Texas 2025 - 89th Regular

Texas House Bill HB273 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R1801 RDS-D
2	2	By: Metcalf H.B. No. 273
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a limitation on increases in the appraised value of
10	10	certain commercial real property for ad valorem tax purposes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1.12(d), Tax Code, as effective until
13	13	January 1, 2027, is amended to read as follows:
14	14	(d) For purposes of this section, the appraisal ratio of
15	15	property to which Section 23.23, [or] 23.231, or 23.232 applies is
16	16	the ratio of the property's market value as determined by the
17	17	appraisal district or appraisal review board, as applicable, to the
18	18	market value of the property according to law. The appraisal ratio
19	19	is not calculated according to the appraised value of the property
20	20	as limited by Section 23.23, [or] 23.231, or 23.232.
21	21	SECTION 2. Section 1.12(d), Tax Code, as effective January
22	22	1, 2027, is amended to read as follows:
23	23	(d) For purposes of this section, the appraisal ratio of
24	24	property [a homestead] to which Section 23.23 or 23.232 applies is
25	25	the ratio of the property's market value as determined by the
26	26	appraisal district or appraisal review board, as applicable, to the
27	27	market value of the property according to law. The appraisal ratio
28	28	is not calculated according to the appraised value of the property
29	29	as limited by Section 23.23 or 23.232.
30	30	SECTION 3. Section 23.231(c), Tax Code, is amended to read
31	31	as follows:
32	32	(c) This section does not apply to:
33	33	(1) a residence homestead that qualifies for an
34	34	exemption under Section 11.13; [or]
35	35	(2) property to which Section 23.232 applies; or
36	36	(3) property appraised under Subchapter C, D, E, F, G,
37	37	or H.
38	38	SECTION 4. Subchapter B, Chapter 23, Tax Code, is amended by
39	39	adding Section 23.232 to read as follows:
40	40	Sec. 23.232. LIMITATION ON APPRAISED VALUE OF CERTAIN
41	41	COMMERCIAL REAL PROPERTY. (a) In this section:
42	42	(1) "Commercial real property" means real property
43	43	that is held or used for the production of income.
44	44	(2) "Disaster recovery program" means a disaster
45	45	recovery program funded with community development block grant
46	46	disaster recovery money authorized by federal law.
47	47	(3) "New improvement" means an improvement to
48	48	commercial real property made after the most recent appraisal of
49	49	the property that increases the market value of the property and the
50	50	value of which is not included in the appraised value of the
51	51	property for the preceding tax year. The term does not include
52	52	repairs to or ordinary maintenance of an existing structure or the
53	53	grounds or another feature of the property.
54	54	(b) This section applies only to a parcel of commercial real
55	55	property with a market value of $10 million or less for the tax year
56	56	in which the limitation provided by Subsection (d) takes effect as
57	57	to the property.
58	58	(c) This section does not apply to property appraised under
59	59	Subchapter C, D, E, F, G, or H.
60	60	(d) Notwithstanding the requirements of Section 25.18 and
61	61	regardless of whether the appraisal office has appraised the
62	62	property and determined the market value of the property for the tax
63	63	year, an appraisal office may increase the appraised value of a
64	64	parcel of commercial real property for a tax year to an amount not
65	65	to exceed the lesser of:
66	66	(1) the market value of the property for the most
67	67	recent tax year that the market value was determined by the
68	68	appraisal office; or
69	69	(2) the sum of:
70	70	(A) 10 percent of the appraised value of the
71	71	property for the preceding tax year;
72	72	(B) the appraised value of the property for the
73	73	preceding tax year; and
74	74	(C) the market value of all new improvements to
75	75	the property.
76	76	(e) When appraising a parcel of commercial real property,
77	77	the chief appraiser shall:
78	78	(1) appraise the property at its market value; and
79	79	(2) include in the appraisal records both the market
80	80	value of the property and the amount computed under Subsection
81	81	(d)(2).
82	82	(f) The limitation provided by Subsection (d) takes effect
83	83	as to a parcel of commercial real property on January 1 of the tax
84	84	year following the first tax year in which the owner owns the
85	85	property on January 1 and in which the property meets the definition
86	86	of commercial real property. The limitation expires on January 1 of
87	87	the tax year following the first tax year in which the owner of the
88	88	property ceases to own the property or the property no longer meets
89	89	the definition of commercial real property.
90	90	(g) For purposes of Subsection (f), a person who acquired a
91	91	parcel of commercial real property before the 2025 tax year is
92	92	considered to have acquired the property on January 1, 2025.
93	93	(h) Notwithstanding Subsections (a)(3) and (d) and except
94	94	as provided by Subdivision (2) of this subsection, an improvement
95	95	to property that would otherwise constitute a new improvement is
96	96	not treated as a new improvement if the improvement is a replacement
97	97	structure for a structure that was rendered unusable by a casualty
98	98	or by wind or water damage. For purposes of appraising the property
99	99	under Subsection (d) in the tax year in which the structure would
100	100	have constituted a new improvement:
101	101	(1) the appraised value the property would have had in
102	102	the preceding tax year if the casualty or damage had not occurred is
103	103	considered to be the appraised value of the property for that year,
104	104	regardless of whether that appraised value exceeds the actual
105	105	appraised value of the property for that year as limited by
106	106	Subsection (d); and
107	107	(2) the replacement structure is considered to be a
108	108	new improvement only if:
109	109	(A) the square footage of the replacement
110	110	structure exceeds that of the replaced structure as that structure
111	111	existed before the casualty or damage occurred; or
112	112	(B) the exterior of the replacement structure is
113	113	of higher quality construction and composition than that of the
114	114	replaced structure.
115	115	(i) Notwithstanding Subsection (h)(2), and only to the
116	116	extent necessary to satisfy the requirements of a disaster recovery
117	117	program, a replacement structure described by that subdivision is
118	118	not considered to be a new improvement if to satisfy the
119	119	requirements of the disaster recovery program it was necessary
120	120	that:
121	121	(1) the square footage of the replacement structure
122	122	exceed that of the replaced structure as that structure existed
123	123	before the casualty or damage occurred; or
124	124	(2) the exterior of the replacement structure be of
125	125	higher quality construction and composition than that of the
126	126	replaced structure.
127	127	SECTION 5. Sections 25.19(b) and (g), Tax Code, as
128	128	effective until January 1, 2027, are amended to read as follows:
129	129	(b) The chief appraiser shall separate real from personal
130	130	property and include in the notice for each:
131	131	(1) a list of the taxing units in which the property is
132	132	taxable;
133	133	(2) the appraised value of the property in the
134	134	preceding year;
135	135	(3) the taxable value of the property in the preceding
136	136	year for each taxing unit taxing the property;
137	137	(4) the appraised value of the property for the
138	138	current year, the kind and amount of each exemption and partial
139	139	exemption, if any, approved for the property for the current year
140	140	and for the preceding year, and, if an exemption or partial
141	141	exemption that was approved for the preceding year was canceled or
142	142	reduced for the current year, the amount of the exemption or partial
143	143	exemption canceled or reduced;
144	144	(4-a) a statement of whether the property qualifies
145	145	for the circuit breaker limitation on appraised value provided by
146	146	Section 23.231 or the limitation on appraised value provided by
147	147	Section 23.232;
148	148	(5) in italic typeface, the following statement: "The
149	149	Texas Legislature does not set the amount of your local
150	150	taxes. Your property tax burden is decided by your locally elected
151	151	officials, and all inquiries concerning your taxes should be
152	152	directed to those officials";
153	153	(6) a detailed explanation of the time and procedure
154	154	for protesting the value;
155	155	(7) the date and place the appraisal review board will
156	156	begin hearing protests;
157	157	(8) an explanation of the availability and purpose of
158	158	an informal conference with the appraisal office before a hearing
159	159	on a protest; and
160	160	(9) a brief explanation that the governing body of
161	161	each taxing unit decides whether or not taxes on the property will
162	162	increase and the appraisal district only determines the value of
163	163	the property.
164	164	(g) By April 1 or as soon thereafter as practicable if the
165	165	property is a single-family residence that qualifies for an
166	166	exemption under Section 11.13, or by May 1 or as soon thereafter as
167	167	practicable in connection with any other property, the chief
168	168	appraiser shall deliver a written notice to the owner of each
169	169	property not included in a notice required to be delivered under
170	170	Subsection (a), if the property was reappraised in the current tax
171	171	year, if the ownership of the property changed during the preceding
172	172	year, or if the property owner or the agent of a property owner
173	173	authorized under Section 1.111 makes a written request for the
174	174	notice. The chief appraiser shall separate real from personal
175	175	property and include in the notice for each property:
176	176	(1) the appraised value of the property in the
177	177	preceding year;
178	178	(2) the appraised value of the property for the
179	179	current year and the kind of each partial exemption, if any,
180	180	approved for the current year;
181	181	(2-a) a statement of whether the property qualifies
182	182	for the circuit breaker limitation on appraised value provided by
183	183	Section 23.231 or the limitation on appraised value provided by
184	184	Section 23.232;
185	185	(3) a detailed explanation of the time and procedure
186	186	for protesting the value; and
187	187	(4) the date and place the appraisal review board will
188	188	begin hearing protests.
189	189	SECTION 6. Sections 25.19(b) and (g), Tax Code, as
190	190	effective January 1, 2027, are amended to read as follows:
191	191	(b) The chief appraiser shall separate real from personal
192	192	property and include in the notice for each:
193	193	(1) a list of the taxing units in which the property is
194	194	taxable;
195	195	(2) the appraised value of the property in the
196	196	preceding year;
197	197	(3) the taxable value of the property in the preceding
198	198	year for each taxing unit taxing the property;
199	199	(4) the appraised value of the property for the
200	200	current year, the kind and amount of each exemption and partial
201	201	exemption, if any, approved for the property for the current year
202	202	and for the preceding year, and, if an exemption or partial
203	203	exemption that was approved for the preceding year was canceled or
204	204	reduced for the current year, the amount of the exemption or partial
205	205	exemption canceled or reduced;
206	206	(4-a) a statement of whether the property qualifies
207	207	for the limitation on appraised value provided by Section 23.232;
208	208	(5) in italic typeface, the following statement: "The
209	209	Texas Legislature does not set the amount of your local taxes. Your
210	210	property tax burden is decided by your locally elected officials,
211	211	and all inquiries concerning your taxes should be directed to those
212	212	officials";
213	213	(6) a detailed explanation of the time and procedure
214	214	for protesting the value;
215	215	(7) the date and place the appraisal review board will
216	216	begin hearing protests;
217	217	(8) an explanation of the availability and purpose of
218	218	an informal conference with the appraisal office before a hearing
219	219	on a protest; and
220	220	(9) a brief explanation that the governing body of
221	221	each taxing unit decides whether or not taxes on the property will
222	222	increase and the appraisal district only determines the value of
223	223	the property.
224	224	(g) By April 1 or as soon thereafter as practicable if the
225	225	property is a single-family residence that qualifies for an
226	226	exemption under Section 11.13, or by May 1 or as soon thereafter as
227	227	practicable in connection with any other property, the chief
228	228	appraiser shall deliver a written notice to the owner of each
229	229	property not included in a notice required to be delivered under
230	230	Subsection (a), if the property was reappraised in the current tax
231	231	year, if the ownership of the property changed during the preceding
232	232	year, or if the property owner or the agent of a property owner
233	233	authorized under Section 1.111 makes a written request for the
234	234	notice. The chief appraiser shall separate real from personal
235	235	property and include in the notice for each property:
236	236	(1) the appraised value of the property in the
237	237	preceding year;
238	238	(2) the appraised value of the property for the
239	239	current year and the kind of each partial exemption, if any,
240	240	approved for the current year;
241	241	(2-a) a statement of whether the property qualifies
242	242	for the limitation on appraised value provided by Section 23.232;
243	243	(3) a detailed explanation of the time and procedure
244	244	for protesting the value; and
245	245	(4) the date and place the appraisal review board will
246	246	begin hearing protests.
247	247	SECTION 7. Section 41.41(a), Tax Code, as effective until
248	248	January 1, 2027, is amended to read as follows:
249	249	(a) A property owner is entitled to protest before the
250	250	appraisal review board the following actions:
251	251	(1) determination of the appraised value of the
252	252	owner's property or, in the case of land appraised as provided by
253	253	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
254	254	or market value;
255	255	(2) unequal appraisal of the owner's property;
256	256	(3) inclusion of the owner's property on the appraisal
257	257	records;
258	258	(4) denial to the property owner in whole or in part of
259	259	a partial exemption;
260	260	(4-a) determination that the owner's property does not
261	261	qualify for the circuit breaker limitation on appraised value
262	262	provided by Section 23.231 or the limitation on appraised value
263	263	provided by Section 23.232;
264	264	(5) determination that the owner's land does not
265	265	qualify for appraisal as provided by Subchapter C, D, E, or H,
266	266	Chapter 23;
267	267	(6) identification of the taxing units in which the
268	268	owner's property is taxable in the case of the appraisal district's
269	269	appraisal roll;
270	270	(7) determination that the property owner is the owner
271	271	of property;
272	272	(8) a determination that a change in use of land
273	273	appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
274	274	or
275	275	(9) any other action of the chief appraiser, appraisal
276	276	district, or appraisal review board that applies to and adversely
277	277	affects the property owner.
278	278	SECTION 8. Section 41.41(a), Tax Code, as effective January
279	279	1, 2027, is amended to read as follows:
280	280	(a) A property owner is entitled to protest before the
281	281	appraisal review board the following actions:
282	282	(1) determination of the appraised value of the
283	283	owner's property or, in the case of land appraised as provided by
284	284	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
285	285	or market value;
286	286	(2) unequal appraisal of the owner's property;
287	287	(3) inclusion of the owner's property on the appraisal
288	288	records;
289	289	(4) denial to the property owner in whole or in part of
290	290	a partial exemption;
291	291	(4-a) determination that the owner's property does not
292	292	qualify for the limitation on appraised value provided by Section
293	293	23.232;
294	294	(5) determination that the owner's land does not
295	295	qualify for appraisal as provided by Subchapter C, D, E, or H,
296	296	Chapter 23;
297	297	(6) identification of the taxing units in which the
298	298	owner's property is taxable in the case of the appraisal district's
299	299	appraisal roll;
300	300	(7) determination that the property owner is the owner
301	301	of property;
302	302	(8) a determination that a change in use of land
303	303	appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
304	304	or
305	305	(9) any other action of the chief appraiser, appraisal
306	306	district, or appraisal review board that applies to and adversely
307	307	affects the property owner.
308	308	SECTION 9. Section 42.26(d), Tax Code, as effective until
309	309	January 1, 2027, is amended to read as follows:
310	310	(d) For purposes of this section, the value of the property
311	311	subject to the suit and the value of a comparable property or sample
312	312	property that is used for comparison must be the market value
313	313	determined by the appraisal district when the property is subject
314	314	to the limitation on appraised value imposed by Section 23.23, [or]
315	315	23.231, or 23.232.
316	316	SECTION 10. Section 42.26(d), Tax Code, as effective
317	317	January 1, 2027, is amended to read as follows:
318	318	(d) For purposes of this section, the value of the property
319	319	subject to the suit and the value of a comparable property or sample
320	320	property that is used for comparison must be the market value
321	321	determined by the appraisal district when the property is [a
322	322	residence homestead] subject to the limitation on appraised value
323	323	imposed by Section 23.23 or 23.232.
324	324	SECTION 11. Sections 403.302(d) and (i), Government Code,
325	325	as effective until January 1, 2027, are amended to read as follows:
326	326	(d) For the purposes of this section, "taxable value" means
327	327	the market value of all taxable property less:
328	328	(1) the total dollar amount of any residence homestead
329	329	exemptions lawfully granted under Section 11.13(b) or (c), Tax
330	330	Code, in the year that is the subject of the study for each school
331	331	district;
332	332	(2) one-half of the total dollar amount of any
333	333	residence homestead exemptions granted under Section 11.13(n), Tax
334	334	Code, in the year that is the subject of the study for each school
335	335	district;
336	336	(3) the total dollar amount of any exemptions granted
337	337	before May 31, 1993, within a reinvestment zone under agreements
338	338	authorized by Chapter 312, Tax Code;
339	339	(4) subject to Subsection (e), the total dollar amount
340	340	of any captured appraised value of property that:
341	341	(A) is within a reinvestment zone created on or
342	342	before May 31, 1999, or is proposed to be included within the
343	343	boundaries of a reinvestment zone as the boundaries of the zone and
344	344	the proposed portion of tax increment paid into the tax increment
345	345	fund by a school district are described in a written notification
346	346	provided by the municipality or the board of directors of the zone
347	347	to the governing bodies of the other taxing units in the manner
348	348	provided by former Section 311.003(e), Tax Code, before May 31,
349	349	1999, and within the boundaries of the zone as those boundaries
350	350	existed on September 1, 1999, including subsequent improvements to
351	351	the property regardless of when made;
352	352	(B) generates taxes paid into a tax increment
353	353	fund created under Chapter 311, Tax Code, under a reinvestment zone
354	354	financing plan approved under Section 311.011(d), Tax Code, on or
355	355	before September 1, 1999; and
356	356	(C) is eligible for tax increment financing under
357	357	Chapter 311, Tax Code;
358	358	(5) the total dollar amount of any captured appraised
359	359	value of property that:
360	360	(A) is within a reinvestment zone:
361	361	(i) created on or before December 31, 2008,
362	362	by a municipality with a population of less than 18,000; and
363	363	(ii) the project plan for which includes
364	364	the alteration, remodeling, repair, or reconstruction of a
365	365	structure that is included on the National Register of Historic
366	366	Places and requires that a portion of the tax increment of the zone
367	367	be used for the improvement or construction of related facilities
368	368	or for affordable housing;
369	369	(B) generates school district taxes that are paid
370	370	into a tax increment fund created under Chapter 311, Tax Code; and
371	371	(C) is eligible for tax increment financing under
372	372	Chapter 311, Tax Code;
373	373	(6) the total dollar amount of any exemptions granted
374	374	under Section 11.251 or 11.253, Tax Code;
375	375	(7) the difference between the comptroller's estimate
376	376	of the market value and the productivity value of land that
377	377	qualifies for appraisal on the basis of its productive capacity,
378	378	except that the productivity value estimated by the comptroller may
379	379	not exceed the fair market value of the land;
380	380	(8) the portion of the appraised value of residence
381	381	homesteads of individuals who receive a tax limitation under
382	382	Section 11.26, Tax Code, on which school district taxes are not
383	383	imposed in the year that is the subject of the study, calculated as
384	384	if the residence homesteads were appraised at the full value
385	385	required by law;
386	386	(9) a portion of the market value of property not
387	387	otherwise fully taxable by the district at market value because of
388	388	action required by statute or the constitution of this state, other
389	389	than Section 11.311, Tax Code, that, if the tax rate adopted by the
390	390	district is applied to it, produces an amount equal to the
391	391	difference between the tax that the district would have imposed on
392	392	the property if the property were fully taxable at market value and
393	393	the tax that the district is actually authorized to impose on the
394	394	property, if this subsection does not otherwise require that
395	395	portion to be deducted;
396	396	(10) the market value of all tangible personal
397	397	property, other than manufactured homes, owned by a family or
398	398	individual and not held or used for the production of income;
399	399	(11) the appraised value of property the collection of
400	400	delinquent taxes on which is deferred under Section 33.06, Tax
401	401	Code;
402	402	(12) the portion of the appraised value of property
403	403	the collection of delinquent taxes on which is deferred under
404	404	Section 33.065, Tax Code;
405	405	(13) the amount by which the market value of property
406	406	to which Section 23.23, [or] 23.231, or 23.232, Tax Code, applies
407	407	exceeds the appraised value of that property as calculated under
408	408	Section 23.23, [or] 23.231, or 23.232, Tax Code, as applicable; and
409	409	(14) the total dollar amount of any exemptions granted
410	410	under Section 11.35, Tax Code.
411	411	(i) If the comptroller determines in the study that the
412	412	market value of property in a school district as determined by the
413	413	appraisal district that appraises property for the school district,
414	414	less the total of the amounts and values listed in Subsection (d) as
415	415	determined by that appraisal district, is valid, the comptroller,
416	416	in determining the taxable value of property in the school district
417	417	under Subsection (d), shall for purposes of Subsection (d)(13)
418	418	subtract from the market value as determined by the appraisal
419	419	district of properties to which Section 23.23, [or] 23.231, or
420	420	23.232, Tax Code, applies the amount by which that amount exceeds
421	421	the appraised value of those properties as calculated by the
422	422	appraisal district under Section 23.23, [or] 23.231, or 23.232, Tax
423	423	Code, as applicable. If the comptroller determines in the study
424	424	that the market value of property in a school district as determined
425	425	by the appraisal district that appraises property for the school
426	426	district, less the total of the amounts and values listed in
427	427	Subsection (d) as determined by that appraisal district, is not
428	428	valid, the comptroller, in determining the taxable value of
429	429	property in the school district under Subsection (d), shall for
430	430	purposes of Subsection (d)(13) subtract from the market value as
431	431	estimated by the comptroller of properties to which Section 23.23,
432	432	[or] 23.231, or 23.232, Tax Code, applies the amount by which that
433	433	amount exceeds the appraised value of those properties as
434	434	calculated by the appraisal district under Section 23.23, [or]
435	435	23.231, or 23.232, Tax Code, as applicable.
436	436	SECTION 12. Sections 403.302(d) and (i), Government Code,
437	437	as effective January 1, 2027, are amended to read as follows:
438	438	(d) For the purposes of this section, "taxable value" means
439	439	the market value of all taxable property less:
440	440	(1) the total dollar amount of any residence homestead
441	441	exemptions lawfully granted under Section 11.13(b) or (c), Tax
442	442	Code, in the year that is the subject of the study for each school
443	443	district;
444	444	(2) one-half of the total dollar amount of any
445	445	residence homestead exemptions granted under Section 11.13(n), Tax
446	446	Code, in the year that is the subject of the study for each school
447	447	district;
448	448	(3) the total dollar amount of any exemptions granted
449	449	before May 31, 1993, within a reinvestment zone under agreements
450	450	authorized by Chapter 312, Tax Code;
451	451	(4) subject to Subsection (e), the total dollar amount
452	452	of any captured appraised value of property that:
453	453	(A) is within a reinvestment zone created on or
454	454	before May 31, 1999, or is proposed to be included within the
455	455	boundaries of a reinvestment zone as the boundaries of the zone and
456	456	the proposed portion of tax increment paid into the tax increment
457	457	fund by a school district are described in a written notification
458	458	provided by the municipality or the board of directors of the zone
459	459	to the governing bodies of the other taxing units in the manner
460	460	provided by former Section 311.003(e), Tax Code, before May 31,
461	461	1999, and within the boundaries of the zone as those boundaries
462	462	existed on September 1, 1999, including subsequent improvements to
463	463	the property regardless of when made;
464	464	(B) generates taxes paid into a tax increment
465	465	fund created under Chapter 311, Tax Code, under a reinvestment zone
466	466	financing plan approved under Section 311.011(d), Tax Code, on or
467	467	before September 1, 1999; and
468	468	(C) is eligible for tax increment financing under
469	469	Chapter 311, Tax Code;
470	470	(5) the total dollar amount of any captured appraised
471	471	value of property that:
472	472	(A) is within a reinvestment zone:
473	473	(i) created on or before December 31, 2008,
474	474	by a municipality with a population of less than 18,000; and
475	475	(ii) the project plan for which includes
476	476	the alteration, remodeling, repair, or reconstruction of a
477	477	structure that is included on the National Register of Historic
478	478	Places and requires that a portion of the tax increment of the zone
479	479	be used for the improvement or construction of related facilities
480	480	or for affordable housing;
481	481	(B) generates school district taxes that are paid
482	482	into a tax increment fund created under Chapter 311, Tax Code; and
483	483	(C) is eligible for tax increment financing under
484	484	Chapter 311, Tax Code;
485	485	(6) the total dollar amount of any exemptions granted
486	486	under Section 11.251 or 11.253, Tax Code;
487	487	(7) the difference between the comptroller's estimate
488	488	of the market value and the productivity value of land that
489	489	qualifies for appraisal on the basis of its productive capacity,
490	490	except that the productivity value estimated by the comptroller may
491	491	not exceed the fair market value of the land;
492	492	(8) the portion of the appraised value of residence
493	493	homesteads of individuals who receive a tax limitation under
494	494	Section 11.26, Tax Code, on which school district taxes are not
495	495	imposed in the year that is the subject of the study, calculated as
496	496	if the residence homesteads were appraised at the full value
497	497	required by law;
498	498	(9) a portion of the market value of property not
499	499	otherwise fully taxable by the district at market value because of
500	500	action required by statute or the constitution of this state, other
501	501	than Section 11.311, Tax Code, that, if the tax rate adopted by the
502	502	district is applied to it, produces an amount equal to the
503	503	difference between the tax that the district would have imposed on
504	504	the property if the property were fully taxable at market value and
505	505	the tax that the district is actually authorized to impose on the
506	506	property, if this subsection does not otherwise require that
507	507	portion to be deducted;
508	508	(10) the market value of all tangible personal
509	509	property, other than manufactured homes, owned by a family or
510	510	individual and not held or used for the production of income;
511	511	(11) the appraised value of property the collection of
512	512	delinquent taxes on which is deferred under Section 33.06, Tax
513	513	Code;
514	514	(12) the portion of the appraised value of property
515	515	the collection of delinquent taxes on which is deferred under
516	516	Section 33.065, Tax Code;
517	517	(13) the amount by which the market value of property
518	518	[a residence homestead] to which Section 23.23 or 23.232, Tax Code,
519	519	applies exceeds the appraised value of that property as calculated
520	520	under Section 23.23 or 23.232, Tax Code, as applicable [that
521	521	section]; and
522	522	(14) the total dollar amount of any exemptions granted
523	523	under Section 11.35, Tax Code.
524	524	(i) If the comptroller determines in the study that the
525	525	market value of property in a school district as determined by the
526	526	appraisal district that appraises property for the school district,
527	527	less the total of the amounts and values listed in Subsection (d) as
528	528	determined by that appraisal district, is valid, the comptroller,
529	529	in determining the taxable value of property in the school district
530	530	under Subsection (d), shall for purposes of Subsection (d)(13)
531	531	subtract from the market value as determined by the appraisal
532	532	district of properties [residence homesteads] to which Section
533	533	23.23 or 23.232, Tax Code, applies the amount by which that amount
534	534	exceeds the appraised value of those properties as calculated by
535	535	the appraisal district under Section 23.23 or 23.232, Tax Code, as
536	536	applicable. If the comptroller determines in the study that the
537	537	market value of property in a school district as determined by the
538	538	appraisal district that appraises property for the school district,
539	539	less the total of the amounts and values listed in Subsection (d) as
540	540	determined by that appraisal district, is not valid, the
541	541	comptroller, in determining the taxable value of property in the
542	542	school district under Subsection (d), shall for purposes of
543	543	Subsection (d)(13) subtract from the market value as estimated by
544	544	the comptroller of properties [residence homesteads] to which
545	545	Section 23.23 or 23.232, Tax Code, applies the amount by which that
546	546	amount exceeds the appraised value of those properties as
547	547	calculated by the appraisal district under Section 23.23 or 23.232,
548	548	Tax Code, as applicable.
549	549	SECTION 13. This Act applies only to the appraisal of
550	550	commercial real property for ad valorem tax purposes for a tax year
551	551	that begins on or after the effective date of this Act.
552	552	SECTION 14. This Act takes effect January 1, 2026, but only
553	553	if the constitutional amendment proposed by the 89th Legislature,
554	554	Regular Session, 2025, to authorize the legislature to limit the
555	555	maximum appraised value of certain commercial real property for ad
556	556	valorem tax purposes is approved by the voters. If that amendment
557	557	is not approved by the voters, this Act has no effect.