H.J.R. 4 78(R)    BILL ANALYSIS


H.J.R. 4
By: Bohac
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, provisions of the Tax Code provide a ten percent (10%) cap
exists to limit the annual increase in appraised value of a residence
homestead.  Many feel that this cap is too high and concerned since it
does not apply to non-residential property. 

House Joint Resolution 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

It is the committee's opinion that this resolution does not expressly
grant any additional rulemaking authority to a state officer, department,
agency, or institution. 

ANALYSIS

House Joint Resolution 4 proposes a constitutional amendment be submitted
to the voters that would limit the maximum average annual increase in the
appraised value of real property for ad valorem tax purposes to five
percent or more by amending Section 1(i), Article VIII, of the Texas
Constitution.  

The limitation takes effect in the tax year following the first tax year
in which the owner owns the property on January 1st, or in the tax year
following the first tax year in which the owner qualifies the property if
it is a residence homestead. 

The limitation expires on January 1st of the tax year following the tax
year in which the owner sells or otherwise transfers ownership of the
property, except that the Legislature may provied for the limitation
applicable to a residence homestead to continue during ownership of the
property by the owner's spouse or surviving spouse. 

FOR ELECTION

November 4, 2003.