79S20071 SMH-D



By:  Bohac                                                        H.B. No. 29 







A BILL TO BE ENTITLED



AN ACT



relating to limiting the maximum average annual increase in the 

appraised value of residence homesteads for ad valorem taxation by 

a school district to five percent.

	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)  for purposes of taxation by a school district 

other than a junior college district, five percent of the appraised 

value of the property for the last year in which the property was 

appraised for taxation, and for purposes of taxation by any other 

taxing unit, 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 applies only to the appraisal for ad 

valorem tax purposes of a residence homestead for a tax year that 

begins on or after January 1, 2006.

	SECTION 3.  This Act takes effect January 1, 2006, but only 

if the constitutional amendment proposed by the 79th Legislature, 

Regular Session, 2005, authorizing the legislature to limit the 

maximum average annual increase in the appraised value of residence 

homesteads for purposes of ad valorem taxation by a school district 

to five percent or more is approved by the voters.  If that 

amendment is not approved by the voters, this Act has no effect.