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A BILL TO BE ENTITLED
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AN ACT
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relating to the calculation of the ad valorem taxes imposed on real |
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property on the basis of the lesser of the appraised value of the |
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property or the average appraised value of the property over a |
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specified time period. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 25.19, Tax Code, is amended by adding |
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Subsection (b-3) to read as follows: |
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(b-3) In addition to the information required by |
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Subsections (b), (b-1), (b-2), and (f), the chief appraiser shall |
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include in a notice required to be delivered under Subsection (a) or |
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(g) for real property: |
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(1) the average appraised value of the property |
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determined under Section 26.095; and |
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(2) a statement that taxes for the current year will be |
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calculated using the lesser of the appraised value of the property |
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for that year or the average appraised value of the property as |
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stated in the notice, less the amount of any partial exemption the |
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owner is entitled to for that year. |
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SECTION 2. Section 26.09(c), Tax Code, is amended to read as |
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follows: |
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(c) Subject to Section 26.095, the [The] tax is calculated |
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by: |
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(1) subtracting from the appraised value of a property |
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as shown on the appraisal roll for the taxing unit the amount of any |
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partial exemption allowed the property owner that applies to |
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appraised value to determine taxable [net appraised] value; and |
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(2) [multiplying the net appraised value by the
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assessment ratio to determine assessed value;
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[(3)
subtracting from the assessed value the amount of
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any partial exemption allowed the property owner to determine
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taxable value; and
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[(4)] multiplying the taxable value by the tax rate. |
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SECTION 3. Chapter 26, Tax Code, is amended by adding |
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Section 26.095 to read as follows: |
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Sec. 26.095. CALCULATION OF TAX ON REAL PROPERTY. (a) |
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Subject to Subsection (b), the assessor for a taxing unit shall |
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calculate the taxes imposed on real property for a tax year under |
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Section 26.09(c) on the basis of the lesser of: |
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(1) the appraised value of the property for that tax |
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year; or |
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(2) the average appraised value of the property for: |
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(A) the five-year period ending with the tax year |
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for which the taxes are imposed; or |
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(B) if the calculation applies to property |
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subject to the limitation on appraised value provided under Section |
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23.23 during the period described by Paragraph (A) and that |
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limitation expires during that period, the period beginning with |
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the tax year in which the limitation expires and ending with the tax |
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year for which the taxes are imposed. |
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(b) When determining the average appraised value of a |
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property under Subsection (a)(2), the assessor may not include the |
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appraised value of the property for a tax year if that value is at |
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least 50 percent lower than the appraised value of the property for |
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the tax year that precedes that tax year. |
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(b-1) This subsection expires January 1, 2022. |
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Notwithstanding Subsection (a)(2): |
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(1) for the 2020 tax year, the assessor for a taxing |
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unit shall calculate the taxes under the method provided by |
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Subsection (a)(2) on the basis of the average appraised value of the |
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property for the lesser of: |
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(A) the three-year period ending with the tax |
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year for which the taxes are imposed; or |
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(B) the period described by Subsection (a)(2)(B) |
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for a property described by that paragraph; and |
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(2) for the 2021 tax year, the assessor for a taxing |
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unit shall calculate the taxes under the method provided by |
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Subsection (a)(2) on the basis of the average appraised value of the |
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property for the lesser of: |
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(A) the four-year period ending with the tax year |
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for which the taxes are imposed; or |
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(B) the period described by Subsection (a)(2)(B) |
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for a property described by that paragraph. |
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SECTION 4. Section 31.01, Tax Code, is amended by adding |
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Subsection (c-3) to read as follows: |
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(c-3) In addition to the information required by |
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Subsections (c), (c-1), and (c-2), the assessor shall include in |
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the tax bill or separate statement for real property: |
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(1) the average appraised value of the property |
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determined under Section 26.095; and |
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(2) a statement indicating whether the taxes on the |
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property were calculated on the basis of the appraised value of the |
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property for that year or the average appraised value of the |
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property. |
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SECTION 5. This Act applies only to ad valorem taxes imposed |
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for an ad valorem tax year that begins on or after the effective |
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date of this Act. |
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SECTION 6. This Act takes effect January 1, 2020, but only |
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if the constitutional amendment proposed by the 86th Legislature, |
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Regular Session, 2019, authorizing the legislature to provide for |
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the assessment of ad valorem taxes on real property on the basis of |
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the lesser of the appraised value of the property or the average |
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appraised value of the property for the most recent five years and |
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authorizing exceptions to the assessment of those taxes based on |
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that method is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |