Proposing a constitutional amendment to set residence homestead appraised value for tax purposes.

This bill proposes a constitutional amendment to allow the Texas legislature to set the appraised value of a residence homestead for ad valorem tax purposes. For the first tax year the owner qualifies for a residence homestead exemption, the appraised value is the market value of the property. If the owner purchased the property, the purchase price is considered the market value. Increases in appraised value for subsequent tax years are limited based on the inflation rate. The comptroller determines the inflation-based percentage increase for residence homesteads each tax year.

Proposing a constitutional amendment to set residence homestead appraised value for tax purposes.

This bill proposes a constitutional amendment to allow the Texas legislature to set the appraised value of a residence homestead for ad valorem tax purposes. For the first tax year the owner qualifies for a residence homestead exemption, the appraised value is the market value of the property. If the owner purchased the property, the purchase price is considered the market value. Increases in appraised value for subsequent tax years are limited based on the inflation rate. The comptroller determines the inflation-based percentage increase for residence homesteads each tax year.