Texas 2021 - 87th 2nd C.S.

Texas House Bill HB162 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87S20382 TJB-D
2	2	By: Capriglione H.B. No. 162
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to limitations on increases in the appraised value for ad
8	8	valorem tax purposes of residence homesteads and single-family
9	9	residences other than residence homesteads.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 1.12(d), Tax Code, is amended to read as
12	12	follows:
13	13	(d) For purposes of this section, the appraisal ratio of a
14	14	residence homestead to which Section 23.23 applies or of a
15	15	single-family residence other than a residence homestead to which
16	16	Section 23.231 applies is the ratio of the property's market value
17	17	as determined by the appraisal district or appraisal review board,
18	18	as applicable, to the market value of the property according to law.
19	19	The appraisal ratio is not calculated according to the appraised
20	20	value of the property as limited by Section 23.23 or 23.231.
21	21	SECTION 2. Section 23.23(a), Tax Code, is amended to read as
22	22	follows:
23	23	(a) Notwithstanding the requirements of Section 25.18 and
24	24	regardless of whether the appraisal office has appraised the
25	25	property and determined the market value of the property for the tax
26	26	year, an appraisal office may increase the appraised value of a
27	27	residence homestead for a tax year to an amount not to exceed the
28	28	lesser of:
29	29	(1) the market value of the property for the most
30	30	recent tax year that the market value was determined by the
31	31	appraisal office; or
32	32	(2) the sum of:
33	33	(A) five [10] percent of the appraised value of
34	34	the property for the preceding tax year;
35	35	(B) the appraised value of the property for the
36	36	preceding tax year; and
37	37	(C) the market value of all new improvements to
38	38	the property.
39	39	SECTION 3. Subchapter B, Chapter 23, Tax Code, is amended by
40	40	adding Section 23.231 to read as follows:
41	41	Sec. 23.231. LIMITATION ON APPRAISED VALUE OF SINGLE-FAMILY
42	42	RESIDENCE OTHER THAN RESIDENCE HOMESTEAD. (a) In this section:
43	43	(1) "New improvement" means an improvement to real
44	44	property made after the most recent appraisal of the property that
45	45	increases the market value of the property and the value of which is
46	46	not included in the appraised value of the property for the
47	47	preceding tax year. The term does not include repairs to or
48	48	ordinary maintenance of an existing structure or the grounds or
49	49	another feature of the property.
50	50	(2) "Qualifying trust" has the meaning assigned by
51	51	Section 11.13.
52	52	(3) "Single-family residence" means a structure,
53	53	including a mobile home, together with the land, not to exceed 20
54	54	acres, and improvements used in the residential occupancy of the
55	55	structure, if the structure and the land and improvements have
56	56	identical ownership, that:
57	57	(A) is owned by one or more individuals, either
58	58	directly or through a beneficial interest in a qualifying trust;
59	59	(B) is designed or adapted for human residence;
60	60	and
61	61	(C) is used as a single-family residence.
62	62	(b) This section does not apply to a residence homestead
63	63	that qualifies for an exemption under Section 11.13.
64	64	(c) Notwithstanding the requirements of Section 25.18 and
65	65	regardless of whether the appraisal office has appraised the
66	66	property and determined the market value of the property for the tax
67	67	year, an appraisal office may increase the appraised value of a
68	68	single-family residence to which this section applies for a tax
69	69	year to an amount not to exceed the lesser of:
70	70	(1) the market value of the property for the most
71	71	recent tax year that the market value was determined by the
72	72	appraisal office; or
73	73	(2) the sum of:
74	74	(A) 10 percent of the appraised value of the
75	75	property for the preceding tax year;
76	76	(B) the appraised value of the property for the
77	77	preceding tax year; and
78	78	(C) the market value of all new improvements to
79	79	the property.
80	80	(d) When appraising a single-family residence to which this
81	81	section applies, the chief appraiser shall:
82	82	(1) appraise the property at its market value; and
83	83	(2) include in the appraisal records both the market
84	84	value of the property and the amount computed under Subsection
85	85	(c)(2).
86	86	(e) The limitation provided by Subsection (c) takes effect
87	87	as to a single-family residence on January 1 of the tax year
88	88	following the first tax year in which the owner owns the property on
89	89	January 1 and in which the property is used as a single-family
90	90	residence. The limitation expires on January 1 of the tax year
91	91	following the tax year in which the owner of the property ceases to
92	92	own the property or the property ceases to be used as a
93	93	single-family residence.
94	94	(f) Notwithstanding Subsections (a) and (c) and except as
95	95	provided by Subdivision (2) of this subsection, an improvement to
96	96	real property that would otherwise constitute a new improvement is
97	97	not treated as a new improvement if the improvement is a replacement
98	98	structure for a structure that was rendered uninhabitable or
99	99	unusable by a casualty or by wind or water damage. For purposes of
100	100	appraising the property under Subsection (c) in the tax year in
101	101	which the structure would have constituted a new improvement:
102	102	(1) the appraised value the property would have had in
103	103	the preceding tax year if the casualty or damage had not occurred is
104	104	considered to be the appraised value of the property for that year,
105	105	regardless of whether that appraised value exceeds the actual
106	106	appraised value of the property for that year as limited by
107	107	Subsection (c); and
108	108	(2) the replacement structure is considered to be a
109	109	new improvement only if:
110	110	(A) the square footage of the replacement
111	111	structure exceeds that of the replaced structure as that structure
112	112	existed before the casualty or damage occurred; or
113	113	(B) the exterior of the replacement structure is
114	114	of higher quality construction and composition than that of the
115	115	replaced structure.
116	116	(g) In this subsection, "disaster recovery program" means
117	117	the disaster recovery program administered by the General Land
118	118	Office or by a political subdivision of this state that is funded
119	119	with community development block grant disaster recovery money
120	120	authorized by federal law. Notwithstanding Subsection (f)(2), and
121	121	only to the extent necessary to satisfy the requirements of the
122	122	disaster recovery program, a replacement structure described by
123	123	that subdivision is not considered to be a new improvement if to
124	124	satisfy the requirements of the disaster recovery program it was
125	125	necessary that:
126	126	(1) the square footage of the replacement structure
127	127	exceed that of the replaced structure as that structure existed
128	128	before the casualty or damage occurred; or
129	129	(2) the exterior of the replacement structure be of
130	130	higher quality construction and composition than that of the
131	131	replaced structure.
132	132	SECTION 4. Section 42.26(d), Tax Code, is amended to read as
133	133	follows:
134	134	(d) For purposes of this section, the value of the property
135	135	subject to the suit and the value of a comparable property or sample
136	136	property that is used for comparison must be the market value
137	137	determined by the appraisal district when the property is [a
138	138	residence homestead] subject to the limitation on appraised value
139	139	imposed by Section 23.23 or 23.231.
140	140	SECTION 5. Sections 403.302(d) and (i), Government Code,
141	141	are amended to read as follows:
142	142	(d) For the purposes of this section, "taxable value" means
143	143	the market value of all taxable property less:
144	144	(1) the total dollar amount of any residence homestead
145	145	exemptions lawfully granted under Section 11.13(b) or (c), Tax
146	146	Code, in the year that is the subject of the study for each school
147	147	district;
148	148	(2) one-half of the total dollar amount of any
149	149	residence homestead exemptions granted under Section 11.13(n), Tax
150	150	Code, in the year that is the subject of the study for each school
151	151	district;
152	152	(3) the total dollar amount of any exemptions granted
153	153	before May 31, 1993, within a reinvestment zone under agreements
154	154	authorized by Chapter 312, Tax Code;
155	155	(4) subject to Subsection (e), the total dollar amount
156	156	of any captured appraised value of property that:
157	157	(A) is within a reinvestment zone created on or
158	158	before May 31, 1999, or is proposed to be included within the
159	159	boundaries of a reinvestment zone as the boundaries of the zone and
160	160	the proposed portion of tax increment paid into the tax increment
161	161	fund by a school district are described in a written notification
162	162	provided by the municipality or the board of directors of the zone
163	163	to the governing bodies of the other taxing units in the manner
164	164	provided by former Section 311.003(e), Tax Code, before May 31,
165	165	1999, and within the boundaries of the zone as those boundaries
166	166	existed on September 1, 1999, including subsequent improvements to
167	167	the property regardless of when made;
168	168	(B) generates taxes paid into a tax increment
169	169	fund created under Chapter 311, Tax Code, under a reinvestment zone
170	170	financing plan approved under Section 311.011(d), Tax Code, on or
171	171	before September 1, 1999; and
172	172	(C) is eligible for tax increment financing under
173	173	Chapter 311, Tax Code;
174	174	(5) the total dollar amount of any captured appraised
175	175	value of property that:
176	176	(A) is within a reinvestment zone:
177	177	(i) created on or before December 31, 2008,
178	178	by a municipality with a population of less than 18,000; and
179	179	(ii) the project plan for which includes
180	180	the alteration, remodeling, repair, or reconstruction of a
181	181	structure that is included on the National Register of Historic
182	182	Places and requires that a portion of the tax increment of the zone
183	183	be used for the improvement or construction of related facilities
184	184	or for affordable housing;
185	185	(B) generates school district taxes that are paid
186	186	into a tax increment fund created under Chapter 311, Tax Code; and
187	187	(C) is eligible for tax increment financing under
188	188	Chapter 311, Tax Code;
189	189	(6) the total dollar amount of any exemptions granted
190	190	under Section 11.251 or 11.253, Tax Code;
191	191	(7) the difference between the comptroller's estimate
192	192	of the market value and the productivity value of land that
193	193	qualifies for appraisal on the basis of its productive capacity,
194	194	except that the productivity value estimated by the comptroller may
195	195	not exceed the fair market value of the land;
196	196	(8) the portion of the appraised value of residence
197	197	homesteads of individuals who receive a tax limitation under
198	198	Section 11.26, Tax Code, on which school district taxes are not
199	199	imposed in the year that is the subject of the study, calculated as
200	200	if the residence homesteads were appraised at the full value
201	201	required by law;
202	202	(9) a portion of the market value of property not
203	203	otherwise fully taxable by the district at market value because of
204	204	action required by statute or the constitution of this state, other
205	205	than Section 11.311, Tax Code, that, if the tax rate adopted by the
206	206	district is applied to it, produces an amount equal to the
207	207	difference between the tax that the district would have imposed on
208	208	the property if the property were fully taxable at market value and
209	209	the tax that the district is actually authorized to impose on the
210	210	property, if this subsection does not otherwise require that
211	211	portion to be deducted;
212	212	(10) the market value of all tangible personal
213	213	property, other than manufactured homes, owned by a family or
214	214	individual and not held or used for the production of income;
215	215	(11) the appraised value of property the collection of
216	216	delinquent taxes on which is deferred under Section 33.06, Tax
217	217	Code;
218	218	(12) the portion of the appraised value of property
219	219	the collection of delinquent taxes on which is deferred under
220	220	Section 33.065, Tax Code;
221	221	(13) the amount by which the market value of property
222	222	[a residence homestead] to which Section 23.23 or 23.231, Tax Code,
223	223	applies exceeds the appraised value of that property as calculated
224	224	under Section 23.23 or 23.231, Tax Code, as applicable [that
225	225	section]; and
226	226	(14) the total dollar amount of any exemptions granted
227	227	under Section 11.35, Tax Code.
228	228	(i) If the comptroller determines in the study that the
229	229	market value of property in a school district as determined by the
230	230	appraisal district that appraises property for the school district,
231	231	less the total of the amounts and values listed in Subsection (d) as
232	232	determined by that appraisal district, is valid, the comptroller,
233	233	in determining the taxable value of property in the school district
234	234	under Subsection (d), shall for purposes of Subsection (d)(13)
235	235	subtract from the market value as determined by the appraisal
236	236	district of properties [residence homesteads] to which Section
237	237	23.23 or 23.231, Tax Code, applies the amount by which that amount
238	238	exceeds the appraised value of those properties as calculated by
239	239	the appraisal district under Section 23.23 or 23.231, Tax Code, as
240	240	applicable. If the comptroller determines in the study that the
241	241	market value of property in a school district as determined by the
242	242	appraisal district that appraises property for the school district,
243	243	less the total of the amounts and values listed in Subsection (d) as
244	244	determined by that appraisal district, is not valid, the
245	245	comptroller, in determining the taxable value of property in the
246	246	school district under Subsection (d), shall for purposes of
247	247	Subsection (d)(13) subtract from the market value as estimated by
248	248	the comptroller of properties [residence homesteads] to which
249	249	Section 23.23 or 23.231, Tax Code, applies the amount by which that
250	250	amount exceeds the appraised value of those properties as
251	251	calculated by the appraisal district under Section 23.23 or 23.231,
252	252	Tax Code, as applicable.
253	253	SECTION 6. This Act applies only to the appraisal of real
254	254	property for ad valorem tax purposes for a tax year that begins on
255	255	or after the effective date of this Act.
256	256	SECTION 7. This Act takes effect January 1, 2023, but only
257	257	if the constitutional amendment proposed by the 87th Legislature,
258	258	2nd Called Session, 2021, to authorize the legislature to limit the
259	259	maximum appraised value of a residence homestead for ad valorem tax
260	260	purposes to 105 percent or more of the appraised value of the
261	261	property for the preceding tax year and to limit the maximum
262	262	appraised value of a single-family residence other than a residence
263	263	homestead for those purposes to 110 percent or more of the appraised
264	264	value of the property for the preceding tax year is approved by the
265	265	voters. If that amendment is not approved by the voters, this Act
266	266	has no effect.