86R4362 TJB-D
By: Patterson H.B. No. 1444
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the ad valorem taxes imposed on real
property on the basis of the lesser of the appraised value of the
property or the average appraised value of the property over a
specified time period.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 25.19, Tax Code, is amended by adding
Subsection (b-3) to read as follows:
(b-3) In addition to the information required by
Subsections (b), (b-1), (b-2), and (f), the chief appraiser shall
include in a notice required to be delivered under Subsection (a) or
(g) for real property:
(1) the average appraised value of the property
determined under Section 26.095; and
(2) a statement that taxes for the current year will be
calculated using the lesser of the appraised value of the property
for that year or the average appraised value of the property as
stated in the notice, less the amount of any partial exemption the
owner is entitled to for that year.
SECTION 2. Section 26.09(c), Tax Code, is amended to read as
follows:
(c) Subject to Section 26.095, the [The] tax is calculated
by:
(1) subtracting from the appraised value of a property
as shown on the appraisal roll for the taxing unit the amount of any
partial exemption allowed the property owner that applies to
appraised value to determine taxable [net appraised] value; and
(2) [multiplying the net appraised value by the
assessment ratio to determine assessed value;
[(3) subtracting from the assessed value the amount of
any partial exemption allowed the property owner to determine
taxable value; and
[(4)] multiplying the taxable value by the tax rate.
SECTION 3. Chapter 26, Tax Code, is amended by adding
Section 26.095 to read as follows:
Sec. 26.095. CALCULATION OF TAX ON REAL PROPERTY. (a)
Subject to Subsection (b), the assessor for a taxing unit shall
calculate the taxes imposed on real property for a tax year under
Section 26.09(c) on the basis of the lesser of:
(1) the appraised value of the property for that tax
year; or
(2) the average appraised value of the property for:
(A) the five-year period ending with the tax year
for which the taxes are imposed; or
(B) if the calculation applies to property
subject to the limitation on appraised value provided under Section
23.23 during the period described by Paragraph (A) and that
limitation expires during that period, the period beginning with
the tax year in which the limitation expires and ending with the tax
year for which the taxes are imposed.
(b) When determining the average appraised value of a
property under Subsection (a)(2), the assessor may not include the
appraised value of the property for a tax year if that value is at
least 50 percent lower than the appraised value of the property for
the tax year that precedes that tax year.
(b-1) This subsection expires January 1, 2022.
Notwithstanding Subsection (a)(2):
(1) for the 2020 tax year, the assessor for a taxing
unit shall calculate the taxes under the method provided by
Subsection (a)(2) on the basis of the average appraised value of the
property for the lesser of:
(A) the three-year period ending with the tax
year for which the taxes are imposed; or
(B) the period described by Subsection (a)(2)(B)
for a property described by that paragraph; and
(2) for the 2021 tax year, the assessor for a taxing
unit shall calculate the taxes under the method provided by
Subsection (a)(2) on the basis of the average appraised value of the
property for the lesser of:
(A) the four-year period ending with the tax year
for which the taxes are imposed; or
(B) the period described by Subsection (a)(2)(B)
for a property described by that paragraph.
SECTION 4. Section 31.01, Tax Code, is amended by adding
Subsection (c-3) to read as follows:
(c-3) In addition to the information required by
Subsections (c), (c-1), and (c-2), the assessor shall include in
the tax bill or separate statement for real property:
(1) the average appraised value of the property
determined under Section 26.095; and
(2) a statement indicating whether the taxes on the
property were calculated on the basis of the appraised value of the
property for that year or the average appraised value of the
property.
SECTION 5. This Act applies only to ad valorem taxes imposed
for an ad valorem tax year that begins on or after the effective
date of this Act.
SECTION 6. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, authorizing the legislature to provide for
the assessment of ad valorem taxes on real property on the basis of
the lesser of the appraised value of the property or the average
appraised value of the property for the most recent five years and
authorizing exceptions to the assessment of those taxes based on
that method is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.