| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the limitation on the maximum average annual percentage |
|
|
increase in the appraised value of residence homesteads for ad |
|
|
valorem tax purposes. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 23.23, Tax Code, is amended by amending |
|
|
Subsection (a) and adding Subsections (g) and (h) to read as |
|
|
follows: |
|
|
(a) Except as provided under Subsection (g), the [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) for purposes of taxation by a school district |
|
|
other than a junior college district, five percent of the appraised |
|
|
value of the property for the last year in which the property was |
|
|
appraised for taxation, and for purposes of taxation by any other |
|
|
taxing unit, 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. |
|
|
(g) The governing body of a taxing unit other than a school |
|
|
district but including a junior college district, in the manner |
|
|
required by law for official action, may at any time provide that |
|
|
for purposes of taxation by the taxing unit in the following and |
|
|
each subsequent tax year a lower limitation on appraised value |
|
|
determined in the manner provided by Subsection (a)(2) using five |
|
|
percent in place of 10 percent in Subsection (a)(2)(A) will apply to |
|
|
the taxation of residence homesteads by the taxing unit. |
|
|
(h) Subsection (g) does not affect the appraised value of a |
|
|
residence homestead for taxation by a taxing unit other than the |
|
|
taxing unit whose governing body provides for the application of a |
|
|
limitation on appraised value under that subsection. If the |
|
|
governing body of the taxing unit sets the tax rate for more than |
|
|
one taxing unit, an action by the governing body under Subsection |
|
|
(g) does not apply to a taxing unit other than the taxing unit whose |
|
|
governing body takes that action. |
|
|
SECTION 2. Section 42.26(d), Tax Code, is amended to read as |
|
|
follows: |
|
|
(d) For purposes of this section, the value of the property |
|
|
subject to the suit and the value of a comparable property or sample |
|
|
property that is used for comparison must be the market value |
|
|
determined by the appraisal district when the property is a |
|
|
residence homestead subject to the limitation on appraised value |
|
|
imposed by or authorized under Section 23.23. |
|
|
SECTION 3. This Act applies only to the appraisal of a |
|
|
residence homestead for ad valorem tax purposes for a tax year that |
|
|
begins on or after January 1, 2008. |
|
|
SECTION 4. 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 establish for |
|
|
purposes of ad valorem taxation by a school district a limit on the |
|
|
annual increase in the appraised value of residence homesteads of |
|
|
five percent or more, and to permit other political subdivisions to |
|
|
adopt a five percent limit on those appraisal increases is approved |
|
|
by the voters. If that amendment is not approved by the voters, |
|
|
this Act has no effect. |