| 1 | 1 | | 84R1527 TJB-F |
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| 2 | 2 | | By: Rodriguez of Travis H.B. No. 490 |
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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 the authority of the governing body of a taxing unit |
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| 8 | 8 | | that adopts an exemption from ad valorem taxation of a percentage of |
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| 9 | 9 | | the appraised value of an individual's residence homestead to set a |
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| 10 | 10 | | limit on the dollar amount of the exemption to which an individual |
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| 11 | 11 | | is entitled in a tax year. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 11.13(n), Tax Code, is amended to read as |
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| 14 | 14 | | follows: |
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| 15 | 15 | | (n) In addition to any other exemptions provided by this |
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| 16 | 16 | | section, an individual is entitled to an exemption from taxation by |
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| 17 | 17 | | a taxing unit of a percentage of the appraised value of the |
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| 18 | 18 | | individual's [his] residence homestead if the exemption is adopted |
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| 19 | 19 | | by the governing body of the taxing unit before July 1 in the manner |
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| 20 | 20 | | provided by law for official action by the body. The percentage |
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| 21 | 21 | | adopted by the governing body may not exceed 20 percent. If the |
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| 22 | 22 | | percentage set by the governing body [taxing unit] produces an |
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| 23 | 23 | | exemption in a tax year of less than $5,000 when applied to a |
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| 24 | 24 | | particular residence homestead, the individual is entitled to an |
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| 25 | 25 | | exemption of $5,000 of the appraised value. A governing body that |
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| 26 | 26 | | adopts an exemption under this subsection may by official action |
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| 27 | 27 | | taken before July 1 provide that if the percentage set by the |
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| 28 | 28 | | governing body produces an exemption in a tax year of more than a |
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| 29 | 29 | | dollar amount specified by the governing body when applied to a |
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| 30 | 30 | | particular residence homestead, the owner of the homestead is |
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| 31 | 31 | | entitled to an exemption of the dollar amount of the appraised value |
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| 32 | 32 | | specified by the governing body [The percentage adopted by the |
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| 33 | 33 | | taxing unit may not exceed 20 percent]. |
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| 34 | 34 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 35 | 35 | | for a tax year that begins on or after the effective date of this |
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| 36 | 36 | | Act. |
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| 37 | 37 | | SECTION 3. This Act takes effect January 1, 2016, but only |
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| 38 | 38 | | if the constitutional amendment proposed by the 84th Legislature, |
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| 39 | 39 | | Regular Session, 2015, authorizing the governing body of a |
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| 40 | 40 | | political subdivision that adopts an exemption from ad valorem |
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| 41 | 41 | | taxation of a percentage of the market value of an individual's |
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| 42 | 42 | | residence homestead to set a limit on the dollar amount of the |
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| 43 | 43 | | exemption to which an individual is entitled in a tax year is |
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| 44 | 44 | | approved by the voters. If that amendment is not approved by the |
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| 45 | 45 | | voters, this Act has no effect. |
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