79R4228 JD-D
By: Bohac, Howard, Kolkhorst, Nixon, H.B. No. 784
Callegari, et al.
A BILL TO BE ENTITLED
AN ACT
relating to providing tax relief and protection for ad valorem tax
payers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.12(d), Tax Code, is amended to read as
follows:
(d) For purposes of this section, the appraisal ratio of
real property [a homestead] to which Section 23.23 applies is the
ratio of the property's market value as determined by the appraisal
district or appraisal review board, as applicable, to the market
value of the property according to law. The appraisal ratio is not
calculated according to the appraised value of the property as
limited by Section 23.23.
SECTION 2. Section 23.23, Tax Code, is amended to read as
follows:
Sec. 23.23. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY
[RESIDENCE HOMESTEAD]. (a) The appraised value of real property [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) five [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.
(b) When appraising real property [a residence homestead],
the chief appraiser shall:
(1) appraise the property at its market value; and
(2) include in the appraisal records both the market
value of the property and the amount computed under Subsection
(a)(2).
(c) The limitation provided by Subsection (a) takes effect
as to a parcel of real property [residence homestead] on January 1
of the tax year following the first tax year in which the owner owns
[qualifies] the property on January 1, except that if the property
qualifies as the residence homestead of the owner [for an
exemption] under Section 11.13 in the tax year in which the owner
acquires the property, the limitation takes effect on January 1 of
the tax year following that tax year. Except as provided by
Subsections (d) and (e), the [. The] limitation expires on January
1 of the first tax year following the tax year in which [that
neither] the owner of the property ceases to own the property [when
the limitation took effect nor the owner's spouse or surviving
spouse qualifies for an exemption under Section 11.13].
(d) If real property subject to a limitation under
Subsection (a) qualifies for an exemption under Section 11.13 when
the ownership of the property is transferred to the owner's spouse
or surviving spouse, the limitation expires on January 1 of the tax
year following the year in which the owner's spouse or surviving
spouse ceases to own the property, unless the limitation is further
continued under this subsection on the subsequent transfer to a
spouse or surviving spouse.
(e) If real property subject to a limitation under
Subsection (a), other than a residence homestead, is owned by two or
more persons, the limitation expires on January 1 of the tax year
following the year in which the ownership of at least a 50 percent
interest in the property is sold or otherwise transferred to a
person other than those owners.
(f) This section does not apply to a mineral interest or
property appraised under Subchapter C, D, E, F, [or] G, or H.
(g) [(e)] In this section, "new improvement" means an
improvement to real property [a residence homestead] that is made
after the most recent appraisal of the property [for the preceding
year] and that increases the market value of the property. The term
does not include ordinary upkeep, repair, or maintenance of an
existing structure or the grounds or another feature of the
property.
(h) [(f)] Notwithstanding Subsections (a) and (g) [(e)] and
except as provided by Subdivision (2), an improvement to property
that would otherwise constitute a new improvement is not treated as
a new improvement if the improvement is a replacement structure for
a structure that was rendered uninhabitable or unusable by a
casualty or by mold or water damage. For purposes of appraising the
property in the tax year in which the structure would have
constituted a new improvement:
(1) the last year in which the property was appraised
for taxation before the casualty or damage occurred is considered
to be the last year in which the property was appraised for taxation
for purposes of Subsection (a)(2)(A); and
(2) the replacement structure is considered to be a
new improvement only to the extent it is a significant improvement
over the replaced structure as that structure existed before the
casualty or damage occurred.
(i) For purposes of applying the limitation provided by
Subsection (a) in the first tax year after the 2005 tax year in
which the real property is appraised for taxation:
(1) the property is considered to have been appraised
for taxation in the 2005 tax year at a market value equal to the
appraised value of the property for that tax year;
(2) a person who acquired in a tax year before the 2005
tax year real property that the person owns in the 2005 tax year is
considered to have acquired the property on January 1, 2005; and
(3) a person who qualified the property for an
exemption under Section 11.13 as the person's residence homestead
for any portion of the 2005 tax year is considered to have acquired
the property in the 2005 tax year.
SECTION 3. 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 Section 23.23.
SECTION 4. Sections 403.302(d) and (i), Government Code,
are amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any exemptions granted
under Section 11.251, Tax Code;
(6) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(7) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(8) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(9) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(10) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(11) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(12) the amount by which the market value of real
property [a residence homestead] to which Section 23.23, Tax Code,
applies exceeds the appraised value of that property as calculated
under that section.
(i) If the comptroller determines in the annual study that
the market value of property in a school district as determined by
the appraisal district that appraises property for the school
district, less the total of the amounts and values listed in
Subsection (d) as determined by that appraisal district, is valid,
the comptroller, in determining the taxable value of property in
the school district under Subsection (d), shall for purposes of
Subsection (d)(12) subtract from the market value as determined by
the appraisal district of real properties [residence homesteads] to
which Section 23.23, Tax Code, applies the amount by which that
amount exceeds the appraised value of those properties as
calculated by the appraisal district under Section 23.23, Tax Code.
If the comptroller determines in the annual study that the market
value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is not valid, the
comptroller, in determining the taxable value of property in the
school district under Subsection (d), shall for purposes of
Subsection (d)(12) subtract from the market value as estimated by
the comptroller of real properties [residence homesteads] to which
Section 23.23, Tax Code, applies the amount by which that amount
exceeds the appraised value of those properties as calculated by
the appraisal district under Section 23.23, Tax Code.
SECTION 5. Section 31.01, Tax Code, is amended by amending
Subsection (c) and adding Subsection (c-1) to read as follows:
(c) The tax bill or a separate statement accompanying the
tax bill shall:
(1) identify the property subject to the tax;
(2) state the appraised value, assessed value, and
taxable value of the property;
(3) if the property is land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, state the market value and the
taxable value for purposes of deferred or additional taxation as
provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
(4) state the assessment ratio for the unit;
(5) state the type and amount of any partial exemption
applicable to the property, indicating whether it applies to
appraised or assessed value;
(6) state the total tax rate for the unit;
(7) state the amount of tax due, the due date, and the
delinquency date;
(8) explain the payment option and discounts provided
by Sections 31.03 and 31.05, if available to the unit's taxpayers,
and state the date on which each of the discount periods provided by
Section 31.05 concludes, if the discounts are available;
(9) state the rates of penalty and interest imposed
for delinquent payment of the tax;
(10) include the name and telephone number of the
assessor for the unit and, if different, of the collector for the
unit; [and]
(11) for real property, state for the current tax year
and each of the preceding five tax years:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the unit;
(C) the amount of taxes imposed on the property
by the unit; and
(D) the difference, expressed as a percent
increase or decrease, as applicable, in the amount of taxes imposed
on the property by the unit compared to the amount imposed for the
preceding tax year;
(12) for real property, state the differences,
expressed as a percent increase or decrease, as applicable, in the
following for the current tax year as compared to the fifth tax year
before that tax year:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the unit; and
(C) the amount of taxes imposed on the property
by the unit; and
(13) include any other information required by the
comptroller.
(c-1) If for any of the preceding six tax years any
information required by Subsection (c)(11) or (12) to be included
in a tax bill or separate statement is unavailable, the tax bill or
statement must state that the information is not available for that
year. This subsection expires December 31, 2011.
SECTION 6. Sections 1-4 of this Act apply only to the
appraisal for ad valorem tax purposes of real property for a tax
year that begins on or after January 1, 2006.
SECTION 7. (a) Except as provided by Subsection (b) of this
section, this Act takes effect January 1, 2006.
(b) Sections 1-4 and Section 6 of this Act take effect as
provided by Subsection (a) of this section, but only if the
constitutional amendment proposed by the 79th Legislature, Regular
Session, 2005, authorizing a five percent limitation on annual
increases in the appraised value for ad valorem tax purposes of real
property is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.