87R1506 TJB-D
By: Davis H.B. No. 1577
A BILL TO BE ENTITLED
AN ACT
relating to a temporary limitation on the appraised value of
certain real property in specified areas for ad valorem tax
purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.12(d), Tax Code, is amended to read as
follows:
(d) For purposes of this section, the appraisal ratio of a
homestead to which Section 23.23 applies or of real property to
which Section 23.231 applies is the ratio of the property's market
value as determined by the appraisal district or appraisal review
board, as applicable, to the market value of the property according
to law. The appraisal ratio is not calculated according to the
appraised value of the property as limited by Section 23.23 or
23.231.
SECTION 2. Subchapter B, Chapter 23, Tax Code, is amended by
adding Section 23.231 to read as follows:
Sec. 23.231. TEMPORARY LIMITATION ON APPRAISED VALUE OF
CERTAIN REAL PROPERTY IN SPECIFIED AREAS. (a) In this section:
(1) "Census tract" means the geographic area
identified as a "tract" on the 2010 Census TIGER/Line Shapefiles,
prepared by the federal Bureau of the Census for the Twenty-third
Decennial Census of the United States, enumerated as of April 1,
2010.
(2) "Eligible property" means real property that:
(A) is:
(i) a residence homestead; or
(ii) an undeveloped lot, subject to
Subsection (f); and
(B) is located in one of the following census
tracts:
(i) Dallas County tract 002701 or 002702;
(ii) Harris County tract 210900, 211000,
211100, 211200, or 211700; or
(iii) Lubbock County tract 000202.
(3) "Residence homestead" has the meaning assigned by
Section 11.13.
(b) The governing body of a municipality, county, or school
district may by official action adopt a limitation as prescribed by
this section on the appraised value of all eligible property
located in the taxing unit adopting the limitation. The governing
body of a municipality, county, or school district may not repeal,
rescind, or take other action to negate the adoption of the
limitation once adopted under this subsection.
(c) Notwithstanding the requirements of Sections 23.23 and
25.18, and regardless of whether the appraisal office has appraised
eligible property and determined the market value of the property
for the tax year, the appraised value of the property for a tax year
to which a limitation under this section applies is, for the taxing
unit that adopted the limitation, the lesser of:
(1) the appraised value of the property as otherwise
determined by law; or
(2) the appraised value of the property for the tax
year preceding the tax year in which the limitation adopted by that
taxing unit first applies, as provided by Subsection (e).
(d) When appraising eligible property, the chief appraiser
shall:
(1) appraise the property as otherwise determined by
law; and
(2) include in the appraisal records:
(A) the appraised value of the property
determined under Subdivision (1); and
(B) the amount determined under Subsection
(c)(2) applicable to each taxing unit that has adopted the
limitation.
(e) Except as provided by Subsection (f), a limitation once
adopted by a governing body under this section applies to each tax
year:
(1) beginning with:
(A) the tax year in which the governing body
adopts the limitation, if the governing body adopts the limitation
on or before April 1; or
(B) the tax year following the tax year in which
the governing body adopts the limitation, if the governing body
adopts the limitation after April 1; and
(2) ending with the 2037 tax year.
(f) The limitation adopted under this section as applied to
a vacant lot expires on the earlier of:
(1) January 1 following the end of the fifth tax year
for which the limitation applies, unless:
(A) a single-family residence has been
constructed on the property; and
(B) the owner of the residence has qualified the
property as the owner's residence homestead; or
(2) January 1 of the tax year in which the vacant lot
is:
(A) developed for a purpose other than as a
single-family residence; or
(B) developed as a single-family residence but
not qualified as the residence homestead of an owner of the
property.
(g) This section expires January 1, 2038.
SECTION 3. Section 25.19(b), Tax Code, as effective January
1, 2022, is amended to read as follows:
(b) The chief appraiser shall separate real from personal
property and include in the notice for each:
(1) a list of the taxing units in which the property is
taxable;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for each taxing unit taxing the property;
(4) the appraised value of the property for the
current year, the kind and amount of each exemption and partial
exemption, if any, approved for the property for the current year
and for the preceding year, and, if an exemption or partial
exemption that was approved for the preceding year was canceled or
reduced for the current year, the amount of the exemption or partial
exemption canceled or reduced;
(4-a) a statement of whether the property qualifies
for the limitation on appraised value provided by Section 23.231;
(5) in italic typeface, the following statement: "The
Texas Legislature does not set the amount of your local
taxes. Your property tax burden is decided by your locally elected
officials, and all inquiries concerning your taxes should be
directed to those officials";
(6) a detailed explanation of the time and procedure
for protesting the value;
(7) the date and place the appraisal review board will
begin hearing protests; and
(8) a brief explanation that the governing body of
each taxing unit decides whether or not taxes on the property will
increase and the appraisal district only determines the value of
the property.
SECTION 4. Section 25.19(g), Tax Code, is amended to read as
follows:
(g) By April 1 or as soon thereafter as practicable if the
property is a single-family residence that qualifies for an
exemption under Section 11.13, or by May 1 or as soon thereafter as
practicable in connection with any other property, the chief
appraiser shall deliver a written notice to the owner of each
property not included in a notice required to be delivered under
Subsection (a), if the property was reappraised in the current tax
year, if the ownership of the property changed during the preceding
year, or if the property owner or the agent of a property owner
authorized under Section 1.111 makes a written request for the
notice. The chief appraiser shall separate real from personal
property and include in the notice for each property:
(1) the appraised value of the property in the
preceding year;
(2) the appraised value of the property for the
current year and the kind of each partial exemption, if any,
approved for the current year;
(2-a) a statement of whether the property qualifies for
the limitation on appraised value provided by Section 23.231;
(3) a detailed explanation of the time and procedure
for protesting the value; and
(4) the date and place the appraisal review board will
begin hearing protests.
SECTION 5. Section 41.41(a), Tax Code, is amended to read as
follows:
(a) A property owner is entitled to protest before the
appraisal review board the following actions:
(1) determination of the appraised value of the
owner's property or, in the case of land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, determination of its appraised
or market value;
(2) unequal appraisal of the owner's property;
(3) inclusion of the owner's property on the appraisal
records;
(4) denial to the property owner in whole or in part of
a partial exemption;
(4-a) determination that the owner's property does not
qualify for the limitation on appraised value provided by Section
23.231;
(5) determination that the owner's land does not
qualify for appraisal as provided by Subchapter C, D, E, or H,
Chapter 23;
(6) identification of the taxing units in which the
owner's property is taxable in the case of the appraisal district's
appraisal roll;
(7) determination that the property owner is the owner
of property;
(8) a determination that a change in use of land
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
or
(9) any other action of the chief appraiser, appraisal
district, or appraisal review board that applies to and adversely
affects the property owner.
SECTION 6. Section 42.26(d), Tax Code, is amended to read as
follows:
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is [a
residence homestead] subject to the limitation on appraised value
imposed by Section 23.23 or 23.231.
SECTION 7. This Act applies only to the appraisal of real
property for ad valorem tax purposes for a tax year that begins on
or after the effective date of this Act.
SECTION 8. This Act takes effect January 1, 2022, but only
if the constitutional amendment proposed by the 87th Legislature,
Regular Session, 2021, to authorize the legislature to permit
certain political subdivisions to adopt a temporary limitation on
the appraised value for taxation of certain real property located
in specified areas is approved by the voters. If that amendment is
not approved by the voters, this Act has no effect.