82R87 SMH-D
	By: Bonnen	H.B. No. 2347

	A BILL TO BE ENTITLED
	AN ACT
	relating to the eligibility of property to continue to receive a
	residence homestead exemption from ad valorem taxation for not more
	than three years after the property ceases to be the owner's
	principal residence if the property is being offered for sale.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 11.13, Tax Code, is amended by adding
	Subsections (s) and (t) to read as follows:
	(s)  Notwithstanding the other provisions of this section,
	an owner may continue to receive an exemption under this section for
	a qualified residential structure and the land and improvements
	used in the residential occupancy of the structure for not more than
	the three tax years following the tax year in which the owner ceases
	to occupy the structure as the owner's residence homestead
	regardless of whether the owner establishes a different principal
	residence for which the owner receives an exemption under this
	section if the structure:
	(1)  is not occupied by or leased to any person;
	(2)  is being actively offered for sale; and
	(3)  is not used for any business or commercial
	purpose.
	(t)  To continue to receive an exemption under this section
	as provided by Subsection (s), a person must apply for the
	continuation of the exemption in the manner provided by Section
	11.43 for an initial exemption under this section.  Section 11.431
	applies to an application for the continuation of an exemption
	under Subsection (s) in the same manner as Section 11.431 applies to
	an application for an exemption under another provision of this
	section.
	SECTION 2.  Section 11.26, Tax Code, is amended by amending
	Subsection (n) and adding Subsection (p) to read as follows:
	(n)  Notwithstanding Subsection (c), the limitation on tax
	increases required by this section does not expire if the owner of
	the structure qualifies for an exemption under Section 11.13 under
	the circumstances described by Section 11.13(s) or 11.135(a).
	(p)  An individual who receives a limitation on tax increases
	required by this section and who qualifies the property for the
	continuation of an exemption under Section 11.13 as provided by
	Section 11.13(s) may continue to receive the limitation with
	respect to the property in each tax year in which the property
	continues to receive the exemption regardless of whether the
	individual qualifies under Subsection (g) for a limitation on ad
	valorem taxes on a subsequently qualified residence homestead.
	SECTION 3.  Section 11.261, Tax Code, is amended by amending
	Subsection (l) and adding Subsection (n) to read as follows:
	(l)  Notwithstanding Subsection (d), a limitation on county,
	municipal, or junior college district tax increases provided by
	this section does not expire if the owner of the structure qualifies
	for an exemption under Section 11.13 under the circumstances
	described by Section 11.13(s) or 11.135(a).
	(n)  An individual who receives a limitation on tax increases
	provided by this section and who qualifies the property for the
	continuation of an exemption under Section 11.13 as provided by
	Section 11.13(s) may continue to receive the limitation with
	respect to the property in each tax year in which the property
	continues to receive the exemption regardless of whether the
	individual qualifies under Subsection (g) for a limitation on ad
	valorem taxes on a subsequently qualified residence homestead.
	SECTION 4.  This Act takes effect on the date on which the
	constitutional amendment proposed by the 82nd Legislature, Regular
	Session, 2011, relating to the eligibility of property to continue
	to receive a residence homestead exemption from ad valorem taxation
	for not more than three years after the property ceases to be the
	owner's principal residence if the property is being offered for
	sale takes effect. If that amendment is not approved by the voters,
	this Act has no effect.