79S10583 SMH-D
By: Riddle H.B. No. 97
A BILL TO BE ENTITLED
AN ACT
relating to the authorization of a local option election in a county
to set a limit of less than 10 percent but not less than three
percent on the maximum average annual increase in the appraised
value of residence homesteads for ad valorem tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.23, Tax Code, is amended by amending
Subsection (a) and adding Subsection (g) to read as follows:
(a) Except as provided by Subsection (g), the [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) 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.
(g) The commissioners court of a county may call an election
in the county to permit the voters of the county to determine
whether a lower limitation on appraised value determined in the
manner provided by Subsection (a)(2) using a percentage of not less
than three percent in place of 10 percent in Subsection (a)(2)(A)
will apply to the taxation of residence homesteads in the county by
each taxing unit having territory in the county. The election shall
be held on the date of the next general election for state and
county officers. The ballot proposition shall specify the proposed
percentage limitation on increases in appraised value. If a
majority of the votes cast at the election favor the establishment
of the proposed limitation, the limitation applies beginning with
the tax year following the year in which the election is held and
remains in effect until amended or repealed by the voters of the
county at a subsequent election called by the commissioners court
of the county. An election to amend or repeal a limitation shall be
held on the date of the next general election for state and county
officers. If the voters of a county amend or repeal a limitation,
the amendment or repeal applies beginning with the tax year after
the year in which the election is held. If a taxing unit has
territory in more than one county, the highest percentage
limitation on appraised value otherwise applicable in any portion
of the territory of the taxing unit applies to the taxation of
residence homesteads by the taxing unit throughout that taxing
unit's territory.
SECTION 2. Section 42.26(d), Tax Code, is amended to read as
follows:
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is a
residence homestead subject to the limitation on appraised value
imposed by or authorized under Section 23.23.
SECTION 3. This Act takes effect January 1, 2006, and
applies only to the appraisal of a residence homestead for ad
valorem tax purposes for a tax year that begins on or after January
1, 2006, but only if the constitutional amendment proposed by the
79th Legislature, 1st Called Session, 2005, authorizing the
legislature to provide for a local option election in a county to
set a limit of less than 10 percent but not less than three percent
on the maximum average annual increase in the appraised value of
residence homesteads for ad valorem tax purposes is approved by the
voters. If that amendment is not approved by the voters, this Act
has no effect.