By: Toth H.J.R. No. 74
A JOINT RESOLUTION
proposing a constitutional amendment authorizing the legislature
to provide that the appraised value of a residence homestead for ad
valorem tax purposes for the first tax year that the owner of the
property qualifies the property for a residence homestead exemption
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 homestead 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) and
(i-2) to read as follows:
(i) The legislature by general law may provide that the
appraised value of a residence homestead for ad valorem tax
purposes for the first tax year that the owner qualifies the
property for an exemption under Section 1-b of this article 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 adjusted by the appraisal entity for the current tax
year to reflect any positive change 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 as to a residence homestead on the
later of the effective date of the law imposing the limitation or
January 1 of the first 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 that
neither the owner of the property when the limitation took effect
nor the owner's spouse or surviving spouse qualifies for an
exemption under Section 1-b of this article, except that 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 residence homesteads 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 residence homesteads
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 qualified the property for an exemption under Section 1-b
of this article was a tax year before the tax year in which the
general law took effect:
(1) the property owner is considered to have qualified
the property for the exemption for the first time in 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.
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 residence
homestead for ad valorem tax purposes for the first tax year that
the owner of the property qualifies the property for a residence
homestead exemption 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
homestead for subsequent tax years based on the inflation rate."