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A BILL TO BE ENTITLED
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AN ACT
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relating to a local option election in Montgomery County to set a |
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limitation of not less than three percent on the maximum average |
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annual increase in the appraised value of residence homesteads for |
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purposes of ad valorem taxation by each political subdivision in |
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the county. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.23, Tax Code, is amended by amending |
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Subsection (a) and adding Subsections (g) and (h) to read as |
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follows: |
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(a) Except as provided by Subsection (g), the [The] |
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appraised value of a residence homestead for a tax year may not |
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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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(g) The commissioners court of Montgomery County may call an |
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election in the county to permit the voters of the county to |
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determine whether a percentage limitation on increases in appraised |
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value determined in the manner provided by Subsection (a)(2) using |
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a percentage of not less than three percent in place of the |
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percentage specified by Subsection (a)(2)(A) will apply to the |
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taxation of residence homesteads by each taxing unit having |
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territory in the county. The election shall be held on the date of |
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the next general election for state and county officers. The ballot |
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proposition shall specify the proposed percentage limitation on |
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increases in appraised value. If a majority of the votes cast at |
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the election favor the establishment of the proposed limitation, |
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the limitation applies beginning with the tax year following the |
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year in which the election is held and remains in effect until |
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amended or repealed by the voters of the county at a subsequent |
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election called by the commissioners court of the county. An |
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election to amend or repeal a limitation shall be held on the date |
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of the next general election for state and county officers. If the |
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voters of the county amend or repeal a limitation, the amendment or |
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repeal applies beginning with the tax year after the year in which |
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the election is held. A limitation established under this |
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subsection applies to the taxation of all residence homesteads by |
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each taxing unit having territory in the county, including |
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residence homesteads located outside the county. |
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(h) If in any tax year the limitation on increases in |
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appraised value provided by Subsection (a)(2) applies to residence |
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homesteads taxable by a taxing unit having territory in Montgomery |
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County and the voters of the county have established for |
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application in that tax year a limitation on increases in appraised |
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value under Subsection (g), the lower limitation applies to the |
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taxation of residence homesteads by the taxing unit. |
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SECTION 2. Section 42.26(d), Tax Code, is amended to read as |
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follows: |
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(d) For purposes of this section, the value of the property |
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subject to the suit and the value of a comparable property or sample |
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property that is used for comparison must be the market value |
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determined by the appraisal district when the property is a |
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residence homestead subject to a [the] limitation on appraised |
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value imposed by or established under Section 23.23. |
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SECTION 3. This Act applies only to the appraisal of a |
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residence homestead for ad valorem tax purposes for a tax year that |
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begins on or after January 1, 2008. |
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SECTION 4. 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 for a |
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local option election in Montgomery County to set a limitation of |
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not less than three percent on the maximum average annual increase |
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in the appraised value of residence homesteads for purposes of ad |
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valorem taxation by each political subdivision in the county is |
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approved by the voters. If that amendment is not approved by the |
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voters, this Act has no effect. |