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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation on increases in the appraised value of a |
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residence homestead for ad valorem tax purposes. |
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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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Subsections (a) and (b) and adding Subsection (a-1) to read as |
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follows: |
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(a) 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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least [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; or |
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(3) the sum of: |
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(A) 25 percent of the lowest appraised value of |
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the property for any of the 10 tax years preceding the current tax |
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year in which the limitation provided by this subsection was in |
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effect; |
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(B) the appraised value of the property for the |
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tax year used to make the computation under Paragraph (A); and |
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(C) the sum of the market value of all new |
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improvements to the property made after January 1 of the tax year |
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used to make the computation under Paragraph (A), based on the |
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market value of each new improvement in the tax year in which the |
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value of the improvement was included in the appraised value of the |
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property. |
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(a-1) This subsection applies only to the 2018, 2019, 2020, |
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2021, 2022, 2023, 2024, 2025, 2026, and 2027 tax years. |
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Notwithstanding Subsection (a)(3), an appraisal office shall |
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compute the limitation on increases in the appraised value of a |
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residence homestead for a tax year under that subdivision based on |
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the lowest appraised value of the property for any of the tax years |
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beginning with the 2017 tax year in which the limitation provided by |
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Subsection (a) was in effect. This subsection expires December 31, |
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2027. |
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(b) When appraising a residence homestead, the chief |
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appraiser shall: |
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(1) appraise the property at its market value; and |
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(2) include in the appraisal records [both] the market |
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value of the property, [and] the amount computed under Subsection |
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(a)(2), and the amount computed under Subsection (a)(3). |
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SECTION 2. This Act applies only to the appraisal for ad |
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valorem tax purposes of residence homesteads for a tax year that |
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begins on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2018, but only |
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if the constitutional amendment proposed by the 85th Legislature, |
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1st Called Session, 2017, to authorize the legislature to establish |
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an additional limitation on the maximum appraised value of a |
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residence homestead for ad valorem tax purposes of 125 percent or a |
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greater percentage of the lowest appraised value of the residence |
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homestead for any of the preceding 10 tax years is approved by the |
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voters. If that amendment is not approved by the voters, this Act |
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has no effect. |