 of the current year incurs a total penalty of twelve percent (12%) of the amount of the delinquent tax without regard to the number of months the tax has been delinquent. A delinquent tax accrues interest at a rate of one percent (1%) for each month or portion of a month the tax remains unpaid.

(3)

An additional penalty of twenty percent (20%) of the amount of taxes, penalty, and interest due shall be charged if collection of the same has been placed in the hands of an attorney pursuant to the terms of Section 33.07 and Section 6.30 of the Property Tax Code.

(Ordinance No. 19-97 of September 11, 1997; Ordinance No. 18-2008 of Sept. 11, 2008, Sec. 7)

E.

EXEMPTIONS

The first fifteen thousand dollars ($15,000.00) of the market value of residence homesteads of persons, married or unmarried, including those living alone, who are under a disability for purposes of payment of disability insurance benefits under Federal Old Age, Survivors and Disability Insurance or its successors or of married or unmarried persons sixty-five (65) years of age or older, including those living alone, shall be exempt from all ad Valorem taxes hereby levied. An eligible disabled person who is sixty-five (65) years of age or older may not receive both exemptions in the same year but may choose either. Exemptions shall be allowed for disabled veterans, as defined by Section 2 of Article VIII of the Constitution of the State of Texas to the maximum extent as allowed thereby. All lands designated as agricultural lands under the provisions of Article VIII of the Constitution of the State of Texas shall be eligible for agricultural valuation.

(Ordinance No. 19-97 of September 11, 1997)

F.

RESERVED.

Editor's note— Ordinance No. 14-2002, adopted September 17, 2002, deleted Chapter 1, Section 7, Subsection F., in its entirety. Former Subsection F. pertained to "Election Required for Collection by Other Than City Employees" and derived from Ordinance No. 09-89 adopted November 9, 1989.

G.

TAXATION OF FREEPORT GOODS

The City of Santa Fe elects to tax that tangible personal property described in Article VIII, Section I-J, Subsection (a) of the Texas Constitution and Section 11.251, Texas Property Tax Code, known as "freeport goods," which would otherwise be exempt.

(Ordinance No. 06-90 of February 8, 1990)

Editor's note— See also Article 10 of Home Rule Charter.

H.

DEFINITIONS

(1)

Disabled has the same meaning as set forth in the Texas Tax Code Section 11.13(m)(1), as it currently exists or may be amended.

(2)

Residence homestead has the same meaning as set forth in the Texas Tax Code Section 11.13(j)(1), as it currently exists or may be amended.

(3)

Tax Code means the Texas Tax Code, as it currently exists or may be amended.

(Ordinance No. 06-2004 of March 11, 2004, Sec. 2)

I.

RESIDENCE HOMESTEAD TAX FREEZE FOR ELDERLY OR DISABLED PEOPLE

There is hereby created and established a tax freeze on the amount of property taxes imposed by the City of Santa Fe on the homesteads of disabled individuals or individuals age sixty-five (65) or older, which shall be governed by Texas Tax Code Section 11.261, as follows:

(1)

The tax freeze shall become effective beginning with the 2004 tax year and shall remain effective for each successive tax year until otherwise amended or repealed by the City Council or other appropriate authority.

(2)

The total amount of ad valorem taxes imposed on the residence homesteads of a person who qualified that residence homestead for the exemption in accordance with the Tax Code as that of a person who is disabled or is sixty-five (65) years of age or older shall not be increased while it remains the residence homestead of that person or that person's spouse who is disabled or sixty-five (65) years of age or older.

(3)

If the person who is disabled or is sixty-five (65) years of age or older dies in a year in which the person received a residence homestead exemption, the total amount of ad valorem taxes imposed on the residence homestead shall not be increased while it remains the residence homestead of that person's surviving spouse if (i) the surviving spouse is fifty-five (55) years of age or older at the time of the person's death; (ii) the residence homestead of the deceased person is also the residence homestead of the surviving spouse on the date of the person's death; and (iii) the residence homestead remains the residence homestead of the surviving spouse.

(4)

Notwithstanding anything contained herein, taxes on the residence homestead may be increased to the extent the value of the homestead is increased by improvements other than repairs and other than improvements made to comply with governmental requirements.

(5)

A person may not receive freeze taxes for more than one (1) residence homestead, no matter where located, in the same year. A person may designate a new residence homestead within the City in accordance with the Tax Code.

(6)

The limitation on taxes provided by this Subsection may expire in accordance with Texas Tax Code Section 11.261(d). If a tax limitation is erroneously allowed, back taxes may be assessed in accordance with Texas Tax Code Section 11.261(e).

(Ordinance No. 06-2004 of March 11, 2004, Sec. 3)