Bill Text: TX HB109 | 2021 | 87th Legislature 2nd Special Session | Introduced
Bill Title: Relating to a limitation on increases in the appraised value of real property for ad valorem tax purposes.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2021-08-07 - Filed [HB109 Detail]
Download: Texas-2021-HB109-Introduced.html
| By: Vasut | H.B. No. 109 | |
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| relating to a limitation on increases in the appraised value of real | ||
| property for ad valorem tax purposes. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 1.12(d), Tax Code, is amended to read as | ||
| follows: | ||
| (d) For purposes of this section, the appraisal ratio of | ||
| real property [ |
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| ratio of the property's market value as determined by the appraisal | ||
| district or appraisal review board, as applicable, to the market | ||
| value of the property according to law. The appraisal ratio is not | ||
| calculated according to the appraised value of the property as | ||
| limited by Section 23.23. | ||
| SECTION 2. The heading to Section 23.23, Tax Code, is | ||
| amended to read as follows: | ||
| Sec. 23.23. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY | ||
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| SECTION 3. Section 23.23, Tax Code, is amended by amending | ||
| Subsections (a), (b), (c), and (e) and adding Subsections (c-1), | ||
| (c-2), and (c-3) 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 real | ||
| property [ |
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| 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) 3.5 [ |
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| 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. | ||
| (b) When appraising real property [ |
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| the chief appraiser shall: | ||
| (1) appraise the property at its market value; and | ||
| (2) include in the appraisal records both the market | ||
| value of the property and the amount computed under Subsection | ||
| (a)(2). | ||
| (c) The limitation provided by Subsection (a) takes effect | ||
| on January 1 of the tax year following the first tax year in which | ||
| the owner owns the property on January 1 or, if the property | ||
| qualifies as the [ |
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| Section 11.13 in the tax year in which the owner acquires the | ||
| property, the limitation takes effect on January 1 of the tax year | ||
| following that [ |
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| by Subsection (c-1) or (c-2), the [ |
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| January 1 of the first tax year following the year in which [ |
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| (c-1) If property subject to a limitation under this section | ||
| qualifies for an exemption under Section 11.13 when the ownership | ||
| of the property is transferred to the owner's spouse or surviving | ||
| spouse, the limitation expires on January 1 of the first tax year | ||
| following the year in which [ |
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| the owner's spouse or surviving spouse ceases to own the property, | ||
| unless the limitation is further continued under this subsection on | ||
| the subsequent transfer to a spouse or surviving spouse [ |
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| (c-2) If property subject to a limitation under Subsection | ||
| (a), other than a residence homestead, is owned by two or more | ||
| persons, the limitation expires on January 1 of the first tax year | ||
| following the year in which the ownership of at least a 50 percent | ||
| interest in the property is sold or otherwise transferred. | ||
| (c-3) For purposes of applying the limitation provided by | ||
| this section in the first tax year after the 2021 tax year in which | ||
| the property is appraised for taxation: | ||
| (1) the property is considered to have been appraised | ||
| for taxation in the 2021 tax year at a market value equal to the | ||
| appraised value of the property for that tax year; | ||
| (2) a person who acquired real property in a tax year | ||
| before the 2021 tax year is considered to have acquired the property | ||
| on January 1, 2021; and | ||
| (3) a person who qualified the property for an | ||
| exemption under Section 11.13 as the person's residence homestead | ||
| for any portion of the 2021 tax year is considered to have acquired | ||
| the property in the 2021 tax year. | ||
| (e) In this section, "new improvement" means an improvement | ||
| to real property [ |
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| appraisal of the property that increases the market value of the | ||
| property and the value of which is not included in the appraised | ||
| value of the property for the preceding tax year. The term does not | ||
| include repairs to or ordinary maintenance of an existing structure | ||
| or the grounds or another feature of the property. | ||
| SECTION 4. Section 42.26(d), Tax Code, is amended to read as | ||
| follows: | ||
| (d) For purposes of this section, the value of the property | ||
| subject to the suit and the value of a comparable property or sample | ||
| property that is used for comparison must be the market value | ||
| determined by the appraisal district when the property is [ |
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| imposed by Section 23.23. | ||
| SECTION 5. Sections 403.302(d) and (i), Government Code, | ||
| are amended to read as follows: | ||
| (d) For the purposes of this section, "taxable value" means | ||
| the market value of all taxable property less: | ||
| (1) the total dollar amount of any residence homestead | ||
| exemptions lawfully granted under Section 11.13(b) or (c), Tax | ||
| Code, in the year that is the subject of the study for each school | ||
| district; | ||
| (2) one-half of the total dollar amount of any | ||
| residence homestead exemptions granted under Section 11.13(n), Tax | ||
| Code, in the year that is the subject of the study for each school | ||
| district; | ||
| (3) the total dollar amount of any exemptions granted | ||
| before May 31, 1993, within a reinvestment zone under agreements | ||
| authorized by Chapter 312, Tax Code; | ||
| (4) subject to Subsection (e), the total dollar amount | ||
| of any captured appraised value of property that: | ||
| (A) is within a reinvestment zone created on or | ||
| before May 31, 1999, or is proposed to be included within the | ||
| boundaries of a reinvestment zone as the boundaries of the zone and | ||
| the proposed portion of tax increment paid into the tax increment | ||
| fund by a school district are described in a written notification | ||
| provided by the municipality or the board of directors of the zone | ||
| to the governing bodies of the other taxing units in the manner | ||
| provided by former Section 311.003(e), Tax Code, before May 31, | ||
| 1999, and within the boundaries of the zone as those boundaries | ||
| existed on September 1, 1999, including subsequent improvements to | ||
| the property regardless of when made; | ||
| (B) generates taxes paid into a tax increment | ||
| fund created under Chapter 311, Tax Code, under a reinvestment zone | ||
| financing plan approved under Section 311.011(d), Tax Code, on or | ||
| before September 1, 1999; and | ||
| (C) is eligible for tax increment financing under | ||
| Chapter 311, Tax Code; | ||
| (5) the total dollar amount of any captured appraised | ||
| value of property that: | ||
| (A) is within a reinvestment zone: | ||
| (i) created on or before December 31, 2008, | ||
| by a municipality with a population of less than 18,000; and | ||
| (ii) the project plan for which includes | ||
| the alteration, remodeling, repair, or reconstruction of a | ||
| structure that is included on the National Register of Historic | ||
| Places and requires that a portion of the tax increment of the zone | ||
| be used for the improvement or construction of related facilities | ||
| or for affordable housing; | ||
| (B) generates school district taxes that are paid | ||
| into a tax increment fund created under Chapter 311, Tax Code; and | ||
| (C) is eligible for tax increment financing under | ||
| Chapter 311, Tax Code; | ||
| (6) the total dollar amount of any exemptions granted | ||
| under Section 11.251 or 11.253, Tax Code; | ||
| (7) the difference between the comptroller's estimate | ||
| of the market value and the productivity value of land that | ||
| qualifies for appraisal on the basis of its productive capacity, | ||
| except that the productivity value estimated by the comptroller may | ||
| not exceed the fair market value of the land; | ||
| (8) the portion of the appraised value of residence | ||
| homesteads of individuals who receive a tax limitation under | ||
| Section 11.26, Tax Code, on which school district taxes are not | ||
| imposed in the year that is the subject of the study, calculated as | ||
| if the residence homesteads were appraised at the full value | ||
| required by law; | ||
| (9) a portion of the market value of property not | ||
| otherwise fully taxable by the district at market value because of | ||
| action required by statute or the constitution of this state, other | ||
| than Section 11.311, Tax Code, that, if the tax rate adopted by the | ||
| district is applied to it, produces an amount equal to the | ||
| difference between the tax that the district would have imposed on | ||
| the property if the property were fully taxable at market value and | ||
| the tax that the district is actually authorized to impose on the | ||
| property, if this subsection does not otherwise require that | ||
| portion to be deducted; | ||
| (10) the market value of all tangible personal | ||
| property, other than manufactured homes, owned by a family or | ||
| individual and not held or used for the production of income; | ||
| (11) the appraised value of property the collection of | ||
| delinquent taxes on which is deferred under Section 33.06, Tax | ||
| Code; | ||
| (12) the portion of the appraised value of property | ||
| the collection of delinquent taxes on which is deferred under | ||
| Section 33.065, Tax Code; | ||
| (13) the amount by which the market value of real | ||
| property [ |
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| applies exceeds the appraised value of that property as calculated | ||
| under that section; and | ||
| (14) the total dollar amount of any exemptions granted | ||
| under Section 11.35, Tax Code. | ||
| (i) If the comptroller determines in the study that the | ||
| market value of property in a school district as determined by the | ||
| appraisal district that appraises property for the school district, | ||
| less the total of the amounts and values listed in Subsection (d) as | ||
| determined by that appraisal district, is valid, the comptroller, | ||
| in determining the taxable value of property in the school district | ||
| under Subsection (d), shall for purposes of Subsection (d)(13) | ||
| subtract from the market value as determined by the appraisal | ||
| district of properties [ |
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| 23.23, Tax Code, applies the amount by which that amount exceeds the | ||
| appraised value of those properties as calculated by the appraisal | ||
| district under Section 23.23, Tax Code. If the comptroller | ||
| determines in the study that the market value of property in a | ||
| school district as determined by the appraisal district that | ||
| appraises property for the school district, less the total of the | ||
| amounts and values listed in Subsection (d) as determined by that | ||
| appraisal district, is not valid, the comptroller, in determining | ||
| the taxable value of property in the school district under | ||
| Subsection (d), shall for purposes of Subsection (d)(13) subtract | ||
| from the market value as estimated by the comptroller of properties | ||
| [ |
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| the amount by which that amount exceeds the appraised value of those | ||
| properties as calculated by the appraisal district under Section | ||
| 23.23, Tax Code. | ||
| SECTION 6. This Act applies only to the appraisal for ad | ||
| valorem tax purposes of real property for a tax year that begins on | ||
| or after the effective date of this Act. | ||
| SECTION 7. This Act takes effect January 1, 2022, but only | ||
| if the constitutional amendment proposed by the 87th Legislature, | ||
| 2nd Called Session, 2021, to authorize the legislature to limit the | ||
| maximum appraised value of real property for ad valorem tax | ||
| purposes to 103.5 percent or more of the appraised value of the | ||
| property for the preceding tax year is approved by the voters. If | ||
| that amendment is not approved by the voters, this Act has no | ||
| effect. | ||
