Bill Text: TX SB547 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-02-17 - Referred to Local Government [SB547 Detail]
Download: Texas-2023-SB547-Introduced.html
| 88R807 DRS-D | ||
| By: Blanco | S.B. No. 547 | |
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| 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 | ||
| Subsection (a) and adding Subsections (a-1) and (a-2) 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 a | ||
| residence homestead for a tax year to an amount not to 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) the lesser of: | ||
| (i) 10 percent of the appraised value of the | ||
| property for the preceding tax year; or | ||
| (ii) the product of the inflation rate for | ||
| the preceding tax year as determined under Subsection (a-1), | ||
| expressed as a decimal, and 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) Not later than March 1 of each tax year, the | ||
| comptroller shall determine the inflation rate for the preceding | ||
| tax year for purposes of Subsection (a), provide the rate to each | ||
| appraisal office, and publish the rate in the Texas Register. | ||
| (a-2) In this section: | ||
| (1) "Consumer price index" means the average over a | ||
| tax year of the index that the comptroller considers to most | ||
| accurately report changes in the purchasing power of the dollar for | ||
| consumers in this state. | ||
| (2) "Inflation rate" means the amount, expressed in | ||
| decimal form rounded to the nearest thousandth, computed by | ||
| determining the percentage change in the consumer price index for | ||
| the preceding tax year as compared to the consumer price index for | ||
| the tax year preceding that tax year. | ||
| SECTION 2. This Act applies only to the appraisal of a | ||
| residence homestead for ad valorem tax purposes for a tax year that | ||
| begins on or after the effective date of this Act. | ||
| SECTION 3. This Act takes effect January 1, 2024, but only | ||
| if the constitutional amendment proposed by the 88th Legislature, | ||
| Regular Session, 2023, to authorize the legislature to set a lower | ||
| limit on the maximum appraised value of a residence homestead for ad | ||
| valorem tax purposes is approved by the voters. If that amendment | ||
| is not approved by the voters, this Act has no effect. | ||
