86R12310 CJC/MEW-D
By: Bettencourt, et al. S.J.R. No. 71
A JOINT RESOLUTION
proposing a constitutional amendment to use revenue attributable to
oil and gas production taxes to increase the amount of the exemption
of residence homesteads from ad valorem taxation by a school
district and reduce the amount of the limitation on school district
ad valorem taxes imposed on the residence homesteads of the elderly
or disabled to reflect the increased exemption amount.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 49-g, Article III, Texas Constitution,
is amended by adding Subsection (s) to read as follows:
(s) Each state fiscal year, the comptroller of public
accounts shall determine the amount of the estimated lost revenue
for school districts in that state fiscal year attributable to the
increase in the amount of the exemption of residence homesteads
from ad valorem taxation for general elementary and secondary
public school purposes under Section 1-b(c), Article VIII, of this
constitution, proposed by the 86th Legislature, Regular Session,
2019, and approved by the voters, and the reduction in the amount of
the limitation on the total amount of ad valorem taxes for general
elementary and secondary public school purposes imposed on the
residence homesteads of the elderly or disabled under Section
1-b(d), Article VIII, of this constitution, proposed by the 86th
Legislature, Regular Session, 2019, and approved by the voters.
Notwithstanding any other provision of this section, in each state
fiscal year, the comptroller of public accounts shall reduce the
amount of the transfer from the general revenue fund to the economic
stabilization fund to be made under Subsection (c) of this section
by the amount of the estimated lost revenue determined under this
subsection and shall transfer to the foundation school fund or a
successor fund or account an amount of general revenue equal to the
amount of that reduction.
SECTION 2. Sections 1-b(c) and (d), Article VIII, Texas
Constitution, are amended to read as follows:
(c) The amount of $35,000 [$25,000] 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 $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 2019 tax year or an earlier tax
year, the legislature shall provide for a reduction in the amount of
the limitation for the 2020 tax year in an amount equal to $10,000
multiplied by the 2020 tax rate for general elementary and
secondary public school purposes applicable to the residence
homestead.
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 the 86th Legislature,
Regular Session, 2019, to use revenue attributable to oil and gas
production taxes to increase the amount of the exemption of
residence homesteads from ad valorem taxation by a school district
and reduce the amount of the limitation on school district ad
valorem taxes imposed on the residence homesteads of the elderly or
disabled to reflect the increased exemption amount.
(b) Section 49-g(s), Article III, of this constitution
applies beginning with the state fiscal year beginning September 1,
2020.
(c) The amendments to Sections 1-b(c) and (d), Article VIII,
of this constitution take effect for the tax year beginning January
1, 2020.
(d) This temporary provision expires January 1, 2021.
SECTION 4. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 5, 2019.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment to use revenue
attributable to oil and gas production taxes to increase the amount
of the exemption of residence homesteads from ad valorem taxation
by a school district and reduce the amount of the limitation on
school district ad valorem taxes imposed on the residence
homesteads of the elderly or disabled to reflect the increased
exemption amount."