79R3533 JD-D

By:  Leibowitz                                                    H.B. No. 819



A BILL TO BE ENTITLED

AN ACT

relating to property tax relief and protection of taxpayers.                  
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 45.003, Education Code, is amended by 
amending Subsection (d) and adding Subsections (e) and (f) to read 
as follows:
	(d)  A proposition submitted to authorize the levy of 
maintenance taxes must include the question of whether the 
governing board or commissioners court may levy, assess, and 
collect annual ad valorem taxes for the further maintenance of 
public schools, at a rate not to exceed the rate, which may be not 
more than $1.00 [$1.50] on the $100 valuation of taxable property in 
the district, stated in the proposition.
	(e)  An election held before January 1, 2006, authorizing a 
maintenance tax at a rate of at least $1.00 on the $100 valuation of 
taxable property in the district is sufficient to authorize a rate 
not to exceed $1.00.
	(f)  A district permitted by special law on January 1, 2006, 
to impose an ad valorem tax at a rate greater than $1.50 may 
continue to impose a rate that is $0.50 less than the rate 
previously authorized.
	SECTION 2.  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 3.  (a)  Section 1 of this Act applies only to the 
maintenance tax rate of a school district for a tax year that begins 
on or after the effective date of this Act.
	(b)  Section 2 of 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 4.  (a)  Except as provided by Subsection (b) of this 
section, this Act takes effect January 1, 2006.
	(b)  Section 2 of this Act takes effect on the date provided 
by Subsection (a) of this section only if the constitutional 
amendment proposed by the 79th Legislature, Regular Session, 2005, 
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.