81R1025 SMH-D

By: Creighton H.B. No. 1546

A BILL TO BE ENTITLED

AN ACT

relating to the authorization for a local option election in Montgomery County to limit the maximum appraised value of a residence homestead to 103 percent or more of the appraised value of the property for the preceding tax year for purposes of ad valorem taxation by each political subdivision all of the territory of which is located in the county.

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

SECTION 1. Section 23.23, Tax Code, is amended by amending Subsection (a) and adding Subsections (g) and (h) to read as follows:

(a) Except as provided by Subsection (g), notwithstanding [Notwithstanding] the requirements of Section 25.18, and regardless of whether the appraisal office has appraised the property and determined the market value of the property for the tax year, an appraisal office may increase the appraised value of a residence homestead for a tax year to an amount not to exceed the lesser of:

(1) the market value of the property for the most recent tax year that the market value was determined by the appraisal office; or

(2) the sum of:

(A) 10 percent of the appraised value of the property for the preceding tax year;

(B) the appraised value of the property for the preceding tax year; and

(C) the market value of all new improvements to the property.

(g) The commissioners court of Montgomery County may call an election in the county to permit the voters of the county to determine by majority vote whether a percentage limitation on maximum appraised value determined in the manner provided by Subsection (a)(2) using a percentage of not less than three percent in place of the percentage specified by Subsection (a)(2)(A) will apply to the taxation of a residence homestead by each taxing unit all of the territory of which is located in the county. The election shall be held on the date of the next general election for state and county officers. The ballot proposition shall specify the proposed percentage limitation on maximum appraised value. If a majority of the votes cast at the election favor the establishment of the proposed limitation, the limitation applies beginning with the tax year following the year in which the election is held and remains in effect until amended or repealed by the voters of the county at a subsequent election called by the commissioners court for that purpose. An election to amend or repeal a limitation must be held on the date of the general election for state and county officers. If the voters of the county amend or repeal a limitation, the amendment or repeal applies beginning with the tax year after the year in which the election is held. A limitation established under this subsection applies to the taxation of all residence homesteads by each taxing unit all of the territory of which is located in the county.

(h) If in any tax year the limitation on maximum appraised value provided by Subsection (a)(2) applies to a residence homestead taxable by a taxing unit all of the territory of which is located in Montgomery County and the voters of the county have established for application in that tax year a limitation on maximum appraised value under Subsection (g), the lower limitation applies to the taxation of the residence homestead by the taxing unit.

SECTION 2. Section 42.26(d), Tax Code, is amended to read as follows:

(d) For purposes of this section, the value of the property subject to the suit and the value of a comparable property or sample property that is used for comparison must be the market value determined by the appraisal district when the property is a residence homestead subject to a [the] limitation on appraised value imposed by or established under Section 23.23.

SECTION 3. This Act applies only to the appraisal of a residence homestead for ad valorem tax purposes for a tax year that begins on or after January 1, 2010.

SECTION 4. This Act takes effect January 1, 2010, but only if the constitutional amendment proposed by the 81st Legislature, Regular Session, 2009, to authorize the legislature to provide for a local option election in Montgomery County to limit the maximum appraised value of a residence homestead to 103 percent or more of the appraised value of the property for the preceding tax year for purposes of ad valorem taxation by each political subdivision all of the territory of which is located in the county is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.