Proposing a constitutional amendment to authorize the legislature to set lower limits on the maximum appraised value of residence homesteads and of real property other than a residence homestead for ad valorem tax purposes and to provide that those limits continue in effect following a change of ownership of the property.

The text as introduced · 612 words

90R556 MLH-D

By: Tepper
H.J.R. No. 35

A JOINT RESOLUTION

proposing a constitutional amendment to authorize the legislature

to set lower limits on the maximum appraised value of residence

homesteads and of real property other than a residence homestead

for ad valorem tax purposes and to provide that those limits

continue in effect following a change of ownership of the property.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1, Article VIII, Texas Constitution, is

amended by amending Subsection (i) and adding Subsection (n) to

read as follows:

(i) Notwithstanding Subsections (a) and (b) of this

section, the Legislature by general law may limit the maximum

appraised value of a residence homestead for ad valorem tax

purposes in a tax year to the lesser of the most recent market value

of the residence homestead as determined by the appraisal entity or

102.5 [ 110 ] percent, or a greater percentage, of the appraised

value of the residence homestead for the preceding tax year. A

limitation on appraised values authorized by this subsection:

(1) takes effect as to a residence homestead on the

later of :

(A) the effective date of the law imposing the

limitation ; or

(B) January 1 of the tax year following the

earlier of the first tax year :

(i) the owner qualifies the property for an

exemption under Section 1-b of this article; or

(ii) a predecessor in title of the owner

qualified the property for the exemption under that section, so

long as the property has continuously qualified for the exemption

under that section; and

(2) expires on January 1 of the first tax year [ that

neither the owner of ] the property ceases to qualify [ when the

limitation took effect nor the owner's spouse or surviving spouse

qualifies ] for an exemption under that section [ Section 1-b of this

article ].

(n) This subsection does not apply to a residence homestead

to which Subsection (i) of this section applies. Notwithstanding

Subsections (a) and (b) of this section, the Legislature by general

law may limit the maximum appraised value of real property for ad

valorem tax purposes in a tax year to the lesser of the most recent

market value of the property as determined by the appraisal entity

or 108 percent, or a greater percentage, of the appraised value of

the property for the preceding tax year. The general law enacted

under this subsection may prescribe additional eligibility

requirements for the limitation on appraised values authorized by

this subsection. A limitation on appraised values authorized by

this subsection:

(1) takes effect as to a parcel of real property on the

later of:

(A) the effective date of the law imposing the

limitation; or

(B) January 1 of the tax year following the

earlier of the first tax year:

(i) the owner qualifies the property for

the limitation; or

(ii) a predecessor in title of the owner

qualified the property for the limitation, so long as the property

has continuously qualified for the limitation; and

(2) expires on January 1 of the first tax year the

property ceases to qualify for the limitation.

SECTION 2. This proposed constitutional amendment shall be

submitted to the voters at an election to be held November 2, 2027.

The ballot shall be printed to permit voting for or against the

proposition: "The constitutional amendment to authorize the

legislature to set lower limits on the maximum appraised value of

residence homesteads and of real property other than a residence

homestead for ad valorem tax purposes and to provide that those

limits continue in effect following a change of ownership of the

property."