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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) The appraised value of a residence homestead for a tax |
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year may not exceed the lesser of: |
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(1) the market value of the property; 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 last year in which the property was appraised for |
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taxation [times the number of years since the property was last
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appraised]; |
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(B) the appraised value of the property for the |
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last year in which the property was appraised; 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 appraisal of the |
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property for the preceding year and that increases the market value |
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of the property. The term does not include repairs to or ordinary |
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maintenance of an existing structure or the grounds or another |
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feature of the property. |
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SECTION 2. This Act applies only to the appraisal for ad |
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valorem taxation of a residence homestead for a tax year that begins |
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on or after the effective date of this Act, but only if the |
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constitutional amendment proposed by the 80th Legislature, Regular |
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Session, 2007, providing that a limitation on the maximum |
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percentage increase in the appraised value of a residence homestead |
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for ad valorem taxation established by the legislature applies to a |
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residence homestead regardless of the number of years since the |
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most recent tax appraisal of the homestead 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. |
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SECTION 3. This Act takes effect January 1, 2008. |