| 1 | 1 | | 87R10787 TJB-D |
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| 2 | 2 | | By: Eckhardt S.B. No. 887 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of the governing body of a taxing unit to |
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| 8 | 8 | | adopt a local option residence homestead exemption from ad valorem |
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| 9 | 9 | | taxation of a percentage or a portion, expressed as a dollar amount, |
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| 10 | 10 | | of the appraised value of an individual's residence homestead. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 11.13(n), Tax Code, is amended to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | (n) The [In addition to any other exemptions provided by |
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| 15 | 15 | | this section, an individual is entitled to an exemption from |
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| 16 | 16 | | taxation by a taxing unit of a percentage of the appraised value of |
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| 17 | 17 | | his residence homestead if the exemption is adopted by the] |
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| 18 | 18 | | governing body of a [the] taxing unit, [before July 1] in the manner |
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| 19 | 19 | | provided by law for official action by the body, may adopt an |
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| 20 | 20 | | exemption from taxation by the taxing unit of either a percentage of |
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| 21 | 21 | | the appraised value of an individual's residence homestead or a |
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| 22 | 22 | | portion, expressed as a dollar amount, of the appraised value of an |
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| 23 | 23 | | individual's residence homestead, but not both. The exemption must |
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| 24 | 24 | | be adopted by the governing body before July 1 of the tax year in |
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| 25 | 25 | | which the exemption applies. If the governing body adopts a |
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| 26 | 26 | | percentage exemption and the percentage set by the body [taxing |
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| 27 | 27 | | unit] produces an exemption in a tax year of less than $5,000 when |
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| 28 | 28 | | applied to a particular residence homestead, the individual is |
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| 29 | 29 | | entitled to an exemption of $5,000 of the appraised value. A [The] |
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| 30 | 30 | | percentage exemption adopted by the governing body [taxing unit] |
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| 31 | 31 | | may not exceed 20 percent. If the governing body adopts an |
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| 32 | 32 | | exemption of a portion, expressed as a dollar amount, of the |
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| 33 | 33 | | appraised value of a residence homestead, the amount of the |
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| 34 | 34 | | exemption in a tax year may not be less than $5,000. An individual |
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| 35 | 35 | | is entitled to an exemption adopted under this subsection in |
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| 36 | 36 | | addition to any other exemptions provided by this section. |
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| 37 | 37 | | SECTION 2. This Act applies only to ad valorem taxes imposed |
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| 38 | 38 | | for a tax year that begins on or after the effective date of this |
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| 39 | 39 | | Act. |
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| 40 | 40 | | SECTION 3. This Act takes effect January 1, 2022, but only |
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| 41 | 41 | | if the constitutional amendment proposed by the 87th Legislature, |
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| 42 | 42 | | Regular Session, 2021, authorizing the governing body of a |
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| 43 | 43 | | political subdivision to adopt a residence homestead exemption from |
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| 44 | 44 | | ad valorem taxation of either a percentage or a portion, expressed |
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| 45 | 45 | | as a dollar amount, of the market value of an individual's residence |
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| 46 | 46 | | homestead is approved by the voters. If that amendment is not |
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| 47 | 47 | | approved by the voters, this Act has no effect. |
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