By Longoria H.B. No. 371
75R953 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to limitations on the frequency with which increases in
1-3 the appraised value of real property for ad valorem tax purposes
1-4 may be recognized.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter B, Chapter 23, Tax Code, is amended by
1-7 adding Section 23.21 to read as follows:
1-8 Sec. 23.21. REAL PROPERTY. (a) Except as provided by
1-9 Subsection (b), the chief appraiser may not recognize an increase
1-10 in the appraised value of real property more than once every five
1-11 years.
1-12 (b) The chief appraiser shall recognize an increase in the
1-13 appraised value of real property before the fifth anniversary of
1-14 the date of the preceding recognition of an increase in the
1-15 appraised value of the property if, after that date, the property
1-16 owner makes an improvement to the property that increases the
1-17 market value of the property at least 10 percent.
1-18 (c) An application is not required for an owner of real
1-19 property to receive a benefit under this section.
1-20 (d) The chief appraiser shall include in the appraisal
1-21 records both the market value of real property and its appraised
1-22 value as determined by this section.
1-23 (e) This section does not apply to property appraised under
1-24 Subchapter C, D, E, F, or G.
2-1 SECTION 2. Section 1.12, Tax Code, is amended by adding
2-2 Subsection (d) to read as follows:
2-3 (d) For purposes of this section, the appraisal ratio of
2-4 real property appraised under Section 23.21 is the ratio of the
2-5 property's market value as determined by the appraisal district or
2-6 appraisal review board, as applicable, to the market value of the
2-7 property according to law. The appraisal ratio is not calculated
2-8 according to the appraised value of the property as provided by
2-9 Section 23.21.
2-10 SECTION 3. Section 25.18(b), Tax Code, is amended to read as
2-11 follows:
2-12 (b) The plan shall provide for reappraisal of all real
2-13 property in the district at least once every five [three] years.
2-14 SECTION 4. Section 403.302(d), Government Code, is amended
2-15 to read as follows:
2-16 (d) For the purposes of this section, "taxable value" means
2-17 market value less:
2-18 (1) the total dollar amount of any exemptions of part
2-19 but not all of the value of taxable property required by the
2-20 constitution or a statute that a district lawfully granted in the
2-21 year that is the subject of the study;
2-22 (2) the total dollar amount of any exemptions granted
2-23 before May 31, 1993, within a reinvestment zone under agreements
2-24 authorized by Chapter 312, Tax Code;
2-25 (3) the total dollar amount of any captured appraised
2-26 value of property that is located in a reinvestment zone and that
2-27 is eligible for tax increment financing under Chapter 311, Tax
3-1 Code;
3-2 (4) the total dollar amount of any exemptions granted
3-3 under Section 11.251, Tax Code;
3-4 (5) the difference between the market value and the
3-5 productivity value of land that qualifies for appraisal on the
3-6 basis of its productive capacity, except that the productivity
3-7 value may not exceed the fair market value of the land;
3-8 (6) the portion of the appraised value of residence
3-9 homesteads of the elderly on which school district taxes are not
3-10 imposed in the year that is the subject of the study, calculated as
3-11 if the residence homesteads were appraised at the full value
3-12 required by law;
3-13 (7) a portion of the market value of property not
3-14 otherwise fully taxable by the district at market value because of
3-15 action required by statute or the constitution of this state that,
3-16 if the tax rate adopted by the district is applied to it, produces
3-17 an amount equal to the difference between the tax that the district
3-18 would have imposed on the property if the property were fully
3-19 taxable at market value and the tax that the district is actually
3-20 authorized to impose on the property; [and]
3-21 (8) the market value of all tangible personal
3-22 property, other than manufactured homes, owned by a family or
3-23 individual and not held or used for the production of income; and
3-24 (9) the amount by which the market value of real
3-25 property to which Section 23.21, Tax Code, applies exceeds the
3-26 appraised value of that property under that section.
3-27 SECTION 5. This Act takes effect January 1, 1998, but only
4-1 if the constitutional amendment proposed by the 75th Legislature,
4-2 Regular Session, 1997, to require the legislature to limit the
4-3 frequency with which increases in the appraised value of real
4-4 property for ad valorem tax purposes may be recognized is approved
4-5 by the voters. If the proposed constitutional amendment is not
4-6 approved by the voters, this Act has no effect.
4-7 SECTION 6. The importance of this legislation and the
4-8 crowded condition of the calendars in both houses create an
4-9 emergency and an imperative public necessity that the
4-10 constitutional rule requiring bills to be read on three several
4-11 days in each house be suspended, and this rule is hereby suspended.