| 1 | 1 | | 89R5821 CJC-D |
|---|
| 2 | 2 | | By: Dean H.B. No. 3212 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to providing for a reduction of the appraised value of a |
|---|
| 10 | 10 | | residence homestead for ad valorem tax purposes for the first tax |
|---|
| 11 | 11 | | year in which the owner qualifies the property for a residence |
|---|
| 12 | 12 | | homestead exemption based on the amount by which the limitation on |
|---|
| 13 | 13 | | increases in the appraised value of a residence homestead reduced |
|---|
| 14 | 14 | | the appraised value of the owner's former residence homestead for |
|---|
| 15 | 15 | | the last tax year in which the owner qualified the former residence |
|---|
| 16 | 16 | | homestead for a residence homestead exemption. |
|---|
| 17 | 17 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 18 | 18 | | SECTION 1. Section 23.23, Tax Code, is amended by adding |
|---|
| 19 | 19 | | Subsections (h), (i), and (j) to read as follows: |
|---|
| 20 | 20 | | (h) The owner of a residence homestead who receives a |
|---|
| 21 | 21 | | limitation provided by Subsection (a) on the owner's residence |
|---|
| 22 | 22 | | homestead and who subsequently qualifies a different property as |
|---|
| 23 | 23 | | the owner's residence homestead is entitled to a reduction in the |
|---|
| 24 | 24 | | appraised value of the subsequently qualified homestead for the |
|---|
| 25 | 25 | | first tax year in which the owner qualifies the subsequently |
|---|
| 26 | 26 | | qualified homestead for an exemption under Section 11.13 in an |
|---|
| 27 | 27 | | amount equal to the lesser of: |
|---|
| 28 | 28 | | (1) the positive difference between the market value |
|---|
| 29 | 29 | | and the appraised value of the former residence homestead for the |
|---|
| 30 | 30 | | last tax year in which the owner qualified the former homestead for |
|---|
| 31 | 31 | | an exemption under Section 11.13; or |
|---|
| 32 | 32 | | (2) $500,000. |
|---|
| 33 | 33 | | (i) An owner of a residence homestead who receives a |
|---|
| 34 | 34 | | limitation provided by Subsection (a) on the owner's residence |
|---|
| 35 | 35 | | homestead and who subsequently qualifies a different property in a |
|---|
| 36 | 36 | | different appraisal district as the owner's residence homestead is |
|---|
| 37 | 37 | | entitled to receive from the chief appraiser of the appraisal |
|---|
| 38 | 38 | | district in which the former homestead was located a written |
|---|
| 39 | 39 | | certificate necessary to determine whether the owner is entitled to |
|---|
| 40 | 40 | | the reduction in the appraised value of the subsequently qualified |
|---|
| 41 | 41 | | homestead provided by Subsection (h) and to calculate the amount of |
|---|
| 42 | 42 | | the reduction. |
|---|
| 43 | 43 | | (j) A residence homestead is considered to be a subsequently |
|---|
| 44 | 44 | | qualified homestead for purposes of Subsection (h) only if the |
|---|
| 45 | 45 | | first tax year in which the owner of the homestead qualified the |
|---|
| 46 | 46 | | homestead for an exemption under Section 11.13 was a tax year |
|---|
| 47 | 47 | | beginning on or after January 1, 2026. |
|---|
| 48 | 48 | | SECTION 2. This Act applies only to the appraisal for ad |
|---|
| 49 | 49 | | valorem tax purposes of residence homesteads for a tax year that |
|---|
| 50 | 50 | | begins on or after the effective date of this Act. |
|---|
| 51 | 51 | | SECTION 3. This Act takes effect January 1, 2026, but only |
|---|
| 52 | 52 | | if the constitutional amendment proposed by the 89th Legislature, |
|---|
| 53 | 53 | | Regular Session, 2025, to authorize the legislature to provide for |
|---|
| 54 | 54 | | a reduction of the appraised value of a residence homestead for ad |
|---|
| 55 | 55 | | valorem tax purposes for the first tax year in which the owner |
|---|
| 56 | 56 | | qualifies the property for a residence homestead exemption based on |
|---|
| 57 | 57 | | the amount by which the limitation on increases in the appraised |
|---|
| 58 | 58 | | value of a residence homestead reduced the appraised value of the |
|---|
| 59 | 59 | | owner's former residence homestead for the last tax year in which |
|---|
| 60 | 60 | | the owner qualified the former residence homestead for a residence |
|---|
| 61 | 61 | | homestead exemption is approved by the voters. If that amendment is |
|---|
| 62 | 62 | | not approved by the voters, this Act has no effect. |
|---|