| 1 | 1 | | 87R9802 SMH-D |
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| 2 | 2 | | By: Allison H.J.R. No. 118 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A JOINT RESOLUTION |
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| 6 | 6 | | proposing a constitutional amendment authorizing the legislature |
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| 7 | 7 | | to provide for the appraisal of real property for ad valorem tax |
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| 8 | 8 | | purposes based on its purchase price. |
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| 9 | 9 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 1, Article VIII, Texas Constitution, is |
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| 11 | 11 | | amended by adding Subsection (k) to read as follows: |
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| 12 | 12 | | (k) Notwithstanding Subsections (a), (b), and (i) of this |
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| 13 | 13 | | section, for each tax year following the year in which the property |
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| 14 | 14 | | was purchased until the end of the tax year in which the ownership |
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| 15 | 15 | | of the property changes, the legislature by general law may limit |
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| 16 | 16 | | the maximum appraised value of real property for ad valorem tax |
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| 17 | 17 | | purposes to the lesser of the market value of the property as |
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| 18 | 18 | | determined by the appraisal entity or the sum of the amount the |
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| 19 | 19 | | owner of the property paid for the property and the initial market |
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| 20 | 20 | | value of each new improvement to the property. The applicability of |
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| 21 | 21 | | a general law enacted under this subsection must be limited to a |
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| 22 | 22 | | bona fide purchaser for value of a property who, in the manner |
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| 23 | 23 | | provided by law, applies for the limitation on appraised value |
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| 24 | 24 | | under this subsection not later than a date prescribed by general |
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| 25 | 25 | | law in the tax year following the year in which the person purchased |
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| 26 | 26 | | the property. The maximum appraised value of a residence homestead |
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| 27 | 27 | | that is subject to a limitation on appraised value authorized by |
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| 28 | 28 | | this subsection and to a limitation authorized by Subsection (i) of |
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| 29 | 29 | | this section is equal to the lesser of the amount authorized by this |
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| 30 | 30 | | subsection or the amount authorized by that subsection. The |
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| 31 | 31 | | legislature may prescribe or delegate to an appropriate public |
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| 32 | 32 | | official or entity the authority to prescribe standards and |
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| 33 | 33 | | procedures to administer a law enacted under this subsection, |
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| 34 | 34 | | including criteria to be used to determine whether a person was a |
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| 35 | 35 | | bona fide purchaser for value. |
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| 36 | 36 | | SECTION 2. This proposed constitutional amendment shall be |
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| 37 | 37 | | submitted to the voters at an election to be held November 2, 2021. |
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| 38 | 38 | | The ballot shall be printed to permit voting for or against the |
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| 39 | 39 | | proposition: "The constitutional amendment authorizing the |
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| 40 | 40 | | legislature to provide for the appraisal of real property for ad |
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| 41 | 41 | | valorem tax purposes based on its purchase price." |
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