Texas 2025 - 89th Regular

Texas House Bill HB963 Compare Versions

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

Old	New	Differences
1	1	By: Toth H.B. No. 963
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the limitation on increases in the appraised value of a
9	9	residence homestead for ad valorem tax purposes.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 23.23, Tax Code, is amended by amending
12	12	Subsections (a), (b), and (c) and adding Subsections (a-1), (a-2),
13	13	(a-3), (a-4), (a-5), (a-6), (a-7), (a-8), and (c-2) to read as
14	14	follows:
15	15	(a) The appraised value of a residence homestead for the
16	16	first tax year that the owner qualifies the property for an
17	17	exemption under Section 11.13 is equal to the market value of the
18	18	property. Notwithstanding Section 23.01, the appraised value of
19	19	the property for each subsequent tax year until the tax year in
20	20	which the limitation provided by this subsection expires is equal
21	21	to the appraised value of the property for the preceding tax year as
22	22	adjusted by the chief appraiser for the current tax year to reflect
23	23	any positive change from the preceding tax year in the purchasing
24	24	power of the dollar for consumers in this state [Notwithstanding
25	25	the requirements of Section 25.18 and regardless of whether the
26	26	appraisal office has appraised the property and determined the
27	27	market value of the property for the tax year, an appraisal office
28	28	may increase the appraised value of a residence homestead for a tax
29	29	year to an amount not to exceed the lesser of:
30	30	[(1) the market value of the property for the most
31	31	recent tax year that the market value was determined by the
32	32	appraisal office; or
33	33	[(2) the sum of:
34	34	[(A) 10 percent of the appraised value of the
35	35	property for the preceding tax year;
36	36	[(B) the appraised value of the property for the
37	37	preceding tax year; and
38	38	[(C) the market value of all new improvements to
39	39	the property].
40	40	(a-1) Notwithstanding Subsection (a), if the owner of real
41	41	property qualifies the property for an exemption under Section
42	42	11.13 and the owner acquired the property as a bona fide purchaser
43	43	for value, the purchase price of the property paid by the property
44	44	owner is considered to be the market value of the property for the
45	45	first tax year that the owner qualifies the property for the
46	46	exemption.
47	47	(a-2) If the first tax year the property owner qualified the
48	48	property for an exemption under Section 11.13 was a tax year before
49	49	the 2026 tax year:
50	50	(1) the property owner is considered to have qualified
51	51	the property for the exemption for the first time in the 2025 tax
52	52	year; and
53	53	(2) the appraised value of the property as shown on the
54	54	2025 appraisal roll is considered to be the market value of the
55	55	property for that tax year for purposes of Subsection (a).
56	56	(a-3) Subsection (a-1) does not apply to a residence
57	57	homestead if:
58	58	(1) the purchase was made:
59	59	(A) pursuant to a court order;
60	60	(B) from a trustee in bankruptcy;
61	61	(C) by one co-owner from one or more other
62	62	co-owners;
63	63	(D) from a spouse or a person or persons within
64	64	the first or second degree of lineal consanguinity of one or more of
65	65	the purchasers; or
66	66	(E) from a governmental entity; or
67	67	(2) the chief appraiser determines that the applicant
68	68	was not a bona fide purchaser for value under criteria established
69	69	by rules adopted by the comptroller for that purpose.
70	70	(a-4) To receive a limitation on appraised value under
71	71	Subsection (a) computed in accordance with Subsection (a-1), an
72	72	owner of the property must apply for the limitation. To apply for
73	73	the limitation, the owner must file an application with the chief
74	74	appraiser for each appraisal district in which the property subject
75	75	to the claimed limitation is located. The application must be filed
76	76	not later than the latest date on which the owner may file an
77	77	application for an exemption under Section 11.13 on the property
78	78	for the year under Section 11.43. The comptroller by rule shall
79	79	prescribe the form for the application to ensure that the applicant
80	80	provides the information necessary to determine the applicant's
81	81	eligibility for the limitation, including the purchase price of the
82	82	property paid by the applicant.
83	83	(a-5) An application filed with a chief appraiser under
84	84	Subsection (a-4) is confidential and not open to public inspection.
85	85	The application and the information it contains may not be
86	86	disclosed to another person other than an employee of the appraisal
87	87	district who appraises property, except as provided by Subsection
88	88	(a-6).
89	89	(a-6) Information that is confidential under Subsection
90	90	(a-5) may be disclosed:
91	91	(1) in a judicial or administrative proceeding under a
92	92	lawful subpoena;
93	93	(2) to a purchaser, grantee, seller, or grantor named
94	94	in the application or in the deed to which the application applies
95	95	or to a representative of the purchaser, grantee, seller, or
96	96	grantor under a written authorization signed by the purchaser,
97	97	grantee, seller, or grantor;
98	98	(3) to the comptroller or to an assessor for a taxing
99	99	unit in which the property described in the application is located;
100	100	(4) in a judicial or administrative proceeding related
101	101	to real property taxation:
102	102	(A) to which the purchaser, grantee, seller, or
103	103	grantor is a party;
104	104	(B) to which an owner of the property described
105	105	in the application is a party; or
106	106	(C) by the appraisal district for the purpose of
107	107	establishing a value of the property or of providing evidence of
108	108	comparable sales to appraise another property;
109	109	(5) for statistical purposes if the information is
110	110	provided in a form that does not identify a specific property or
111	111	specific purchaser, grantee, seller, or grantor;
112	112	(6) if and to the extent that the information is
113	113	required to be included in a public document or record that the
114	114	appraisal office is required to prepare or maintain; or
115	115	(7) to a taxing unit or its legal representative that
116	116	is engaged in the collection of delinquent taxes on the property
117	117	described in the application.
118	118	(a-7) Information that is disclosed under Subsection (a-6)
119	119	does not lose its confidential character.
120	120	(a-8) For each tax year, using the index that the
121	121	comptroller considers to most accurately report changes in the
122	122	purchasing power of the dollar for consumers in this state, the
123	123	comptroller shall determine and publicize the percentage by which
124	124	the appraised value of residence homesteads may be increased under
125	125	Subsection (a). Each chief appraiser shall use the percentage
126	126	determined by the comptroller under this subsection to determine
127	127	the appraised value under Subsection (a) of residence homesteads
128	128	appraised by that chief appraiser.
129	129	(b) When appraising a residence homestead, the chief
130	130	appraiser shall:
131	131	(1) appraise the property at its market value; and
132	132	(2) include in the appraisal records both the market
133	133	value of the property and the amount computed under Subsection (a)
134	134	[(a)(2)].
135	135	(c) The limitation provided by Subsection (a) takes effect
136	136	as to a residence homestead on January 1 of the first tax year
137	137	[following the first tax year] the owner qualifies the property for
138	138	an exemption under Section 11.13. The limitation expires on
139	139	January 1 of the first tax year that neither the owner of the
140	140	property when the limitation took effect nor the owner's spouse or
141	141	surviving spouse qualifies for an exemption under Section 11.13.
142	142	(c-2) Notwithstanding Subsection (c), a limitation
143	143	established under Subsection (a) does not expire if a change in
144	144	ownership of the property occurs by inheritance or under a will as
145	145	long as the person who acquires the property qualifies for an
146	146	exemption under Section 11.13.
147	147	SECTION 2. Sections 23.23(e), (f), and (g), Tax Code, are
148	148	repealed.
149	149	SECTION 3. This Act applies only to ad valorem taxes imposed
150	150	for a tax year beginning on or after the effective date of this Act.
151	151	SECTION 4. This Act takes effect January 1, 2026, but only
152	152	if the constitutional amendment proposed by the 89th Legislature,
153	153	Regular Session, 2025, authorizing the legislature to provide that
154	154	the appraised value of a residence homestead for ad valorem tax
155	155	purposes for the first tax year that the owner of the property
156	156	qualifies the property for a residence homestead exemption is the
157	157	market value of the property and that, if the owner purchased the
158	158	property, the purchase price of the property is considered to be the
159	159	market value of the property for that tax year and to limit
160	160	increases in the appraised value of the homestead for subsequent
161	161	tax years based on the inflation rate is approved by the voters. If
162	162	that amendment is not approved by the voters, this Act has no
163	163	effect.