81R1795 SMH-D
By: Riddle H.B. No. 46
A BILL TO BE ENTITLED
AN ACT
relating to a local option election in a county to set a limit on the
maximum appraised value of a residence homestead for ad valorem tax
purposes of less than 110 percent but not less than 103 percent of
the appraised value of the property for the preceding tax year.
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 Subsection (g) 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 a county may call an election
in the county to permit the voters of the county to determine by
majority vote whether a lower percentage limitation on maximum
appraised value determined in the manner provided by Subsection
(a)(2) using a percentage of less than 10 percent but not less than
three percent in place of 10 percent in Subsection (a)(2)(A) will
apply to the taxation of residence homesteads in the county by each
taxing unit having territory in the county. The election must be
held on or before 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remains in effect until amended or repealed by the voters of the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
of the county. An election called to amend or repeal a limitation
must be held on or before the date of the next general election for
state and county officers. If the voters of a 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 adopted under this subsection applies to the taxation of
residence homesteads in the county by each taxing unit having
territory in the county, except that if a taxing unit has territory
in more than one county, the highest percentage limitation on
maximum appraised value otherwise applicable in any portion of the
territory of the taxing unit applies to the taxation of residence
homesteads by the taxing unit throughout that taxing unit's
territory.
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 the limitation on appraised value
imposed by or authorized 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 provide for a
local option election in a county to set a limit on the maximum
appraised value of a residence homestead for ad valorem tax
purposes of less than 110 percent but not less than 103 percent of
the appraised value of the property for the preceding tax year is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.