81R13953 SMH-D

By: Merritt H.J.R. No. 104

A JOINT RESOLUTION

proposing a constitutional amendment authorizing the legislature to limit increases in the appraised value of a residence homestead for ad valorem tax purposes based on the inflation rate and to limit the frequency of reappraisals of residence homesteads.

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

SECTION 1. Section 1, Article VIII, Texas Constitution, is amended by amending Subsection (i) and adding Subsections (j), (k), (l), and (m) to read as follows:

(i) The appraised value of a residence homestead for ad valorem tax purposes for the first tax year after the tax year in which the owner acquires the property may not exceed the market value of the property. Notwithstanding Subsections (a) and (b) of this section, the appraised value of the property in each subsequent tax year until the end of the tax year in which the ownership of the property changes may not exceed the sum of:

(1) the appraised value of the property for tax purposes for the preceding year as adjusted by the appraisal office for the current tax year to reflect the change from the preceding tax year in the purchasing power of the dollar for consumers in this State; and

(2) the market value of all new improvements to the property [Notwithstanding Subsections (a) and (b) of this section, the Legislature by general law may limit the maximum appraised value of a residence homestead for ad valorem tax purposes in a tax year to the lesser of the most recent market value of the residence homestead as determined by the appraisal entity or 110 percent, or a greater percentage, of the appraised value of the residence homestead for the preceding tax year. A limitation on appraised values authorized by this subsection:

[(1) takes effect as to a residence homestead on the later of the effective date of the law imposing the limitation or January 1 of the tax year following the first tax year the owner qualifies the property for an exemption under Section 1-b of this article; and

[(2) expires on January 1 of the first tax year that neither the owner of the property when the limitation took effect nor the owner's spouse or surviving spouse qualifies for an exemption under Section 1-b of this article].

(j) In Subsection (i) of this section, "new improvement" means an improvement to a residence homestead made after the most recent appraisal of the property that increases the market value of the property and the value of which is not included in the appraised value of the property for the preceding tax year. The term does not include repairs to or ordinary maintenance of an existing structure or the grounds or another feature of the property.

(k) For each tax year, using the index that the Comptroller of Public Accounts considers to most accurately report changes in the purchasing power of the dollar for consumers in this State, the comptroller shall determine and publicize the percentage by which the appraised value of residence homesteads may be increased under Subsection (i)(1) of this section. Each appraisal office shall use the percentage determined by the comptroller under this subsection to determine the maximum appraised value under Subsection (i) of this section of residence homesteads appraised by that appraisal office.

(l) For purposes of Subsection (i) of this section, the owner of a residence homestead on January 1, 2010, is considered to have acquired the property in the 2009 tax year.

(m) Notwithstanding Subsections (a) and (b) of this section, the Legislature by general law may limit the frequency with which an appraisal office may reappraise a residence homestead for ad valorem tax purposes.

SECTION 2. The following temporary provision is added to the Texas Constitution:

TEMPORARY PROVISION. (a) This temporary provision applies to the constitutional amendment proposed by the 81st Legislature, Regular Session, 2009, authorizing the legislature to limit increases in the appraised value of a residence homestead for ad valorem tax purposes based on the inflation rate and to limit the frequency of reappraisals of residence homesteads.

(b) The amendment takes effect January 1, 2010.

(c) This temporary provision expires January 1, 2011.

SECTION 3. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 3, 2009. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the legislature to limit increases in the appraised value of a residence homestead for ad valorem tax purposes based on the inflation rate and to limit the frequency of reappraisals of residence homesteads."