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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the governing body of a taxing unit |
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that imposes ad valorem taxes on real property in Harris County, |
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other than a school district or junior college district, to |
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establish a limitation of not less than five percent on the maximum |
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average annual increase in the appraised value of residence |
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homesteads for ad valorem taxation by the taxing unit. |
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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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(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 governing body of a taxing unit that imposes taxes |
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on real property in Harris County, other than a school district or |
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junior college district, by official action in the manner required |
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by law, may provide that a percentage limitation on increases in |
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appraised value determined in the manner provided by Subsection |
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(a)(2) using a percentage of not less than five percent in place of |
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the percentage specified by Subsection (a)(2)(A) will apply to the |
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taxation of residence homesteads by the taxing unit. If the |
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governing body of a taxing unit establishes a limitation under this |
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subsection, the limitation applies beginning with the tax year |
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following the year in which the limitation is established and |
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remains in effect until amended or repealed by the governing body. |
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A limitation established by the governing body of a taxing unit |
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under this subsection applies to the taxation of all residence |
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homesteads by the taxing unit, including residence homesteads |
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located outside of Harris County. This subsection does not affect |
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the appraised value of a residence homestead for taxation by a |
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taxing unit other than the taxing unit whose governing body |
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establishes a limitation on appraised value under this subsection. |
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If the governing body of a taxing unit amends or repeals a |
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limitation established under this subsection, the amendment or |
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repeal applies beginning with the tax year in which the amendment or |
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repeal is enacted. |
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(h) If in the 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 in Harris County and the |
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governing body of the taxing unit has provided for the application |
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in that tax year of a limitation on increases in appraised value |
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under Subsection (g), the lower limitation applies to the taxation |
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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 permit the |
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governing body of a political subdivision that imposes ad valorem |
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taxes on real property in Harris County to establish 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 ad valorem |
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taxation by the political subdivision is approved by the voters. If |
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that amendment is not approved by the voters, this Act has no |
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effect. |