80R9208 JD-F

By: Eiland H.B. No. 2544

A BILL TO BE ENTITLED

AN ACT

relating to increasing the minimum amount of the local option residence homestead exemption from ad valorem taxation by a taxing unit from $5,000 to $30,000.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 11.13, Tax Code, is amended by amending Subsection (n) and adding Subsection (n-1) to read as follows:

(n) In addition to any other exemptions provided by this section, an individual is entitled to an exemption from taxation by a taxing unit of a percentage of the appraised value of the individual's [his] residence homestead if the exemption is adopted by the governing body of the taxing unit before July 1 in the manner provided by law for official action by the body. If the percentage set by the taxing unit produces an exemption in a tax year of less than $30,000 [$5,000] when applied to a particular residence homestead, the individual is entitled to an exemption of $30,000 [$5,000] of the appraised value. The percentage adopted by the taxing unit may not exceed 20 percent.

(n-1) Notwithstanding Subsection (n), if the governing body of a taxing unit adopted the exemption under that subsection before January 1, 2008, until the exemption is subsequently changed by the governing body, the exemption continues in effect at the greater of:

(1) the percentage amount in effect for the 2007 tax year; or

(2) the amount of $5,000 of the appraised value.

SECTION 2. This Act takes effect January 1, 2008, and applies only to ad valorem taxes imposed for a tax year beginning on or after that date, but only if the constitutional amendment proposed by the 80th Legislature, Regular Session, 2007, to increase the minimum amount of the local option residence homestead exemption from ad valorem taxation by a political subdivision from $5,000 to $30,000 is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.