81R5867 JD-D
By: Bohac H.B. No. 1106
A BILL TO BE ENTITLED
AN ACT
relating to the limitation on increases in the appraised value of a
residence homestead for ad valorem taxation by certain school
districts and other taxing units in Harris County.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.23, Tax Code, is amended by amending
Subsection (a) and adding Subsections (g) and (h) to read as
follows:
(a) Except as provided by Subsection (g), notwithstanding
[Notwithstanding] the requirements of Section 25.18, and
regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an appraisal office may increase the appraised value of a
residence homestead for a tax year to an amount not to exceed the
lesser of:
(1) the market value of the property for the most
recent tax year that the market value was determined by the
appraisal office; or
(2) the sum of:
(A) for purposes of taxation by a school district
other than a junior college district, a majority of the territory of
which is located in Harris County, five percent of the appraised
value of the property for the preceding tax year, and for purposes
of taxation by any other taxing unit, 10 percent of the appraised
value of the property for the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
(g) The governing body of a taxing unit other than a school
district but including a junior college district, a majority of the
territory of which is located in Harris County, in the manner
required by law for official action, may at any time provide that
for purposes of taxation by the taxing unit in the following and
each subsequent tax year a lower percentage limitation on maximum
appraised value determined in the manner provided by Subsection
(a)(2) using five percent in place of 10 percent in Subsection
(a)(2)(A) will apply to the taxation of residence homesteads by the
taxing unit.
(h) Subsection (g) does not affect the appraised value of a
residence homestead for taxation by a taxing unit other than the
taxing unit whose governing body provides for the application of a
five percent limitation on maximum appraised value under that
subsection. If the governing body of the taxing unit sets the tax
rate for more than one taxing unit, an action by the governing body
under Subsection (g) does not apply to a taxing unit other than the
taxing unit whose governing body takes that action.
SECTION 2. Section 42.26(d), Tax Code, is amended to read as
follows:
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is a
residence homestead subject to a [the] limitation on appraised
value imposed by or established under Section 23.23.
SECTION 3. This Act applies only to the appraisal of a
residence homestead for ad valorem tax purposes for a tax year that
begins on or after January 1, 2010.
SECTION 4. This Act takes effect January 1, 2010, but only
if the constitutional amendment proposed by the 81st Legislature,
Regular Session, 2009, authorizing the legislature to establish for
purposes of ad valorem taxation by certain school districts in
Harris County a limit on the maximum appraised value of residence
homesteads of 105 percent of the appraised value of the property for
the preceding tax year and to permit certain other political
subdivisions in Harris County to establish a 105 percent limit on
the maximum appraised value of residence homesteads for ad valorem
taxation by those political subdivisions is approved by the voters.
If that amendment is not approved by the voters, this Act has no
effect.