By Siebert H.B. No. 347
75R1020 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to limitations on increases in the appraised value of real
1-3 property for ad valorem taxation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 23, Tax Code, is amended by
1-6 adding Section 23.21 to read as follows:
1-7 Sec. 23.21. REAL PROPERTY. (a) Real property may not be
1-8 appraised at more than the lesser of the following amounts:
1-9 (1) the market value of the real property for the
1-10 current year; or
1-11 (2) the sum of:
1-12 (A) 110 percent of the appraised value of the
1-13 property for the preceding year; and
1-14 (B) the market value of all new improvements to
1-15 the property.
1-16 (b) In this section, "new improvement" means an improvement
1-17 to real property that is made after the appraisal of the property
1-18 for the preceding year and that increases the market value of the
1-19 property. The term does not include ordinary maintenance of an
1-20 existing structure or the grounds or another feature of the
1-21 property.
1-22 (c) An application is not required for real property to be
1-23 appraised under this section.
1-24 (d) The chief appraiser shall include in the appraisal
2-1 records both the market value of real property and its appraised
2-2 value as determined by this section.
2-3 (e) This section does not apply to property appraised under
2-4 Subchapter C, D, E, F, or G.
2-5 SECTION 2. Section 1.12, Tax Code, is amended by adding
2-6 Subsection (d) to read as follows:
2-7 (d) For purposes of this section, the appraisal ratio of
2-8 real property appraised under Section 23.21 is the ratio of the
2-9 property's market value as determined by the appraisal district or
2-10 appraisal review board, as applicable, to the market value of the
2-11 property according to law. The appraisal ratio is not calculated
2-12 according to the appraised value of the property as provided by
2-13 Section 23.21.
2-14 SECTION 3. Subchapter C, Chapter 41, Tax Code, is amended by
2-15 adding Section 41.414 to read as follows:
2-16 Sec. 41.414. PROTEST OF APPRAISED VALUE OF REAL PROPERTY.
2-17 In a protest of the appraised value of real property, if the
2-18 appraised value for the current year is the value calculated as
2-19 provided by Section 23.21(a)(2), the property owner is not entitled
2-20 to protest the appraised value for the preceding year that is used
2-21 in the calculation of the appraised value for the current year.
2-22 SECTION 4. Section 403.302(d), Government Code, is amended
2-23 to read as follows:
2-24 (d) For the purposes of this section, "taxable value" means
2-25 market value less:
2-26 (1) the total dollar amount of any exemptions of part
2-27 but not all of the value of taxable property required by the
3-1 constitution or a statute that a district lawfully granted in the
3-2 year that is the subject of the study;
3-3 (2) the total dollar amount of any exemptions granted
3-4 before May 31, 1993, within a reinvestment zone under agreements
3-5 authorized by Chapter 312, Tax Code;
3-6 (3) the total dollar amount of any captured appraised
3-7 value of property that is located in a reinvestment zone and that
3-8 is eligible for tax increment financing under Chapter 311, Tax
3-9 Code;
3-10 (4) the total dollar amount of any exemptions granted
3-11 under Section 11.251, Tax Code;
3-12 (5) the difference between the market value and the
3-13 productivity value of land that qualifies for appraisal on the
3-14 basis of its productive capacity, except that the productivity
3-15 value may not exceed the fair market value of the land;
3-16 (6) the portion of the appraised value of residence
3-17 homesteads of the elderly on which school district taxes are not
3-18 imposed in the year that is the subject of the study, calculated as
3-19 if the residence homesteads were appraised at the full value
3-20 required by law;
3-21 (7) a portion of the market value of property not
3-22 otherwise fully taxable by the district at market value because of
3-23 action required by statute or the constitution of this state that,
3-24 if the tax rate adopted by the district is applied to it, produces
3-25 an amount equal to the difference between the tax that the district
3-26 would have imposed on the property if the property were fully
3-27 taxable at market value and the tax that the district is actually
4-1 authorized to impose on the property; [and]
4-2 (8) the market value of all tangible personal
4-3 property, other than manufactured homes, owned by a family or
4-4 individual and not held or used for the production of income; and
4-5 (9) the amount by which the market value of real
4-6 property to which Section 23.21, Tax Code, applies exceeds the
4-7 appraised value of that property as calculated under that section.
4-8 SECTION 5. This Act takes effect January 1, 1998, but only
4-9 if the constitutional amendment proposed by the 75th Legislature,
4-10 Regular Session, 1997, to authorize the legislature to limit
4-11 increases in the appraised value of real property for ad valorem
4-12 tax purposes is approved by the voters. If the proposed
4-13 constitutional amendment is not approved by the voters, this Act
4-14 has no effect.
4-15 SECTION 6. The importance of this legislation and the
4-16 crowded condition of the calendars in both houses create an
4-17 emergency and an imperative public necessity that the
4-18 constitutional rule requiring bills to be read on three several
4-19 days in each house be suspended, and this rule is hereby suspended.