Texas 2015 - 84th Regular

Texas House Bill HB1884 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R9267 CBH-D
2	2	By: Peña H.B. No. 1884
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a limitation on the maximum appraised value of real
8	8	property for ad valorem tax purposes of 105 percent of the appraised
9	9	value of the property for the preceding tax year.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 1.12(d), Tax Code, is amended to read as
12	12	follows:
13	13	(d) For purposes of this section, the appraisal ratio of
14	14	real property [a homestead] to which Section 23.23 applies is the
15	15	ratio of the property's market value as determined by the appraisal
16	16	district or appraisal review board, as applicable, to the market
17	17	value of the property according to law. The appraisal ratio is not
18	18	calculated according to the appraised value of the property as
19	19	limited by Section 23.23.
20	20	SECTION 2. The heading to Section 23.23, Tax Code, is
21	21	amended to read as follows:
22	22	Sec. 23.23. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY
23	23	[RESIDENCE HOMESTEAD].
24	24	SECTION 3. Section 23.23, Tax Code, is amended by amending
25	25	Subsections (a), (b), (c), and (e) and adding Subsections (c-1),
26	26	(c-2), and (c-3) to read as follows:
27	27	(a) Notwithstanding the requirements of Section 25.18 and
28	28	regardless of whether the appraisal office has appraised the
29	29	property and determined the market value of the property for the tax
30	30	year, an appraisal office may increase the appraised value of real
31	31	property [a residence homestead] for a tax year to an amount not to
32	32	exceed the lesser of:
33	33	(1) the market value of the property for the most
34	34	recent tax year that the market value was determined by the
35	35	appraisal office; or
36	36	(2) the sum of:
37	37	(A) five [10] percent of the appraised value of
38	38	the property for the preceding tax year;
39	39	(B) the appraised value of the property for the
40	40	preceding tax year; and
41	41	(C) the market value of all new improvements to
42	42	the property.
43	43	(b) When appraising real property [a residence homestead],
44	44	the chief appraiser shall:
45	45	(1) appraise the property at its market value; and
46	46	(2) include in the appraisal records both the market
47	47	value of the property and the amount computed under Subsection
48	48	(a)(2).
49	49	(c) The limitation provided by Subsection (a) takes effect
50	50	on January 1 of the tax year following the first tax year in which
51	51	the owner owns the property on January 1, or, if the property
52	52	qualifies as the [to a] residence homestead of the owner under
53	53	Section 11.13 in the tax year in which the owner acquires the
54	54	property, the limitation takes effect on January 1 of the tax year
55	55	following that [the first] tax year [the owner qualifies the
56	56	property for an exemption under Section 11.13]. Except as provided
57	57	by Subsection (c-1) or (c-2), the [The] limitation expires on
58	58	January 1 of the first tax year following the year in which [that
59	59	neither] the owner of the property ceases to own the property.
60	60	(c-1) If property subject to a limitation under this section
61	61	qualifies for an exemption under Section 11.13 when the ownership
62	62	of the property is transferred to the owner's spouse or surviving
63	63	spouse, the limitation expires on January 1 of the first tax year
64	64	following the year in which [when the limitation took effect nor]
65	65	the owner's spouse or surviving spouse ceases to own the property,
66	66	unless the limitation is further continued under this subsection on
67	67	the subsequent transfer to a spouse or surviving spouse [qualifies
68	68	for an exemption under Section 11.13].
69	69	(c-2) If property subject to a limitation under Subsection
70	70	(a), other than a residence homestead, is owned by two or more
71	71	persons, the limitation expires on January 1 of the first tax year
72	72	following the year in which the ownership of at least a 50 percent
73	73	interest in the property is sold or otherwise transferred.
74	74	(c-3) For purposes of applying the limitation provided by
75	75	this section in the first tax year after the 2015 tax year in which
76	76	the property is appraised for taxation:
77	77	(1) the property is considered to have been appraised
78	78	for taxation in the 2015 tax year at a market value equal to the
79	79	appraised value of the property for that tax year;
80	80	(2) a person who acquired real property in a tax year
81	81	before the 2015 tax year is considered to have acquired the property
82	82	on January 1, 2015; and
83	83	(3) a person who qualified the property for an
84	84	exemption under Section 11.13 as the person's residence homestead
85	85	for any portion of the 2015 tax year is considered to have acquired
86	86	the property in the 2015 tax year.
87	87	(e) In this section, "new improvement" means an improvement
88	88	to real property [a residence homestead] made after the most recent
89	89	appraisal of the property that increases the market value of the
90	90	property and the value of which is not included in the appraised
91	91	value of the property for the preceding tax year. The term does not
92	92	include repairs to or ordinary maintenance of an existing structure
93	93	or the grounds or another feature of the property.
94	94	SECTION 4. Sections 42.26(d), Tax Code, is amended to read
95	95	as follows:
96	96	(d) For purposes of this section, the value of the property
97	97	subject to the suit and the value of a comparable property or sample
98	98	property that is used for comparison must be the market value
99	99	determined by the appraisal district when the property is [a
100	100	residence homestead] subject to the limitation on appraised value
101	101	imposed by Section 23.23.
102	102	SECTION 5. Sections 403.302(d) and (i), Government Code,
103	103	are amended to read as follows:
104	104	(d) For the purposes of this section, "taxable value" means
105	105	the market value of all taxable property less:
106	106	(1) the total dollar amount of any residence homestead
107	107	exemptions lawfully granted under Section 11.13(b) or (c), Tax
108	108	Code, in the year that is the subject of the study for each school
109	109	district;
110	110	(2) one-half of the total dollar amount of any
111	111	residence homestead exemptions granted under Section 11.13(n), Tax
112	112	Code, in the year that is the subject of the study for each school
113	113	district;
114	114	(3) the total dollar amount of any exemptions granted
115	115	before May 31, 1993, within a reinvestment zone under agreements
116	116	authorized by Chapter 312, Tax Code;
117	117	(4) subject to Subsection (e), the total dollar amount
118	118	of any captured appraised value of property that:
119	119	(A) is within a reinvestment zone created on or
120	120	before May 31, 1999, or is proposed to be included within the
121	121	boundaries of a reinvestment zone as the boundaries of the zone and
122	122	the proposed portion of tax increment paid into the tax increment
123	123	fund by a school district are described in a written notification
124	124	provided by the municipality or the board of directors of the zone
125	125	to the governing bodies of the other taxing units in the manner
126	126	provided by former Section 311.003(e), Tax Code, before May 31,
127	127	1999, and within the boundaries of the zone as those boundaries
128	128	existed on September 1, 1999, including subsequent improvements to
129	129	the property regardless of when made;
130	130	(B) generates taxes paid into a tax increment
131	131	fund created under Chapter 311, Tax Code, under a reinvestment zone
132	132	financing plan approved under Section 311.011(d), Tax Code, on or
133	133	before September 1, 1999; and
134	134	(C) is eligible for tax increment financing under
135	135	Chapter 311, Tax Code;
136	136	(5) the total dollar amount of any captured appraised
137	137	value of property that:
138	138	(A) is within a reinvestment zone:
139	139	(i) created on or before December 31, 2008,
140	140	by a municipality with a population of less than 18,000; and
141	141	(ii) the project plan for which includes
142	142	the alteration, remodeling, repair, or reconstruction of a
143	143	structure that is included on the National Register of Historic
144	144	Places and requires that a portion of the tax increment of the zone
145	145	be used for the improvement or construction of related facilities
146	146	or for affordable housing;
147	147	(B) generates school district taxes that are paid
148	148	into a tax increment fund created under Chapter 311, Tax Code; and
149	149	(C) is eligible for tax increment financing under
150	150	Chapter 311, Tax Code;
151	151	(6) the total dollar amount of any exemptions granted
152	152	under Section 11.251 or 11.253, Tax Code;
153	153	(7) the difference between the comptroller's estimate
154	154	of the market value and the productivity value of land that
155	155	qualifies for appraisal on the basis of its productive capacity,
156	156	except that the productivity value estimated by the comptroller may
157	157	not exceed the fair market value of the land;
158	158	(8) the portion of the appraised value of residence
159	159	homesteads of individuals who receive a tax limitation under
160	160	Section 11.26, Tax Code, on which school district taxes are not
161	161	imposed in the year that is the subject of the study, calculated as
162	162	if the residence homesteads were appraised at the full value
163	163	required by law;
164	164	(9) a portion of the market value of property not
165	165	otherwise fully taxable by the district at market value because of:
166	166	(A) action required by statute or the
167	167	constitution of this state, other than Section 11.311, Tax Code,
168	168	that, if the tax rate adopted by the district is applied to it,
169	169	produces an amount equal to the difference between the tax that the
170	170	district would have imposed on the property if the property were
171	171	fully taxable at market value and the tax that the district is
172	172	actually authorized to impose on the property, if this subsection
173	173	does not otherwise require that portion to be deducted; or
174	174	(B) action taken by the district under Subchapter
175	175	B or C, Chapter 313, Tax Code, before the expiration of the
176	176	subchapter;
177	177	(10) the market value of all tangible personal
178	178	property, other than manufactured homes, owned by a family or
179	179	individual and not held or used for the production of income;
180	180	(11) the appraised value of property the collection of
181	181	delinquent taxes on which is deferred under Section 33.06, Tax
182	182	Code;
183	183	(12) the portion of the appraised value of property
184	184	the collection of delinquent taxes on which is deferred under
185	185	Section 33.065, Tax Code; and
186	186	(13) the amount by which the market value of real
187	187	property [a residence homestead] to which Section 23.23, Tax Code,
188	188	applies exceeds the appraised value of that property as calculated
189	189	under that section.
190	190	(i) If the comptroller determines in the study that the
191	191	market value of property in a school district as determined by the
192	192	appraisal district that appraises property for the school district,
193	193	less the total of the amounts and values listed in Subsection (d) as
194	194	determined by that appraisal district, is valid, the comptroller,
195	195	in determining the taxable value of property in the school district
196	196	under Subsection (d), shall for purposes of Subsection (d)(13)
197	197	subtract from the market value as determined by the appraisal
198	198	district of properties [residence homesteads] to which Section
199	199	23.23, Tax Code, applies the amount by which that amount exceeds the
200	200	appraised value of those properties as calculated by the appraisal
201	201	district under Section 23.23, Tax Code. If the comptroller
202	202	determines in the study that the market value of property in a
203	203	school district as determined by the appraisal district that
204	204	appraises property for the school district, less the total of the
205	205	amounts and values listed in Subsection (d) as determined by that
206	206	appraisal district, is not valid, the comptroller, in determining
207	207	the taxable value of property in the school district under
208	208	Subsection (d), shall for purposes of Subsection (d)(13) subtract
209	209	from the market value as estimated by the comptroller of properties
210	210	[residence homesteads] to which Section 23.23, Tax Code, applies
211	211	the amount by which that amount exceeds the appraised value of those
212	212	properties as calculated by the appraisal district under Section
213	213	23.23, Tax Code.
214	214	SECTION 6. This Act applies only to the appraisal for ad
215	215	valorem tax purposes of real property for a tax year that begins on
216	216	or after the effective date of this Act.
217	217	SECTION 7. This Act takes effect January 1, 2016, but only
218	218	if the constitutional amendment proposed by the 84th Legislature,
219	219	Regular Session, 2015, to authorize the legislature to limit the
220	220	maximum appraised value of real property for ad valorem tax
221	221	purposes to 105 percent or more of the appraised value of the
222	222	property for the preceding tax year is approved by the voters. If
223	223	that amendment is not approved by the voters, this Act has no
224	224	effect.