79S31327 JD-D

By:  Howard of Fort Bend                                          H.B. No. 134



A BILL TO BE ENTITLED

AN ACT

relating to the limitation on increases in the appraised value of a 
residence homestead for ad valorem taxation.
	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)  three [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 residence homesteads for a tax year that 
begins on or after the effective date of this Act.
	SECTION 3.  This Act takes effect January 1, 2007, but only 
if the constitutional amendment proposed by the 79th Legislature, 
3rd Called Session, 2006, to authorize the legislature to limit the 
maximum average annual increase in the appraised value of a 
residence homestead for ad valorem tax purposes to three percent or 
more is approved by the voters.  If that amendment is not approved 
by the voters, this Act has no effect.