Texas 2025 - 89th Regular

Texas House Bill HJR173 Compare Versions

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

Old	New	Differences
1	1	89R3279 DRS-D
2	2	By: Vasut H.J.R. No. 173
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7	7	A JOINT RESOLUTION
8	8	proposing a constitutional amendment authorizing the legislature
9	9	to provide that the appraised value of a parcel of real property for
10	10	ad valorem tax purposes for the first tax year in which the owner
11	11	owns the property on January 1 is the market value of the property
12	12	and that, if the owner purchased the property, the purchase price of
13	13	the property is considered to be the market value of the property
14	14	for that tax year and to limit increases in the appraised value of
15	15	the property for subsequent tax years based on the inflation rate.
16	16	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	17	SECTION 1. Section 1, Article VIII, Texas Constitution, is
18	18	amended by amending Subsection (i) and adding Subsections (i-1),
19	19	(i-2), and (i-3) to read as follows:
20	20	(i) The Legislature by general law may provide that the
21	21	appraised value of a parcel of real property for ad valorem tax
22	22	purposes for the first tax year in which the owner owns the property
23	23	on January 1 is the market value of the property and that, if the
24	24	owner acquired the property as a bona fide purchaser for value, the
25	25	purchase price of the property paid by the owner is considered to be
26	26	the market value of the property for that tax year. Notwithstanding
27	27	Subsections (a) and (b) of this section, a general law enacted under
28	28	this subsection may provide that the appraised value of the
29	29	property for each subsequent tax year until the tax year in which
30	30	the limitation authorized by the general law expires is equal to the
31	31	appraised value of the property for ad valorem tax purposes for the
32	32	preceding tax year as increased by the appraisal entity for the
33	33	current tax year to reflect any reduction from the preceding tax
34	34	year in the purchasing power of the dollar for consumers in this
35	35	state [Notwithstanding Subsections (a) and (b) of this section, the
36	36	Legislature by general law may limit the maximum appraised value of
37	37	a residence homestead for ad valorem tax purposes in a tax year to
38	38	the lesser of the most recent market value of the residence
39	39	homestead as determined by the appraisal entity or 110 percent, or a
40	40	greater percentage, of the appraised value of the residence
41	41	homestead for the preceding tax year]. A limitation on appraised
42	42	values authorized by this subsection:
43	43	(1) takes effect on January 1 of the first tax year in
44	44	which the owner owns the property on January 1 [as to a residence
45	45	homestead on the later of the effective date of the law imposing the
46	46	limitation or January 1 of the tax year following the first tax year
47	47	the owner qualifies the property for an exemption under Section 1-b
48	48	of this article]; and
49	49	(2) expires on January 1 of the [first] tax year
50	50	following the tax year in which [that neither] the owner of the
51	51	property when the limitation took effect ceases to own the
52	52	property, except that:
53	53	(A) the Legislature by general law may provide
54	54	for the limitation applicable to a residence homestead to continue
55	55	during ownership of the property by [nor] the owner's spouse or
56	56	surviving spouse; and
57	57	(B) a limitation established under this
58	58	subsection does not expire if a change in ownership of the property
59	59	occurs by inheritance or under a will as long as the person who
60	60	acquires the property qualifies for an exemption under Section 1-b
61	61	of this article.
62	62	(i-1) A general law enacted under Subsection (i) of this
63	63	section may provide that, for each tax year, using the index that
64	64	the comptroller of public accounts considers to most accurately
65	65	report changes in the purchasing power of the dollar for consumers
66	66	in this state, the comptroller shall determine and publicize the
67	67	percentage by which the appraised value of real property in this
68	68	state may be increased under Subsection (i) of this section. Each
69	69	appraisal entity shall use the percentage determined by the
70	70	comptroller under this subsection to determine the appraised value
71	71	under Subsection (i) of this section of real property appraised by
72	72	that appraisal entity.
73	73	(i-2) A general law enacted under Subsection (i) of this
74	74	section may provide that if the first tax year an owner of real
75	75	property owned the property on January 1 was a tax year before the
76	76	tax year in which the general law took effect:
77	77	(1) the property owner is considered to have acquired
78	78	the property on January 1 of the tax year preceding the tax year in
79	79	which the general law took effect; and
80	80	(2) the appraised value of the property as shown on the
81	81	appraisal roll of the appraisal entity for the tax year preceding
82	82	the tax year in which the general law took effect is considered to
83	83	be the market value of the property for that tax year for purposes
84	84	of Subsection (i) of this section.
85	85	(i-3) For purposes of Subsection (i) of this section, the
86	86	Legislature by general law may define real property, which may
87	87	include a manufactured or mobile home used as a dwelling.
88	88	SECTION 2. Sections 1(n) and (n-1), Article VIII, Texas
89	89	Constitution, are repealed.
90	90	SECTION 3. The following temporary provision is added to
91	91	the Texas Constitution:
92	92	TEMPORARY PROVISION. (a) This temporary provision applies
93	93	to the constitutional amendment proposed by the 89th Legislature,
94	94	Regular Session, 2025, authorizing the legislature to limit the
95	95	appraised value of real property for ad valorem tax purposes.
96	96	(b) The repeal of Sections 1(n) and (n-1), Article VIII, of
97	97	this constitution takes effect January 1, 2026, and applies only to
98	98	a tax year beginning on or after that date.
99	99	(c) This temporary provision expires January 1, 2027.
100	100	SECTION 4. This proposed constitutional amendment shall be
101	101	submitted to the voters at an election to be held November 4, 2025.
102	102	The ballot shall be printed to permit voting for or against the
103	103	proposition: "The constitutional amendment authorizing the
104	104	legislature to provide that the appraised value of a parcel of real
105	105	property for ad valorem tax purposes for the first tax year in which
106	106	the owner of the property owns the property on January 1 is the
107	107	market value of the property and that, if the owner purchased the
108	108	property, the purchase price of the property is considered to be the
109	109	market value of the property for that tax year and to limit
110	110	increases in the appraised value of the property for subsequent tax
111	111	years based on the inflation rate."