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A BILL TO BE ENTITLED
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AN ACT
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relating to providing for a reduction of the appraised value of a |
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residence homestead for ad valorem tax purposes for the first tax |
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year in which the owner qualifies the property for a residence |
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homestead exemption based on the amount by which the limitation on |
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increases in the appraised value of a residence homestead reduced |
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the appraised value of the owner's former residence homestead for |
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the last tax year in which the owner qualified the former residence |
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homestead for a residence homestead exemption. |
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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 adding |
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Subsections (h), (i), and (j) to read as follows: |
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(h) The owner of a residence homestead who receives a |
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limitation provided by Subsection (a) on the owner's residence |
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homestead and who subsequently qualifies a different property as |
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the owner's residence homestead is entitled to a reduction in the |
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appraised value of the subsequently qualified homestead for the |
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first tax year in which the owner qualifies the subsequently |
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qualified homestead for an exemption under Section 11.13 in an |
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amount equal to the lesser of: |
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(1) the positive difference between the market value |
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and the appraised value of the former residence homestead for the |
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last tax year in which the owner qualified the former homestead for |
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an exemption under Section 11.13; or |
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(2) $500,000. |
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(i) An owner of a residence homestead who receives a |
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limitation provided by Subsection (a) on the owner's residence |
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homestead and who subsequently qualifies a different property in a |
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different appraisal district as the owner's residence homestead is |
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entitled to receive from the chief appraiser of the appraisal |
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district in which the former homestead was located a written |
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certificate necessary to determine whether the owner is entitled to |
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the reduction in the appraised value of the subsequently qualified |
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homestead provided by Subsection (h) and to calculate the amount of |
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the reduction. |
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(j) A residence homestead is considered to be a subsequently |
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qualified homestead for purposes of Subsection (h) only if the |
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first tax year in which the owner of the homestead qualified the |
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homestead for an exemption under Section 11.13 was a tax year |
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beginning on or after January 1, 2026. |
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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, 2026, but only |
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if the constitutional amendment proposed by the 89th Legislature, |
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Regular Session, 2025, to authorize the legislature to provide for |
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a reduction of the appraised value of a residence homestead for ad |
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valorem tax purposes for the first tax year in which the owner |
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qualifies the property for a residence homestead exemption based on |
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the amount by which the limitation on increases in the appraised |
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value of a residence homestead reduced the appraised value of the |
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owner's former residence homestead for the last tax year in which |
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the owner qualified the former residence homestead for a residence |
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homestead exemption is approved by the voters. If that amendment is |
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not approved by the voters, this Act has no effect. |