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A BILL TO BE ENTITLED
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AN ACT
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relating to increasing the minimum amount of the local option |
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residence homestead exemption from ad valorem taxation by a taxing |
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unit from $5,000 to $30,000. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.13, Tax Code, is amended by amending |
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Subsection (n) and adding Subsection (n-1) to read as follows: |
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(n) In addition to any other exemptions provided by this |
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section, an individual is entitled to an exemption from taxation by |
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a taxing unit of a percentage of the appraised value of the |
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individual's [his] residence homestead if the exemption is adopted |
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by the governing body of the taxing unit before July 1 in the manner |
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provided by law for official action by the body. If the percentage |
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set by the taxing unit produces an exemption in a tax year of less |
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than $30,000 [$5,000] when applied to a particular residence |
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homestead, the individual is entitled to an exemption of $30,000 |
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[$5,000] of the appraised value. The percentage adopted by the |
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taxing unit may not exceed 20 percent. |
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(n-1) Notwithstanding Subsection (n), if the governing body |
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of a taxing unit adopted the exemption under that subsection before |
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January 1, 2008, until the exemption is subsequently changed by the |
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governing body, the exemption continues in effect at the greater |
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of: |
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(1) the percentage amount in effect for the 2007 tax |
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year; or |
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(2) the amount of $5,000 of the appraised value. |
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SECTION 2. This Act takes effect January 1, 2008, and |
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applies only to ad valorem taxes imposed for a tax year beginning on |
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or after that date, but only if the constitutional amendment |
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proposed by the 80th Legislature, Regular Session, 2007, to |
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increase the minimum amount of the local option residence homestead |
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exemption from ad valorem taxation by a political subdivision from |
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$5,000 to $30,000 is approved by the voters. If that amendment is |
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not approved by the voters, this Act has no effect. |