88R807 DRS-D
By: Blanco S.B. No. 547
A BILL TO BE ENTITLED
AN ACT
relating to the limitation on increases in the appraised value of a
residence homestead for ad valorem tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.23, Tax Code, is amended by amending
Subsection (a) and adding Subsections (a-1) and (a-2) to read as
follows:
(a) Notwithstanding the requirements of Section 25.18 and
regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an appraisal office may increase the appraised value of a
residence homestead for a tax year to an amount not to exceed the
lesser of:
(1) the market value of the property for the most
recent tax year that the market value was determined by the
appraisal office; or
(2) the sum of:
(A) the lesser of:
(i) 10 percent of the appraised value of the
property for the preceding tax year; or
(ii) the product of the inflation rate for
the preceding tax year as determined under Subsection (a-1),
expressed as a decimal, and the appraised value of the property for
the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
(a-1) Not later than March 1 of each tax year, the
comptroller shall determine the inflation rate for the preceding
tax year for purposes of Subsection (a), provide the rate to each
appraisal office, and publish the rate in the Texas Register.
(a-2) In this section:
(1) "Consumer price index" means the average over a
tax year of the index that the comptroller considers to most
accurately report changes in the purchasing power of the dollar for
consumers in this state.
(2) "Inflation rate" means the amount, expressed in
decimal form rounded to the nearest thousandth, computed by
determining the percentage change in the consumer price index for
the preceding tax year as compared to the consumer price index for
the tax year preceding that tax year.
SECTION 2. This Act applies only to the appraisal of a
residence homestead for ad valorem tax purposes for a tax year that
begins on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2024, but only
if the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, to authorize the legislature to set a lower
limit on the maximum appraised value of a residence homestead for ad
valorem tax purposes is approved by the voters. If that amendment
is not approved by the voters, this Act has no effect.