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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation on increases in the appraised value of a |
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residence homestead for ad valorem tax purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.23, Tax Code, is amended by amending |
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Subsections (a), (b), and (c) and adding Subsections (a-1), (a-2), |
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(a-3), (a-4), (a-5), (a-6), (a-7), and (c-2) to read as follows: |
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(a) The [Notwithstanding the requirements of Section 25.18 |
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and regardless of whether the appraisal office has appraised the |
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property and determined the market value of the property for the tax |
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year, an appraisal office may increase the] appraised value of a |
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residence homestead for a tax year is equal to [an amount not to |
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exceed the lesser of: |
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[(1)] the market value of the property for the first |
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[most recent] tax year that the owner qualified the property for an |
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exemption under Section 11.13 [market value was determined by the |
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appraisal office; or |
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[(2) the sum of: |
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[(A) 10 percent of the appraised value of the |
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property for the preceding tax year; |
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[(B) the appraised value of the property for the |
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preceding tax year; and |
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[(C) the market value of all new improvements to |
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the property]. |
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(a-1) Notwithstanding Subsection (a), if the owner of real |
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property qualified the property for an exemption under Section |
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11.13 and the owner acquired the property as a bona fide purchaser |
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for value, the appraised value of the property is equal to the |
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purchase price of the property paid by the owner. |
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(a-2) If the first tax year the property owner qualified the |
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property for an exemption under Section 11.13 was a tax year before |
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the 2024 tax year, the appraised value of the property as shown on |
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the 2023 appraisal roll is considered to be: |
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(1) the market value of the property for the first tax |
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year that the owner qualified the property for an exemption under |
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Section 11.13 for purposes of Subsection (a); and |
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(2) the purchase price of the property paid by the |
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owner for purposes of Subsection (a-1). |
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(a-3) Subsection (a-1) does not apply to a residence |
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homestead if: |
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(1) the purchase was made: |
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(A) pursuant to a court order; |
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(B) from a trustee in bankruptcy; |
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(C) by one co-owner from one or more other |
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co-owners; |
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(D) from a spouse or a person or persons within |
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the first or second degree of lineal consanguinity of one or more of |
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the purchasers; or |
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(E) from a governmental entity; or |
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(2) the chief appraiser determines that the applicant |
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was not a bona fide purchaser for value under criteria established |
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by rules adopted by the comptroller for that purpose. |
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(a-4) To receive a limitation on appraised value under |
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Subsection (a-1), an owner of the property must apply for the |
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limitation. To apply for the limitation, the owner must file an |
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application with the chief appraiser for each appraisal district in |
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which the property subject to the claimed limitation is located. |
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The application must be filed not later than the latest date on |
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which the owner may file an application for an exemption under |
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Section 11.13 on the property for the year under Section 11.43. The |
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comptroller by rule shall prescribe the form for the application to |
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ensure that the applicant provides the information necessary to |
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determine the applicant's eligibility for the limitation, |
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including the purchase price of the property paid by the applicant. |
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(a-5) An application filed with a chief appraiser under |
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Subsection (a-4) is confidential and not open to public inspection. |
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The application and the information it contains may not be |
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disclosed to another person other than an employee of the appraisal |
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district who appraises property, except as provided by Subsection |
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(a-6). |
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Statutes affected: Introduced: Tax Code 23.23 (Tax Code 23)
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