87R12374 SMH-D
By: Allison H.J.R. No. 145
A JOINT RESOLUTION
proposing a constitutional amendment to authorize the legislature
to limit the appraised value of real property for ad valorem tax
purposes to the value when the owner acquired the property and to
provide for determining that value on the basis of the purchase
price of the property, if applicable.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1(i), Article VIII, Texas Constitution,
is amended to read as follows:
(i) Notwithstanding Subsections (a) and (b) of this
section, the Legislature by general law may limit the maximum
appraised value of real property [a residence homestead] for ad
valorem tax purposes in a tax year to the lesser of the most recent
market value of the property [residence homestead] as determined by
the appraisal entity or the sum of [110 percent, or a greater
percentage, of] the appraised value of the property [residence
homestead] for the [preceding] tax year in which the owner acquired
the property and the initial market value of each new improvement to
the property. The Legislature may provide for determining the
appraised value of the property for the tax year in which the owner
acquired the property on the basis of the purchase price the owner
paid for the property if the owner was a bona fide purchaser for
value and applies for the limitation on appraised value under this
subsection not later than a date prescribed by general law in the
tax year following the year in which the person purchased the
property. The Legislature may prescribe or delegate to an
appropriate public official or entity the authority to prescribe
standards and procedures to administer a law enacted under this
subsection, including criteria to be used to determine whether a
person is a bona fide purchaser for value. A limitation on
appraised values authorized by this subsection:
(1) takes effect in the tax year following the first
tax year in which the owner owns the property on January 1 or, if the
property qualifies for an exemption as the [to a] residence
homestead of the owner under Section 1-b of this article in the tax
year in which the owner acquires the property, in [on the later of
the effective date of the law imposing the limitation or January 1
of] the tax year following the [first] tax year in which the owner
acquires [qualifies] the property [for an exemption under Section
1-b of this article]; and
(2) expires on January 1 of the [first] tax year
following the tax year in which [that neither] the owner of the
property when the limitation took effect ceases to own the
property, except that the Legislature by general law may provide
for the limitation applicable to a residence homestead to continue
during ownership of the property by [nor] the owner's spouse or
surviving spouse [qualifies for an exemption under Section 1-b of
this article].
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 2, 2021.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment to authorize the
legislature to limit the appraised value of real property for ad
valorem tax purposes to the value when the owner acquired the
property and to provide for determining that value on the basis of
the purchase price of the property, if applicable."