Texas 2023 - 88th Regular

Texas House Bill HB145 Compare Versions

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1	1	88R1063 LHC-F
2	2	By: Vasut H.B. No. 145
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a limitation on increases in the appraised value of real
8	8	property for ad valorem tax purposes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 1.12(d), Tax Code, is amended to read as
11	11	follows:
12	12	(d) For purposes of this section, the appraisal ratio of
13	13	real property [a homestead] to which Section 23.23 applies is the
14	14	ratio of the property's market value as determined by the appraisal
15	15	district or appraisal review board, as applicable, to the market
16	16	value of the property according to law. The appraisal ratio is not
17	17	calculated according to the appraised value of the property as
18	18	limited by Section 23.23.
19	19	SECTION 2. The heading to Section 23.23, Tax Code, is
20	20	amended to read as follows:
21	21	Sec. 23.23. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY
22	22	[RESIDENCE HOMESTEAD].
23	23	SECTION 3. Section 23.23, Tax Code, is amended by amending
24	24	Subsections (a), (b), (c), and (e) and adding Subsections (c-2),
25	25	(c-3), and (c-4) to read as follows:
26	26	(a) Notwithstanding the requirements of Section 25.18 and
27	27	regardless of whether the appraisal office has appraised the
28	28	property and determined the market value of the property for the tax
29	29	year, an appraisal office may increase the appraised value of real
30	30	property [a residence homestead] for a tax year to an amount not to
31	31	exceed the lesser of:
32	32	(1) the market value of the property for the most
33	33	recent tax year that the market value was determined by the
34	34	appraisal office; or
35	35	(2) the sum of:
36	36	(A) 3.5 [10] percent of the appraised value of
37	37	the property for the preceding tax year;
38	38	(B) the appraised value of the property for the
39	39	preceding tax year; and
40	40	(C) the market value of all new improvements to
41	41	the property.
42	42	(b) When appraising real property [a residence homestead],
43	43	the chief appraiser shall:
44	44	(1) appraise the property at its market value; and
45	45	(2) include in the appraisal records both the market
46	46	value of the property and the amount computed under Subsection
47	47	(a)(2).
48	48	(c) The limitation provided by Subsection (a) takes effect
49	49	on January 1 of the tax year following the first tax year in which
50	50	the owner owns the property on January 1 [as to a residence
51	51	homestead on January 1 of the tax year following the first tax year
52	52	the owner qualifies the property for an exemption under Section
53	53	11.13]. Except as provided by Subsection (c-2) or (c-3), the [The]
54	54	limitation expires on January 1 of the first tax year following the
55	55	year in which [that neither] the owner of the property ceases to own
56	56	the property.
57	57	(c-2) If property subject to a limitation under this section
58	58	qualifies for an exemption under Section 11.13 when the ownership
59	59	of the property is transferred to the owner's spouse or surviving
60	60	spouse, the limitation expires on January 1 of the first tax year
61	61	following the year in which [when the limitation took effect nor]
62	62	the owner's spouse or surviving spouse ceases to own the property,
63	63	unless the limitation is further continued under this subsection on
64	64	the subsequent transfer to a spouse or surviving spouse [qualifies
65	65	for an exemption under Section 11.13].
66	66	(c-3) If property subject to a limitation under Subsection
67	67	(a), other than a residence homestead, is owned by two or more
68	68	persons, the limitation expires on January 1 of the first tax year
69	69	following the year in which the ownership of at least a 50 percent
70	70	interest in the property is sold or otherwise transferred.
71	71	(c-4) For purposes of applying the limitation provided by
72	72	this section, a person who acquired real property in a tax year
73	73	before the 2023 tax year, other than property that qualified as the
74	74	residence homestead of the person under Section 11.13 in the 2023
75	75	tax year, is considered to have acquired the property on January 1,
76	76	2023.
77	77	(e) In this section, "new improvement" means an improvement
78	78	to real property [a residence homestead] made after the most recent
79	79	appraisal of the property that increases the market value of the
80	80	property and the value of which is not included in the appraised
81	81	value of the property for the preceding tax year. The term does not
82	82	include repairs to or ordinary maintenance of an existing structure
83	83	or the grounds or another feature of the property.
84	84	SECTION 4. Section 42.26(d), Tax Code, is amended to read as
85	85	follows:
86	86	(d) For purposes of this section, the value of the property
87	87	subject to the suit and the value of a comparable property or sample
88	88	property that is used for comparison must be the market value
89	89	determined by the appraisal district when the property is [a
90	90	residence homestead] subject to the limitation on appraised value
91	91	imposed by Section 23.23.
92	92	SECTION 5. Sections 403.302(d) and (i), Government Code,
93	93	are amended to read as follows:
94	94	(d) For the purposes of this section, "taxable value" means
95	95	the market value of all taxable property less:
96	96	(1) the total dollar amount of any residence homestead
97	97	exemptions lawfully granted under Section 11.13(b) or (c), Tax
98	98	Code, in the year that is the subject of the study for each school
99	99	district;
100	100	(2) one-half of the total dollar amount of any
101	101	residence homestead exemptions granted under Section 11.13(n), Tax
102	102	Code, in the year that is the subject of the study for each school
103	103	district;
104	104	(3) the total dollar amount of any exemptions granted
105	105	before May 31, 1993, within a reinvestment zone under agreements
106	106	authorized by Chapter 312, Tax Code;
107	107	(4) subject to Subsection (e), the total dollar amount
108	108	of any captured appraised value of property that:
109	109	(A) is within a reinvestment zone created on or
110	110	before May 31, 1999, or is proposed to be included within the
111	111	boundaries of a reinvestment zone as the boundaries of the zone and
112	112	the proposed portion of tax increment paid into the tax increment
113	113	fund by a school district are described in a written notification
114	114	provided by the municipality or the board of directors of the zone
115	115	to the governing bodies of the other taxing units in the manner
116	116	provided by former Section 311.003(e), Tax Code, before May 31,
117	117	1999, and within the boundaries of the zone as those boundaries
118	118	existed on September 1, 1999, including subsequent improvements to
119	119	the property regardless of when made;
120	120	(B) generates taxes paid into a tax increment
121	121	fund created under Chapter 311, Tax Code, under a reinvestment zone
122	122	financing plan approved under Section 311.011(d), Tax Code, on or
123	123	before September 1, 1999; and
124	124	(C) is eligible for tax increment financing under
125	125	Chapter 311, Tax Code;
126	126	(5) the total dollar amount of any captured appraised
127	127	value of property that:
128	128	(A) is within a reinvestment zone:
129	129	(i) created on or before December 31, 2008,
130	130	by a municipality with a population of less than 18,000; and
131	131	(ii) the project plan for which includes
132	132	the alteration, remodeling, repair, or reconstruction of a
133	133	structure that is included on the National Register of Historic
134	134	Places and requires that a portion of the tax increment of the zone
135	135	be used for the improvement or construction of related facilities
136	136	or for affordable housing;
137	137	(B) generates school district taxes that are paid
138	138	into a tax increment fund created under Chapter 311, Tax Code; and
139	139	(C) is eligible for tax increment financing under
140	140	Chapter 311, Tax Code;
141	141	(6) the total dollar amount of any exemptions granted
142	142	under Section 11.251 or 11.253, Tax Code;
143	143	(7) the difference between the comptroller's estimate
144	144	of the market value and the productivity value of land that
145	145	qualifies for appraisal on the basis of its productive capacity,
146	146	except that the productivity value estimated by the comptroller may
147	147	not exceed the fair market value of the land;
148	148	(8) the portion of the appraised value of residence
149	149	homesteads of individuals who receive a tax limitation under
150	150	Section 11.26, Tax Code, on which school district taxes are not
151	151	imposed in the year that is the subject of the study, calculated as
152	152	if the residence homesteads were appraised at the full value
153	153	required by law;
154	154	(9) a portion of the market value of property not
155	155	otherwise fully taxable by the district at market value because of
156	156	action required by statute or the constitution of this state, other
157	157	than Section 11.311, Tax Code, that, if the tax rate adopted by the
158	158	district is applied to it, produces an amount equal to the
159	159	difference between the tax that the district would have imposed on
160	160	the property if the property were fully taxable at market value and
161	161	the tax that the district is actually authorized to impose on the
162	162	property, if this subsection does not otherwise require that
163	163	portion to be deducted;
164	164	(10) the market value of all tangible personal
165	165	property, other than manufactured homes, owned by a family or
166	166	individual and not held or used for the production of income;
167	167	(11) the appraised value of property the collection of
168	168	delinquent taxes on which is deferred under Section 33.06, Tax
169	169	Code;
170	170	(12) the portion of the appraised value of property
171	171	the collection of delinquent taxes on which is deferred under
172	172	Section 33.065, Tax Code;
173	173	(13) the amount by which the market value of real
174	174	property [a residence homestead] to which Section 23.23, Tax Code,
175	175	applies exceeds the appraised value of that property as calculated
176	176	under that section; and
177	177	(14) the total dollar amount of any exemptions granted
178	178	under Section 11.35, Tax Code.
179	179	(i) If the comptroller determines in the study that the
180	180	market value of property in a school district as determined by the
181	181	appraisal district that appraises property for the school district,
182	182	less the total of the amounts and values listed in Subsection (d) as
183	183	determined by that appraisal district, is valid, the comptroller,
184	184	in determining the taxable value of property in the school district
185	185	under Subsection (d), shall for purposes of Subsection (d)(13)
186	186	subtract from the market value as determined by the appraisal
187	187	district of properties [residence homesteads] to which Section
188	188	23.23, Tax Code, applies the amount by which that amount exceeds the
189	189	appraised value of those properties as calculated by the appraisal
190	190	district under Section 23.23, Tax Code. If the comptroller
191	191	determines in the study that the market value of property in a
192	192	school district as determined by the appraisal district that
193	193	appraises property for the school district, less the total of the
194	194	amounts and values listed in Subsection (d) as determined by that
195	195	appraisal district, is not valid, the comptroller, in determining
196	196	the taxable value of property in the school district under
197	197	Subsection (d), shall for purposes of Subsection (d)(13) subtract
198	198	from the market value as estimated by the comptroller of properties
199	199	[residence homesteads] to which Section 23.23, Tax Code, applies
200	200	the amount by which that amount exceeds the appraised value of those
201	201	properties as calculated by the appraisal district under Section
202	202	23.23, Tax Code.
203	203	SECTION 6. Section 23.23(c-1), Tax Code, is repealed.
204	204	SECTION 7. This Act applies only to the appraisal for ad
205	205	valorem tax purposes of real property for a tax year that begins on
206	206	or after the effective date of this Act.
207	207	SECTION 8. This Act takes effect January 1, 2024, but only
208	208	if the constitutional amendment proposed by the 88th Legislature,
209	209	Regular Session, 2023, to authorize the legislature to limit the
210	210	maximum appraised value of real property for ad valorem tax
211	211	purposes to 103.5 percent or more of the appraised value of the
212	212	property for the preceding tax year is approved by the voters. If
213	213	that amendment is not approved by the voters, this Act has no
214	214	effect.