BILL ANALYSIS

Senate Research Center                                                                                                 C.S.S.J.R. 17

80R16516 JD-D                                                                                                                 By: Hegar

Finance

5/4/2007

Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Currently, Texas law prohibits a homestead's appraised value for ad valorem tax purposes from increasing more than ten percent in a single year. 

C.S.S.J.R. 17 proposes a constitutional amendment authorizing the legislature to limit the appraised value of a property for tax purposes in a tax year to the most recent market value of the property as determined by appraisal entity or 110 percent, or a greater percentage, of the appraised value of the property for the preceding tax year.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1(i), Article VIII, Texas Constitution, as follows:

(i) Authorizes the legislature to limit the maximum appraised value of a residence homestead for ad valorem tax purposes in a tax year to the lesser of the most recent market value of the residence homestead as determined by the appraisal entity or 110 percent or greater of the appraised value of the residence homestead for the preceding tax year.  Deletes existing text authorizing the legislature to limit the maximum average annual percentage increase in the appraised value of residence homesteads for ad valorem tax purposes to 10 percent or greater for each year since the most recent tax appraisal.  Provides the date that a limitation on appraised values, rather than appraised increases, takes effect and expires.

SECTION 2.  Requires this proposed constitutional amendment to be submitted to the voters at election to be held November 6, 2007.  Sets forth the required language for the ballot.