82R935 SMH-D
By: Paxton H.J.R. No. 83
A JOINT RESOLUTION
proposing a constitutional amendment to phase out ad valorem taxes
on the residence homesteads of elderly persons by 2021.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1-b, Article VIII, Texas Constitution,
is amended by amending Subsections (b), (c), (d), and (h) and adding
Subsections (j) and (j-1) to read as follows:
(b) The governing body of any county, city, town, school
district, or other political subdivision of the State may exempt by
its own action not less than Three Thousand Dollars ($3,000) of the
market value of residence homesteads of persons, married or
unmarried, including those living alone, who are under a disability
for purposes of payment of disability insurance benefits under
Federal Old-Age, Survivors, and Disability Insurance or its
successor [or of married or unmarried persons sixty-five (65) years
of age or older, including those living alone,] from all ad valorem
taxes thereafter levied by the political subdivision. As an
alternative, upon receipt of a petition signed by twenty percent
(20%) of the voters who voted in the last preceding election held by
the political subdivision, the governing body of the subdivision
shall call an election to determine by majority vote whether an
amount not less than Three Thousand Dollars ($3,000) as provided in
the petition, of the market value of residence homesteads of
disabled persons [or of persons sixty-five (65) years of age or
over] shall be exempt from ad valorem taxes thereafter levied by the
political subdivision. [An eligible disabled person who is
sixty-five (65) years of age or older may not receive both
exemptions from the same political subdivision in the same year but
may choose either if the subdivision has adopted both.] Where any
ad valorem tax has theretofore been pledged for the payment of any
debt, the taxing officers of the political subdivision shall have
authority to continue to levy and collect the tax against the
homestead property at the same rate as the tax so pledged until the
debt is discharged, if the cessation of the levy would impair the
obligation of the contract by which the debt was created.
(c) Fifteen Thousand Dollars ($15,000) of the market value
of the residence homestead of a married or unmarried adult,
including one living alone, is exempt from ad valorem taxation for
general elementary and secondary public school purposes. The
legislature by general law may provide that all or part of the
exemption does not apply to a district or political subdivision
that imposes ad valorem taxes for public education purposes but is
not the principal school district providing general elementary and
secondary public education throughout its territory. In addition
to this exemption, the legislature by general law may exempt an
amount not to exceed Ten Thousand Dollars ($10,000) of the market
value of the residence homestead of a person who is disabled as
defined in Subsection (b) of this section [and of a person
sixty-five (65) years of age or older] from ad valorem taxation for
general elementary and secondary public school purposes. The
legislature by general law may base the amount of and condition
eligibility for the additional exemption authorized by this
subsection for disabled persons [and for persons sixty-five (65)
years of age or older] on economic need. [An eligible disabled
person who is sixty-five (65) years of age or older may not receive
both exemptions from a school district but may choose either.] An
eligible person is entitled to receive both the exemption required
by this subsection for all residence homesteads and any exemption
adopted pursuant to Subsection (b) of this section, but the
legislature shall provide by general law whether an eligible
disabled [or elderly] person may receive both the additional
exemption for the [elderly and] disabled authorized by this
subsection and any exemption for the [elderly or] disabled adopted
pursuant to Subsection (b) of this section. Where ad valorem tax
has previously been pledged for the payment of debt, the taxing
officers of a school district may continue to levy and collect the
tax against the value of homesteads exempted under this subsection
until the debt is discharged if the cessation of the levy would
impair the obligation of the contract by which the debt was created.
The legislature shall provide for formulas to protect school
districts against all or part of the revenue loss incurred by the
implementation of Article VIII, Sections 1-b(c), 1-b(d), and 1-d-1,
of this constitution. The legislature by general law may define
residence homestead for purposes of this section.
(d) Except as otherwise provided by this subsection, if a
person receives a residence homestead exemption prescribed by
Subsection (c) of this section for homesteads of persons who are
[sixty-five (65) years of age or older or who are] disabled, the
total amount of ad valorem taxes imposed on that homestead for
general elementary and secondary public school purposes may not be
increased while it remains the residence homestead of that person
or that person's spouse who receives the exemption. [If a person
sixty-five (65) years of age or older dies in a year in which the
person received the exemption, the total amount of ad valorem taxes
imposed on the homestead for general elementary and secondary
public school purposes may not be increased while it remains the
residence homestead of that person's surviving spouse if the spouse
is fifty-five (55) years of age or older at the time of the person's
death, subject to any exceptions provided by general law.] The
legislature, by general law, may provide for the transfer of all or
a proportionate amount of a limitation provided by this subsection
for a person who qualifies for the limitation and establishes a
different residence homestead. However, taxes otherwise limited by
this subsection may be increased to the extent the value of the
homestead is increased by improvements other than repairs or
improvements made to comply with governmental requirements and
except as may be consistent with the transfer of a limitation under
this subsection. [For a residence homestead subject to the
limitation provided by this subsection in the 1996 tax year or an
earlier tax year, the legislature shall provide for a reduction in
the amount of the limitation for the 1997 tax year and subsequent
tax years in an amount equal to $10,000 multiplied by the 1997 tax
rate for general elementary and secondary public school purposes
applicable to the residence homestead.]
(h) The governing body of a county, a city or town, or a
junior college district by official action may provide that if a
person who is disabled [or is sixty-five (65) years of age or older]
receives a residence homestead exemption prescribed or authorized
by this section, the total amount of ad valorem taxes imposed on
that homestead by the county, the city or town, or the junior
college district may not be increased while it remains the
residence homestead of that person or that person's spouse who is
disabled [or sixty-five (65) years of age or older] and receives a
residence homestead exemption on the homestead. As an alternative,
on receipt of a petition signed by five percent (5%) of the
registered voters of the county, the city or town, or the junior
college district, the governing body of the county, the city or
town, or the junior college district shall call an election to
determine by majority vote whether to establish a tax limitation
provided by this subsection. If a county, a city or town, or a
junior college district establishes a tax limitation provided by
this subsection and a disabled person [or a person sixty-five (65)
years of age or older] dies in a year in which the person received a
residence homestead exemption, the total amount of ad valorem taxes
imposed on the homestead by the county, the city or town, or the
junior college district may not be increased while it remains the
residence homestead of that person's surviving spouse if the spouse
is fifty-five (55) years of age or older at the time of the person's
death, subject to any exceptions provided by general law. The
legislature, by general law, may provide for the transfer of all or
a proportionate amount of a tax limitation provided by this
subsection for a person who qualifies for the limitation and
establishes a different residence homestead within the same county,
within the same city or town, or within the same junior college
district. A county, a city or town, or a junior college district
that establishes a tax limitation under this subsection must comply
with a law providing for the transfer of the limitation, even if the
legislature enacts the law subsequent to the county's, the city's or
town's, or the junior college district's establishment of the
limitation. Taxes otherwise limited by a county, a city or town, or
a junior college district under this subsection may be increased to
the extent the value of the homestead is increased by improvements
other than repairs and other than improvements made to comply with
governmental requirements and except as may be consistent with the
transfer of a tax limitation under a law authorized by this
subsection. The governing body of a county, a city or town, or a
junior college district may not repeal or rescind a tax limitation
established under this subsection.
(j) A person 65 years of age or older is entitled to an
exemption from ad valorem taxation of the total market value of the
person's residence homestead. The surviving spouse of a person who
received an exemption under this subsection for the residence
homestead of a person 65 years of age or older is entitled to an
exemption from ad valorem taxation of the total market value of the
same property if the deceased spouse died in a year in which the
deceased spouse received the exemption, the surviving spouse was 55
years of age or older when the deceased spouse died, the property
was the residence homestead of the surviving spouse when the
deceased spouse died and remains the residence homestead of the
surviving spouse, and the surviving spouse has not remarried since
the death of the deceased spouse. Where ad valorem tax of a school
district has previously been pledged for the payment of debt, the
taxing officers of the school district may continue to levy and
collect the tax against the value of homesteads exempted under this
subsection until the debt is discharged if the cessation of the levy
would impair the obligation of the contract by which the debt was
created. The legislature shall provide for formulas to protect
school districts against all or part of the revenue loss incurred by
the implementation of this subsection. The legislature by general
law may prescribe procedures for the administration of this
subsection.
(j-1) Subsection (j) of this section applies to the ad
valorem taxation of the residence homestead of a person 65 years of
age or older only for the 2021 and subsequent tax years. The ad
valorem taxation of the residence homestead of a person 65 years of
age or older for the 2017, 2018, 2019, and 2020 tax years is
governed by this subsection. In addition to any exemptions
authorized by Subsections (b) and (c) of this section, the
legislature by general law may exempt from ad valorem taxation a
percentage of the market value of the residence homestead of a
person 65 years of age or older. For the 2017 tax year, the amount
of the exemption may not exceed 20 percent of the market value of
the homestead. For the 2018 tax year, the amount of the exemption
may not exceed 40 percent of the market value of the homestead. For
the 2019 tax year, the amount of the exemption may not exceed 60
percent of the market value of the homestead. For the 2020 tax
year, the amount of the exemption may not exceed 80 percent of the
market value of the homestead. The legislature by general law may
provide that the surviving spouse of a person who received an
exemption under this subsection for the residence homestead of a
person 65 years of age or older is entitled to an exemption for the
same property in an amount equal to that of the exemption for which
the deceased spouse would have qualified had the deceased spouse
continued to qualify for the exemption if the deceased spouse died
in a year in which the deceased spouse received the exemption, the
surviving spouse was 55 years of age or older when the deceased
spouse died, the property was the residence homestead of the
surviving spouse when the deceased spouse died and remains the
residence homestead of the surviving spouse, and the surviving
spouse has not remarried since the death of the deceased spouse. A
person who receives an exemption under this subsection for a person
65 years of age or older is not entitled to an exemption under this
subsection for the surviving of a person 65 years of age or older.
Where ad valorem tax of a school district has previously been
pledged for the payment of debt, the taxing officers of the school
district may continue to levy and collect the tax against the value
of homesteads exempted under this subsection until the debt is
discharged if the cessation of the levy would impair the obligation
of the contract by which the debt was created. The legislature
shall provide for formulas to protect school districts against all
or part of the revenue loss incurred by the implementation of this
subsection. The legislature by general law may prescribe
procedures for the administration of this subsection. This
subsection expires January 1, 2021.
SECTION 2. Section 1-b(f), Article VIII, Texas
Constitution, is repealed.
SECTION 3. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 82nd Legislature,
Regular Session, 2011, to phase out ad valorem taxes on the
residence homesteads of elderly persons by 2021.
(b) Except as provided by Subsection (c) of this section,
the amendments to Section 1-b, Article VIII, of this constitution
and the repeal of Section 1-b(f), Article VIII, of this
constitution take effect January 1, 2021.
(c) Section 1-b(j-1), Article VIII, of this constitution
takes effect January 1, 2017.
(d) This temporary provision expires January 1, 2022.
SECTION 4. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 8, 2011.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment to phase out ad valorem
taxes on the residence homesteads of elderly persons by 2021."