87R10787 TJB-D
By: Eckhardt S.B. No. 887
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the governing body of a taxing unit to
adopt a local option residence homestead exemption from ad valorem
taxation of a percentage or a portion, expressed as a dollar amount,
of the appraised value of an individual's residence homestead.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13(n), Tax Code, is amended to read as
follows:
(n) The [In addition to any other exemptions provided by
this section, an individual is entitled to an exemption from
taxation by a taxing unit of a percentage of the appraised value of
his residence homestead if the exemption is adopted by the]
governing body of a [the] taxing unit, [before July 1] in the manner
provided by law for official action by the body, may adopt an
exemption from taxation by the taxing unit of either a percentage of
the appraised value of an individual's residence homestead or a
portion, expressed as a dollar amount, of the appraised value of an
individual's residence homestead, but not both. The exemption must
be adopted by the governing body before July 1 of the tax year in
which the exemption applies. If the governing body adopts a
percentage exemption and the percentage set by the body [taxing
unit] produces an exemption in a tax year of less than $5,000 when
applied to a particular residence homestead, the individual is
entitled to an exemption of $5,000 of the appraised value. A [The]
percentage exemption adopted by the governing body [taxing unit]
may not exceed 20 percent. If the governing body adopts an
exemption of a portion, expressed as a dollar amount, of the
appraised value of a residence homestead, the amount of the
exemption in a tax year may not be less than $5,000. An individual
is entitled to an exemption adopted under this subsection in
addition to any other exemptions provided by this section.
SECTION 2. This Act applies only to ad valorem taxes imposed
for a tax year that begins on or after the effective date of this
Act.
SECTION 3. This Act takes effect January 1, 2022, but only
if the constitutional amendment proposed by the 87th Legislature,
Regular Session, 2021, authorizing the governing body of a
political subdivision to adopt a residence homestead exemption from
ad valorem taxation of either a percentage or a portion, expressed
as a dollar amount, of the market value of an individual's residence
homestead is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.