89R3279 DRS-D
By: Vasut H.J.R. No. 173
A JOINT RESOLUTION
proposing a constitutional amendment authorizing the legislature
to provide that the appraised value of a parcel of real property for
ad valorem tax purposes for the first tax year in which the owner
owns the property on January 1 is the market value of the property
and that, if the owner purchased the property, the purchase price of
the property is considered to be the market value of the property
for that tax year and to limit increases in the appraised value of
the property for subsequent tax years based on the inflation rate.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1, Article VIII, Texas Constitution, is
amended by amending Subsection (i) and adding Subsections (i-1),
(i-2), and (i-3) to read as follows:
(i) The Legislature by general law may provide that the
appraised value of a parcel of real property for ad valorem tax
purposes for the first tax year in which the owner owns the property
on January 1 is the market value of the property and that, if the
owner acquired the property as a bona fide purchaser for value, the
purchase price of the property paid by the owner is considered to be
the market value of the property for that tax year. Notwithstanding
Subsections (a) and (b) of this section, a general law enacted under
this subsection may provide that the appraised value of the
property for each subsequent tax year until the tax year in which
the limitation authorized by the general law expires is equal to the
appraised value of the property for ad valorem tax purposes for the
preceding tax year as increased by the appraisal entity for the
current tax year to reflect any reduction from the preceding tax
year in the purchasing power of the dollar for consumers in this
state [Notwithstanding Subsections (a) and (b) of this section, the
Legislature by general law may limit the maximum appraised value of
a residence homestead for ad valorem tax purposes in a tax year to
the lesser of the most recent market value of the residence
homestead as determined by the appraisal entity or 110 percent, or a
greater percentage, of the appraised value of the residence
homestead for the preceding tax year]. A limitation on appraised
values authorized by this subsection:
(1) takes effect on January 1 of the first tax year in
which the owner owns the property on January 1 [as to a residence
homestead on the later of the effective date of the law imposing the
limitation or January 1 of the tax year following the first tax year
the owner qualifies the property for an exemption under Section 1-b
of this article]; and
(2) expires on January 1 of the [first] tax year
following the tax year in which [that neither] the owner of the
property when the limitation took effect ceases to own the
property, except that:
(A) the Legislature by general law may provide
for the limitation applicable to a residence homestead to continue
during ownership of the property by [nor] the owner's spouse or
surviving spouse; and
(B) a limitation established under this
subsection does not expire if a change in ownership of the property
occurs by inheritance or under a will as long as the person who
acquires the property qualifies for an exemption under Section 1-b
of this article.
(i-1) A general law enacted under Subsection (i) of this
section may provide that, for each tax year, using the index that
the comptroller of public accounts considers to most accurately
report changes in the purchasing power of the dollar for consumers
in this state, the comptroller shall determine and publicize the
percentage by which the appraised value of real property in this
state may be increased under Subsection (i) of this section. Each
appraisal entity shall use the percentage determined by the
comptroller under this subsection to determine the appraised value
under Subsection (i) of this section of real property appraised by
that appraisal entity.
(i-2) A general law enacted under Subsection (i) of this
section may provide that if the first tax year an owner of real
property owned the property on January 1 was a tax year before the
tax year in which the general law took effect:
(1) the property owner is considered to have acquired
the property on January 1 of the tax year preceding the tax year in
which the general law took effect; and
(2) the appraised value of the property as shown on the
appraisal roll of the appraisal entity for the tax year preceding
the tax year in which the general law took effect is considered to
be the market value of the property for that tax year for purposes
of Subsection (i) of this section.
(i-3) For purposes of Subsection (i) of this section, the
Legislature by general law may define real property, which may
include a manufactured or mobile home used as a dwelling.
SECTION 2. Sections 1(n) and (n-1), Article VIII, Texas
Constitution, are repealed.
SECTION 3. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, authorizing the legislature to limit the
appraised value of real property for ad valorem tax purposes.
(b) The repeal of Sections 1(n) and (n-1), Article VIII, of
this constitution takes effect January 1, 2026, and applies only to
a tax year beginning on or after that date.
(c) This temporary provision expires January 1, 2027.
SECTION 4. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 4, 2025.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment authorizing the
legislature to provide that the appraised value of a parcel of real
property for ad valorem tax purposes for the first tax year in which
the owner of the property owns the property on January 1 is the
market value of the property and that, if the owner purchased the
property, the purchase price of the property is considered to be the
market value of the property for that tax year and to limit
increases in the appraised value of the property for subsequent tax
years based on the inflation rate."