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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation on the maximum percentage increase in |
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the appraised value of a residence homestead for ad valorem |
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taxation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 23.23(a) and (e), Tax Code, are amended |
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to read as follows: |
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(a) Notwithstanding the requirements of Section 25.18 and |
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regardless of whether the appraisal office has appraised the |
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property and determined the market value of the property for the tax |
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year, an appraisal office may increase the [The] appraised value of |
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a residence homestead for a tax year to an amount [may] not to |
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exceed the lesser of: |
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(1) the market value of the property for the most |
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recent tax year that the market value was determined by the |
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appraisal office; or |
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(2) the sum of: |
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(A) 10 percent of the appraised value of the |
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property for the preceding tax [last] year [in which the property
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was appraised for taxation times the number of years since the
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property was last appraised]; |
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(B) the appraised value of the property for the |
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preceding tax [last] year [in which the property was appraised]; |
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and |
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(C) the market value of all new improvements to |
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the property. |
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(e) In this section, "new improvement" means an improvement |
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to a residence homestead [that is] made after the most recent |
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appraisal of the property [for the preceding year and] that |
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increases the market value of the property and the value of which is |
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not included in the appraised value of the property for the |
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preceding tax year. The term does not include repairs to or |
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ordinary maintenance of an existing structure or the grounds or |
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another feature of the property. |
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SECTION 2. This Act applies only to the appraisal of a |
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residence homestead for ad valorem taxation for a tax year that |
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begins on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2008, but only |
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if the constitutional amendment proposed by the 80th Legislature, |
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Regular Session, 2007, authorizing the legislature to provide that |
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the maximum appraised value of a residence homestead for ad valorem |
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taxation is limited to the lesser of the most recent market value of |
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the residence homestead as determined by the appraisal entity or |
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110 percent, or a greater percentage, of the appraised value of the |
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residence homestead for the preceding tax year is approved by the |
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voters. If that amendment is not approved by the voters, this Act |
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has no effect. |