| 1 | 1 | | 88R7895 SHH-D |
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| 2 | 2 | | By: VanDeaver H.B. No. 3564 |
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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 limitation on increases in the appraised value of a |
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| 8 | 8 | | residence homestead for ad valorem tax purposes. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 23.23(a), Tax Code, is amended to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | (a) Notwithstanding the requirements of Section 25.18 and |
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| 13 | 13 | | regardless of whether the appraisal office has appraised the |
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| 14 | 14 | | property and determined the market value of the property for the tax |
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| 15 | 15 | | year, [an appraisal office may increase] the appraised value of a |
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| 16 | 16 | | residence homestead for a tax year is [to an amount not to exceed] |
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| 17 | 17 | | the lesser of: |
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| 18 | 18 | | (1) the market value of the property for the most |
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| 19 | 19 | | recent tax year that the market value was determined by the |
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| 20 | 20 | | appraisal office; or |
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| 21 | 21 | | (2) the sum of: |
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| 22 | 22 | | (A) [10 percent of the appraised value of the |
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| 23 | 23 | | property for the preceding tax year; |
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| 24 | 24 | | [(B)] the appraised value of the property for the |
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| 25 | 25 | | preceding tax year, which is the appraised value of the property for |
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| 26 | 26 | | the tax year in which the owner first qualified the property for an |
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| 27 | 27 | | exemption under Section 11.13 as that value may have been adjusted |
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| 28 | 28 | | as provided by this section; and |
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| 29 | 29 | | (B) [(C)] the market value of all new |
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| 30 | 30 | | improvements to the property. |
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| 31 | 31 | | SECTION 2. This Act applies only to the appraisal of a |
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| 32 | 32 | | residence homestead for ad valorem tax purposes for a tax year that |
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| 33 | 33 | | begins on or after the effective date of this Act. |
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| 34 | 34 | | SECTION 3. This Act takes effect January 1, 2024, but only |
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| 35 | 35 | | if the constitutional amendment proposed by the 88th Legislature, |
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| 36 | 36 | | Regular Session, 2023, to authorize the legislature to limit the |
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| 37 | 37 | | maximum appraised value of a residence homestead for ad valorem tax |
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| 38 | 38 | | purposes to the appraised value of the property when it was first |
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| 39 | 39 | | qualified as a residence homestead, plus the value of subsequent |
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| 40 | 40 | | improvements, is approved by the voters. If that amendment is not |
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| 41 | 41 | | approved by the voters, this Act has no effect. |
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