| 1 | 1 | | 89R1800 RDS-D |
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| 2 | 2 | | By: Metcalf H.J.R. No. 32 |
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| 7 | 7 | | A JOINT RESOLUTION |
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| 8 | 8 | | proposing a constitutional amendment to authorize the legislature |
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| 9 | 9 | | to limit the maximum appraised value of certain commercial real |
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| 10 | 10 | | property for ad valorem tax purposes. |
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| 11 | 11 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 1, Article VIII, Texas Constitution, is |
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| 13 | 13 | | amended by adding Subsection (l) to read as follows: |
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| 14 | 14 | | (l) Notwithstanding Subsections (a) and (b) of this |
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| 15 | 15 | | section, the Legislature by general law may limit the maximum |
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| 16 | 16 | | appraised value of a parcel of commercial real property with a |
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| 17 | 17 | | market value that is not greater than an amount prescribed by the |
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| 18 | 18 | | Legislature for ad valorem tax purposes in a tax year to the lesser |
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| 19 | 19 | | of the most recent market value of the property as determined by the |
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| 20 | 20 | | appraisal entity or 110 percent, or a greater percentage, of the |
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| 21 | 21 | | appraised value of the property for the preceding tax year. A law |
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| 22 | 22 | | enacted under this subsection must define "commercial real |
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| 23 | 23 | | property" for purposes of this subsection and may prescribe |
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| 24 | 24 | | additional eligibility requirements for the limitation on |
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| 25 | 25 | | appraised value authorized by this subsection. A law enacted under |
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| 26 | 26 | | this subsection must prescribe the maximum market value that a |
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| 27 | 27 | | parcel of commercial real property may have in the tax year in which |
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| 28 | 28 | | the limitation on appraised value authorized by this subsection |
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| 29 | 29 | | takes effect as to the property in order for the property to be |
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| 30 | 30 | | eligible for the limitation. A limitation on appraised value |
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| 31 | 31 | | authorized by this subsection: |
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| 32 | 32 | | (1) takes effect as to a parcel of commercial real |
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| 33 | 33 | | property on the later of the effective date of the law imposing the |
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| 34 | 34 | | limitation or January 1 of the tax year following the first tax year |
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| 35 | 35 | | in which the owner owns the property on January 1 and in which the |
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| 36 | 36 | | property meets the definition of commercial real property; and |
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| 37 | 37 | | (2) expires on January 1 of the tax year following the |
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| 38 | 38 | | first tax year in which the owner of the property ceases to own the |
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| 39 | 39 | | property or the property no longer meets the definition of |
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| 40 | 40 | | commercial real property. |
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| 41 | 41 | | SECTION 2. This proposed constitutional amendment shall be |
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| 42 | 42 | | submitted to the voters at an election to be held November 4, 2025. |
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| 43 | 43 | | The ballot shall be printed to permit voting for or against the |
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| 44 | 44 | | proposition: "The constitutional amendment to authorize the |
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| 45 | 45 | | legislature to limit for ad valorem tax purposes the maximum |
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| 46 | 46 | | appraised value of commercial real property with a market value |
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| 47 | 47 | | that is not greater than an amount prescribed by the legislature to |
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| 48 | 48 | | 110 percent or more of the appraised value of the property for the |
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| 49 | 49 | | preceding tax year." |
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