Texas 2023 - 88th Regular

Texas Senate Bill SB1065 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R473 SMH-D
2	2	By: Middleton S.B. No. 1065
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the limitation on increases in the appraised value of a
8	8	residence homestead for ad valorem tax purposes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 23.23, Tax Code, is amended by amending
11	11	Subsections (a), (b), and (c) and adding Subsections (a-1), (a-2),
12	12	(a-3), (a-4), (a-5), (a-6), (a-7), and (c-2) to read as follows:
13	13	(a) The [Notwithstanding the requirements of Section 25.18
14	14	and regardless of whether the appraisal office has appraised the
15	15	property and determined the market value of the property for the tax
16	16	year, an appraisal office may increase the] appraised value of a
17	17	residence homestead for a tax year is equal to [an amount not to
18	18	exceed the lesser of:
19	19	[(1)] the market value of the property for the first
20	20	[most recent] tax year that the owner qualified the property for an
21	21	exemption under Section 11.13 [market value was determined by the
22	22	appraisal office; or
23	23	[(2) the sum of:
24	24	[(A) 10 percent of the appraised value of the
25	25	property for the preceding tax year;
26	26	[(B) the appraised value of the property for the
27	27	preceding tax year; and
28	28	[(C) the market value of all new improvements to
29	29	the property].
30	30	(a-1) Notwithstanding Subsection (a), if the owner of real
31	31	property qualified the property for an exemption under Section
32	32	11.13 and the owner acquired the property as a bona fide purchaser
33	33	for value, the appraised value of the property is equal to the
34	34	purchase price of the property paid by the owner.
35	35	(a-2) If the first tax year the property owner qualified the
36	36	property for an exemption under Section 11.13 was a tax year before
37	37	the 2024 tax year, the appraised value of the property as shown on
38	38	the 2023 appraisal roll is considered to be:
39	39	(1) the market value of the property for the first tax
40	40	year that the owner qualified the property for an exemption under
41	41	Section 11.13 for purposes of Subsection (a); and
42	42	(2) the purchase price of the property paid by the
43	43	owner for purposes of Subsection (a-1).
44	44	(a-3) Subsection (a-1) does not apply to a residence
45	45	homestead if:
46	46	(1) the purchase was made:
47	47	(A) pursuant to a court order;
48	48	(B) from a trustee in bankruptcy;
49	49	(C) by one co-owner from one or more other
50	50	co-owners;
51	51	(D) from a spouse or a person or persons within
52	52	the first or second degree of lineal consanguinity of one or more of
53	53	the purchasers; or
54	54	(E) from a governmental entity; or
55	55	(2) the chief appraiser determines that the applicant
56	56	was not a bona fide purchaser for value under criteria established
57	57	by rules adopted by the comptroller for that purpose.
58	58	(a-4) To receive a limitation on appraised value under
59	59	Subsection (a-1), an owner of the property must apply for the
60	60	limitation. To apply for the limitation, the owner must file an
61	61	application with the chief appraiser for each appraisal district in
62	62	which the property subject to the claimed limitation is located.
63	63	The application must be filed not later than the latest date on
64	64	which the owner may file an application for an exemption under
65	65	Section 11.13 on the property for the year under Section 11.43. The
66	66	comptroller by rule shall prescribe the form for the application to
67	67	ensure that the applicant provides the information necessary to
68	68	determine the applicant's eligibility for the limitation,
69	69	including the purchase price of the property paid by the applicant.
70	70	(a-5) An application filed with a chief appraiser under
71	71	Subsection (a-4) is confidential and not open to public inspection.
72	72	The application and the information it contains may not be
73	73	disclosed to another person other than an employee of the appraisal
74	74	district who appraises property, except as provided by Subsection
75	75	(a-6).
76	76	(a-6) Information that is confidential under Subsection
77	77	(a-5) may be disclosed:
78	78	(1) in a judicial or administrative proceeding under a
79	79	lawful subpoena;
80	80	(2) to a purchaser, grantee, seller, or grantor named
81	81	in the application or in the deed to which the application applies
82	82	or to a representative of the purchaser, grantee, seller, or
83	83	grantor under a written authorization signed by the purchaser,
84	84	grantee, seller, or grantor;
85	85	(3) to the comptroller or to an assessor for a taxing
86	86	unit in which the property described in the application is located;
87	87	(4) in a judicial or administrative proceeding related
88	88	to real property taxation:
89	89	(A) to which the purchaser, grantee, seller, or
90	90	grantor is a party;
91	91	(B) to which an owner of the property described
92	92	in the application is a party; or
93	93	(C) by the appraisal district for the purpose of
94	94	establishing a value of the property or of providing evidence of
95	95	comparable sales to appraise another property;
96	96	(5) for statistical purposes if the information is
97	97	provided in a form that does not identify a specific property or
98	98	specific purchaser, grantee, seller, or grantor;
99	99	(6) if and to the extent that the information is
100	100	required to be included in a public document or record that the
101	101	appraisal office is required to prepare or maintain; or
102	102	(7) to a taxing unit or its legal representative that
103	103	is engaged in the collection of delinquent taxes on the property
104	104	described in the application.
105	105	(a-7) Information that is disclosed under Subsection (a-6)
106	106	does not lose its confidential character.
107	107	(b) When appraising a residence homestead, the chief
108	108	appraiser shall:
109	109	(1) appraise the property at its market value; and
110	110	(2) include in the appraisal records both the market
111	111	value of the property and the amount computed under Subsection (a)
112	112	or (a-1), as applicable [(a)(2)].
113	113	(c) The limitation provided by Subsection (a) or (a-1) takes
114	114	effect as to a residence homestead on January 1 of the first tax
115	115	year [following the first tax year] the owner qualifies the
116	116	property for an exemption under Section 11.13. The limitation
117	117	expires on January 1 of the first tax year that neither the owner of
118	118	the property when the limitation took effect nor the owner's spouse
119	119	or surviving spouse qualifies for an exemption under Section 11.13.
120	120	(c-2) Notwithstanding Subsection (c), a limitation
121	121	established under Subsection (a) or (a-1) does not expire if a
122	122	change in ownership of the property occurs by inheritance or under a
123	123	will as long as the person who acquires the property qualifies for
124	124	an exemption under Section 11.13.
125	125	SECTION 2. Sections 23.23(e), (f), and (g), Tax Code, are
126	126	repealed.
127	127	SECTION 3. This Act applies only to ad valorem taxes imposed
128	128	for a tax year beginning on or after the effective date of this Act.
129	129	SECTION 4. This Act takes effect January 1, 2024, but only
130	130	if the constitutional amendment proposed by the 88th Legislature,
131	131	Regular Session, 2023, authorizing the legislature to provide that
132	132	the appraised value of a residence homestead for ad valorem tax
133	133	purposes is the market value of the property for the first year that
134	134	the owner qualified the property for a homestead exemption or, if
135	135	the owner purchased the property, the purchase price of the
136	136	property is approved by the voters. If that amendment is not
137	137	approved by the voters, this Act has no effect.