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A JOINT RESOLUTION
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proposing a constitutional amendment authorizing the legislature |
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to provide that the appraised value of a residence homestead for ad |
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valorem tax purposes for the first tax year that the owner of the |
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property qualifies the property for a residence homestead exemption |
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is the market value of the property and that, if the owner purchased |
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the property, the purchase price of the property is considered to be |
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the market value of the property for that tax year and to limit |
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increases in the appraised value of the homestead for subsequent |
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tax years based on the market value of all new improvements to the |
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property. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1, Article VIII, Texas Constitution, is |
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amended by amending Subsection (i) and adding Subsection (i-1) to |
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read as follows: |
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(i) The legislature by general law may provide that the |
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appraised value of a residence homestead for ad valorem tax |
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purposes for the first tax year that the owner qualifies the |
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property for an exemption under Section 1-b of this article is the |
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market value of the property and that, if the owner acquired the |
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property as a bona fide purchaser for value, the purchase price of |
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the property paid by the owner is considered to be the market value |
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of the property for that tax year. Notwithstanding Subsections (a) |
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and (b) of this section, a general law enacted under this subsection |
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may provide that the appraised value of the property for each |
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subsequent tax year until the tax year in which the limitation |
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authorized by the general law expires is equal to the sum of the |
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appraised value of the property for ad valorem tax purposes for the |
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preceding tax year and the market value of all new improvements to |
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the property [Notwithstanding Subsections (a) and (b) of this |
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section, the Legislature by general law may limit the maximum |
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appraised value of a residence homestead for ad valorem tax |
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purposes in a tax year to the lesser of the most recent market value |
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of the residence homestead as determined by the appraisal entity or |
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110 percent, or a greater percentage, of the appraised value of the |
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residence homestead for the preceding tax year]. A limitation on |
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appraised values authorized by this subsection: |
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(1) takes effect as to a residence homestead on the |
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later of the effective date of the law imposing the limitation or |
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January 1 of the first tax year [following the first tax year] the |
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owner qualifies the property for an exemption under Section 1-b of |
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this article; and |
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(2) expires on January 1 of the first tax year that |
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neither the owner of the property when the limitation took effect |
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nor the owner's spouse or surviving spouse qualifies for an |
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exemption under Section 1-b of this article, except that a |
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limitation established under this subsection does not expire if a |
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change in ownership of the property occurs by inheritance or under a |
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will as long as the person who acquires the property qualifies for |
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an exemption under Section 1-b of this article. |
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(i-1) A general law enacted under Subsection (i) of this |
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section may provide that if the first tax year an owner of real |
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property qualified the property for an exemption under Section 1-b |
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of this article was a tax year before the tax year in which the |
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general law took effect: |
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(1) the property owner is considered to have qualified |
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the property for the exemption for the first time in the tax year |
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preceding the tax year in which the general law took effect; and |
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(2) the appraised value of the property as shown on the |
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appraisal roll of the appraisal entity for the tax year preceding |
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the tax year in which the general law took effect is considered to |
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be the market value of the property for that tax year for purposes |
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of Subsection (i) of this section. |
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SECTION 2. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 4, 2025. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment authorizing the |
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legislature to provide that the appraised value of a residence |
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homestead for ad valorem tax purposes for the first tax year that |
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the owner of the property qualifies the property for a residence |
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homestead exemption is the market value of the property and that, if |
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the owner purchased the property, the purchase price of the |
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property is considered to be the market value of the property for |
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that tax year and to limit increases in the appraised value of the |
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homestead for subsequent tax years based on the market value of all |
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new improvements to the property." |