| 1 | 1 | | 87R12045 TJB-D |
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| 2 | 2 | | By: Rodriguez H.J.R. No. 136 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A JOINT RESOLUTION |
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| 6 | 6 | | proposing a constitutional amendment authorizing the governing |
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| 7 | 7 | | body of a political subdivision other than a school district to |
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| 8 | 8 | | adopt an exemption from ad valorem taxation of a portion, expressed |
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| 9 | 9 | | as a dollar amount, of the market value of an individual's residence |
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| 10 | 10 | | homestead. |
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| 11 | 11 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 1-b, Article VIII, Texas Constitution, |
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| 13 | 13 | | is amended by adding Subsections (q) and (r) to read as follows: |
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| 14 | 14 | | (q) The governing body of a political subdivision other than |
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| 15 | 15 | | a school district by official action may exempt from ad valorem |
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| 16 | 16 | | taxation a portion of the market value of the residence homestead of |
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| 17 | 17 | | an individual. The amount of the exemption is $5,000, except that |
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| 18 | 18 | | if the average market value of residence homesteads in the |
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| 19 | 19 | | political subdivision in the tax year in which the exemption is |
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| 20 | 20 | | adopted exceeds $25,000, the governing body may authorize an |
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| 21 | 21 | | exemption in a larger dollar amount not to exceed an amount equal to |
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| 22 | 22 | | 20 percent of the average market value of residence homesteads in |
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| 23 | 23 | | the political subdivision in the tax year in which the exemption is |
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| 24 | 24 | | adopted. The legislature by general law shall specify the method |
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| 25 | 25 | | for computing the average market value of residence homesteads for |
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| 26 | 26 | | purposes of this subsection. Where ad valorem tax has previously |
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| 27 | 27 | | been pledged for the payment of debt, the governing body may |
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| 28 | 28 | | continue to levy and collect the tax against the value of the |
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| 29 | 29 | | homesteads exempted under this subsection until the debt is |
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| 30 | 30 | | discharged if the cessation of the levy would impair the obligation |
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| 31 | 31 | | of the contract by which the debt was created. The legislature by |
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| 32 | 32 | | general law may prohibit the governing body of a political |
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| 33 | 33 | | subdivision that adopts an exemption under this subsection from |
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| 34 | 34 | | reducing the amount of or repealing the exemption. |
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| 35 | 35 | | (r) This subsection applies only to a political subdivision |
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| 36 | 36 | | the governing body of which has ceased granting an exemption under |
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| 37 | 37 | | Subsection (e) of this section and has adopted an exemption under |
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| 38 | 38 | | Subsection (q) of this section. An individual who would have been |
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| 39 | 39 | | entitled to an exemption from ad valorem taxation by the political |
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| 40 | 40 | | subdivision under Subsection (e) of this section had the governing |
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| 41 | 41 | | body not ceased granting an exemption under that subsection is |
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| 42 | 42 | | entitled to continue to receive an exemption under that subsection |
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| 43 | 43 | | in lieu of the exemption under Subsection (q) of this section if the |
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| 44 | 44 | | individual otherwise qualifies for the exemption under Subsection |
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| 45 | 45 | | (e) of this section and the amount of the exemption under that |
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| 46 | 46 | | subsection exceeds the amount of the exemption under Subsection (q) |
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| 47 | 47 | | of this section. The exemption applies only to property for which |
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| 48 | 48 | | the individual received an exemption under Subsection (e) of this |
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| 49 | 49 | | section in the last tax year in which the governing body granted an |
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| 50 | 50 | | exemption under that subsection. The exemption expires in the |
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| 51 | 51 | | event of a change in ownership of the property or, if the property |
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| 52 | 52 | | is owned by a trust and the trustor of the trust or a beneficiary of |
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| 53 | 53 | | the trust has the right to use and occupy the property as the |
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| 54 | 54 | | trustor's or beneficiary's principal residential property, there is |
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| 55 | 55 | | a change in the trustor or beneficiary of the trust, respectively. |
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| 56 | 56 | | SECTION 2. The following temporary provision is added to |
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| 57 | 57 | | the Texas Constitution: |
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| 58 | 58 | | TEMPORARY PROVISION. (a) This temporary provision applies |
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| 59 | 59 | | to the constitutional amendment proposed by the 87th Legislature, |
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| 60 | 60 | | Regular Session, 2021, authorizing the governing body of a |
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| 61 | 61 | | political subdivision other than a school district to adopt an |
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| 62 | 62 | | exemption from ad valorem taxation of a portion, expressed as a |
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| 63 | 63 | | dollar amount, of the market value of an individual's residence |
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| 64 | 64 | | homestead. |
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| 65 | 65 | | (b) The amendments to Section 1-b, Article VIII, of this |
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| 66 | 66 | | constitution take effect beginning with the tax year that begins |
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| 67 | 67 | | January 1, 2022. |
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| 68 | 68 | | (c) This temporary provision expires January 1, 2023. |
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| 69 | 69 | | SECTION 3. This proposed constitutional amendment shall be |
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| 70 | 70 | | submitted to the voters at an election to be held November 2, 2021. |
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| 71 | 71 | | The ballot shall be printed to permit voting for or against the |
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| 72 | 72 | | proposition: "The constitutional amendment authorizing the |
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| 73 | 73 | | governing body of a political subdivision other than a school |
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| 74 | 74 | | district to adopt an exemption from ad valorem taxation of a |
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| 75 | 75 | | portion, expressed as a dollar amount, of the market value of an |
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| 76 | 76 | | individual's residence homestead." |
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