By Merritt H.J.R. No. 5
76R7337 SMH-D
A JOINT RESOLUTION
1-1 proposing a constitutional amendment to limit increases in the
1-2 appraised value of real property for ad valorem tax purposes.
1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1, Article VIII, Texas Constitution, is
1-5 amended by amending Subsection (i) and adding Subsections (j), (k),
1-6 and (l) to read as follows:
1-7 (i) The appraised value of real property, other than real
1-8 property appraised as provided by Section 1-d or 1-d-1 of this
1-9 article, for ad valorem tax purposes for the first tax year after
1-10 the tax year in which the owner acquires the property may not
1-11 exceed the market value of the property. Notwithstanding
1-12 Subsections (a) and (b) of this section, the appraised value of the
1-13 property in each subsequent tax year until the end of the tax year
1-14 in which the ownership of the property changes may not exceed the
1-15 sum of:
1-16 (1) the appraised value of the property for tax
1-17 purposes for the preceding year as adjusted by the appraisal office
1-18 for the current tax year to reflect the change from the preceding
1-19 tax year in the purchasing power of the dollar for consumers in the
1-20 region of this State in which the property is located; and
1-21 (2) the market value of all new improvements to the
1-22 property [Notwithstanding Subsections (a) and (b) of this section,
1-23 the Legislature by general law may limit the maximum average annual
1-24 percentage increase in the appraised value of residence homesteads
2-1 for ad valorem tax purposes to 10 percent, or a greater percentage,
2-2 for each year since the most recent tax appraisal. A limitation on
2-3 appraisal increases authorized by this subsection:]
2-4 [(1) takes effect as to a residence homestead on the
2-5 later of the effective date of the law imposing the limitation or
2-6 January 1 of the tax year following the first tax year the owner
2-7 qualifies the property for an exemption under Section 1-b of this
2-8 article; and]
2-9 [(2) expires on January 1 of the first tax year that
2-10 neither the owner of the property when the limitation took effect
2-11 nor the owner's spouse or surviving spouse qualifies for an
2-12 exemption under Section 1-b of this article].
2-13 (j) In Subsection (i) of this section, "new improvement"
2-14 means an improvement to real property that is made after the
2-15 appraisal of the property for the preceding tax year and that
2-16 increases the market value of the property. The term does not
2-17 include ordinary maintenance of an existing structure or the
2-18 grounds or another feature of the property.
2-19 (k) For each tax year, using the index that the Comptroller
2-20 of Public Accounts considers to most accurately report changes in
2-21 the purchasing power of the dollar for consumers in each region of
2-22 this State as specified by the Legislature, the comptroller shall
2-23 determine and publicize the percentage by which the appraised value
2-24 of real property may be increased under Subsection (i)(1) of this
2-25 section. Each appraisal office shall use the applicable percentage
2-26 determined by the comptroller under this subsection to determine
2-27 the maximum increase in the appraised value of real property
3-1 appraised by that appraisal office.
3-2 (l) For purposes of Subsection (i) of this section, the
3-3 owner of real property on January 1, 2000, is considered to have
3-4 acquired the property in the 1999 tax year.
3-5 SECTION 2. The following temporary provision is added to the
3-6 Texas Constitution:
3-7 TEMPORARY PROVISION. (a) This temporary provision applies
3-8 to the constitutional amendment proposed by __J.R. No. __, 76th
3-9 Legislature, Regular Session, 1999, and expires January 1, 2002.
3-10 (b) The amendment takes effect January 1, 2000.
3-11 SECTION 3. This proposed constitutional amendment shall be
3-12 submitted to the voters at an election to be held November 2, 1999.
3-13 The ballot shall be printed to permit voting for or against the
3-14 proposition: "The constitutional amendment to limit increases in
3-15 the appraised value of real property for ad valorem tax purposes."