79S30091 UM-D

By:  Bohac                                                        H.B. No. 17 



A BILL TO BE ENTITLED

AN ACT

relating to increasing the maximum amount of the local option 
residence homestead exemption from ad valorem taxation by a taxing 
unit from 20 percent to 30 percent.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 11.13(n), Tax Code, is amended to read as 
follows:       
	(n)  In addition to any other exemptions provided by this 
section, an individual is entitled to an exemption from taxation by 
a taxing unit of a percentage of the appraised value of the 
individual's [his] residence homestead if the exemption is adopted 
by the governing body of the taxing unit before July 1 in the manner 
provided by law for official action by the body.  If the percentage 
set by the taxing unit produces an exemption in a tax year of less 
than $5,000 when applied to a particular residence homestead, the 
individual is entitled to an exemption of $5,000 of the appraised 
value.  The percentage adopted by the taxing unit may not exceed 30
[20] percent.
	SECTION 2.  This Act takes effect January 1, 2007, and 
applies only to ad valorem taxes imposed for a tax year beginning on 
or after that date, but only if the constitutional amendment 
proposed by the 79th Legislature, 3rd Called Session, 2006, to 
increase the maximum amount of the local option residence homestead 
exemption from ad valorem taxation by a political subdivision from 
20 percent to 30 percent is approved by the voters.  If that 
amendment is not approved by the voters, this Act has no effect.