Texas 2021 - 87th Regular

Texas House Bill HB3694 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	87R22250 TJB-D
2		-	By: Shaheen, González of Dallas H.B. No. 3694
3		-	Substitute the following for H.B. No. 3694:
4		-	By: Shine C.S.H.B. No. 3694
	1	+	87R9159 TJB-D
	2	+	By: Shaheen H.B. No. 3694
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to a limitation on the appraised value of certain rapidly
10		-	appreciating residence homesteads in specified areas for ad valorem
11		-	tax purposes.
	8	+	appreciating residence homesteads for ad valorem tax purposes.
12	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	10		SECTION 1. Section 1.12(d), Tax Code, is amended to read as
14	11		follows:
15	12		(d) For purposes of this section, the appraisal ratio of a
16	13		homestead to which Section 23.23 or 23.231 applies is the ratio of
17	14		the property's market value as determined by the appraisal district
18	15		or appraisal review board, as applicable, to the market value of the
19	16		property according to law. The appraisal ratio is not calculated
20	17		according to the appraised value of the property as limited by
21	18		Section 23.23 or 23.231.
22	19		SECTION 2. Subchapter B, Chapter 23, Tax Code, is amended by
23	20		adding Section 23.231 to read as follows:
24	21		Sec. 23.231. LIMITATION ON APPRAISED VALUE OF RAPIDLY
25		-	APPRECIATING RESIDENCE HOMESTEADS IN SPECIFIED AREAS. (a) In this
26		-	section:
27		-	(1) "Census tract" means the geographic area
28		-	identified as a "tract" on the 2010 Census TIGER/Line Shapefiles,
29		-	prepared by the federal Bureau of the Census for the Twenty-third
30		-	Decennial Census of the United States, enumerated as of April 1,
31		-	2010.
32		-	(2) "Disaster recovery program" means the disaster
	22	+	APPRECIATING RESIDENCE HOMESTEAD. (a) In this section:
	23	+	(1) "Disaster recovery program" means the disaster
33	24		recovery program administered by the General Land Office or by a
34	25		political subdivision of this state that is funded with community
35	26		development block grant disaster recovery money authorized by
36	27		federal law.
37		-	(3) "New improvement" means an improvement to a
	28	+	(2) "New improvement" means an improvement to a
38	29		rapidly appreciating residence homestead made after the most recent
39	30		appraisal of the property that increases the market value of the
40	31		property and the value of which is not included in the appraised
41	32		value of the property for the preceding tax year. The term does not
42	33		include repairs to or ordinary maintenance of an existing structure
43	34		or the grounds or another feature of the property.
44		-	(4) "Rapidly appreciating residence homestead" means
	35	+	(3) "Rapidly appreciating residence homestead" means
45	36		real property:
46	37		(A) that is a residence homestead;
47	38		(B) for which the owner was granted a residence
48		-	homestead exemption in the 2017, 2018, 2019, 2020, 2021, 2022,
49		-	~~2023, and 2024~~ tax years; and
50		-	(C) for which the market value for the ~~2024~~ tax
51		-	year is at least 25 percent higher than the market value of the
	39	+	homestead exemption in the 2017, 2018, 2019, 2020, 2021, and 2022
	40	+	tax years; and
	41	+	(C) for which the market value for the 2022 tax
	42	+	year is at least 250 percent higher than the market value of the
52	43		property for the 2017 tax year.
53		-	(5) "Residence homestead" has the meaning assigned by
	44	+	(4) "Residence homestead" has the meaning assigned by
54	45		Section 11.13.
55		-	(b) This section applies only to property located in Dallas
56		-	County census tract 004300, 010101, 010102, 010500, 010601, 010602,
57		-	or 020500.
58		-	(c) Notwithstanding the requirements of Sections 23.23 and
	46	+	(b) Notwithstanding the requirements of Sections 23.23 and
59	47		25.18, and regardless of whether the appraisal office has appraised
60	48		the property and determined the market value of the property for the
61	49		tax year, an appraisal office may increase the appraised value of a
62	50		rapidly appreciating residence homestead for a tax year to an
63	51		amount not to exceed the lesser of:
64	52		(1) the market value of the property for the most
65	53		recent tax year that the market value was determined by the
66	54		appraisal office; or
67	55		(2) the sum of:
68	56		(A) the appraised value of the property for the
69	57		2017 tax year; and
70	58		(B) the market value of all new improvements to
71	59		the property.
72		-	(d) When appraising a rapidly appreciating residence
	60	+	(c) When appraising a rapidly appreciating residence
73	61		homestead, the chief appraiser shall:
74	62		(1) appraise the property at its market value; and
75	63		(2) include in the appraisal records both the market
76	64		value of the property and the amount computed under Subsection
77		-	(c)(2).
78		-	(e) The limitation provided by Subsection (c) expires on
	65	+	(b)(2).
	66	+	(d) The limitation provided by Subsection (b) expires on
79	67		January 1 of the first tax year that neither the owner of the
80	68		property when the limitation took effect nor the owner's spouse or
81	69		surviving spouse qualifies for an exemption under Section 11.13.
82		-	(f) This section does not apply to property appraised under
	70	+	(e) This section does not apply to property appraised under
83	71		Subchapter C, D, E, F, or G.
84		-	(g) Notwithstanding Subsection (c), and except as provided
	72	+	(f) Notwithstanding Subsection (b), and except as provided
85	73		by Subdivision (2), an improvement to property that would otherwise
86	74		constitute a new improvement is not treated as a new improvement if
87	75		the improvement is a replacement structure for a structure that was
88		-	rendered uninhabitable or unusable by a casualty or by wind~~, fire,~~
89		-	~~or water~~ damage. For purposes of appraising the property under
90		-	~~Subsection~~ (c) in the tax year in which the structure would have
91		-	~~constituted a~~ new improvement:
	76	+	rendered uninhabitable or unusable by a casualty or by wind or water
	77	+	damage. For purposes of appraising the property under Subsection
	78	+	(b) in the tax year in which the structure would have constituted a
	79	+	new improvement:
92	80		(1) the appraised value the property would have had in
93	81		the preceding tax year if the casualty or damage had not occurred is
94	82		considered to be the appraised value of the property for that year,
95	83		regardless of whether that appraised value exceeds the actual
96	84		appraised value of the property for that year as limited by
97		-	Subsection (c); and
	85	+	Subsection (b); and
98	86		(2) the replacement structure is considered to be a
99	87		new improvement only if:
100	88		(A) the square footage of the replacement
101	89		structure exceeds that of the replaced structure as that structure
102	90		existed before the casualty or damage occurred; or
103	91		(B) the exterior of the replacement structure is
104	92		of higher quality construction and composition than that of the
105	93		replaced structure.
106		-	(h) Notwithstanding Subsection (g)(2), and only to the
	94	+	(g) Notwithstanding Subsection (f)(2), and only to the
107	95		extent necessary to satisfy the requirements of the disaster
108	96		recovery program, a replacement structure described by that
109	97		subdivision is not considered to be a new improvement if to satisfy
110	98		the requirements of the disaster recovery program it was necessary
111	99		that:
112	100		(1) the square footage of the replacement structure
113	101		exceed that of the replaced structure as that structure existed
114	102		before the casualty or damage occurred; or
115	103		(2) the exterior of the replacement structure be of
116	104		higher quality construction and composition than that of the
117	105		replaced structure.
118	106		SECTION 3. Section 25.19(b), Tax Code, as effective January
119	107		1, 2022, is amended to read as follows:
120	108		(b) The chief appraiser shall separate real from personal
121	109		property and include in the notice for each:
122	110		(1) a list of the taxing units in which the property is
123	111		taxable;
124	112		(2) the appraised value of the property in the
125	113		preceding year;
126	114		(3) the taxable value of the property in the preceding
127	115		year for each taxing unit taxing the property;
128	116		(4) the appraised value of the property for the
129	117		current year, the kind and amount of each exemption and partial
130	118		exemption, if any, approved for the property for the current year
131	119		and for the preceding year, and, if an exemption or partial
132	120		exemption that was approved for the preceding year was canceled or
133	121		reduced for the current year, the amount of the exemption or partial
134	122		exemption canceled or reduced;
135	123		(4-a) a statement of whether the property qualifies
136	124		for a limitation on appraised value adopted under Section 23.231;
137	125		(5) in italic typeface, the following statement: "The
138	126		Texas Legislature does not set the amount of your local
139	127		taxes. Your property tax burden is decided by your locally elected
140	128		officials, and all inquiries concerning your taxes should be
141	129		directed to those officials";
142	130		(6) a detailed explanation of the time and procedure
143	131		for protesting the value;
144	132		(7) the date and place the appraisal review board will
145	133		begin hearing protests; and
146	134		(8) a brief explanation that the governing body of
147	135		each taxing unit decides whether or not taxes on the property will
148	136		increase and the appraisal district only determines the value of
149	137		the property.
150	138		SECTION 4. Section 25.19(g), Tax Code, is amended to read as
151	139		follows:
152	140		(g) By April 1 or as soon thereafter as practicable if the
153	141		property is a single-family residence that qualifies for an
154	142		exemption under Section 11.13, or by May 1 or as soon thereafter as
155	143		practicable in connection with any other property, the chief
156	144		appraiser shall deliver a written notice to the owner of each
157	145		property not included in a notice required to be delivered under
158	146		Subsection (a), if the property was reappraised in the current tax
159	147		year, if the ownership of the property changed during the preceding
160	148		year, or if the property owner or the agent of a property owner
161	149		authorized under Section 1.111 makes a written request for the
162	150		notice. The chief appraiser shall separate real from personal
163	151		property and include in the notice for each property:
164	152		(1) the appraised value of the property in the
165	153		preceding year;
166	154		(2) the appraised value of the property for the
167	155		current year and the kind of each partial exemption, if any,
168	156		approved for the current year;
169	157		(2-a) a statement of whether the property qualifies
170	158		for a limitation on appraised value adopted under Section 23.231;
171	159		(3) a detailed explanation of the time and procedure
172	160		for protesting the value; and
173	161		(4) the date and place the appraisal review board will
174	162		begin hearing protests.
175	163		SECTION 5. Section 41.41(a), Tax Code, is amended to read as
176	164		follows:
177	165		(a) A property owner is entitled to protest before the
178	166		appraisal review board the following actions:
179	167		(1) determination of the appraised value of the
180	168		owner's property or, in the case of land appraised as provided by
181	169		Subchapter C, D, E, or H, Chapter 23, determination of its appraised
182	170		or market value;
183	171		(2) unequal appraisal of the owner's property;
184	172		(3) inclusion of the owner's property on the appraisal
185	173		records;
186	174		(4) denial to the property owner in whole or in part of
187	175		a partial exemption;
188	176		(4-a) determination that the owner's property does not
189	177		qualify for a limitation on appraised value adopted under Section
190	178		23.231;
191	179		(5) determination that the owner's land does not
192	180		qualify for appraisal as provided by Subchapter C, D, E, or H,
193	181		Chapter 23;
194	182		(6) identification of the taxing units in which the
195	183		owner's property is taxable in the case of the appraisal district's
196	184		appraisal roll;
197	185		(7) determination that the property owner is the owner
198	186		of property;
199	187		(8) a determination that a change in use of land
200	188		appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
201	189		or
202	190		(9) any other action of the chief appraiser, appraisal
203	191		district, or appraisal review board that applies to and adversely
204	192		affects the property owner.
205	193		SECTION 6. Section 42.26(d), Tax Code, is amended to read as
206	194		follows:
207	195		(d) For purposes of this section, the value of the property
208	196		subject to the suit and the value of a comparable property or sample
209	197		property that is used for comparison must be the market value
210	198		determined by the appraisal district when the property is [a
211	199		residence homestead] subject to the limitation on appraised value
212	200		imposed by Section 23.23 or 23.231.
213	201		SECTION 7. This Act applies only to the appraisal of
214	202		residence homesteads for ad valorem tax purposes for a tax year that
215	203		begins on or after the effective date of this Act.
216		-	SECTION 8. This Act takes effect January 1, ~~2024~~, but only
217		-	if a constitutional amendment proposed by the ~~88th~~ Legislature,
218		-	Regular Session, ~~2023~~, to authorize the legislature to limit the
	204	+	SECTION 8. This Act takes effect January 1, 2022, but only
	205	+	if the constitutional amendment proposed by the 87th Legislature,
	206	+	Regular Session, 2021, to authorize the legislature to limit the
219	207		maximum appraised value of certain rapidly appreciating residence
220		-	homesteads ~~in specified areas~~ for ad valorem tax purposes is
221		-	~~approved by the voters.~~ If ~~such an~~ amendment is not approved by the
222		-	~~voters, this Act has no~~ effect.
	208	+	homesteads for ad valorem tax purposes is approved by the voters.
	209	+	If that amendment is not approved by the voters, this Act has no
	210	+	effect.