80R2056 JD-D

By: Hochberg 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) 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.

(e) In this section, "new improvement" means an improvement to a residence homestead that is made after the appraisal of the property for the preceding year and that increases the market value of the property. 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 for ad valorem taxation of a residence homestead for a tax year that begins on or after the effective date of this Act, but only if the constitutional amendment proposed by the 80th Legislature, Regular Session, 2007, providing that a limitation on the maximum percentage increase in the appraised value of a residence homestead for ad valorem taxation established by the legislature applies to a residence homestead regardless of the number of years since the most recent tax appraisal of the homestead is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.

SECTION 3. This Act takes effect January 1, 2008.