| 1 | 1 | | By: Barry H.B. No. 1622 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to making permanent the limitation on increases in the |
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| 9 | 9 | | appraised value of certain real property for ad valorem tax |
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| 10 | 10 | | purposes. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 25.19(o), Tax Code, is amended to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | (o) A notice required under Subsection (a) or (g) to be |
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| 15 | 15 | | delivered to the owner of real property other than a single-family |
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| 16 | 16 | | residence that qualifies for an exemption under Section 11.13 must |
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| 17 | 17 | | include the following statement: "Under Section 23.231, Tax Code, |
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| 18 | 18 | | [for the 2024, 2025, and 2026 tax years,] the appraised value of |
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| 19 | 19 | | real property other than a residence homestead for ad valorem tax |
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| 20 | 20 | | purposes may not be increased by more than 20 percent each year, |
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| 21 | 21 | | with certain exceptions." [The circuit breaker limitation provided |
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| 22 | 22 | | under Section 23.231, Tax Code, expires December 31, 2026. Unless |
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| 23 | 23 | | this expiration date is extended by the Texas Legislature, |
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| 24 | 24 | | beginning in the 2027 tax year, the circuit breaker limitation |
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| 25 | 25 | | provided under Section 23.231, Tax Code, will no longer be in effect |
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| 26 | 26 | | and may result in an increase in ad valorem taxes imposed on real |
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| 27 | 27 | | property previously subject to the limitation." This subsection |
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| 28 | 28 | | expires December 31, 2027.] |
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| 29 | 29 | | SECTION 2. The following provisions are repealed: |
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| 30 | 30 | | (1) Section 23.231(k), Tax Code; |
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| 31 | 31 | | (2) Section 4.02, Chapter 1 (S.B. 2), Acts of the 88th |
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| 32 | 32 | | Legislature, 2nd Called Session, 2023, which amended Section |
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| 33 | 33 | | 1.12(d), Tax Code, as effective January 1, 2027; |
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| 34 | 34 | | (3) Section 4.05, Chapter 1 (S.B. 2), Acts of the 88th |
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| 35 | 35 | | Legislature, 2nd Called Session, 2023, which amended Sections |
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| 36 | 36 | | 25.19(b) and (g), Tax Code, as effective January 1, 2027; |
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| 37 | 37 | | (4) Section 4.08, Chapter 1 (S.B. 2), Acts of the 88th |
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| 38 | 38 | | Legislature, 2nd Called Session, 2023, which amended Section |
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| 39 | 39 | | 41.41(a), Tax Code, as effective January 1, 2027; |
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| 40 | 40 | | (5) Section 4.10, Chapter 1 (S.B. 2), Acts of the 88th |
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| 41 | 41 | | Legislature, 2nd Called Session, 2023, which amended Section |
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| 42 | 42 | | 42.26(d), Tax Code, as effective January 1, 2027; and |
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| 43 | 43 | | (6) Section 4.12, Chapter 1 (S.B. 2), Acts of the 88th |
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| 44 | 44 | | Legislature, 2nd Called Session, 2023, which amended Sections |
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| 45 | 45 | | 403.302(d) and (i), Government Code, as effective January 1, 2027. |
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| 46 | 46 | | SECTION 3. This Act applies only to the appraisal of |
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| 47 | 47 | | property for ad valorem tax purposes for a tax year that begins on |
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| 48 | 48 | | or after the effective date of this Act. |
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| 49 | 49 | | SECTION 4. This Act takes effect January 1, 2026, but only |
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| 50 | 50 | | if the constitutional amendment proposed by the 89th Legislature, |
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| 51 | 51 | | Regular Session, 2025, to authorize the legislature to make |
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| 52 | 52 | | permanent the limit on the maximum appraised value of real property |
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| 53 | 53 | | other than a residence homestead for ad valorem tax purposes is |
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| 54 | 54 | | approved by the voters. If that amendment is not approved by the |
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| 55 | 55 | | voters, this Act has no effect. |
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