84R7207 SMH-D
By: Menéndez S.J.R. No. 46
A JOINT RESOLUTION
proposing a constitutional amendment increasing the amount of the
residence homestead exemption from ad valorem taxation for public
school purposes, providing for the increase of the exemption amount
in subsequent years to reflect inflation in homestead values, 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 a disabled or elderly person to reflect the increased
exemption amounts.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1-b(c) and (d), 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, is exempt from ad valorem
taxation for general elementary and secondary public school
purposes. For the 2016 tax year, the amount of the exemption is
$35,000. For each subsequent tax year, the amount of the exemption
shall be calculated by the Comptroller of Public Accounts by
multiplying the amount of the exemption under this subsection for
the preceding tax year by the residence homestead inflation rate,
as defined by general law, and adding that amount to the amount of
that exemption for the preceding tax year. Each appraisal office
shall use the amount of the exemption as calculated by the
comptroller to determine the assessed value of residence homesteads
appraised by that appraisal office for 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 2015 tax year or an earlier tax year, the legislature shall
provide for a reduction in the amount of the limitation for the 2016
tax year and subsequent tax years in an amount equal to $20,000
multiplied by the 2016 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 tax year preceding a tax year in
which the amount of the exemption from ad valorem taxation for
general elementary and secondary public school purposes of a
portion of the market value of the residence homestead of a married
or unmarried adult provided by Subsection (c) of this section is
adjusted for inflation in residence homestead values, the
legislature shall provide for a reduction in the amount of the
limitation for the tax year in which the amount of the exemption is
adjusted and subsequent tax years in an amount equal to the amount
by which the amount of the exemption is increased multiplied by the
tax rate for general elementary and secondary public school
purposes applicable to the residence homestead for the tax year in
which the amount of the exemption is increased.
SECTION 2. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies to
the constitutional amendment proposed by the 84th Legislature,
Regular Session, 2015, increasing the amount of the residence
homestead exemption from ad valorem taxation for public school
purposes, providing for the increase of the exemption amount in
subsequent years to reflect inflation in homestead values, 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 a disabled or elderly person to reflect the increased
exemption amounts.
(b) The amendment to Sections 1-b(c) and (d), Article VIII,
of this constitution takes effect January 1, 2016, and applies only
to a tax year beginning on or after that date.
(c) This temporary provision expires January 1, 2017.
SECTION 3. 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 $35,000, providing for the
increase of the exemption amount in subsequent years to reflect
inflation in homestead values, 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 a disabled or elderly
person to reflect the increased exemption amounts."