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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 a county to set a limit on the |
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maximum appraised value of a residence homestead for ad valorem tax |
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purposes of less than 110 percent but not less than 103 percent of |
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the appraised value of the property for the preceding tax year. |
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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 Subsection (g) to read as follows: |
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(a) Except as provided by Subsection (g), notwithstanding |
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[Notwithstanding] the requirements of Section 25.18, and |
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regardless of whether the appraisal office has appraised the |
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property and determined the market value of the property for the tax |
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year, an appraisal office may increase the appraised value of a |
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residence homestead for a tax year to an amount not to exceed the |
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lesser of: |
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(1) the market value of the property for the most |
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recent tax year that the market value was determined by the |
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appraisal office; 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 preceding tax year; |
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(B) the appraised value of the property for the |
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preceding tax year; 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 a county may call an election |
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in the county to permit the voters of the county to determine by |
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majority vote whether a lower percentage limitation on maximum |
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appraised value determined in the manner provided by Subsection |
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(a)(2) using a percentage of less than 10 percent but not less than |
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three percent in place of 10 percent in Subsection (a)(2)(A) will |
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apply to the taxation of residence homesteads in the county by each |
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taxing unit having territory in the county. The election must be |
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held on or before the date of the next general election for state |
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and county officers. The ballot proposition shall specify the |
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proposed percentage limitation on maximum appraised value. If a |
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majority of the votes cast at the election favor the establishment |
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of the proposed limitation, the limitation applies beginning with |
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the tax year following the year in which the election is held and |
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remains in effect until amended or repealed by the voters of the |
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county at a subsequent election called by the commissioners court |
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of the county. An election called to amend or repeal a limitation |
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must be held on or before the date of the next general election for |
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state and county officers. If the voters of a county amend or |
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repeal a limitation, the amendment or repeal applies beginning with |
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the tax year after the year in which the election is held. A |
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limitation adopted under this subsection applies to the taxation of |
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residence homesteads in the county by each taxing unit having |
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territory in the county, except that if a taxing unit has territory |
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in more than one county, the highest percentage limitation on |
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maximum appraised value otherwise applicable in any portion of the |
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territory of the taxing unit applies to the taxation of residence |
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homesteads by the taxing unit throughout that taxing unit's |
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territory. |
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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 the limitation on appraised value |
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imposed by or authorized 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, 2010. |
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SECTION 4. This Act takes effect January 1, 2010, but only |
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if the constitutional amendment proposed by the 81st Legislature, |
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Regular Session, 2009, authorizing the legislature to provide for a |
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local option election in a county to set a limit on the maximum |
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appraised value of a residence homestead for ad valorem tax |
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purposes of less than 110 percent but not less than 103 percent of |
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the appraised value of the property for the preceding tax year 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. |