S.J.R. No. 1
proposing a constitutional amendment increasing the amount of the
residence homestead exemption from ad valorem taxation for public
school purposes and 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, authorizing the
legislature to prohibit a political subdivision that has adopted an
optional residence homestead exemption from ad valorem taxation
from reducing the amount of or repealing the exemption, and
prohibiting the enactment of a law that imposes a transfer tax on a
transaction that conveys fee simple title to 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) The amount of $25,000 [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 this subsection, Subsection (d) of this
section, and Section 1-d-1 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 $10,000
multiplied 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) After January 1, 2016, no law may be enacted
that imposes a transfer tax on a transaction that conveys fee simple
title to real property.
(b) This section does not prohibit:
(1) the imposition of a general business tax measured
by business activity;
(2) the imposition of a tax on the production of
minerals;
(3) the imposition of a tax on the issuance of title
insurance; or
(4) the change of a rate of a tax in existence on
January 1, 2016.
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. 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 November 3, 2015.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment increasing the amount
of the residence homestead exemption from ad valorem taxation for
public school purposes from $15,000 to $25,000, 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, authorizing the legislature to prohibit a political
subdivision that has adopted an optional residence homestead
exemption from ad valorem taxation from reducing the amount of or
repealing the exemption, and prohibiting the enactment of a law
that imposes a transfer tax on a transaction that conveys fee simple
title to real property."
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.J.R. No. 1 was adopted by the Senate
on March 25, 2015, by the following vote: Yeas 23, Nays 8; and that
the Senate concurred in House amendments on May 29, 2015, by the
following vote: Yeas 25, Nays 6.
______________________________
Secretary of the Senate
I hereby certify that S.J.R. No. 1 was adopted by the House,
with amendments, on May 24, 2015, by the following vote: Yeas 138,
Nays 0, one present not voting.
______________________________
Chief Clerk of the House