84R2295 SMH-D
By: Nichols S.B. No. 156
A BILL TO BE ENTITLED
AN ACT
relating to the limitation on increases in the appraised value of a
residence homestead for ad valorem taxation.
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 (h) to read as follows:
(a) Except as provided by Subsection (h), 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) five [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.
(h) The commissioners court of a county may call an election
in the county to permit the voters of the county to determine
whether a percentage limitation on maximum appraised value
determined in the manner provided by Subsection (a)(2) using a
percentage that is greater than the percentage specified by
Subsection (a)(2)(A) but not more than 10 percent will apply to the
taxation of a residence homestead in the county by each taxing unit
having territory in the county. The election shall be held on 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 do not favor the establishment of the proposed
limitation, a subsequent election under this subsection may not be
held before the 10th year after the year in which the election is
held. 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is held and remains in effect until amended or repealed by the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. An election to amend or repeal the limitation
may not be held before the 10th year after the year in which the
proposition establishing the limitation was approved by the voters.
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.
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 a [the] limitation on appraised
value imposed by or established 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, 2016.
SECTION 4. This Act takes effect January 1, 2016, but only
if the constitutional amendment proposed by the 84th Legislature,
Regular Session, 2015, to authorize the legislature to limit the
maximum appraised value of a residence homestead for ad valorem tax
purposes to 105 percent or less of the appraised value of the
property for the preceding tax year and to permit the voters of a
county to establish a higher limitation not to exceed 110 percent on
the maximum appraised value of a residence homestead in the county
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.