Texas 2025 - 89th Regular

Texas Senate Bill SB477 Compare Versions

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

Old	New	Differences
1	1	89R628 MLH-D
2	2	By: Middleton S.B. No. 477
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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 [Notwithstanding the requirements of Section 25.18
16	16	and regardless of whether the appraisal office has appraised the
17	17	property and determined the market value of the property for the tax
18	18	year, an appraisal office may increase the] appraised value of a
19	19	residence homestead for a tax year is equal to [an amount not to
20	20	exceed the lesser of:
21	21	[(1)] the market value of the property for the first
22	22	[most recent] tax year that the owner qualified the property for an
23	23	exemption under Section 11.13 [market value was determined by the
24	24	appraisal office; or
25	25	[(2) the sum of:
26	26	[(A) 10 percent of the appraised value of the
27	27	property for the preceding tax year;
28	28	[(B) the appraised value of the property for the
29	29	preceding tax year; and
30	30	[(C) the market value of all new improvements to
31	31	the property].
32	32	(a-1) Notwithstanding Subsection (a), if the owner of real
33	33	property qualified the property for an exemption under Section
34	34	11.13 and the owner acquired the property as a bona fide purchaser
35	35	for value, the appraised value of the property is equal to the
36	36	purchase price of the property paid by the owner.
37	37	(a-2) If the first tax year the property owner qualified the
38	38	property for an exemption under Section 11.13 was a tax year before
39	39	the 2026 tax year, the appraised value of the property as shown on
40	40	the 2025 appraisal roll is considered to be:
41	41	(1) the market value of the property for the first tax
42	42	year that the owner qualified the property for an exemption under
43	43	Section 11.13 for purposes of Subsection (a); and
44	44	(2) the purchase price of the property paid by the
45	45	owner for purposes of Subsection (a-1).
46	46	(a-3) Subsection (a-1) does not apply to a residence
47	47	homestead if:
48	48	(1) the purchase was made:
49	49	(A) pursuant to a court order;
50	50	(B) from a trustee in bankruptcy;
51	51	(C) by one co-owner from one or more other
52	52	co-owners;
53	53	(D) from a spouse or a person or persons within
54	54	the first or second degree of lineal consanguinity of one or more of
55	55	the purchasers; or
56	56	(E) from a governmental entity; or
57	57	(2) the chief appraiser determines that the applicant
58	58	was not a bona fide purchaser for value under criteria established
59	59	by rules adopted by the comptroller for that purpose.
60	60	(a-4) To receive a limitation on appraised value under
61	61	Subsection (a-1), an owner of the property must apply for the
62	62	limitation. To apply for the limitation, the owner must file an
63	63	application with the chief appraiser for each appraisal district in
64	64	which the property subject to the claimed limitation is located.
65	65	The application must be filed not later than the latest date on
66	66	which the owner may file an application for an exemption under
67	67	Section 11.13 on the property for the year under Section 11.43. The
68	68	comptroller by rule shall prescribe the form for the application to
69	69	ensure that the applicant provides the information necessary to
70	70	determine the applicant's eligibility for the limitation,
71	71	including the purchase price of the property paid by the applicant.
72	72	(a-5) An application filed with a chief appraiser under
73	73	Subsection (a-4) is confidential and not open to public inspection.
74	74	The application and the information it contains may not be
75	75	disclosed to another person other than an employee of the appraisal
76	76	district who appraises property, except as provided by Subsection
77	77	(a-6).
78	78	(a-6) Information that is confidential under Subsection
79	79	(a-5) may be disclosed:
80	80	(1) in a judicial or administrative proceeding under a
81	81	lawful subpoena;
82	82	(2) to a purchaser, grantee, seller, or grantor named
83	83	in the application or in the deed to which the application applies
84	84	or to a representative of the purchaser, grantee, seller, or
85	85	grantor under a written authorization signed by the purchaser,
86	86	grantee, seller, or grantor;
87	87	(3) to the comptroller or to an assessor for a taxing
88	88	unit in which the property described in the application is located;
89	89	(4) in a judicial or administrative proceeding related
90	90	to real property taxation:
91	91	(A) to which the purchaser, grantee, seller, or
92	92	grantor is a party;
93	93	(B) to which an owner of the property described
94	94	in the application is a party; or
95	95	(C) by the appraisal district for the purpose of
96	96	establishing a value of the property or of providing evidence of
97	97	comparable sales to appraise another property;
98	98	(5) for statistical purposes if the information is
99	99	provided in a form that does not identify a specific property or
100	100	specific purchaser, grantee, seller, or grantor;
101	101	(6) if and to the extent that the information is
102	102	required to be included in a public document or record that the
103	103	appraisal office is required to prepare or maintain; or
104	104	(7) to a taxing unit or its legal representative that
105	105	is engaged in the collection of delinquent taxes on the property
106	106	described in the application.
107	107	(a-7) Information that is disclosed under Subsection (a-6)
108	108	does not lose its confidential character.
109	109	(b) When appraising a residence homestead, the chief
110	110	appraiser shall:
111	111	(1) appraise the property at its market value; and
112	112	(2) include in the appraisal records both the market
113	113	value of the property and the amount computed under Subsection (a)
114	114	or (a-1), as applicable [(a)(2)].
115	115	(c) The limitation provided by Subsection (a) or (a-1) takes
116	116	effect as to a residence homestead on January 1 of the first tax
117	117	year [following the first tax year] the owner qualifies the
118	118	property for an exemption under Section 11.13. The limitation
119	119	expires on January 1 of the first tax year that neither the owner of
120	120	the property when the limitation took effect nor the owner's spouse
121	121	or surviving spouse qualifies for an exemption under Section 11.13.
122	122	(c-2) Notwithstanding Subsection (c), a limitation
123	123	established under Subsection (a) or (a-1) does not expire if a
124	124	change in ownership of the property occurs by inheritance or under a
125	125	will as long as the person who acquires the property qualifies for
126	126	an exemption under Section 11.13.
127	127	SECTION 2. Sections 23.23(e), (f), and (g), Tax Code, are
128	128	repealed.
129	129	SECTION 3. This Act applies only to ad valorem taxes imposed
130	130	for a tax year beginning on or after the effective date of this Act.
131	131	SECTION 4. This Act takes effect January 1, 2026, but only
132	132	if the constitutional amendment proposed by the 89th Legislature,
133	133	Regular Session, 2025, authorizing the legislature to provide that
134	134	the appraised value of a residence homestead for ad valorem tax
135	135	purposes is the market value of the property for the first year that
136	136	the owner qualified the property for a homestead exemption or, if
137	137	the owner purchased the property, the purchase price of the
138	138	property is approved by the voters. If that amendment is not
139	139	approved by the voters, this Act has no effect.