By: Hochberg, Crabb, et al. H.B. No. 438
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the limitation on the maximum percentage increase in
  the appraised value of a residence homestead for ad valorem
  taxation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 23.23(a) and (e), Tax Code, are amended
  to read as follows:
         (a)  Notwithstanding the requirements of Section 25.18 and
  regardless of whether the appraisal office has appraised the
  property and determined the market value of the property for the tax
  year, an appraisal office may increase the [The] appraised value of
  a residence homestead for a tax year to an amount [may] not to
  exceed the lesser of:
               (1)  the market value of the property for the most
  recent tax year that the market value was determined by the
  appraisal office; or
               (2)  the sum of:
                     (A)  10 percent of the appraised value of the
  property for the preceding tax [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
  preceding tax [last] year [in which the property was appraised];
  and
                     (C)  the market value of all new improvements to
  the property.
         (e)  In this section, "new improvement" means an improvement
  to 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 and the value of which is
  not included in the appraised value of the property for the
  preceding tax year. The term does not include repairs to or
  ordinary maintenance of an existing structure or the grounds or
  another feature of the property.
         SECTION 2.  This Act applies only to the appraisal of a
  residence homestead for ad valorem taxation for a tax year that
  begins on or after the effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2008, but only
  if the constitutional amendment proposed by the 80th Legislature,
  Regular Session, 2007, authorizing the legislature to provide that
  the maximum appraised value of a residence homestead for ad valorem
  taxation is limited to the lesser of the most recent market value of
  the residence homestead as determined by the appraisal entity or
  110 percent, or a greater percentage, of the appraised value of the
  residence homestead for the preceding tax year is approved by the
  voters. If that amendment is not approved by the voters, this Act
  has no effect.