HJR178 - Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a parcel of single-family residential 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

  89R14249 LHC-D     By: Vasut H.J.R. No. 178       A JOINT RESOLUTION   proposing a constitutional amendment authorizing the legislature   to provide that the appraised value of a parcel of single-family   residential 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 and population growth rates.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1, Article VIII, Texas Constitution, is   amended by amending Subsections (i) and (n) and adding Subsections   (i-1), (i-2), (i-3), (i-4), and (i-5) to read as follows:          (i)   The Legislature by general law may provide that the   appraised value of a parcel of single-family residential 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 the sum of the   inflation rate and the population growth rate of 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, the comptroller of   public accounts shall determine and publicize the percentage by   which the appraised value of single-family residential real   property in this state may be increased under Subsection (i) of this   section.   The comptroller shall determine the percentage by which   the appraised value may be increased by calculating the sum of:                 (1)  the inflation rate, expressed as a percentage; and                 (2)     the growth rate of the population of this state for   the preceding year, expressed as a percentage.           (i-2)     Each appraisal entity shall use the percentage   determined by the comptroller under Subsection (i-1) of this   section to determine the appraised value under Subsection (i) of   this section of single-family residential real property appraised   by that appraisal entity.           (i-3)     A general law enacted under Subsection (i) of this   section may provide that if the first tax year an owner of   single-family residential 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-4)     For purposes of Subsection (i) of this section, the   Legislature by general law may define single-family residential   real property, which may include a manufactured or mobile home used   as a dwelling.           (i-5)     The Legislature by general law may define "inflation   rate"   for purposes of Subsections (i) and (i-1) of this section.          (n)  This subsection does not apply to a parcel of   single-family residential real property [ 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 120 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   described by this subsection 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 in which the owner owns the property on   January 1; and                (2)  expires on January 1 of the tax year following the   tax year in which the owner of the property ceases to own the   property.          SECTION 2.  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   single-family residential 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 and   population growth rates."