By: Nelson, et al. S.J.R. No. 1
(In the Senate - Filed February 24, 2015; February 24, 2015,
read first time and referred to Committee on Finance;
March 23, 2015, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 11, Nays 4; March 23, 2015,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.J.R. No. 1 By: Nelson
SENATE JOINT RESOLUTION
proposing a constitutional amendment providing for an exemption
from ad valorem taxation for public school purposes of a portion of
the market value of a residence homestead based on the median market
value of all residence homesteads in the state, providing for a
reduction of the limitation on the total amount of ad valorem taxes
that may be imposed for those purposes on the homestead of an
elderly or disabled person to reflect the increased exemption
amount, providing that an appropriation of state tax revenues to
protect school districts against the resulting revenue loss is an
appropriation of state tax revenues dedicated by the constitution
for purposes of the restriction on the rate of growth of
appropriations from undedicated state tax revenues, authorizing
the legislature to prohibit a political subdivision that has
adopted an optional residence homestead exemption from reducing the
amount of or repealing the exemption, and prohibiting the
imposition or collection of a tax on the conveyance of an interest
in real property.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1-b(c), (d), and (e), Article VIII,
Texas Constitution, are amended to read as follows:
(c) A portion [Fifteen Thousand Dollars ($15,000)] of the
market value of the residence homestead of a married or unmarried
adult, including one living alone, equal to 25 percent of the median
market value of all residence homesteads in the state is exempt from
ad valorem taxation for general elementary and secondary public
school purposes. The legislature by general law shall specify the
method for computing the median market value of residence
homesteads for purposes of this subsection. 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 this subsection, Subsection (d) of this section,
and Section 1-d-1 of this article. An appropriation of state tax
revenues made to fund formulas protecting school districts against
all or part of the revenue loss resulting from the increase in the
residence homestead exemption under this subsection and the
additional limitation on tax increases under Subsection (d) of this
section, as proposed by S.J.R. 1, 84th Legislature, Regular
Session, 2015, is an appropriation of state tax revenues dedicated
by this constitution for purposes of Section 22 of this article
[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. For a residence
homestead subject to the limitation provided by this subsection in
the 2014 tax year or an earlier tax year, the legislature shall
provide for a reduction in the amount of the limitation for the 2015
tax year and subsequent tax years in an amount equal to the amount
computed by subtracting $15,000 from the amount equal to 25 percent
of the median market value in the 2015 tax year of all residence
homesteads in the state as determined in accordance with a general
law enacted under Subsection (c) of this section and multiplying
that amount by the 2015 tax rate for general elementary and
secondary public school purposes applicable to the residence
homestead.
(e) The governing body of a political subdivision, other
than a county education district, may exempt from ad valorem
taxation a percentage of the market value of the residence
homestead of a married or unmarried adult, including one living
alone. In the manner provided by law, the voters of a county
education district at an election held for that purpose may exempt
from ad valorem taxation a percentage of the market value of the
residence homestead of a married or unmarried adult, including one
living alone. The percentage may not exceed twenty percent.
However, the amount of an exemption authorized pursuant to this
subsection may not be less than [Five Thousand Dollars (]$5,000[)]
unless the legislature by general law prescribes other monetary
restrictions on the amount of the exemption. The legislature by
general law may prohibit the governing body of a political
subdivision that adopts an exemption under this subsection from
reducing the amount of or repealing the exemption. An eligible
adult is entitled to receive other applicable exemptions provided
by law. Where ad valorem tax has previously been pledged for the
payment of debt, the governing body of a political subdivision may
continue to levy and collect the tax against the value of the
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 by
general law may prescribe procedures for the administration of
residence homestead exemptions.
SECTION 2. Article VIII, Texas Constitution, is amended by
adding Section 29 to read as follows:
Sec. 29. A tax may not be imposed or collected on the
conveyance of an interest in real property, including a conveyance
by sale, lease, or other transfer of title to or interest in the
property.
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 S.J.R. No. 1, 84th
Legislature, Regular Session, 2015.
(b) The amendments to Sections 1-b(c), (d), and (e), Article
VIII, of this constitution take effect for the tax year beginning
January 1, 2015.
(c) This temporary provision expires January 1, 2017.
SECTION 4. This proposed constitutional amendment shall be
submitted to the voters at an election to be held September 12,
2015. The ballot shall be printed to permit voting for or against
the proposition: "The constitutional amendment providing for an
exemption from ad valorem taxation for public school purposes of a
portion of the market value of a residence homestead equal to 25
percent of the median market value of all residence homesteads in
the state, providing for a reduction of the limitation on the total
amount of ad valorem taxes that may be imposed for those purposes on
the homestead of an elderly or disabled person to reflect the
increased exemption amount, providing that an appropriation of
state tax revenues to protect school districts against the
resulting revenue loss is an appropriation of state tax revenues
dedicated by the constitution for purposes of the restriction on
the rate of growth of appropriations from undedicated state tax
revenues, authorizing the legislature to prohibit a political
subdivision that has adopted an optional residence homestead
exemption from reducing the amount of or repealing the exemption,
and prohibiting the imposition or collection of a tax on the
conveyance, including by sale, lease, or other transfer, of an
interest in real property."
* * * * *