HJR173 - Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a parcel of real property for ad valorem tax purposes for the first tax year in which the owner owns the property on January 1 is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the property for subse

  89R3279 DRS-D     By: Vasut H.J.R. No. 173       A JOINT RESOLUTION   proposing a constitutional amendment authorizing the legislature   to provide that the appraised value of a parcel of real property for   ad valorem tax purposes for the first tax year in which the owner   owns the property on January 1 is the market value of the property   and that, if the owner purchased the property, the purchase price of   the property is considered to be the market value of the property   for that tax year and to limit increases in the appraised value of   the property for subsequent tax years based on the inflation rate.          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 Subsections (i-1),   (i-2), and (i-3) to read as follows:          (i)   The Legislature by general law may provide that the   appraised value of a parcel of real property for ad valorem tax   purposes for the first tax year in which the owner owns the property   on January 1 is the market value of the property and that, if the   owner acquired the property as a bona fide purchaser for value, the   purchase price of the property paid by the owner is considered to be   the market value of the property for that tax year. Notwithstanding   Subsections (a) and (b) of this section, a general law enacted under   this subsection may provide that the appraised value of the   property for each subsequent tax year until the tax year in which   the limitation authorized by the general law expires is equal to the   appraised value of the property for ad valorem tax purposes for the   preceding tax year as increased by the appraisal entity for the   current tax year to reflect any reduction from the preceding tax   year in the purchasing power of the dollar for consumers in this   state [ 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 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 on January 1 of the first tax year in   which the owner owns the property on January 1 [ as to a residence   homestead on the later of the effective date of the law imposing the   limitation or January 1 of the tax year following the first tax year   the owner qualifies the property for an exemption under Section 1-b   of this article ]; and                (2)  expires on January 1 of the [ first ] tax year   following the tax year in which [ that neither ] the owner of the   property when the limitation took effect ceases to own the   property, except that:                       (A)     the Legislature by general law may provide   for the limitation applicable to a residence homestead to continue   during ownership of the property by [ nor ] the owner's spouse or   surviving spouse ; and                       (B)     a limitation established under this   subsection does not expire if a change in ownership of the property   occurs by inheritance or under a will as long as the person who   acquires the property qualifies for an exemption under Section 1-b   of this article.           (i-1)     A general law enacted under Subsection (i) of this   section may provide that, for each tax year, using the index that   the comptroller of public accounts considers to most accurately   report changes in the purchasing power of the dollar for consumers   in this state, the comptroller shall determine and publicize the   percentage by which the appraised value of real property in this   state may be increased under Subsection (i) of this section. Each   appraisal entity shall use the percentage determined by the   comptroller under this subsection to determine the appraised value   under Subsection (i) of this section of real property appraised by   that appraisal entity.           (i-2)     A general law enacted under Subsection (i) of this   section may provide that if the first tax year an owner of real   property owned the property on January 1 was a tax year before the   tax year in which the general law took effect:                 (1)     the property owner is considered to have acquired   the property on January 1 of the tax year preceding the tax year in   which the general law took effect; and                 (2)     the appraised value of the property as shown on the   appraisal roll of the appraisal entity for the tax year preceding   the tax year in which the general law took effect is considered to   be the market value of the property for that tax year for purposes   of Subsection (i) of this section.           (i-3)     For purposes of Subsection (i) of this section, the   Legislature by general law may define real property, which may   include a manufactured or mobile home used as a dwelling.          SECTION 2.  Sections 1(n) and (n-1), Article VIII, Texas   Constitution, are repealed.          SECTION 3.  The following temporary provision is added to   the Texas Constitution:           TEMPORARY PROVISION. (a) This temporary provision applies   to the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, authorizing the legislature to limit the   appraised value of real property for ad valorem tax purposes.           (b)     The repeal of Sections 1(n) and (n-1), Article VIII, of   this constitution takes effect January 1, 2026, and applies only to   a tax year beginning on or after that date.           (c)  This temporary provision expires January 1, 2027.          SECTION 4.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 4, 2025.   The ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment authorizing the   legislature to provide that the appraised value of a parcel of real   property for ad valorem tax purposes for the first tax year in which   the owner of the property owns the property on January 1 is the   market value of the property and that, if the owner purchased the   property, the purchase price of the property is considered to be the   market value of the property for that tax year and to limit   increases in the appraised value of the property for subsequent tax   years based on the inflation rate."