81R1025 SMH-D
By: Creighton H.B. No. 1546
A BILL TO BE ENTITLED
AN ACT
relating to the authorization for a local option election in
Montgomery County to limit the maximum appraised value of a
residence homestead to 103 percent or more of the appraised value of
the property for the preceding tax year for purposes of ad valorem
taxation by each political subdivision all of the territory of
which is located in the 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) 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 commissioners court of Montgomery County may call an
election in the county to permit the voters of the county to
determine by majority vote whether a percentage limitation on
maximum appraised value determined in the manner provided by
Subsection (a)(2) using a percentage of not less than three percent
in place of the percentage specified by Subsection (a)(2)(A) will
apply to the taxation of a residence homestead by each taxing unit
all of the territory of which is located in the county. The
election shall be held on the date of the next general election for
state and county officers. The ballot proposition shall specify
the proposed percentage limitation on maximum appraised value. If
a majority of the votes cast at the election favor the establishment
of the proposed limitation, the limitation applies beginning with
the tax year following the year in which the election is held and
remains in effect until amended or repealed by the voters of the
county at a subsequent election called by the commissioners court
for that purpose. An election to amend or repeal a limitation must
be held on the date of the general election for state and county
officers. If the voters of the county amend or repeal a limitation,
the amendment or repeal applies beginning with the tax year after
the year in which the election is held. A limitation established
under this subsection applies to the taxation of all residence
homesteads by each taxing unit all of the territory of which is
located in the county.
(h) If in any tax year the limitation on maximum appraised
value provided by Subsection (a)(2) applies to a residence
homestead taxable by a taxing unit all of the territory of which is
located in Montgomery County and the voters of the county have
established for application in that tax year a limitation on
maximum appraised value under Subsection (g), the lower limitation
applies to the taxation of the residence homestead by the taxing
unit.
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, to authorize the legislature to provide for
a local option election in Montgomery County to limit the maximum
appraised value of a residence homestead to 103 percent or more of
the appraised value of the property for the preceding tax year for
purposes of ad valorem taxation by each political subdivision all
of the territory of which is located in the county is approved by
the voters. If that amendment is not approved by the voters, this
Act has no effect.