Amend the Merritt amendment to CSHB 4 to read as follows:
      Amend CSHB 4 as follows:
      (1)  between Sec. 1.49 and 2.01 of the bill (committee
printing page 105, between lines 13 and 14), insert the following:
      SECTION ____.  Sec. 112 is added to read as follows:
      (d)  For purposes of this section, the appraisal ratio of a
homestead to which Section 23.21 or 23.22 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 23.21.
      (2)  between Sec. 2.13 and 2.14 of the bill (committee
printing page 117, between lines 12 and 13), insert the following:
      SECTION ____.  Subchapter B, Chapter 23, is amended by adding
Section 23.21 to read as follows:
      23.21. LIMITATIONS ON APPRAISED VALUE OF RESIDENCE
HOMESTEADS. (a) the appraised value of a residence homestead for a
tax year may not exceed the lesser of:
            (1)  the market value of the property; or
            (2)  the sum of:
                  (A)  105 percent of the appraised value of the
property for the preceding year; and
                  (B)  the market value of all new improvements to
the property.
      (b)  When appraising a residence homestead, the chief
appraiser shall:
            (1)  appraise the property at its market value; and
            (2)  include in the appraisal records both the market
value of the property and the amount computed under Subsection
(a)(2).
      (c)  The limitation provided by Subsection (a) takes effect
as to a residence homestead on January 1 of the tax year following
the first tax year the owner qualifies the property for an
exemption under Section 11.13. The limitation expires on January 1
of the first tax year that neither the owner of the property when
the limitation took effect, the owner's spouse or surviving spouse,
nor a minor child of the owner qualifies for an exemption under
Section 11.13.
      (d)  this section does not apply to property appraised under
Subchapter C, D, E, F, or G.
      (e)  In this section, "new improvement" means an improvement
to a residence homestead that is made after the appraisal of the
property for the preceding year and that increases the market value
of the property. The term does not include ordinary maintenance of
an existing structure or the grounds or another feature of the
property.
      (f)  renumber the sections of the bill appropriately.
      SECTION ____.  Subchapter B, Chapter 23, Tax Code is amended
by adding Section 23.22 to read as follows:
      23.22  LIMITATIONS ON FREQUENCY OF APPRAISAL RESIDENCE
HOMESTEAD.  (a)  Except as provided by Subsection (b), the
appraiser may not recognize an increase in the appraised value of
residential property more than once every three years.
      (b)  The chief appraiser shall recognize an increase in the
appraised value of residential property before the third
anniversary of the date of the preceding recognition of an increase
in the appraised value of the property if, after the date, the
property owner makes an improvement to the property that increases
the market value of the property at least 10 percent.
      (c)  An application is not required for an owner of
residential property to receive a benefit under this section.
      (d)  The chief appraiser shall include in the appraisal
records both the market value of the property and its appraised
value as determined by this section.
      (e)  This section does not apply to property appraised under
Subsection C, D, E, F, or G.
      (f)  renumber the sections of the bill appropriately.
      (3)  In Sec. 1.44 of the bill (committee printing page 102,
between lines 26 and 27), amend Section 403.302(e) as follows:
            (8)  the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income; and
            (9)  the amount by which the market value of a
residence homestead to which Section 23.21 or 23.22, Tax Code,
applies exceeds the appraised value of that property as calculated
under that section.