85S10065 TJB-D
By: Villalba H.B. No. 359
A BILL TO BE ENTITLED
AN ACT
relating to the limitation on increases in the appraised value of a
residence homestead for ad valorem tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.23, Tax Code, is amended by amending
Subsections (a) and (b) and adding Subsection (a-1) 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
least [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) 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; or
(3) the sum of:
(A) 25 percent of the lowest appraised value of
the property for any of the 10 tax years preceding the current tax
year in which the limitation provided by this subsection was in
effect;
(B) the appraised value of the property for the
tax year used to make the computation under Paragraph (A); and
(C) the sum of the market value of all new
improvements to the property made after January 1 of the tax year
used to make the computation under Paragraph (A), based on the
market value of each new improvement in the tax year in which the
value of the improvement was included in the appraised value of the
property.
(a-1) This subsection applies only to the 2018, 2019, 2020,
2021, 2022, 2023, 2024, 2025, 2026, and 2027 tax years.
Notwithstanding Subsection (a)(3), an appraisal office shall
compute the limitation on increases in the appraised value of a
residence homestead for a tax year under that subdivision based on
the lowest appraised value of the property for any of the tax years
beginning with the 2017 tax year in which the limitation provided by
Subsection (a) was in effect. This subsection expires December 31,
2027.
(b) When appraising a residence homestead, the chief
appraiser shall:
(1) appraise the property at its market value; and
(2) include in the appraisal records [both] the market
value of the property, [and] the amount computed under Subsection
(a)(2), and the amount computed under Subsection (a)(3).
SECTION 2. This Act applies only to the appraisal for ad
valorem tax purposes 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,
1st Called Session, 2017, to authorize the legislature to establish
an additional limitation on the maximum appraised value of a
residence homestead for ad valorem tax purposes of 125 percent or a
greater percentage of the lowest appraised value of the residence
homestead for any of the preceding 10 tax years is approved by the
voters. If that amendment is not approved by the voters, this Act
has no effect.