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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation on increases in the appraised value of a |
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residence homestead for ad valorem tax purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.23(a), Tax Code, is amended to read as |
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follows: |
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(a) Notwithstanding the requirements of Section 25.18 and |
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regardless of whether the appraisal office has appraised the |
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property and determined the market value of the property for the tax |
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year, [an appraisal office may increase] the appraised value of a |
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residence homestead for a tax year is [to an amount not to exceed] |
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the lesser of: |
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(1) the market value of the property for the most |
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recent tax year that the market value was determined by the |
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appraisal office; or |
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(2) the sum of: |
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(A) [10 percent of the appraised value of the |
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property for the preceding tax year; |
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[(B)] the appraised value of the property for the |
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preceding tax year, which is the appraised value of the property for |
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the tax year in which the owner first qualified the property for an |
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exemption under Section 11.13 as that value may have been adjusted |
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as provided by this section; and |
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(B) [(C)] the market value of all new |
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improvements to the property. |
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SECTION 2. This Act applies only to the appraisal of a |
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residence homestead for ad valorem tax purposes for a tax year that |
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begins on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2024, but only |
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if the constitutional amendment proposed by the 88th Legislature, |
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Regular Session, 2023, to authorize the legislature to limit the |
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maximum appraised value of a residence homestead for ad valorem tax |
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purposes to the appraised value of the property when it was first |
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qualified as a residence homestead, plus the value of subsequent |
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improvements, is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |