78R2978 RCJ-D

By:  Janek                                                        S.B. No. 180



A BILL TO BE ENTITLED

AN ACT

relating to the limitation on the maximum average annual percentage 
increase in the appraised value of a residence homestead for ad 
valorem tax purposes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 23.23(a), Tax Code, is amended to read as 
follows:       
	(a)  The appraised value of a residence homestead for a tax 
year may not exceed the lesser of:
		(1)  the market value of the property; or                                     
		(2)  the sum of:                                                              
			(A)  one [10] percent of the appraised value of 
the property for the last year in which the property was appraised 
for taxation times the number of years since the property was last 
appraised;
			(B)  the appraised value of the property for the 
last year in which the property was appraised; and
			(C)  the market value of all new improvements to 
the property.             
	SECTION 2.  This Act takes effect January 1, 2004, and 
applies only to the appraisal for ad valorem tax purposes of a 
residence homestead for a tax year that begins on or after that 
date, but only if the constitutional amendment proposed by the 78th 
Legislature, Regular Session, 2003, to authorize the legislature to 
set a limit of less than 10 percent on annual increases in the 
appraised value of a residence homestead for ad valorem tax 
purposes is approved by the voters.  If that amendment is not 
approved by the voters, this Act has no effect.