| 1 | 1 | | 81R1795 SMH-D |
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| 2 | 2 | | By: Riddle H.B. No. 46 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a local option election in a county to set a limit on the |
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| 8 | 8 | | maximum appraised value of a residence homestead for ad valorem tax |
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| 9 | 9 | | purposes of less than 110 percent but not less than 103 percent of |
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| 10 | 10 | | the appraised value of the property for the preceding tax year. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 23.23, Tax Code, is amended by amending |
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| 13 | 13 | | Subsection (a) and adding Subsection (g) to read as follows: |
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| 14 | 14 | | (a) Except as provided by Subsection (g), notwithstanding |
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| 15 | 15 | | [Notwithstanding] the requirements of Section 25.18, and |
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| 16 | 16 | | regardless of whether the appraisal office has appraised the |
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| 17 | 17 | | property and determined the market value of the property for the tax |
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| 18 | 18 | | year, an appraisal office may increase the appraised value of a |
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| 19 | 19 | | residence homestead for a tax year to an amount not to exceed the |
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| 20 | 20 | | lesser of: |
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| 21 | 21 | | (1) the market value of the property for the most |
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| 22 | 22 | | recent tax year that the market value was determined by the |
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| 23 | 23 | | appraisal office; or |
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| 24 | 24 | | (2) the sum of: |
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| 25 | 25 | | (A) 10 percent of the appraised value of the |
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| 26 | 26 | | property for the preceding tax year; |
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| 27 | 27 | | (B) the appraised value of the property for the |
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| 28 | 28 | | preceding tax year; and |
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| 29 | 29 | | (C) the market value of all new improvements to |
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| 30 | 30 | | the property. |
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| 31 | 31 | | (g) The commissioners court of a county may call an election |
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| 32 | 32 | | in the county to permit the voters of the county to determine by |
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| 33 | 33 | | majority vote whether a lower percentage limitation on maximum |
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| 34 | 34 | | appraised value determined in the manner provided by Subsection |
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| 35 | 35 | | (a)(2) using a percentage of less than 10 percent but not less than |
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| 36 | 36 | | three percent in place of 10 percent in Subsection (a)(2)(A) will |
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| 37 | 37 | | apply to the taxation of residence homesteads in the county by each |
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| 38 | 38 | | taxing unit having territory in the county. The election must be |
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| 39 | 39 | | held on or before the date of the next general election for state |
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| 40 | 40 | | and county officers. The ballot proposition shall specify the |
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| 41 | 41 | | proposed percentage limitation on maximum appraised value. If a |
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| 42 | 42 | | majority of the votes cast at the election favor the establishment |
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| 43 | 43 | | of the proposed limitation, the limitation applies beginning with |
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| 44 | 44 | | the tax year following the year in which the election is held and |
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| 45 | 45 | | remains in effect until amended or repealed by the voters of the |
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| 46 | 46 | | county at a subsequent election called by the commissioners court |
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| 47 | 47 | | of the county. An election called to amend or repeal a limitation |
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| 48 | 48 | | must be held on or before the date of the next general election for |
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| 49 | 49 | | state and county officers. If the voters of a county amend or |
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| 50 | 50 | | repeal a limitation, the amendment or repeal applies beginning with |
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| 51 | 51 | | the tax year after the year in which the election is held. A |
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| 52 | 52 | | limitation adopted under this subsection applies to the taxation of |
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| 53 | 53 | | residence homesteads in the county by each taxing unit having |
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| 54 | 54 | | territory in the county, except that if a taxing unit has territory |
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| 55 | 55 | | in more than one county, the highest percentage limitation on |
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| 56 | 56 | | maximum appraised value otherwise applicable in any portion of the |
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| 57 | 57 | | territory of the taxing unit applies to the taxation of residence |
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| 58 | 58 | | homesteads by the taxing unit throughout that taxing unit's |
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| 59 | 59 | | territory. |
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| 60 | 60 | | SECTION 2. Section 42.26(d), Tax Code, is amended to read as |
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| 61 | 61 | | follows: |
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| 62 | 62 | | (d) For purposes of this section, the value of the property |
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| 63 | 63 | | subject to the suit and the value of a comparable property or sample |
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| 64 | 64 | | property that is used for comparison must be the market value |
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| 65 | 65 | | determined by the appraisal district when the property is a |
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| 66 | 66 | | residence homestead subject to the limitation on appraised value |
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| 67 | 67 | | imposed by or authorized under Section 23.23. |
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| 68 | 68 | | SECTION 3. This Act applies only to the appraisal of a |
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| 69 | 69 | | residence homestead for ad valorem tax purposes for a tax year that |
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| 70 | 70 | | begins on or after January 1, 2010. |
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| 71 | 71 | | SECTION 4. This Act takes effect January 1, 2010, but only |
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| 72 | 72 | | if the constitutional amendment proposed by the 81st Legislature, |
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| 73 | 73 | | Regular Session, 2009, authorizing the legislature to provide for a |
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| 74 | 74 | | local option election in a county to set a limit on the maximum |
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| 75 | 75 | | appraised value of a residence homestead for ad valorem tax |
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| 76 | 76 | | purposes of less than 110 percent but not less than 103 percent of |
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| 77 | 77 | | the appraised value of the property for the preceding tax year is |
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| 78 | 78 | | approved by the voters. If that amendment is not approved by the |
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| 79 | 79 | | voters, this Act has no effect. |
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