Texas 2021 - 87th Regular

Texas House Bill HB1577 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	87R17212 TJB-D
2		-	By: Davis, Parker, Shine, Thierry H.B. No. 1577
3		-	Substitute the following for H.B. No. 1577:
4		-	By: Rodriguez C.S.H.B. No. 1577
	1	+	87R1506 TJB-D
	2	+	By: Davis H.B. No. 1577
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to a temporary limitation on the appraised value of
10	8		certain real property in specified areas for ad valorem tax
11	9		purposes.
12	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	11		SECTION 1. Section 1.12(d), Tax Code, is amended to read as
14	12		follows:
15	13		(d) For purposes of this section, the appraisal ratio of a
16	14		homestead to which Section 23.23 applies or of real property to
17	15		which Section 23.231 applies is the ratio of the property's market
18	16		value as determined by the appraisal district or appraisal review
19	17		board, as applicable, to the market value of the property according
20	18		to law. The appraisal ratio is not calculated according to the
21	19		appraised value of the property as limited by Section 23.23 or
22	20		23.231.
23	21		SECTION 2. Subchapter B, Chapter 23, Tax Code, is amended by
24	22		adding Section 23.231 to read as follows:
25	23		Sec. 23.231. TEMPORARY LIMITATION ON APPRAISED VALUE OF
26	24		CERTAIN REAL PROPERTY IN SPECIFIED AREAS. (a) In this section:
27	25		(1) "Census tract" means the geographic area
28	26		identified as a "tract" on the 2010 Census TIGER/Line Shapefiles,
29	27		prepared by the federal Bureau of the Census for the Twenty-third
30	28		Decennial Census of the United States, enumerated as of April 1,
31	29		2010.
32	30		(2) "Eligible property" means real property that:
33	31		(A) is:
34	32		(i) a residence homestead; or
35	33		(ii) an undeveloped lot, subject to
36	34		Subsection (f); and
37	35		(B) is located in one of the following census
38	36		tracts:
39	37		(i) Dallas County tract 002701 or 002702;
40		-	or
41	38		(ii) Harris County tract 210900, 211000,
42		-	211100, 211200, or 211700.
	39	+	211100, 211200, or 211700; or
	40	+	(iii) Lubbock County tract 000202.
43	41		(3) "Residence homestead" has the meaning assigned by
44	42		Section 11.13.
45	43		(b) The governing body of a municipality, county, or school
46	44		district may by official action adopt a limitation as prescribed by
47	45		this section on the appraised value of all eligible property
48	46		located in the taxing unit adopting the limitation. The governing
49	47		body of a municipality, county, or school district may not repeal,
50	48		rescind, or take other action to negate the adoption of the
51	49		limitation once adopted under this subsection.
52	50		(c) Notwithstanding the requirements of Sections 23.23 and
53	51		25.18, and regardless of whether the appraisal office has appraised
54	52		eligible property and determined the market value of the property
55	53		for the tax year, the appraised value of the property for a tax year
56	54		to which a limitation under this section applies is, for the taxing
57	55		unit that adopted the limitation, the lesser of:
58	56		(1) the appraised value of the property as otherwise
59	57		determined by law; or
60	58		(2) the appraised value of the property for the tax
61	59		year preceding the tax year in which the limitation adopted by that
62	60		taxing unit first applies, as provided by Subsection (e).
63	61		(d) When appraising eligible property, the chief appraiser
64	62		shall:
65	63		(1) appraise the property as otherwise determined by
66	64		law; and
67	65		(2) include in the appraisal records:
68	66		(A) the appraised value of the property
69	67		determined under Subdivision (1); and
70	68		(B) the amount determined under Subsection
71	69		(c)(2) applicable to each taxing unit that has adopted the
72	70		limitation.
73	71		(e) Except as provided by Subsection (f), a limitation once
74	72		adopted by a governing body under this section applies to each tax
75	73		year:
76	74		(1) beginning with:
77	75		(A) the tax year in which the governing body
78	76		adopts the limitation, if the governing body adopts the limitation
79	77		on or before April 1; or
80	78		(B) the tax year following the tax year in which
81	79		the governing body adopts the limitation, if the governing body
82	80		adopts the limitation after April 1; and
83	81		(2) ending with the 2037 tax year.
84	82		(f) The limitation adopted under this section as applied to
85	83		a vacant lot expires on the earlier of:
86	84		(1) January 1 following the end of the fifth tax year
87	85		for which the limitation applies, unless:
88	86		(A) a single-family residence has been
89	87		constructed on the property; and
90	88		(B) the owner of the residence has qualified the
91	89		property as the owner's residence homestead; or
92	90		(2) January 1 of the tax year in which the vacant lot
93	91		is:
94	92		(A) developed for a purpose other than as a
95	93		single-family residence; or
96	94		(B) developed as a single-family residence but
97	95		not qualified as the residence homestead of an owner of the
98	96		property.
99	97		(g) This section expires January 1, 2038.
100	98		SECTION 3. Section 25.19(b), Tax Code, as effective January
101	99		1, 2022, is amended to read as follows:
102	100		(b) The chief appraiser shall separate real from personal
103	101		property and include in the notice for each:
104	102		(1) a list of the taxing units in which the property is
105	103		taxable;
106	104		(2) the appraised value of the property in the
107	105		preceding year;
108	106		(3) the taxable value of the property in the preceding
109	107		year for each taxing unit taxing the property;
110	108		(4) the appraised value of the property for the
111	109		current year, the kind and amount of each exemption and partial
112	110		exemption, if any, approved for the property for the current year
113	111		and for the preceding year, and, if an exemption or partial
114	112		exemption that was approved for the preceding year was canceled or
115	113		reduced for the current year, the amount of the exemption or partial
116	114		exemption canceled or reduced;
117	115		(4-a) a statement of whether the property qualifies
118	116		for the limitation on appraised value provided by Section 23.231;
119	117		(5) in italic typeface, the following statement: "The
120	118		Texas Legislature does not set the amount of your local
121	119		taxes. Your property tax burden is decided by your locally elected
122	120		officials, and all inquiries concerning your taxes should be
123	121		directed to those officials";
124	122		(6) a detailed explanation of the time and procedure
125	123		for protesting the value;
126	124		(7) the date and place the appraisal review board will
127	125		begin hearing protests; and
128	126		(8) a brief explanation that the governing body of
129	127		each taxing unit decides whether or not taxes on the property will
130	128		increase and the appraisal district only determines the value of
131	129		the property.
132	130		SECTION 4. Section 25.19(g), Tax Code, is amended to read as
133	131		follows:
134	132		(g) By April 1 or as soon thereafter as practicable if the
135	133		property is a single-family residence that qualifies for an
136	134		exemption under Section 11.13, or by May 1 or as soon thereafter as
137	135		practicable in connection with any other property, the chief
138	136		appraiser shall deliver a written notice to the owner of each
139	137		property not included in a notice required to be delivered under
140	138		Subsection (a), if the property was reappraised in the current tax
141	139		year, if the ownership of the property changed during the preceding
142	140		year, or if the property owner or the agent of a property owner
143	141		authorized under Section 1.111 makes a written request for the
144	142		notice. The chief appraiser shall separate real from personal
145	143		property and include in the notice for each property:
146	144		(1) the appraised value of the property in the
147	145		preceding year;
148	146		(2) the appraised value of the property for the
149	147		current year and the kind of each partial exemption, if any,
150	148		approved for the current year;
151	149		(2-a) a statement of whether the property qualifies for
152	150		the limitation on appraised value provided by Section 23.231;
153	151		(3) a detailed explanation of the time and procedure
154	152		for protesting the value; and
155	153		(4) the date and place the appraisal review board will
156	154		begin hearing protests.
157	155		SECTION 5. Section 41.41(a), Tax Code, is amended to read as
158	156		follows:
159	157		(a) A property owner is entitled to protest before the
160	158		appraisal review board the following actions:
161	159		(1) determination of the appraised value of the
162	160		owner's property or, in the case of land appraised as provided by
163	161		Subchapter C, D, E, or H, Chapter 23, determination of its appraised
164	162		or market value;
165	163		(2) unequal appraisal of the owner's property;
166	164		(3) inclusion of the owner's property on the appraisal
167	165		records;
168	166		(4) denial to the property owner in whole or in part of
169	167		a partial exemption;
170	168		(4-a) determination that the owner's property does not
171	169		qualify for the limitation on appraised value provided by Section
172	170		23.231;
173	171		(5) determination that the owner's land does not
174	172		qualify for appraisal as provided by Subchapter C, D, E, or H,
175	173		Chapter 23;
176	174		(6) identification of the taxing units in which the
177	175		owner's property is taxable in the case of the appraisal district's
178	176		appraisal roll;
179	177		(7) determination that the property owner is the owner
180	178		of property;
181	179		(8) a determination that a change in use of land
182	180		appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
183	181		or
184	182		(9) any other action of the chief appraiser, appraisal
185	183		district, or appraisal review board that applies to and adversely
186	184		affects the property owner.
187	185		SECTION 6. Section 42.26(d), Tax Code, is amended to read as
188	186		follows:
189	187		(d) For purposes of this section, the value of the property
190	188		subject to the suit and the value of a comparable property or sample
191	189		property that is used for comparison must be the market value
192	190		determined by the appraisal district when the property is [a
193	191		residence homestead] subject to the limitation on appraised value
194	192		imposed by Section 23.23 or 23.231.
195	193		SECTION 7. This Act applies only to the appraisal of real
196	194		property for ad valorem tax purposes for a tax year that begins on
197	195		or after the effective date of this Act.
198	196		SECTION 8. This Act takes effect January 1, 2022, but only
199	197		if the constitutional amendment proposed by the 87th Legislature,
200	198		Regular Session, 2021, to authorize the legislature to permit
201	199		certain political subdivisions to adopt a temporary limitation on
202	200		the appraised value for taxation of certain real property located
203	201		in specified areas is approved by the voters. If that amendment is
204	202		not approved by the voters, this Act has no effect.