85S10247 SMH-D
By: Shine H.J.R. No. 25
A JOINT RESOLUTION
proposing a constitutional amendment authorizing the governing
body of a political subdivision other than a school district to
adopt an exemption from ad valorem taxation of a portion, expressed
as a dollar amount, of the market value of an individual's residence
homestead and authorizing the legislature to prohibit the governing
body of a political subdivision that adopts such an exemption from
reducing the amount of or repealing the exemption.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1-b, Article VIII, Texas Constitution,
is amended by adding Subsections (q) and (r) to read as follows:
(q) The governing body of a political subdivision other than
a school district by official action may exempt from ad valorem
taxation a portion of the market value of the residence homestead of
an individual. The amount of the exemption is $5,000, except that
if the average market value of residence homesteads in the
political subdivision in the tax year in which the exemption is
adopted exceeds $25,000, the governing body may authorize an
exemption in a larger dollar amount not to exceed an amount equal to
20 percent of the average market value of residence homesteads in
the political subdivision in the tax year in which the exemption is
adopted. The legislature by general law shall specify the method
for computing the average market value of residence homesteads for
purposes of this subsection. Where ad valorem tax has previously
been pledged for the payment of debt, the governing body 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 prohibit the governing body of a political
subdivision that adopts an exemption under this subsection from
reducing the amount of or repealing the exemption.
(r) This subsection applies only to a political subdivision
the governing body of which has ceased granting an exemption under
Subsection (e) of this section, if doing so is not prohibited by the
legislature by general law, and has adopted an exemption under
Subsection (q) of this section. An individual who would have been
entitled to an exemption from ad valorem taxation by the political
subdivision under Subsection (e) of this section had the governing
body not ceased granting an exemption under that subsection is
entitled to continue to receive an exemption under that subsection
in lieu of the exemption under Subsection (q) of this section if the
individual otherwise qualifies for the exemption under Subsection
(e) of this section and the amount of the exemption under that
subsection exceeds the amount of the exemption under Subsection (q)
of this section. The exemption applies only to property for which
the individual received an exemption under Subsection (e) of this
section in the last tax year in which the governing body granted an
exemption under that subsection. The exemption expires in the
event of a change in ownership of the property or, if the property
is owned by a trust and the trustor of the trust or a beneficiary of
the trust has the right to use and occupy the property as the
trustor's or beneficiary's principal residential property, there is
a change in the trustor or beneficiary of the trust, respectively.
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 85th Legislature,
1st Called Session, 2017, authorizing the governing body of a
political subdivision other than a school district to adopt an
exemption from ad valorem taxation of a portion, expressed as a
dollar amount, of the market value of an individual's residence
homestead and authorizing the legislature to prohibit the governing
body of a political subdivision that adopts such an exemption from
reducing the amount of or repealing the exemption.
(b) The amendments to Section 1-b, Article VIII, of this
constitution take effect beginning with the tax year that begins
January 1, 2018.
(c) This temporary provision expires January 1, 2019.
SECTION 3. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2017.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment authorizing the
governing body of a political subdivision other than a school
district to adopt an exemption from ad valorem taxation of a
portion, expressed as a dollar amount, of the market value of an
individual's residence homestead and authorizing the legislature
to prohibit the governing body of a political subdivision that
adopts such an exemption from reducing the amount of or repealing
the exemption."