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House Bill 438 |
House Author: Hochberg et al. |
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Effective: See below |
Senate Sponsor: Hegar et al. |
Previous law prohibited the appraised value of a residence homestead for a tax year from exceeding the lesser of its market value or the sum of 10 percent of the appraised value of the property for the last year in which the property was appraised multiplied by the number of years since the property was last appraised plus the market value of any improvements. House Bill 438 amends the Tax Code to authorize an appraisal office to increase the appraised value of a residence homestead regardless of whether the office has appraised the property and determined its market value for the tax year but prohibits the increase from exceeding the lesser of the property's market value for the most recent year that its value was determined by the appraisal office or 10 percent of the appraised value of the property for the preceding tax year. The bill also clarifies the meaning of the term "new improvement" with regard to when it occurred and for which tax year the improvement's value is reflected in the property's appraised value. The bill takes effect on January 1, 2008, contingent on voter approval of the constitutional amendment proposed by House Joint Resolution 40.