Texas 2017 - 85th 1st C.S.

Texas House Bill HB298 Compare Versions

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

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1	1	85S10266 LHC-D
2	2	By: Cosper H.B. No. 298
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to limitations on increases in the appraised value for ad
8	8	valorem tax purposes of residence homesteads and other real
9	9	property.
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 a
14	14	homestead to which Section 23.23 applies or of other real property
15	15	to which Section 23.231 applies is the ratio of the property's
16	16	market value as determined by the appraisal district or appraisal
17	17	review board, as applicable, to the market value of the property
18	18	according to law. The appraisal ratio is not calculated according
19	19	to the appraised value of the property as limited by Section 23.23
20	20	or 23.231.
21	21	SECTION 2. Section 23.23(a), Tax Code, is amended to read as
22	22	follows:
23	23	(a) Notwithstanding the requirements of Section 25.18 and
24	24	regardless of whether the appraisal office has appraised the
25	25	property and determined the market value of the property for the tax
26	26	year, an appraisal office may increase the appraised value of a
27	27	residence homestead for a tax year to an amount not to exceed the
28	28	lesser of:
29	29	(1) the market value of the property for the most
30	30	recent tax year that the market value was determined by the
31	31	appraisal office; or
32	32	(2) the sum of:
33	33	(A) seven [10] percent of the appraised value of
34	34	the property for the preceding tax year;
35	35	(B) the appraised value of the property for the
36	36	preceding tax year; and
37	37	(C) the market value of all new improvements to
38	38	the property.
39	39	SECTION 3. Subchapter B, Chapter 23, Tax Code, is amended by
40	40	adding Section 23.231 to read as follows:
41	41	Sec. 23.231. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY
42	42	OTHER THAN RESIDENCE HOMESTEAD. (a) In this section, "new
43	43	improvement" means an improvement to real property made after the
44	44	most recent appraisal of the property that increases the market
45	45	value of the property and the value of which is not included in the
46	46	appraised value of the property for the preceding tax year. The
47	47	term does not include repairs to or ordinary maintenance of an
48	48	existing structure or the grounds or another feature of the
49	49	property.
50	50	(b) This section does not apply to a residence homestead
51	51	that qualifies for an exemption under Section 11.13.
52	52	(c) Notwithstanding the requirements of Section 25.18 and
53	53	regardless of whether the appraisal office has appraised the
54	54	property and determined the market value of the property for the tax
55	55	year, an appraisal office may increase the appraised value of real
56	56	property to which this section applies for a tax year to an amount
57	57	not to exceed the lesser of:
58	58	(1) the market value of the property for the most
59	59	recent tax year that the market value was determined by the
60	60	appraisal office; or
61	61	(2) the sum of:
62	62	(A) 20 percent of the appraised value of the
63	63	property for the preceding tax year;
64	64	(B) the appraised value of the property for the
65	65	preceding tax year; and
66	66	(C) the market value of all new improvements to
67	67	the property.
68	68	(d) When appraising real property to which this section
69	69	applies, the chief appraiser shall:
70	70	(1) appraise the property at its market value; and
71	71	(2) include in the appraisal records both the market
72	72	value of the property and the amount computed under Subsection
73	73	(c)(2).
74	74	(e) The limitation provided by Subsection (c) takes effect
75	75	as to a parcel of real property on January 1 of the tax year
76	76	following the first tax year in which the owner owns the property on
77	77	January 1. The limitation expires on January 1 of the tax year
78	78	following the tax year in which the owner of the property ceases to
79	79	own the property.
80	80	(f) Notwithstanding Subsections (a) and (c) and except as
81	81	provided by Subdivision (2) of this subsection, an improvement to
82	82	real property that would otherwise constitute a new improvement is
83	83	not treated as a new improvement if the improvement is a replacement
84	84	structure for a structure that was rendered uninhabitable or
85	85	unusable by a casualty or by wind or water damage. For purposes of
86	86	appraising the property under Subsection (c) in the tax year in
87	87	which the structure would have constituted a new improvement:
88	88	(1) the appraised value the property would have had in
89	89	the preceding tax year if the casualty or damage had not occurred is
90	90	considered to be the appraised value of the property for that year,
91	91	regardless of whether that appraised value exceeds the actual
92	92	appraised value of the property for that year as limited by
93	93	Subsection (c); and
94	94	(2) the replacement structure is considered to be a
95	95	new improvement only if:
96	96	(A) the square footage of the replacement
97	97	structure exceeds that of the replaced structure as that structure
98	98	existed before the casualty or damage occurred; or
99	99	(B) the exterior of the replacement structure is
100	100	of higher quality construction and composition than that of the
101	101	replaced structure.
102	102	(g) In this subsection, "disaster recovery program" means
103	103	the disaster recovery program administered by the General Land
104	104	Office that is funded with community development block grant
105	105	disaster recovery money authorized by the Consolidated Security,
106	106	Disaster Assistance, and Continuing Appropriations Act, 2009 (Pub.
107	107	L. No. 110-329), and the Consolidated and Further Continuing
108	108	Appropriations Act, 2012 (Pub. L. No. 112-55). Notwithstanding
109	109	Subsection (f)(2), and only to the extent necessary to satisfy the
110	110	requirements of the disaster recovery program, a replacement
111	111	structure described by that subdivision is not considered to be a
112	112	new improvement if to satisfy the requirements of the disaster
113	113	recovery program it was necessary that:
114	114	(1) the square footage of the replacement structure
115	115	exceed that of the replaced structure as that structure existed
116	116	before the casualty or damage occurred; or
117	117	(2) the exterior of the replacement structure be of
118	118	higher quality construction and composition than that of the
119	119	replaced structure.
120	120	SECTION 4. Section 42.26(d), Tax Code, is amended to read as
121	121	follows:
122	122	(d) For purposes of this section, the value of the property
123	123	subject to the suit and the value of a comparable property or sample
124	124	property that is used for comparison must be the market value
125	125	determined by the appraisal district when the property is [a
126	126	residence homestead] subject to the limitation on appraised value
127	127	imposed by Section 23.23 or 23.231.
128	128	SECTION 5. Sections 403.302(d) and (i), Government Code,
129	129	are amended to read as follows:
130	130	(d) For the purposes of this section, "taxable value" means
131	131	the market value of all taxable property less:
132	132	(1) the total dollar amount of any residence homestead
133	133	exemptions lawfully granted under Section 11.13(b) or (c), Tax
134	134	Code, in the year that is the subject of the study for each school
135	135	district;
136	136	(2) one-half of the total dollar amount of any
137	137	residence homestead exemptions granted under Section 11.13(n), Tax
138	138	Code, in the year that is the subject of the study for each school
139	139	district;
140	140	(3) the total dollar amount of any exemptions granted
141	141	before May 31, 1993, within a reinvestment zone under agreements
142	142	authorized by Chapter 312, Tax Code;
143	143	(4) subject to Subsection (e), the total dollar amount
144	144	of any captured appraised value of property that:
145	145	(A) is within a reinvestment zone created on or
146	146	before May 31, 1999, or is proposed to be included within the
147	147	boundaries of a reinvestment zone as the boundaries of the zone and
148	148	the proposed portion of tax increment paid into the tax increment
149	149	fund by a school district are described in a written notification
150	150	provided by the municipality or the board of directors of the zone
151	151	to the governing bodies of the other taxing units in the manner
152	152	provided by former Section 311.003(e), Tax Code, before May 31,
153	153	1999, and within the boundaries of the zone as those boundaries
154	154	existed on September 1, 1999, including subsequent improvements to
155	155	the property regardless of when made;
156	156	(B) generates taxes paid into a tax increment
157	157	fund created under Chapter 311, Tax Code, under a reinvestment zone
158	158	financing plan approved under Section 311.011(d), Tax Code, on or
159	159	before September 1, 1999; and
160	160	(C) is eligible for tax increment financing under
161	161	Chapter 311, Tax Code;
162	162	(5) the total dollar amount of any captured appraised
163	163	value of property that:
164	164	(A) is within a reinvestment zone:
165	165	(i) created on or before December 31, 2008,
166	166	by a municipality with a population of less than 18,000; and
167	167	(ii) the project plan for which includes
168	168	the alteration, remodeling, repair, or reconstruction of a
169	169	structure that is included on the National Register of Historic
170	170	Places and requires that a portion of the tax increment of the zone
171	171	be used for the improvement or construction of related facilities
172	172	or for affordable housing;
173	173	(B) generates school district taxes that are paid
174	174	into a tax increment fund created under Chapter 311, Tax Code; and
175	175	(C) is eligible for tax increment financing under
176	176	Chapter 311, Tax Code;
177	177	(6) the total dollar amount of any exemptions granted
178	178	under Section 11.251 or 11.253, Tax Code;
179	179	(7) the difference between the comptroller's estimate
180	180	of the market value and the productivity value of land that
181	181	qualifies for appraisal on the basis of its productive capacity,
182	182	except that the productivity value estimated by the comptroller may
183	183	not exceed the fair market value of the land;
184	184	(8) the portion of the appraised value of residence
185	185	homesteads of individuals who receive a tax limitation under
186	186	Section 11.26, Tax Code, on which school district taxes are not
187	187	imposed in the year that is the subject of the study, calculated as
188	188	if the residence homesteads were appraised at the full value
189	189	required by law;
190	190	(9) a portion of the market value of property not
191	191	otherwise fully taxable by the district at market value because of:
192	192	(A) action required by statute or the
193	193	constitution of this state, other than Section 11.311, Tax Code,
194	194	that, if the tax rate adopted by the district is applied to it,
195	195	produces an amount equal to the difference between the tax that the
196	196	district would have imposed on the property if the property were
197	197	fully taxable at market value and the tax that the district is
198	198	actually authorized to impose on the property, if this subsection
199	199	does not otherwise require that portion to be deducted; or
200	200	(B) action taken by the district under Subchapter
201	201	B or C, Chapter 313, Tax Code, before the expiration of the
202	202	subchapter;
203	203	(10) the market value of all tangible personal
204	204	property, other than manufactured homes, owned by a family or
205	205	individual and not held or used for the production of income;
206	206	(11) the appraised value of property the collection of
207	207	delinquent taxes on which is deferred under Section 33.06, Tax
208	208	Code;
209	209	(12) the portion of the appraised value of property
210	210	the collection of delinquent taxes on which is deferred under
211	211	Section 33.065, Tax Code; and
212	212	(13) the amount by which the market value of property
213	213	[a residence homestead] to which Section 23.23 or 23.231, Tax Code,
214	214	applies exceeds the appraised value of that property as calculated
215	215	under Section 23.23 or 23.231, Tax Code, as applicable [that
216	216	section].
217	217	(i) If the comptroller determines in the study that the
218	218	market value of property in a school district as determined by the
219	219	appraisal district that appraises property for the school district,
220	220	less the total of the amounts and values listed in Subsection (d) as
221	221	determined by that appraisal district, is valid, the comptroller,
222	222	in determining the taxable value of property in the school district
223	223	under Subsection (d), shall for purposes of Subsection (d)(13)
224	224	subtract from the market value as determined by the appraisal
225	225	district of properties [residence homesteads] to which Section
226	226	23.23 or 23.231, Tax Code, applies the amount by which that amount
227	227	exceeds the appraised value of those properties as calculated by
228	228	the appraisal district under Section 23.23 or 23.231, Tax Code, as
229	229	applicable. If the comptroller determines in the study that the
230	230	market value of property in a school district as determined by the
231	231	appraisal district that appraises property for the school district,
232	232	less the total of the amounts and values listed in Subsection (d) as
233	233	determined by that appraisal district, is not valid, the
234	234	comptroller, in determining the taxable value of property in the
235	235	school district under Subsection (d), shall for purposes of
236	236	Subsection (d)(13) subtract from the market value as estimated by
237	237	the comptroller of properties [residence homesteads] to which
238	238	Section 23.23 or 23.231, Tax Code, applies the amount by which that
239	239	amount exceeds the appraised value of those properties as
240	240	calculated by the appraisal district under Section 23.23 or 23.231,
241	241	Tax Code, as applicable.
242	242	SECTION 6. This Act applies only to the appraisal of real
243	243	property for ad valorem tax purposes for a tax year that begins on
244	244	or after the effective date of this Act.
245	245	SECTION 7. This Act takes effect January 1, 2018, but only
246	246	if the constitutional amendment proposed by the 85th Legislature,
247	247	1st Called Session, 2017, to authorize the legislature to establish
248	248	a lower limit on the maximum appraised value of residence
249	249	homesteads for ad valorem tax purposes and to establish a limit on
250	250	the value of other real property for those purposes is approved by
251	251	the voters. If that amendment is not approved by the voters, this
252	252	Act has no effect.