| 1 | 1 | | 89R2202 MLH-D |
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| 2 | 2 | | By: Flores S.J.R. No. 15 |
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| 7 | 7 | | A JOINT RESOLUTION |
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| 8 | 8 | | proposing a constitutional amendment authorizing the legislature |
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| 9 | 9 | | to provide that the appraised value of a residence homestead for ad |
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| 10 | 10 | | valorem tax purposes for the first tax year that the owner of the |
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| 11 | 11 | | property qualifies the property for a residence homestead exemption |
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| 12 | 12 | | is the market value of the property and that, if the owner purchased |
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| 13 | 13 | | the property, the purchase price of the property is considered to be |
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| 14 | 14 | | the market value of the property for that tax year and to limit |
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| 15 | 15 | | increases in the appraised value of the homestead for subsequent |
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| 16 | 16 | | tax years based on the market value of all new improvements to the |
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| 17 | 17 | | property. |
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| 18 | 18 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 19 | 19 | | SECTION 1. Section 1, Article VIII, Texas Constitution, is |
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| 20 | 20 | | amended by amending Subsection (i) and adding Subsection (i-1) to |
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| 21 | 21 | | read as follows: |
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| 22 | 22 | | (i) The legislature by general law may provide that the |
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| 23 | 23 | | appraised value of a residence homestead for ad valorem tax |
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| 24 | 24 | | purposes for the first tax year that the owner qualifies the |
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| 25 | 25 | | property for an exemption under Section 1-b of this article is the |
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| 26 | 26 | | market value of the property and that, if the owner acquired the |
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| 27 | 27 | | property as a bona fide purchaser for value, the purchase price of |
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| 28 | 28 | | the property paid by the owner is considered to be the market value |
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| 29 | 29 | | of the property for that tax year. Notwithstanding Subsections (a) |
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| 30 | 30 | | and (b) of this section, a general law enacted under this subsection |
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| 31 | 31 | | may provide that the appraised value of the property for each |
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| 32 | 32 | | subsequent tax year until the tax year in which the limitation |
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| 33 | 33 | | authorized by the general law expires is equal to the sum of the |
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| 34 | 34 | | appraised value of the property for ad valorem tax purposes for the |
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| 35 | 35 | | preceding tax year and the market value of all new improvements to |
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| 36 | 36 | | the property [Notwithstanding Subsections (a) and (b) of this |
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| 37 | 37 | | section, the Legislature by general law may limit the maximum |
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| 38 | 38 | | appraised value of a residence homestead for ad valorem tax |
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| 39 | 39 | | purposes in a tax year to the lesser of the most recent market value |
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| 40 | 40 | | of the residence homestead as determined by the appraisal entity or |
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| 41 | 41 | | 110 percent, or a greater percentage, of the appraised value of the |
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| 42 | 42 | | residence homestead for the preceding tax year]. A limitation on |
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| 43 | 43 | | appraised values authorized by this subsection: |
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| 44 | 44 | | (1) takes effect as to a residence homestead on the |
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| 45 | 45 | | later of the effective date of the law imposing the limitation or |
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| 46 | 46 | | January 1 of the first tax year [following the first tax year] the |
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| 47 | 47 | | owner qualifies the property for an exemption under Section 1-b of |
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| 48 | 48 | | this article; and |
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| 49 | 49 | | (2) expires on January 1 of the first tax year that |
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| 50 | 50 | | neither the owner of the property when the limitation took effect |
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| 51 | 51 | | nor the owner's spouse or surviving spouse qualifies for an |
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| 52 | 52 | | exemption under Section 1-b of this article, except that a |
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| 53 | 53 | | limitation established under this subsection does not expire if a |
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| 54 | 54 | | change in ownership of the property occurs by inheritance or under a |
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| 55 | 55 | | will as long as the person who acquires the property qualifies for |
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| 56 | 56 | | an exemption under Section 1-b of this article. |
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| 57 | 57 | | (i-1) A general law enacted under Subsection (i) of this |
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| 58 | 58 | | section may provide that if the first tax year an owner of real |
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| 59 | 59 | | property qualified the property for an exemption under Section 1-b |
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| 60 | 60 | | of this article was a tax year before the tax year in which the |
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| 61 | 61 | | general law took effect: |
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| 62 | 62 | | (1) the property owner is considered to have qualified |
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| 63 | 63 | | the property for the exemption for the first time in the tax year |
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| 64 | 64 | | preceding the tax year in which the general law took effect; and |
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| 65 | 65 | | (2) the appraised value of the property as shown on the |
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| 66 | 66 | | appraisal roll of the appraisal entity for the tax year preceding |
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| 67 | 67 | | the tax year in which the general law took effect is considered to |
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| 68 | 68 | | be the market value of the property for that tax year for purposes |
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| 69 | 69 | | of Subsection (i) of this section. |
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| 70 | 70 | | SECTION 2. This proposed constitutional amendment shall be |
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| 71 | 71 | | submitted to the voters at an election to be held November 4, 2025. |
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| 72 | 72 | | The ballot shall be printed to permit voting for or against the |
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| 73 | 73 | | proposition: "The constitutional amendment authorizing the |
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| 74 | 74 | | legislature to provide that the appraised value of a residence |
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| 75 | 75 | | homestead for ad valorem tax purposes for the first tax year that |
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| 76 | 76 | | the owner of the property qualifies the property for a residence |
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| 77 | 77 | | homestead exemption is the market value of the property and that, if |
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| 78 | 78 | | the owner purchased the property, the purchase price of the |
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| 79 | 79 | | property is considered to be the market value of the property for |
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| 80 | 80 | | that tax year and to limit increases in the appraised value of the |
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| 81 | 81 | | homestead for subsequent tax years based on the market value of all |
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| 82 | 82 | | new improvements to the property." |
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