Texas 2025 - 89th Regular

Texas Senate Bill SB244 Compare Versions

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

Old	New	Differences
1	1	89R2200 MLH-D
2	2	By: Flores S.B. No. 244
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the limitation on increases in the appraised value of a
10	10	residence homestead for ad valorem tax purposes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 23.23, Tax Code, is amended by amending
13	13	Subsections (a), (b), and (c) and adding Subsections (a-1), (a-2),
14	14	(a-3), (a-4), (a-5), (a-6), (a-7), and (c-2) to read as follows:
15	15	(a) The appraised value of a residence homestead for the
16	16	first tax year that the owner qualifies the property for an
17	17	exemption under Section 11.13 is equal to the market value of the
18	18	property. Notwithstanding Section 23.01, the appraised value of
19	19	the property for each subsequent tax year until the tax year in
20	20	which the limitation provided by this subsection expires is equal
21	21	to [Notwithstanding the requirements of Section 25.18 and
22	22	regardless of whether the appraisal office has appraised the
23	23	property and determined the market value of the property for the tax
24	24	year, an appraisal office may increase the appraised value of a
25	25	residence homestead for a tax year to an amount not to exceed the
26	26	lesser of:
27	27	[(1) the market value of the property for the most
28	28	recent tax year that the market value was determined by the
29	29	appraisal office; or
30	30	[(2)] the sum of:
31	31	(1) [(A) 10 percent of] the appraised value of the
32	32	property for the preceding tax year; and
33	33	(2) [(B) the appraised value of the property for the
34	34	preceding tax year; and
35	35	[(C)] the market value of all new improvements to
36	36	the property.
37	37	(a-1) Notwithstanding Subsection (a), if the owner of real
38	38	property qualifies the property for an exemption under Section
39	39	11.13 and the owner acquired the property as a bona fide purchaser
40	40	for value, the purchase price of the property paid by the property
41	41	owner is considered to be the market value of the property for the
42	42	first tax year that the owner qualifies the property for the
43	43	exemption.
44	44	(a-2) If the first tax year the property owner qualified the
45	45	property for an exemption under Section 11.13 was a tax year before
46	46	the 2026 tax year:
47	47	(1) the property owner is considered to have qualified
48	48	the property for the exemption for the first time in the 2025 tax
49	49	year; and
50	50	(2) the appraised value of the property as shown on the
51	51	2025 appraisal roll is considered to be the market value of the
52	52	property for that tax year for purposes of Subsections (a) and
53	53	(a-1).
54	54	(a-3) Subsection (a-1) does not apply to a residence
55	55	homestead if:
56	56	(1) the purchase was made:
57	57	(A) pursuant to a court order;
58	58	(B) from a trustee in bankruptcy;
59	59	(C) by one co-owner from one or more other
60	60	co-owners;
61	61	(D) from a spouse or a person or persons within
62	62	the first or second degree of lineal consanguinity of one or more of
63	63	the purchasers; or
64	64	(E) from a governmental entity; or
65	65	(2) the chief appraiser determines that the applicant
66	66	was not a bona fide purchaser for value under criteria established
67	67	by rules adopted by the comptroller for that purpose.
68	68	(a-4) To receive a limitation on appraised value under
69	69	Subsection (a) computed in accordance with Subsection (a-1), an
70	70	owner of the property must apply for the limitation. To apply for
71	71	the limitation, the owner must file an application with the chief
72	72	appraiser for each appraisal district in which the property subject
73	73	to the claimed limitation is located. The application must be filed
74	74	not later than the latest date on which the owner may file an
75	75	application for an exemption under Section 11.13 on the property
76	76	for the year under Section 11.43. The comptroller by rule shall
77	77	prescribe the form for the application to ensure that the applicant
78	78	provides the information necessary to determine the applicant's
79	79	eligibility for the limitation, including the purchase price of the
80	80	property paid by the applicant.
81	81	(a-5) An application filed with a chief appraiser under
82	82	Subsection (a-4) is confidential and not open to public inspection.
83	83	The application and the information it contains may not be
84	84	disclosed to another person other than an employee of the appraisal
85	85	district who appraises property, except as provided by Subsection
86	86	(a-6).
87	87	(a-6) Information that is confidential under Subsection
88	88	(a-5) may be disclosed:
89	89	(1) in a judicial or administrative proceeding under a
90	90	lawful subpoena;
91	91	(2) to a purchaser, grantee, seller, or grantor named
92	92	in the application or in the deed to which the application applies
93	93	or to a representative of the purchaser, grantee, seller, or
94	94	grantor under a written authorization signed by the purchaser,
95	95	grantee, seller, or grantor;
96	96	(3) to the comptroller or to an assessor for a taxing
97	97	unit in which the property described in the application is located;
98	98	(4) in a judicial or administrative proceeding related
99	99	to real property taxation:
100	100	(A) to which the purchaser, grantee, seller, or
101	101	grantor is a party;
102	102	(B) to which an owner of the property described
103	103	in the application is a party; or
104	104	(C) by the appraisal district for the purpose of
105	105	establishing a value of the property or of providing evidence of
106	106	comparable sales to appraise another property;
107	107	(5) for statistical purposes if the information is
108	108	provided in a form that does not identify a specific property or
109	109	specific purchaser, grantee, seller, or grantor;
110	110	(6) if and to the extent that the information is
111	111	required to be included in a public document or record that the
112	112	appraisal office is required to prepare or maintain; or
113	113	(7) to a taxing unit or its legal representative that
114	114	is engaged in the collection of delinquent taxes on the property
115	115	described in the application.
116	116	(a-7) Information that is disclosed under Subsection (a-6)
117	117	does not lose its confidential character.
118	118	(b) When appraising a residence homestead, the chief
119	119	appraiser shall:
120	120	(1) appraise the property at its market value; and
121	121	(2) include in the appraisal records both the market
122	122	value of the property and the amount computed under Subsection (a)
123	123	[(a)(2)].
124	124	(c) The limitation provided by Subsection (a) takes effect
125	125	as to a residence homestead on January 1 of the first tax year
126	126	[following the first tax year] the owner qualifies the property for
127	127	an exemption under Section 11.13. The limitation expires on
128	128	January 1 of the first tax year that neither the owner of the
129	129	property when the limitation took effect nor the owner's spouse or
130	130	surviving spouse qualifies for an exemption under Section 11.13.
131	131	(c-2) Notwithstanding Subsection (c), a limitation
132	132	established under Subsection (a) does not expire if a change in
133	133	ownership of the property occurs by inheritance or under a will as
134	134	long as the person who acquires the property qualifies for an
135	135	exemption under Section 11.13.
136	136	SECTION 2. This Act applies only to ad valorem taxes imposed
137	137	for a tax year beginning on or after the effective date of this Act.
138	138	SECTION 3. This Act takes effect January 1, 2026, but only
139	139	if the constitutional amendment proposed by the 89th Legislature,
140	140	Regular Session, 2025, authorizing the legislature to provide that
141	141	the appraised value of a residence homestead for ad valorem tax
142	142	purposes for the first tax year that the owner of the property
143	143	qualifies the property for a residence homestead exemption is the
144	144	market value of the property and that, if the owner purchased the
145	145	property, the purchase price of the property is considered to be the
146	146	market value of the property for that tax year and to limit
147	147	increases in the appraised value of the homestead for subsequent
148	148	tax years based on the market value of all new improvements to the
149	149	property is approved by the voters. If that amendment is not
150	150	approved by the voters, this Act has no effect.