85S10563 SMH/CAE-D
By: White H.J.R. No. 42
A 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 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.
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 [The amount of $25,000] of the market value of
the residence homestead of a married or unmarried adult, including
one living alone, equal to 25 percent of the highest median market
value for any tax year beginning with the 2017 tax year 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
$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 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 65 years of age or
older on economic need. An eligible disabled person who is 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. 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 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 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 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. For a residence homestead subject to the limitation
provided by this subsection in the 2017 tax year or an earlier tax
year, the legislature shall provide for a reduction in the amount of
the limitation for the 2018 tax year and subsequent tax years in an
amount equal to the amount computed by subtracting $25,000 from the
amount equal to 25 percent of the median market value in the 2017
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 2018 tax rate for
general elementary and secondary public school purposes applicable
to the residence homestead.
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, 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 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.
(b) The amendments to Sections 1-b(c) and (d), Article VIII,
of this constitution take effect for the tax year beginning 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 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 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."