Texas 2009 - 81st Regular

Texas House Bill HB3613

Filed

Out of House Committee

4/9/09

Voted on by House

4/28/09

Out of Senate Committee

5/23/09

Voted on by Senate

5/25/09

Governor Action

6/19/09

Bill Becomes Law

Enrolled

6/2/09

Passed

6/19/09

Caption

Relating to the determination of the market value of a residence homestead for ad valorem tax purposes on the basis of the property's value as a residence homestead and to an exemption from ad valorem taxation of the residence homesteads of certain totally disabled veterans and to the amount of the exemption from ad valorem taxation to which a disabled veteran is entitled based on disability rating.

Impact

The bill proposes to amend Section 23.01 of the Texas Tax Code and includes a condition for its effectiveness that hinges on a constitutional amendment that was proposed during the 81st Legislature, Regular Session. If this amendment is approved by voters, HB3613 would fundamentally reshape how residence homesteads are valued for tax purposes. This change would apply to ad valorem tax years beginning on or after the bill's effective date.

Summary

House Bill 3613 addresses the determination of the market value of a residence homestead specifically for ad valorem tax purposes. The bill states that the market value will be calculated solely based on the property's value as a residence homestead, regardless of whether this use is considered the highest and best use of the property. This approach is aimed at providing more stability in property tax assessments for homeowners by preventing fluctuations based on market variations that do not reflect residential use.

Contention

Notably, the bill also encompasses provisions related to tax exemptions for residence homesteads owned by certain totally disabled veterans. It defines the amount of exemption based on the veteran's disability rating. Such provisions have been points of discussion as they aim to provide financial relief to disabled veterans, which is generally seen as a positive measure, yet may raise questions about the long-term implications on Texas's tax revenue structure.

Companion Bills

TX HJR36

Enabling for Proposing a constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property's value as a residence homestead; authorizing the legislature to authorize a single board of equalization for two or more adjoining appraisal entities that elect to provide for consolidated equalizations; and authorizing the legislature to provide for the administration and enforcement of uniform standards and procedures for appraisal of property for ad valorem tax purposes.

Previously Filed As

TX HB5293

Relating to the exemption from ad valorem taxation of the total appraised value of the residence homestead of the surviving spouse of a 100 percent or totally disabled veteran.

TX HB794

Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.

TX HB32

Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.