79S20177 SMH-D
By: Howard H.B. No. 48
A BILL TO BE ENTITLED
AN ACT
relating to the establishment by the commissioners court of a
county for purposes of ad valorem taxation of a limit of less than
10 percent but not less than three percent on the maximum average
annual percentage increase in the appraised value of residence
homesteads in the county.
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 under 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, in the manner
required by law for official action, may provide that a lower
limitation on appraised value determined in the manner provided by
Subsection (a)(2) using a percentage specified by the commissioners
court of less than 10 percent but 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. If the commissioners court of a
county adopts a lower limitation on appraisal increases under this
subsection, the limitation remains in effect until amended or
rescinded by the commissioners court. The adoption, amendment, or
rescission of a limitation on appraisal increases under this
subsection may not take effect before the fourth tax year following
the tax year in which the most recent action of the commissioners
court under this subsection to adopt, amend, or rescind a
limitation on appraisal increases took effect. The action of the
commissioners court under this subsection takes effect beginning
with the tax year following the tax year in which the action is
taken, except that the commissioners court may provide for the
action to take effect in the current tax year if the action is taken
before May 1.
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, 2nd Called Session, 2005, authorizing the
legislature to permit the commissioners court of a county to
establish for purposes of ad valorem taxation a limit of less than
10 percent but not less than three percent on the maximum average
annual percentage increase in the appraised value of residence
homesteads in the county is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.