83R1297 SMH-D

By: Nichols S.J.R. No. 9

A JOINT RESOLUTION

proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of a residence homestead for ad valorem tax purposes to 105 percent or less of the appraised value of the property for the preceding tax year and to permit the voters of a county to establish a higher limitation not to exceed 110 percent on the maximum appraised value of a residence homestead in the county.

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 (i-1) and (i-2) to read as follows:

(i) 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 105 [110] percent, or a lesser [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.

(i-1) Notwithstanding Subsections (a) and (b) of this section, if the Legislature establishes a limitation on the maximum appraised value of a residence homestead as authorized by Subsection (i) of this section, the commissioners court of a county may call an election in the county to permit the voters to determine by majority vote whether to establish for purposes of ad valorem taxation by each political subdivision in the county a percentage limitation on the maximum appraised value of a residence homestead in the county that is greater than the percentage established by the Legislature under Subsection (i) of this section but not more than 110 percent. The ballot proposition shall specify the proposed percentage limitation on maximum appraised value. If approved by the voters, the limitation applies beginning with the tax year following the year in which the election is held. A limitation on maximum appraised value established under this subsection takes effect as to a residence homestead on the later of January 1 of the tax year following the year in which the election is held 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. As to a residence homestead, the limitation 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. If the voters of a county establish a limitation on maximum appraised value under this subsection, the limitation remains in effect until the tax year following a year in which the limitation is amended or repealed by the voters of the county at a subsequent election called by the commissioners court. The Legislature by general law may limit the frequency with which elections authorized by this subsection may be called in a county.

(i-2) The Legislature by general law may provide that a limitation on the maximum appraised value of a residence homestead established under Subsection (i) or (i-1) of this section does not apply to a new improvement to the residence homestead.

SECTION 2. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 5, 2013. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment to authorize the legislature to limit the maximum appraised value of a residence homestead for ad valorem tax purposes to 105 percent or less of the appraised value of the property for the preceding tax year and to permit the voters of a county to establish a higher limitation not to exceed 110 percent on the maximum appraised value of a residence homestead in the county."