HB3239 - Relating to the authority of the governing body of a taxing unit to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead and to the adjustment of the exemption amount in subsequent years to reflect inflation.

  89R9845 LHC-D     By: Turner H.B. No. 3239       A BILL TO BE ENTITLED   AN ACT   relating to the authority of the governing body of a taxing unit to   adopt an exemption from ad valorem taxation of a portion, expressed   as a dollar amount, of the appraised value of an individual's   residence homestead and to the adjustment of the exemption amount   in subsequent years to reflect inflation.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 11.13(n), Tax Code, is amended to read as   follows:          (n)  In addition to any other exemptions provided by this   section, an individual is entitled to an exemption from taxation by   a taxing unit of a portion, expressed as a dollar amount, [ a   percentage ] of the appraised value of the individual's [ his ]   residence homestead if the exemption is adopted by the governing   body of the taxing unit before July 1 in the manner provided by law   for official action by the body.   For the 2026 tax year, the amount   of the exemption may not exceed $100,000.   For each subsequent tax   year, the comptroller shall calculate the maximum amount of the   exemption by multiplying the maximum amount of the exemption under   this subsection for the preceding tax year by the inflation rate and   adding that amount to the maximum amount of the exemption for the   preceding tax year.   Each year, not later than March 15, the   comptroller shall publish the maximum amount of the exemption in   the Texas Register.   For purposes of this subsection, "inflation   rate" means the positive amount, if any, expressed in decimal form   rounded to the nearest thousandth, computed by determining the   percentage change in the Consumer Price Index for all Urban   Consumers (CPI-U), U.S. City Average, published by the Bureau of   Labor Statistics of the United States Department of Labor for the   preceding calendar year as compared to the calendar year preceding   that calendar year.   [ If the percentage set by the taxing unit   produces an exemption in a tax year of less than $5,000 when applied   to a particular residence homestead, the individual is entitled to   an exemption of $5,000 of the appraised value.   The percentage   adopted by the taxing unit may not exceed 20 percent. ]          SECTION 2.  Section 11.13(n-1), Tax Code, is repealed.          SECTION 3.  This Act applies only to ad valorem taxes imposed   for a tax year that begins on or after the effective date of this   Act.          SECTION 4.  This Act takes effect January 1, 2026, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, authorizing the governing body of a   political subdivision to adopt an exemption from ad valorem   taxation of a portion, expressed as a dollar amount, of the market   value of an individual's residence homestead and providing for the   adjustment of the exemption amount in subsequent years to reflect   inflation is approved by the voters.  If that amendment is not   approved by the voters, this Act has no effect.