Amend CSHB 2 (house committee report) as follows:

(1)  Strike ARTICLE 4 of the substitute (page 3, line 10, through page 10, line 24) and substitute the following:

ARTICLE 4. LIMITATION ON INCREASES IN VALUE OF RESIDENCE HOMESTEADS

SECTION 4.01.  Section 23.23(a), Tax Code, is amended to read as follows:

(a)  Notwithstanding the requirements of Section 25.18 and regardless of whether the appraisal office has appraised the property and determined the market value of the property for the tax year, an appraisal office may increase the appraised value of a residence homestead for a tax year to an amount not to exceed the lesser of:

(1)  the market value of the property for the most recent tax year that the market value was determined by the appraisal office; or

(2)  the sum of:

(A)  five [10] percent of the appraised value of the property for the preceding tax year;

(B)  the appraised value of the property for the preceding tax year; and

(C)  the market value of all new improvements to the property.

SECTION 4.02.  This article applies only to the appraisal for ad valorem taxation of residence homesteads for a tax year that begins on or after the effective date of this article.

(2)  Strike SECTION 5.03 of the substitute (page 11, lines 3-11) and substitute the following appropriately numbered SECTION:

SECTION ____.  Article 4 of this Act takes effect January 1, 2024, but only if the constitutional amendment proposed by HJR 1, 88th Legislature, Regular Session, 2023, is approved by the voters. If that amendment is not approved by the voters, Article 4 of this Act has no effect.

(3)  Renumber the ARTICLES of the substitute and references to those ARTICLES as appropriate.