|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to limitations on the appraised value of certain real |
|
property in specified areas for ad valorem tax purposes. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 1.12(d), Tax Code, is amended to read as |
|
follows: |
|
(d) For purposes of this section, the appraisal ratio of |
|
real property [a homestead] to which Section 23.23, 23.231, or |
|
23.232 applies is the ratio of the property's market value as |
|
determined by the appraisal district or appraisal review board, as |
|
applicable, to the market value of the property according to law. |
|
The appraisal ratio is not calculated according to the appraised |
|
value of the property as limited by Section 23.23, 23.231, or |
|
23.232. |
|
SECTION 2. Subchapter B, Chapter 23, Tax Code, is amended by |
|
adding Sections 23.231 and 23.232 to read as follows: |
|
Sec. 23.231. TEMPORARY LIMITATION ON APPRAISED VALUE OF |
|
CERTAIN REAL PROPERTY IN SPECIFIED AREAS. (a) In this section: |
|
(1) "Census tract" means the geographic area |
|
identified as a "tract" on the 2020 Census TIGER/Line Shapefiles, |
|
prepared by the federal Bureau of the Census for the Twenty-fourth |
|
Decennial Census of the United States, enumerated as of April 1, |
|
2020. |
|
(2) "Eligible property" means real property that: |
|
(A) is: |
|
(i) a residence homestead; or |
|
(ii) an undeveloped lot, subject to |
|
Subsection (f); and |
|
(B) is located in one of the following census |
|
tracts: |
|
(i) Dallas County tract 002703; or |
|
(ii) Harris County tract 210900, 211000, |
|
211101, 211102, 211200, or 211700. |
|
(3) "Residence homestead" has the meaning assigned by |
|
Section 11.13. |
|
(b) The governing body of a municipality, county, or school |
|
district may by official action adopt a limitation as prescribed by |
|
this section on the appraised value of all eligible property |
|
located in the taxing unit adopting the limitation. The governing |
|
body of a municipality, county, or school district may not repeal, |
|
rescind, or take other action to negate the adoption of the |
|
limitation once adopted under this subsection. |
|
(c) Notwithstanding the requirements of Sections 23.23 and |
|
25.18, and regardless of whether the appraisal office has appraised |
|
the property and determined the market value of the property for the |
|
tax year, an appraisal office may increase the appraised value of |
|
eligible property for a tax year to which a limitation under this |
|
section applies for purposes of taxation of the property by the |
|
taxing unit that adopted the limitation to an amount not to exceed |
|
the lesser of: |
|
(1) the appraised value of the property as otherwise |
|
determined by law; or |
|
(2) the appraised value of the property for the tax |
|
year preceding the tax year in which the limitation adopted by that |
|
taxing unit first applies, as provided by Subsection (e). |
|
(d) When appraising eligible property, the chief appraiser |
|
shall: |
|
(1) appraise the property as otherwise determined by |
|
law; and |
|
(2) include in the appraisal records: |
|
(A) the appraised value of the property |
|
determined under Subdivision (1); and |
|
(B) the amount determined under Subsection |
|
(c)(2) applicable to each taxing unit that has adopted the |
|
limitation. |
|
(e) Except as provided by Subsection (f), a limitation once |
|
adopted by a governing body under this section applies to each tax |
|
year: |
|
(1) beginning with: |
|
(A) the tax year in which the governing body |
|
adopts the limitation, if the governing body adopts the limitation |
|
on or before April 1; or |
|
(B) the tax year following the tax year in which |
|
the governing body adopts the limitation, if the governing body |
|
adopts the limitation after April 1; and |
|
(2) ending with the 2039 tax year. |
|
(f) A limitation adopted under this section as applied to a |
|
vacant lot expires on the earlier of: |
|
(1) January 1 following the end of the fifth tax year |
|
for which the limitation applies, unless: |
|
(A) a single-family residence has been |
|
constructed on the property; and |
|
(B) the owner of the residence has qualified the |
|
property as the owner's residence homestead; or |
|
(2) January 1 of the tax year in which the vacant lot |
|
is: |
|
(A) developed for a purpose other than as a |
|
single-family residence; or |
|
(B) developed as a single-family residence but |
|
not qualified as the residence homestead of an owner of the |
|
property. |
|
(g) This section expires January 1, 2040. |
|
Sec. 23.232. LIMITATION ON APPRAISED VALUE OF RAPIDLY |
|
APPRECIATING RESIDENCE HOMESTEADS IN SPECIFIED AREAS. (a) In this |
|
section: |
|
(1) "Census tract" means the geographic area |
|
identified as a "tract" on the 2020 Census TIGER/Line Shapefiles, |
|
prepared by the federal Bureau of the Census for the Twenty-fourth |
|
Decennial Census of the United States, enumerated as of April 1, |
|
2020. |
|
(2) "Disaster recovery program" means the disaster |
|
recovery program administered by the General Land Office or by a |
|
political subdivision of this state that is funded with community |
|
development block grant disaster recovery money authorized by |
|
federal law. |
|
(3) "New improvement" means an improvement to a |
|
rapidly appreciating residence homestead made after the most recent |
|
appraisal of the property that increases the market value of the |
|
property and the value of which is not included in the appraised |
|
value of the property for the preceding tax year. The term does not |
|
include repairs to or ordinary maintenance of an existing structure |
|
or the grounds or another feature of the property. |
|
(4) "Rapidly appreciating residence homestead" means |
|
real property: |
|
(A) that is a residence homestead; |
|
(B) that is located in Dallas County census tract |
|
004300, 010101, 010102, 010500, 010601, 010602, or 020500; |
|
(C) for which the owner was granted a residence |
|
homestead exemption in the 2017, 2018, 2019, 2020, 2021, 2022, |
|
2023, and 2024 tax years; and |
|
(D) for which the market value for the 2024 tax |
|
year is at least 25 percent higher than the market value of the |
|
property for the 2017 tax year. |
|
(5) "Residence homestead" has the meaning assigned by |
|
Section 11.13. |
|
(b) Notwithstanding the requirements of Sections 23.23 and |
|
25.18, and regardless of whether the appraisal office has appraised |
|
the property and determined the market value of the property for the |
|
tax year, an appraisal office may increase the appraised value of a |
|
rapidly appreciating residence homestead for a tax year to an |
|
amount not to exceed the lesser of: |
|
(1) the market value of the property for the most |
|
recent tax year that the market value was determined by the |
|
appraisal office; or |
|
(2) the sum of: |
|
(A) the appraised value of the property for the |
|
2017 tax year; and |
|
(B) the market value of all new improvements to |
|
the property. |
|
(c) When appraising a rapidly appreciating residence |
|
homestead, the chief appraiser shall: |
|
(1) appraise the property at its market value; and |
|
(2) include in the appraisal records: |
|
(A) the market value of the property; and |
|
(B) the amount determined under Subsection |
|
(b)(2). |
|
(d) The limitation provided by Subsection (b) 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 11.13. |
|
(e) Notwithstanding Subsection (b), and except as provided |
|
by Subdivision (2), an improvement to property that would otherwise |
|
constitute a new improvement is not treated as a new improvement if |
|
the improvement is a replacement structure for a structure that was |
|
rendered uninhabitable or unusable by a casualty or by wind, fire, |
|
or water damage. For purposes of appraising the property under |
|
Subsection (b) in the tax year in which the structure would have |
|
constituted a new improvement: |
|
(1) the appraised value the property would have had in |
|
the preceding tax year if the casualty or damage had not occurred is |
|
considered to be the appraised value of the property for that year, |
|
regardless of whether that appraised value exceeds the actual |
|
appraised value of the property for that year as limited by |
|
Subsection (b); and |
|
(2) the replacement structure is considered to be a |
|
new improvement only if: |
|
(A) the square footage of the replacement |
|
structure exceeds that of the replaced structure as that structure |
|
existed before the casualty or damage occurred; or |
|
(B) the exterior of the replacement structure is |
|
of higher quality construction and composition than that of the |
|
replaced structure. |
|
(f) Notwithstanding Subsection (e)(2), and only to the |
|
extent necessary to satisfy the requirements of the disaster |
|
recovery program, a replacement structure described by that |
|
subdivision is not considered to be a new improvement if to satisfy |
|
the requirements of the disaster recovery program it was necessary |
|
that: |
|
(1) the square footage of the replacement structure |
|
exceed that of the replaced structure as that structure existed |
|
before the casualty or damage occurred; or |
|
(2) the exterior of the replacement structure be of |
|
higher quality construction and composition than that of the |
|
replaced structure. |
|
SECTION 3. Sections 25.19(b) and (g), Tax Code, are amended |
|
to read as follows: |
|
(b) The chief appraiser shall separate real from personal |
|
property and include in the notice for each: |
|
(1) a list of the taxing units in which the property is |
|
taxable; |
|
(2) the appraised value of the property in the |
|
preceding year; |
|
(3) the taxable value of the property in the preceding |
|
year for each taxing unit taxing the property; |
|
(4) the appraised value of the property for the |
|
current year, the kind and amount of each exemption and partial |
|
exemption, if any, approved for the property for the current year |
|
and for the preceding year, and, if an exemption or partial |
|
exemption that was approved for the preceding year was canceled or |
|
reduced for the current year, the amount of the exemption or partial |
|
exemption canceled or reduced; |
|
(4-a) a statement of whether the property qualifies |
|
for a limitation on appraised value under Section 23.231 or 23.232; |
|
(5) in italic typeface, the following statement: "The |
|
Texas Legislature does not set the amount of your local taxes. Your |
|
property tax burden is decided by your locally elected officials, |
|
and all inquiries concerning your taxes should be directed to those |
|
officials"; |
|
(6) a detailed explanation of the time and procedure |
|
for protesting the value; |
|
(7) the date and place the appraisal review board will |
|
begin hearing protests; |
|
(8) an explanation of the availability and purpose of |
|
an informal conference with the appraisal office before a hearing |
|
on a protest; and |
|
(9) a brief explanation that the governing body of |
|
each taxing unit decides whether or not taxes on the property will |
|
increase and the appraisal district only determines the value of |
|
the property. |
|
(g) By April 1 or as soon thereafter as practicable if the |
|
property is a single-family residence that qualifies for an |
|
exemption under Section 11.13, or by May 1 or as soon thereafter as |
|
practicable in connection with any other property, the chief |
|
appraiser shall deliver a written notice to the owner of each |
|
property not included in a notice required to be delivered under |
|
Subsection (a), if the property was reappraised in the current tax |
|
year, if the ownership of the property changed during the preceding |
|
year, or if the property owner or the agent of a property owner |
|
authorized under Section 1.111 makes a written request for the |
|
notice. The chief appraiser shall separate real from personal |
|
property and include in the notice for each property: |
|
(1) the appraised value of the property in the |
|
preceding year; |
|
(2) the appraised value of the property for the |
|
current year and the kind of each partial exemption, if any, |
|
approved for the current year; |
|
(2-a) a statement of whether the property qualifies |
|
for a limitation on appraised value under Section 23.231 or 23.232; |
|
(3) a detailed explanation of the time and procedure |
|
for protesting the value; and |
|
(4) the date and place the appraisal review board will |
|
begin hearing protests. |
|
SECTION 4. Section 41.41(a), Tax Code, is amended to read as |
|
follows: |
|
(a) A property owner is entitled to protest before the |
|
appraisal review board the following actions: |
|
(1) determination of the appraised value of the |
|
owner's property or, in the case of land appraised as provided by |
|
Subchapter C, D, E, or H, Chapter 23, determination of its appraised |
|
or market value; |
|
(2) unequal appraisal of the owner's property; |
|
(3) inclusion of the owner's property on the appraisal |
|
records; |
|
(4) denial to the property owner in whole or in part of |
|
a partial exemption; |
|
(4-a) determination that the owner's property does not |
|
qualify for a limitation on appraised value under Section 23.231 or |
|
23.232; |
|
(5) determination that the owner's land does not |
|
qualify for appraisal as provided by Subchapter C, D, E, or H, |
|
Chapter 23; |
|
(6) identification of the taxing units in which the |
|
owner's property is taxable in the case of the appraisal district's |
|
appraisal roll; |
|
(7) determination that the property owner is the owner |
|
of property; |
|
(8) a determination that a change in use of land |
|
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred; |
|
or |
|
(9) any other action of the chief appraiser, appraisal |
|
district, or appraisal review board that applies to and adversely |
|
affects the property owner. |
|
SECTION 5. Section 42.26(d), Tax Code, is amended to read as |
|
follows: |
|
(d) For purposes of this section, the value of the property |
|
subject to the suit and the value of a comparable property or sample |
|
property that is used for comparison must be the market value |
|
determined by the appraisal district when the property is [a |
|
residence homestead] subject to a [the] limitation on appraised |
|
value under [imposed by] Section 23.23, 23.231, or 23.232. |
|
SECTION 6. This Act applies only to the appraisal of real |
|
property for ad valorem tax purposes for a tax year that begins on |
|
or after the effective date of this Act. |
|
SECTION 7. This Act takes effect January 1, 2024, but only |
|
if the constitutional amendment proposed by the 88th Legislature, |
|
Regular Session, 2023, to authorize the legislature to provide for |
|
limitations on the appraised value of certain real property in |
|
specified areas for ad valorem tax purposes is approved by the |
|
voters. If that amendment is not approved by the voters, this Act |
|
has no effect. |