TITLE: Relating to the maximum amount of the local option residence homestead exemption from ad valorem taxation by a taxing unit.

SUMMARY: Relating to the maximum amount of the local option residence homestead exemption from ad valorem taxation by a taxing unit.

FULL TEXT:
AN ACT relating to the maximum amount of the local option residence homestead exemption from ad valorem taxation by a taxing unit. 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 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. 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 100 [20] percent. SECTION 2. 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 3. This Act takes effect January 1, 2022, but only if the constitutional amendment proposed by the 87th Legislature, 2nd Called Session, 2021, to increase the maximum amount of the local option residence homestead exemption from ad valorem taxation by a political subdivision is approved by the voters.