| 1 | 1 | | 84R2295 SMH-D |
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| 2 | 2 | | By: Nichols S.B. No. 156 |
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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 limitation on increases in the appraised value of a |
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| 8 | 8 | | residence homestead for ad valorem taxation. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 23.23, Tax Code, is amended by amending |
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| 11 | 11 | | Subsection (a) and adding Subsection (h) to read as follows: |
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| 12 | 12 | | (a) Except as provided by Subsection (h), notwithstanding |
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| 13 | 13 | | [Notwithstanding] the requirements of Section 25.18, and |
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| 14 | 14 | | regardless of whether the appraisal office has appraised the |
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| 15 | 15 | | property and determined the market value of the property for the tax |
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| 16 | 16 | | year, an appraisal office may increase the appraised value of a |
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| 17 | 17 | | residence homestead for a tax year to an amount not to exceed the |
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| 18 | 18 | | lesser of: |
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| 19 | 19 | | (1) the market value of the property for the most |
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| 20 | 20 | | recent tax year that the market value was determined by the |
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| 21 | 21 | | appraisal office; or |
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| 22 | 22 | | (2) the sum of: |
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| 23 | 23 | | (A) five [10] percent of the appraised value of |
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| 24 | 24 | | the property for the preceding tax year; |
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| 25 | 25 | | (B) the appraised value of the property for the |
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| 26 | 26 | | preceding tax year; and |
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| 27 | 27 | | (C) the market value of all new improvements to |
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| 28 | 28 | | the property. |
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| 29 | 29 | | (h) The commissioners court of a county may call an election |
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| 30 | 30 | | in the county to permit the voters of the county to determine |
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| 31 | 31 | | whether a percentage limitation on maximum appraised value |
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| 32 | 32 | | determined in the manner provided by Subsection (a)(2) using a |
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| 33 | 33 | | percentage that is greater than the percentage specified by |
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| 34 | 34 | | Subsection (a)(2)(A) but not more than 10 percent will apply to the |
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| 35 | 35 | | taxation of a residence homestead in the county by each taxing unit |
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| 36 | 36 | | having territory in the county. The election shall be held on the |
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| 37 | 37 | | date of the next general election for state and county officers. |
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| 38 | 38 | | The ballot proposition shall specify the proposed percentage |
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| 39 | 39 | | limitation on maximum appraised value. If a majority of the votes |
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| 40 | 40 | | cast at the election do not favor the establishment of the proposed |
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| 41 | 41 | | limitation, a subsequent election under this subsection may not be |
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| 42 | 42 | | held before the 10th year after the year in which the election is |
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| 43 | 43 | | held. If a majority of the votes cast at the election favor the |
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| 44 | 44 | | establishment of the proposed limitation, the limitation applies |
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| 45 | 45 | | beginning with the tax year following the year in which the election |
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| 46 | 46 | | is held and remains in effect until amended or repealed by the |
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| 47 | 47 | | voters of the county at a subsequent election called by the |
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| 48 | 48 | | commissioners court. An election to amend or repeal the limitation |
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| 49 | 49 | | may not be held before the 10th year after the year in which the |
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| 50 | 50 | | proposition establishing the limitation was approved by the voters. |
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| 51 | 51 | | If the voters of a county amend or repeal a limitation, the |
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| 52 | 52 | | amendment or repeal applies beginning with the tax year after the |
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| 53 | 53 | | year in which the election is held. |
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| 54 | 54 | | SECTION 2. Section 42.26(d), Tax Code, is amended to read as |
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| 55 | 55 | | follows: |
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| 56 | 56 | | (d) For purposes of this section, the value of the property |
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| 57 | 57 | | subject to the suit and the value of a comparable property or sample |
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| 58 | 58 | | property that is used for comparison must be the market value |
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| 59 | 59 | | determined by the appraisal district when the property is a |
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| 60 | 60 | | residence homestead subject to a [the] limitation on appraised |
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| 61 | 61 | | value imposed by or established under Section 23.23. |
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| 62 | 62 | | SECTION 3. This Act applies only to the appraisal of a |
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| 63 | 63 | | residence homestead for ad valorem tax purposes for a tax year that |
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| 64 | 64 | | begins on or after January 1, 2016. |
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| 65 | 65 | | SECTION 4. This Act takes effect January 1, 2016, but only |
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| 66 | 66 | | if the constitutional amendment proposed by the 84th Legislature, |
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| 67 | 67 | | Regular Session, 2015, to authorize the legislature to limit the |
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| 68 | 68 | | maximum appraised value of a residence homestead for ad valorem tax |
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| 69 | 69 | | purposes to 105 percent or less of the appraised value of the |
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| 70 | 70 | | property for the preceding tax year and to permit the voters of a |
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| 71 | 71 | | county to establish a higher limitation not to exceed 110 percent on |
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| 72 | 72 | | the maximum appraised value of a residence homestead in the county |
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| 73 | 73 | | is approved by the voters. If that amendment is not approved by the |
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| 74 | 74 | | voters, this Act has no effect. |
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