| 1 | 1 | | 87R12374 SMH-D |
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| 2 | 2 | | By: Allison H.J.R. No. 145 |
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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 to authorize the legislature |
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| 7 | 7 | | to limit the appraised value of real property for ad valorem tax |
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| 8 | 8 | | purposes to the value when the owner acquired the property and to |
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| 9 | 9 | | provide for determining that value on the basis of the purchase |
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| 10 | 10 | | price of the property, if applicable. |
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| 11 | 11 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 1(i), Article VIII, Texas Constitution, |
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| 13 | 13 | | is amended to read as follows: |
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| 14 | 14 | | (i) Notwithstanding Subsections (a) and (b) of this |
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| 15 | 15 | | section, the Legislature by general law may limit the maximum |
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| 16 | 16 | | appraised value of real property [a residence homestead] for ad |
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| 17 | 17 | | valorem tax purposes in a tax year to the lesser of the most recent |
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| 18 | 18 | | market value of the property [residence homestead] as determined by |
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| 19 | 19 | | the appraisal entity or the sum of [110 percent, or a greater |
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| 20 | 20 | | percentage, of] the appraised value of the property [residence |
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| 21 | 21 | | homestead] for the [preceding] tax year in which the owner acquired |
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| 22 | 22 | | the property and the initial market value of each new improvement to |
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| 23 | 23 | | the property. The Legislature may provide for determining the |
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| 24 | 24 | | appraised value of the property for the tax year in which the owner |
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| 25 | 25 | | acquired the property on the basis of the purchase price the owner |
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| 26 | 26 | | paid for the property if the owner was a bona fide purchaser for |
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| 27 | 27 | | value and applies for the limitation on appraised value under this |
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| 28 | 28 | | subsection not later than a date prescribed by general law in the |
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| 29 | 29 | | tax year following the year in which the person purchased the |
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| 30 | 30 | | property. The Legislature may prescribe or delegate to an |
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| 31 | 31 | | appropriate public official or entity the authority to prescribe |
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| 32 | 32 | | standards and procedures to administer a law enacted under this |
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| 33 | 33 | | subsection, including criteria to be used to determine whether a |
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| 34 | 34 | | person is a bona fide purchaser for value. A limitation on |
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| 35 | 35 | | appraised values authorized by this subsection: |
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| 36 | 36 | | (1) takes effect in the tax year following the first |
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| 37 | 37 | | tax year in which the owner owns the property on January 1 or, if the |
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| 38 | 38 | | property qualifies for an exemption as the [to a] residence |
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| 39 | 39 | | homestead of the owner under Section 1-b of this article in the tax |
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| 40 | 40 | | year in which the owner acquires the property, in [on the later of |
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| 41 | 41 | | the effective date of the law imposing the limitation or January 1 |
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| 42 | 42 | | of] the tax year following the [first] tax year in which the owner |
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| 43 | 43 | | acquires [qualifies] the property [for an exemption under Section |
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| 44 | 44 | | 1-b of this article]; and |
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| 45 | 45 | | (2) expires on January 1 of the [first] tax year |
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| 46 | 46 | | following the tax year in which [that neither] the owner of the |
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| 47 | 47 | | property when the limitation took effect ceases to own the |
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| 48 | 48 | | property, except that the Legislature by general law may provide |
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| 49 | 49 | | for the limitation applicable to a residence homestead to continue |
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| 50 | 50 | | during ownership of the property by [nor] the owner's spouse or |
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| 51 | 51 | | surviving spouse [qualifies for an exemption under Section 1-b of |
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| 52 | 52 | | this article]. |
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| 53 | 53 | | SECTION 2. This proposed constitutional amendment shall be |
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| 54 | 54 | | submitted to the voters at an election to be held November 2, 2021. |
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| 55 | 55 | | The ballot shall be printed to permit voting for or against the |
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| 56 | 56 | | proposition: "The constitutional amendment to authorize the |
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| 57 | 57 | | legislature to limit the appraised value of real property for ad |
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| 58 | 58 | | valorem tax purposes to the value when the owner acquired the |
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| 59 | 59 | | property and to provide for determining that value on the basis of |
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| 60 | 60 | | the purchase price of the property, if applicable." |
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