85R5204 TJB-D
By: Creighton S.B. No. 376
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(a), Tax Code, is amended to read as
follows:
(a) 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) the following applicable percentage [10
percent] of the appraised value of the property for the preceding
tax year:
(i) three percent if the appraised value is
$1 million or less; or
(ii) five percent if the appraised value is
more than $1 million;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
SECTION 2. This Act applies only to the appraisal for ad
valorem taxation of residence homesteads for a tax year that begins
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2018, but only
if the constitutional amendment proposed by the 85th Legislature,
Regular Session, 2017, to authorize the legislature to set a lower
limit and provide for more than one limit on the maximum appraised
value of a residence homestead for ad valorem taxation is approved
by the voters. If that amendment is not approved by the voters,
this Act has no effect.