| 1 | 1 | | 81R5996 SMH-D |
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| 2 | 2 | | By: Hegar S.B. No. 721 |
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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 temporary prohibition on increasing the appraised |
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| 8 | 8 | | value of a residence homestead for ad valorem tax purposes |
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| 9 | 9 | | following determination of a protest or appeal. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by |
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| 12 | 12 | | adding Section 23.04 to read as follows: |
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| 13 | 13 | | Sec. 23.04. TEMPORARY PROHIBITION ON INCREASING APPRAISED |
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| 14 | 14 | | VALUE OF RESIDENCE HOMESTEAD. (a) The appraised value of a |
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| 15 | 15 | | residence homestead may not exceed the appraised value of the |
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| 16 | 16 | | homestead for the preceding tax year if the appraised value of the |
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| 17 | 17 | | property as determined by the chief appraiser for the preceding tax |
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| 18 | 18 | | year was reduced: |
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| 19 | 19 | | (1) by the appraisal review board pursuant to a |
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| 20 | 20 | | protest filed under Chapter 41 and the board's determination was |
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| 21 | 21 | | not overturned on appeal; |
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| 22 | 22 | | (2) as a result of the final determination of an appeal |
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| 23 | 23 | | of an order of the appraisal review board determining a protest |
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| 24 | 24 | | under Chapter 41; or |
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| 25 | 25 | | (3) by the chief appraiser pursuant to an agreement |
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| 26 | 26 | | under Section 1.111(e)(1). |
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| 27 | 27 | | (b) This section does not apply to property: |
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| 28 | 28 | | (1) that does not qualify for an exemption under |
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| 29 | 29 | | Section 11.13 in the current tax year or did not qualify for an |
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| 30 | 30 | | exemption under that section in the preceding tax year; |
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| 31 | 31 | | (2) that was subject to this section in the preceding |
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| 32 | 32 | | tax year; or |
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| 33 | 33 | | (3) the appraised value of which as determined by the |
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| 34 | 34 | | chief appraiser for the preceding tax year was reduced in the manner |
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| 35 | 35 | | provided by Subsection (a) on the ground that the property was |
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| 36 | 36 | | appraised unequally. |
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| 37 | 37 | | (c) Subsection (a) does not prohibit an increase in |
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| 38 | 38 | | appraised value attributable to a new improvement, as defined by |
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| 39 | 39 | | Section 23.23(e). |
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| 40 | 40 | | (d) The appraised value of a residence homestead appraised |
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| 41 | 41 | | as provided by this section is considered to be the market value of |
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| 42 | 42 | | the property for purposes of the studies required by Chapter 5 of |
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| 43 | 43 | | this code and by Section 403.302, Government Code. A residence |
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| 44 | 44 | | homestead appraised as provided by this section may not be used as a |
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| 45 | 45 | | comparable property or a ratio study sample for the purpose of |
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| 46 | 46 | | determining whether another property is unequally appraised. |
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| 47 | 47 | | SECTION 2. This Act applies only to the appraisal of a |
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| 48 | 48 | | residence homestead for ad valorem tax purposes for a tax year |
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| 49 | 49 | | beginning on or after the effective date of this Act. |
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| 50 | 50 | | SECTION 3. This Act takes effect January 1, 2010. |
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