79S30099 SMH-D
By: Riddle H.B. No. 14
A BILL TO BE ENTITLED
AN ACT
relating to the appraisal of property for ad valorem tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. LIMITATION ON INCREASES IN APPRAISED VALUE OF RESIDENCE
HOMESTEADS FOR AD VALOREM TAX PURPOSES
SECTION 1.01. 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 percentage limitation on increases in appraised
value determined in the manner provided by Subsection (a)(2) using
a percentage 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. 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effect until amended or repealed by the voters of the county at a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 increases in 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 1.02. 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 1.03. This article takes effect January 1, 2007,
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, 2007, but only if the constitutional amendment proposed by the
79th Legislature, 3rd Called Session, 2006, 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
article has no effect.
ARTICLE 2. APPRAISAL FOR AD VALOREM TAX PURPOSES OF PROPERTY
LOCATED IN MORE THAN ONE COUNTY
SECTION 2.01. Sections 6.02(a) and (b), Tax Code, are
amended to read as follows:
(a) The [Except as otherwise provided by this section, the]
appraisal district's boundaries are the same as the county's
boundaries.
(b) This section does not preclude the board of directors of
two or more adjoining appraisal districts from providing for the
operation of a consolidated appraisal district by interlocal
contract [A taxing unit that has boundaries extending into two or
more counties may choose to participate in only one of the appraisal
districts. In that event, the boundaries of the district chosen
extend outside the county to the extent of the unit's boundaries.
To be effective, the choice must be approved by resolution of the
board of directors of the district chosen. The choice of a school
district to participate in a single appraisal district does not
apply to property annexed to the school district under Subchapter C
or G, Chapter 41, Education Code, unless:
[(1) the school district taxes property other than
property annexed to the district under Subchapter C or G, Chapter
41, Education Code, in the same county as the annexed property; or
[(2) the annexed property is contiguous to property in
the school district other than property annexed to the district
under Subchapter C or G, Chapter 41, Education Code].
SECTION 2.02. Section 41.097(a), Education Code, is amended
to read as follows:
(a) The total amount required under Section 41.093 for a
district to purchase attendance credits under this subchapter for
any school year is reduced by an amount equal to the product of the
district's total costs under Section 6.06, Tax Code, for the
[central] appraisal district or districts in which it participates
multiplied by a percentage that is computed by dividing the total
amount required under Section 41.093 by the total amount of taxes
imposed in the district for that year less any amounts paid into a
tax increment fund under Chapter 311, Tax Code.
SECTION 2.03. Section 41.210(b), Education Code, is amended
to read as follows:
(b) As soon as practicable after the detachment and
annexation of property, the chief appraiser of the appraisal
district in which the property is located [for the school district
from which the property is detached] shall send a written notice of
the detachment and annexation to the owner of any property taxable
in a different school district as a result of the detachment and
annexation. The notice must include the name of the school district
by which the property is taxable after the detachment and
annexation.
SECTION 2.04. The following statutes are repealed:
(1) Section 13.007, Education Code;
(2) Sections 6.02(c), (d), (e), (f), and (g), Tax
Code;
(3) Section 6.025, Tax Code; and
(4) Section 6.03(m), Tax Code.
SECTION 2.05. (a) The changes in law made by this article
relating to the appraisal of property for ad valorem tax purposes
apply only to the appraisal of property for a tax year that begins
on or after January 1, 2007.
(b) The changes in law made by this article do not affect the
entitlement of a member serving on the board of directors of an
appraisal district immediately before the effective date of this
Act to continue to serve on the board for the remainder of the
member's term. The changes in law apply only to a member appointed
on or after the effective date of this Act.
(c) This subsection applies only to an appraisal district
that has adopted staggered terms for members of the district's
board of directors. Notwithstanding Section 6.03, Tax Code, a
taxing unit is entitled to vote in 2006 for appraisal district
directors for terms beginning on January 1, 2007, in each appraisal
district in which the taxing unit will participate in 2007 under the
law as amended by this article. The voting entitlement of each
taxing unit entitled to vote for directors in 2006 is determined for
each appraisal district by dividing the total dollar amount of
property taxes imposed by the taxing unit for the 2005 tax year in
the county for which the appraisal district is established by the
sum of the total dollar amount of property taxes imposed in that
county for that year by each taxing unit that is entitled to vote
for directors of that appraisal district under this subsection in
2006, by multiplying the quotient by 1,000, and by rounding the
product to the nearest whole number. That number is multiplied by
the number of directorships to be filled. A taxing unit located in
two or more counties is entitled to vote in the appraisal district
established for each county in which it is located, but only the
taxes imposed in 2005 in the county for which a district is
established are used to calculate the 2006 voting entitlement in
that district.
(d) Notwithstanding Section 6.06, Tax Code, for the 2007 tax
year, each taxing unit participating in an appraisal district in
2007 is allocated a portion of the amount of the 2007 budget for the
district equal to the proportion that the total dollar amount of
property taxes imposed in the county for which the district is
established by the unit for the 2006 tax year bears to the sum of the
total dollar amount of property taxes imposed in the county for the
2006 tax year by each unit participating in the district in 2007.
If a taxing unit participates in two or more appraisal districts in
2007, only the 2006 taxes imposed in the county for which a district
is established are used to calculate the unit's cost allocations
for the 2007 budget for that district.
SECTION 2.06. (a) Except as provided by Subsection (b) of
this section, this article takes effect January 1, 2007.
(b) Section 2.05 of this article takes effect September 1,
2006.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2007.
(b) If a section or article of this Act provides a different
effective date than provided by Subsection (a) of this section,
that section or article takes effect according to its terms.