SRC-LBB H.J.R. 4 78(R)   BILL ANALYSIS


Senate Research Center   H.J.R. 4
By: Bohac (Janek)
Intergovernmental Relations
5/14/2003
Engrossed


DIGEST AND PURPOSE 

Currently, provisions of the Tax Code provide a ten percent (10%) cap to
limit the annual increase in appraised value of a residence homestead.
H.J.R. 4 proposes a constitutional amendment which would limit the maximum
average annual increase in the appraised value of real property for ad
valorem tax purposes to five percent or more. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1(i), Article VIII, Texas Constitution, to
authorize the legislature by general law to limit the maximum average
annual percentage increase in the appraised value of real property, rather
than residence homesteads, for ad valorem tax purposes to five, rather
than 10 percent, or a greater percentage, for each year since the most
recent tax appraisal. Provides that a limitation on appraisal increases
authorized by this subsection: 

(1)  takes effect in the tax year following the first tax year in which
the owner owns the property on January 1, or, if the property is a
residence homestead, in the tax year following the first tax year in which
the owner qualifies the property for an exemption under Section 1-b of
this article; and 

(2)  expires on January 1 of the tax year following the tax year in which
the owner of the property when the limitation took effect sells or
otherwise transfers ownership of the property, except that the legislature
by general law may provide for the limitation applicable to a residence
homestead to continue during ownership of the property by the owner's
spouse or surviving spouse. 

SECTION 2.  Requires this proposed constitutional amendment to be
submitted to the voters at an election to be held September 13, 2003.
Requires the ballot to be printed to permit voting for or against the
proposition: "The constitutional amendment authorizing the legislature to
limit the maximum average annual increase in the appraised value of real
property for ad valorem tax purposes to five percent or more."