79R5673 JD-D
By: Leibowitz H.B. No. 2444
A BILL TO BE ENTITLED
AN ACT
relating to limiting the appraised value for ad valorem tax
purposes of certain residence homesteads.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.23, Tax Code, is amended by amending
Subsections (a) and (b) 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.
(b) When appraising 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), and, if applicable, the appraised value determined under
Subsection (g).
(g) This subsection applies only to a residence homestead
that remains unsold after having been listed for sale and actively
and continuously marketed for at least 12 months at an asking price
that is equal to or less than the appraised value of the property
for ad valorem tax purposes as otherwise determined under this
chapter. On written application by the owner of an eligible
residence homestead, the chief appraiser shall reduce the appraised
value of the residence homestead to the appraised value of the
homestead for ad valorem tax purposes on January 1 of the fourth tax
year preceding the year the homestead was first listed for sale.
The chief appraiser shall continue to maintain the reduced value in
the appraisal records until January 1 of the fifth tax year after
the year in which the reduction was made. To be valid, an
application under this section must be signed and attested to by the
owner of the residence homestead or the real estate agent marketing
the property. A limitation required by this subsection expires on
January 1 of the first tax year in which the owner of the residence
homestead ceases to own the property or ceases to qualify the
property for an exemption under Section 11.13. The comptroller by
rule shall adopt forms and procedures to implement and enforce this
subsection. The rules shall establish standards or criteria for
determining whether a residence homestead has been actively and
continuously marketed in good faith for at least 12 months as
required by this subsection.
SECTION 2. This Act applies only to a tax year that begins
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2006, but only
if the constitutional amendment proposed by the 79th Legislature,
Regular Session, 2005, to authorize the legislature to limit the
appraised value for ad valorem tax purposes of a residence
homestead that is offered for sale for a price at or below the
appraised value and is not sold within a year of being offered for
sale at that price is approved by the voters. If that amendment is
not approved by the voters, this Act has no effect.