Texas 2017 - 85th 1st C.S.

Texas House Bill HJR42 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85S10563 SMH/CAE-D
2	2	By: White H.J.R. No. 42
3	3
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5	5	A JOINT RESOLUTION
6	6	proposing a constitutional amendment providing for an exemption
7	7	from ad valorem taxation for public school purposes of a portion of
8	8	the market value of a residence homestead based on the median market
9	9	value of all residence homesteads in the state and providing for a
10	10	reduction of the limitation on the total amount of ad valorem taxes
11	11	that may be imposed for those purposes on the homestead of an
12	12	elderly or disabled person to reflect the increased exemption
13	13	amount.
14	14	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Sections 1-b(c) and (d), Article VIII, Texas
16	16	Constitution, are amended to read as follows:
17	17	(c) A portion [The amount of $25,000] of the market value of
18	18	the residence homestead of a married or unmarried adult, including
19	19	one living alone, equal to 25 percent of the highest median market
20	20	value for any tax year beginning with the 2017 tax year of all
21	21	residence homesteads in the state is exempt from ad valorem
22	22	taxation for general elementary and secondary public school
23	23	purposes. The legislature by general law shall specify the method
24	24	for computing the median market value of residence homesteads for
25	25	purposes of this subsection. The legislature by general law may
26	26	provide that all or part of the exemption does not apply to a
27	27	district or political subdivision that imposes ad valorem taxes for
28	28	public education purposes but is not the principal school district
29	29	providing general elementary and secondary public education
30	30	throughout its territory. In addition to this exemption, the
31	31	legislature by general law may exempt an amount not to exceed
32	32	$10,000 of the market value of the residence homestead of a person
33	33	who is disabled as defined in Subsection (b) of this section and of
34	34	a person 65 years of age or older from ad valorem taxation for
35	35	general elementary and secondary public school purposes. The
36	36	legislature by general law may base the amount of and condition
37	37	eligibility for the additional exemption authorized by this
38	38	subsection for disabled persons and for persons 65 years of age or
39	39	older on economic need. An eligible disabled person who is 65 years
40	40	of age or older may not receive both exemptions from a school
41	41	district but may choose either. An eligible person is entitled to
42	42	receive both the exemption required by this subsection for all
43	43	residence homesteads and any exemption adopted pursuant to
44	44	Subsection (b) of this section, but the legislature shall provide
45	45	by general law whether an eligible disabled or elderly person may
46	46	receive both the additional exemption for the elderly and disabled
47	47	authorized by this subsection and any exemption for the elderly or
48	48	disabled adopted pursuant to Subsection (b) of this section. Where
49	49	ad valorem tax has previously been pledged for the payment of debt,
50	50	the taxing officers of a school district may continue to levy and
51	51	collect the tax against the value of homesteads exempted under this
52	52	subsection until the debt is discharged if the cessation of the levy
53	53	would impair the obligation of the contract by which the debt was
54	54	created. The legislature shall provide for formulas to protect
55	55	school districts against all or part of the revenue loss incurred by
56	56	the implementation of this subsection, Subsection (d) of this
57	57	section, and Section 1-d-1 of this article. The legislature by
58	58	general law may define residence homestead for purposes of this
59	59	section.
60	60	(d) Except as otherwise provided by this subsection, if a
61	61	person receives a residence homestead exemption prescribed by
62	62	Subsection (c) of this section for homesteads of persons who are 65
63	63	years of age or older or who are disabled, the total amount of ad
64	64	valorem taxes imposed on that homestead for general elementary and
65	65	secondary public school purposes may not be increased while it
66	66	remains the residence homestead of that person or that person's
67	67	spouse who receives the exemption. If a person 65 years of age or
68	68	older dies in a year in which the person received the exemption, the
69	69	total amount of ad valorem taxes imposed on the homestead for
70	70	general elementary and secondary public school purposes may not be
71	71	increased while it remains the residence homestead of that person's
72	72	surviving spouse if the spouse is 55 years of age or older at the
73	73	time of the person's death, subject to any exceptions provided by
74	74	general law. The legislature, by general law, may provide for the
75	75	transfer of all or a proportionate amount of a limitation provided
76	76	by this subsection for a person who qualifies for the limitation and
77	77	establishes a different residence homestead. However, taxes
78	78	otherwise limited by this subsection may be increased to the extent
79	79	the value of the homestead is increased by improvements other than
80	80	repairs or improvements made to comply with governmental
81	81	requirements and except as may be consistent with the transfer of a
82	82	limitation under this subsection. For a residence homestead
83	83	subject to the limitation provided by this subsection in the 1996
84	84	tax year or an earlier tax year, the legislature shall provide for a
85	85	reduction in the amount of the limitation for the 1997 tax year and
86	86	subsequent tax years in an amount equal to $10,000 multiplied by the
87	87	1997 tax rate for general elementary and secondary public school
88	88	purposes applicable to the residence homestead. For a residence
89	89	homestead subject to the limitation provided by this subsection in
90	90	the 2014 tax year or an earlier tax year, the legislature shall
91	91	provide for a reduction in the amount of the limitation for the 2015
92	92	tax year and subsequent tax years in an amount equal to $10,000
93	93	multiplied by the 2015 tax rate for general elementary and
94	94	secondary public school purposes applicable to the residence
95	95	homestead. For a residence homestead subject to the limitation
96	96	provided by this subsection in the 2017 tax year or an earlier tax
97	97	year, the legislature shall provide for a reduction in the amount of
98	98	the limitation for the 2018 tax year and subsequent tax years in an
99	99	amount equal to the amount computed by subtracting $25,000 from the
100	100	amount equal to 25 percent of the median market value in the 2017
101	101	tax year of all residence homesteads in the state, as determined in
102	102	accordance with a general law enacted under Subsection (c) of this
103	103	section, and multiplying that amount by the 2018 tax rate for
104	104	general elementary and secondary public school purposes applicable
105	105	to the residence homestead.
106	106	SECTION 2. The following temporary provision is added to
107	107	the Texas Constitution:
108	108	TEMPORARY PROVISION. (a) This temporary provision applies
109	109	to the constitutional amendment proposed by the 85th Legislature,
110	110	1st Called Session, 2017, providing for an exemption from ad
111	111	valorem taxation for public school purposes of a portion of the
112	112	market value of a residence homestead based on the median market
113	113	value of all residence homesteads in the state and providing for a
114	114	reduction of the limitation on the total amount of ad valorem taxes
115	115	that may be imposed for those purposes on the homestead of an
116	116	elderly or disabled person to reflect the increased exemption
117	117	amount.
118	118	(b) The amendments to Sections 1-b(c) and (d), Article VIII,
119	119	of this constitution take effect for the tax year beginning January
120	120	1, 2018.
121	121	(c) This temporary provision expires January 1, 2019.
122	122	SECTION 3. This proposed constitutional amendment shall be
123	123	submitted to the voters at an election to be held November 7, 2017.
124	124	The ballot shall be printed to permit voting for or against the
125	125	proposition: "The constitutional amendment providing for an
126	126	exemption from ad valorem taxation for public school purposes of a
127	127	portion of the market value of a residence homestead equal to 25
128	128	percent of the median market value of all residence homesteads in
129	129	the state and providing for a reduction of the limitation on the
130	130	total amount of ad valorem taxes that may be imposed for those
131	131	purposes on the homestead of an elderly or disabled person to
132	132	reflect the increased exemption amount."