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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the governing body of a taxing unit to |
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adopt a local option residence homestead exemption from ad valorem |
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taxation of a percentage or a portion, expressed as a dollar amount, |
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of the appraised value of an individual's residence homestead. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.13(n), Tax Code, is amended to read as |
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follows: |
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(n) The [In addition to any other exemptions provided by |
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this section, an individual is entitled to an exemption from |
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taxation by a taxing unit of a percentage of the appraised value of |
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his residence homestead if the exemption is adopted by the] |
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governing body of a [the] taxing unit, [before July 1] in the manner |
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provided by law for official action by the body, may adopt an |
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exemption from taxation by the taxing unit of either a percentage of |
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the appraised value of an individual's residence homestead or a |
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portion, expressed as a dollar amount, of the appraised value of an |
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individual's residence homestead, but not both. The exemption must |
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be adopted by the governing body before July 1 of the tax year in |
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which the exemption applies. If the governing body adopts a |
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percentage exemption and the percentage set by the body [taxing |
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unit] produces an exemption in a tax year of less than $5,000 when |
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applied to a particular residence homestead, the individual is |
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entitled to an exemption of $5,000 of the appraised value. A [The] |
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percentage exemption adopted by the governing body [taxing unit] |
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may not exceed 20 percent. If the governing body adopts an |
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exemption of a portion, expressed as a dollar amount, of the |
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appraised value of a residence homestead, the amount of the |
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exemption in a tax year may not be less than $5,000. An individual |
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is entitled to an exemption adopted under this subsection in |
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addition to any other exemptions provided by this section. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect January 1, 2022, but only |
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if the constitutional amendment proposed by the 87th Legislature, |
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Regular Session, 2021, authorizing the governing body of a |
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political subdivision to adopt a residence homestead exemption from |
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ad valorem taxation of either a percentage or a portion, expressed |
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as a dollar amount, of the market value of an individual's residence |
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homestead is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |