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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 taxation. |
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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       SECTION 1.  Section 23.23(a), Tax Code, is amended to read as |
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follows: |
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       (a)  Notwithstanding the requirements of Section 25.18 and |
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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 to an amount not to exceed the |
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lesser of: |
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             (1)  the market value of the property for the most |
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recent tax year that the 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)  five [10] percent of the appraised value of |
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the 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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       SECTION 2.  This Act applies only to the appraisal for ad |
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valorem taxation of residence homesteads for a tax year that begins |
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on or after the effective date of this Act. |
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       SECTION 3.  This Act takes effect January 1, 2025, but only |
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if the constitutional amendment proposed by the 88th Legislature, |
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3rd Called Session, 2023, to authorize the legislature to set a |
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lower limit on the maximum appraised value of a residence homestead |
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for ad valorem taxation is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |