Texas 2017 - 85th 1st C.S.

Texas House Bill HB359 Compare Versions

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

Old	New	Differences
1	1	85S10065 TJB-D
2	2	By: Villalba H.B. No. 359
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the limitation on increases in the appraised value of a
8	8	residence homestead for ad valorem tax purposes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 23.23, Tax Code, is amended by amending
11	11	Subsections (a) and (b) and adding Subsection (a-1) to read as
12	12	follows:
13	13	(a) Notwithstanding the requirements of Section 25.18 and
14	14	regardless of whether the appraisal office has appraised the
15	15	property and determined the market value of the property for the tax
16	16	year, an appraisal office may increase the appraised value of a
17	17	residence homestead for a tax year to an amount not to exceed the
18	18	least [lesser] of:
19	19	(1) the market value of the property for the most
20	20	recent tax year that the market value was determined by the
21	21	appraisal office; [or]
22	22	(2) the sum of:
23	23	(A) 10 percent of the appraised value of the
24	24	property for the preceding tax year;
25	25	(B) the appraised value of the property for the
26	26	preceding tax year; and
27	27	(C) the market value of all new improvements to
28	28	the property; or
29	29	(3) the sum of:
30	30	(A) 25 percent of the lowest appraised value of
31	31	the property for any of the 10 tax years preceding the current tax
32	32	year in which the limitation provided by this subsection was in
33	33	effect;
34	34	(B) the appraised value of the property for the
35	35	tax year used to make the computation under Paragraph (A); and
36	36	(C) the sum of the market value of all new
37	37	improvements to the property made after January 1 of the tax year
38	38	used to make the computation under Paragraph (A), based on the
39	39	market value of each new improvement in the tax year in which the
40	40	value of the improvement was included in the appraised value of the
41	41	property.
42	42	(a-1) This subsection applies only to the 2018, 2019, 2020,
43	43	2021, 2022, 2023, 2024, 2025, 2026, and 2027 tax years.
44	44	Notwithstanding Subsection (a)(3), an appraisal office shall
45	45	compute the limitation on increases in the appraised value of a
46	46	residence homestead for a tax year under that subdivision based on
47	47	the lowest appraised value of the property for any of the tax years
48	48	beginning with the 2017 tax year in which the limitation provided by
49	49	Subsection (a) was in effect. This subsection expires December 31,
50	50	2027.
51	51	(b) When appraising a residence homestead, the chief
52	52	appraiser shall:
53	53	(1) appraise the property at its market value; and
54	54	(2) include in the appraisal records [both] the market
55	55	value of the property, [and] the amount computed under Subsection
56	56	(a)(2), and the amount computed under Subsection (a)(3).
57	57	SECTION 2. This Act applies only to the appraisal for ad
58	58	valorem tax purposes of residence homesteads for a tax year that
59	59	begins on or after the effective date of this Act.
60	60	SECTION 3. This Act takes effect January 1, 2018, but only
61	61	if the constitutional amendment proposed by the 85th Legislature,
62	62	1st Called Session, 2017, to authorize the legislature to establish
63	63	an additional limitation on the maximum appraised value of a
64	64	residence homestead for ad valorem tax purposes of 125 percent or a
65	65	greater percentage of the lowest appraised value of the residence
66	66	homestead for any of the preceding 10 tax years is approved by the
67	67	voters. If that amendment is not approved by the voters, this Act
68	68	has no effect.