89R14249 LHC-D
By: Vasut H.J.R. No. 178
A JOINT RESOLUTION
proposing a constitutional amendment authorizing the legislature
to provide that the appraised value of a parcel of single-family
residential 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 and population growth rates.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1, Article VIII, Texas Constitution, is
amended by amending Subsections (i) and (n) and adding Subsections
(i-1), (i-2), (i-3), (i-4), and (i-5) to read as follows:
(i) The Legislature by general law may provide that the
appraised value of a parcel of single-family residential 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 the sum of the
inflation rate and the population growth rate of 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, the comptroller of
public accounts shall determine and publicize the percentage by
which the appraised value of single-family residential real
property in this state may be increased under Subsection (i) of this
section. The comptroller shall determine the percentage by which
the appraised value may be increased by calculating the sum of:
(1) the inflation rate, expressed as a percentage; and
(2) the growth rate of the population of this state for
the preceding year, expressed as a percentage.
(i-2) Each appraisal entity shall use the percentage
determined by the comptroller under Subsection (i-1) of this
section to determine the appraised value under Subsection (i) of
this section of single-family residential real property appraised
by that appraisal entity.
(i-3) A general law enacted under Subsection (i) of this
section may provide that if the first tax year an owner of
single-family residential 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-4) For purposes of Subsection (i) of this section, the
Legislature by general law may define single-family residential
real property, which may include a manufactured or mobile home used
as a dwelling.
(i-5) The Legislature by general law may define "inflation
rate" for purposes of Subsections (i) and (i-1) of this section.
(n) This subsection does not apply to a parcel of
single-family residential real property [residence homestead] to
which Subsection (i) of this section applies. Notwithstanding
Subsections (a) and (b) of this section, the Legislature by general
law may limit the maximum appraised value of real property for ad
valorem tax purposes in a tax year to the lesser of the most recent
market value of the property as determined by the appraisal entity
or 120 percent, or a greater percentage, of the appraised value of
the property for the preceding tax year. The general law enacted
under this subsection may prescribe additional eligibility
requirements for the limitation on appraised values authorized by
this subsection. A limitation on appraised values authorized by
this subsection:
(1) takes effect as to a parcel of real property
described by this subsection 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 in which the owner owns the property on
January 1; and
(2) expires on January 1 of the tax year following the
tax year in which the owner of the property ceases to own the
property.
SECTION 2. 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
single-family residential 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 and
population growth rates."