87R922 SMH-D
 
  By: Toth H.B. No. 96
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the limitation on increases in the appraised value of a
  residence homestead for ad valorem tax purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 23.23, Tax Code, is amended by amending
  Subsections (a), (b), and (c) and adding Subsections (a-1), (a-2),
  (a-3), (a-4), (a-5), (a-6), (a-7), and (c-1) to read as follows:
         (a)  The [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 a
  residence homestead for a tax year is equal to [an amount not to
  exceed the lesser of:
               [(1)]  the market value of the property for the first
  [most recent] tax year that the owner qualified the property for an
  exemption under Section 11.13 [market value was determined by the
  appraisal office; or
               [(2)  the sum of:
                     [(A)  10 percent of the appraised value of 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].
         (a-1)  Notwithstanding Subsection (a), if the owner of real
  property qualified the property for an exemption under Section
  11.13 and the owner acquired the property as a bona fide purchaser
  for value, the appraised value of the property is equal to the
  purchase price of the property paid by the owner.
         (a-2)  If the first tax year the property owner qualified the
  property for an exemption under Section 11.13 was a tax year before
  the 2022 tax year, the appraised value of the property as shown on
  the 2021 appraisal roll is considered to be:
               (1)  the market value of the property for the first tax
  year that the owner qualified the property for an exemption under
  Section 11.13 for purposes of Subsection (a); and
               (2)  the purchase price of the property paid by the
  owner for purposes of Subsection (a-1).
         (a-3)  Subsection (a-1) does not apply to a residence
  homestead if:
               (1)  the purchase was made:
                     (A)  pursuant to a court order;
                     (B)  from a trustee in bankruptcy;
                     (C)  by one co-owner from one or more other
  co-owners;
                     (D)  from a spouse or a person or persons within
  the first or second degree of lineal consanguinity of one or more of
  the purchasers; or
                     (E)  from a governmental entity; or
               (2)  the chief appraiser determines that the applicant
  was not a bona fide purchaser for value under criteria established
  by rules adopted by the comptroller for that purpose.
         (a-4)  To receive a limitation on appraised value under
  Subsection (a-1), an owner of the property must apply for the
  limitation. To apply for the limitation, the owner must file an
  application with the chief appraiser for each appraisal district in
  which the property subject to the claimed limitation is located.
  The application must be filed not later than the latest date on
  which the owner may file an application for an exemption under
  Section 11.13 on the property for the year under Section 11.43. The
  comptroller by rule shall prescribe the form for the application to
  ensure that the applicant provides the information necessary to
  determine the applicant's eligibility for the limitation,
  including the purchase price of the property paid by the applicant.
         (a-5)  An application filed with a chief appraiser under
  Subsection (a-4) is confidential and not open to public inspection.
  The application and the information it contains may not be
  disclosed to another person other than an employee of the appraisal
  district who appraises property, except as provided by Subsection
  (a-6).
         (a-6)  Information that is confidential under Subsection
  (a-5) may be disclosed:
               (1)  in a judicial or administrative proceeding under a
  lawful subpoena;
               (2)  to a purchaser, grantee, seller, or grantor named
  in the application or in the deed to which the application applies
  or to a representative of the purchaser, grantee, seller, or
  grantor under a written authorization signed by the purchaser,
  grantee, seller, or grantor;
               (3)  to the comptroller or to an assessor for a taxing
  unit in which the property described in the application is located;
               (4)  in a judicial or administrative proceeding related
  to real property taxation:
                     (A)  to which the purchaser, grantee, seller, or
  grantor is a party;
                     (B)  to which an owner of the property described
  in the application is a party; or
                     (C)  by the appraisal district for the purpose of
  establishing a value of the property or of providing evidence of
  comparable sales to appraise another property;
               (5)  for statistical purposes if the information is
  provided in a form that does not identify a specific property or
  specific purchaser, grantee, seller, or grantor;
               (6)  if and to the extent that the information is
  required to be included in a public document or record that the
  appraisal office is required to prepare or maintain; or
               (7)  to a taxing unit or its legal representative that
  is engaged in the collection of delinquent taxes on the property
  described in the application.
         (a-7)  Information that is disclosed under Subsection (a-6)
  does not lose its confidential character.
         (b)  When appraising a residence homestead, 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)
  or (a-1), as applicable [(a)(2)].
         (c)  The limitation provided by Subsection (a) or (a-1) takes
  effect as to a residence homestead on January 1 of the first tax
  year [following the first tax year] the owner qualifies the
  property for an exemption under Section 11.13. The limitation
  expires on January 1 of the first tax year that neither the owner of
  the property when the limitation took effect nor the owner's spouse
  or surviving spouse qualifies for an exemption under Section 11.13.
         (c-1)  Notwithstanding Subsection (c), a limitation
  established under Subsection (a) or (a-1) 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 11.13.
         SECTION 2.  Sections 23.23(e), (f), and (g), Tax Code, are
  repealed.
         SECTION 3.  This Act applies only to ad valorem taxes imposed
  for a tax year beginning on or after the effective date of this Act.
         SECTION 4.  This Act takes effect January 1, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  Regular Session, 2021, authorizing the legislature to provide that
  the appraised value of a residence homestead for ad valorem tax
  purposes is the market value of the property for the first year that
  the owner qualified the property for a homestead exemption or, if
  the owner purchased the property, the purchase price of the
  property is approved by the voters. If that amendment is not
  approved by the voters, this Act has no effect.