| 1 | 1 | | 87S30452 CJC/MEW-D |
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| 2 | 2 | | By: Raymond H.J.R. No. 22 |
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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 to appropriate money from the |
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| 7 | 7 | | economic stabilization fund to the foundation school fund and use |
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| 8 | 8 | | the money to finance a temporary increase in the amount of the |
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| 9 | 9 | | exemption of residence homesteads from ad valorem taxation by a |
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| 10 | 10 | | school district and a temporary reduction in the amount of the |
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| 11 | 11 | | limitation on school district ad valorem taxes imposed on the |
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| 12 | 12 | | residence homesteads of the elderly or disabled to reflect the |
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| 13 | 13 | | increased exemption amount. |
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| 14 | 14 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. Section 49-g, Article III, Texas Constitution, |
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| 16 | 16 | | is amended by adding Subsection (p) to read as follows: |
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| 17 | 17 | | (p) On December 1, 2022, $5 billion of the unobligated and |
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| 18 | 18 | | otherwise unappropriated balance of the economic stabilization |
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| 19 | 19 | | fund is appropriated to the foundation school fund to finance for |
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| 20 | 20 | | the 2023 tax year a temporary increase in the amount of the |
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| 21 | 21 | | exemption of residence homesteads from ad valorem taxation for |
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| 22 | 22 | | general elementary and secondary public school purposes under |
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| 23 | 23 | | Section 1-b(c), Article VIII, of this constitution, and a temporary |
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| 24 | 24 | | reduction in the amount of the limitation on the total amount of ad |
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| 25 | 25 | | valorem taxes for general elementary and secondary public school |
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| 26 | 26 | | purposes imposed on the residence homesteads of the elderly or |
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| 27 | 27 | | disabled under Section 1-b(d), Article VIII, of this constitution |
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| 28 | 28 | | to reflect the increased exemption amount. This subsection expires |
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| 29 | 29 | | December 31, 2023. |
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| 30 | 30 | | SECTION 2. Section 1-b(c), Article VIII, Texas |
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| 31 | 31 | | Constitution, is amended to read as follows: |
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| 32 | 32 | | (c) Except as otherwise provided by this subsection, the |
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| 33 | 33 | | [The] amount of $25,000 of the market value of the residence |
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| 34 | 34 | | homestead of a married or unmarried adult, including one living |
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| 35 | 35 | | alone, is exempt from ad valorem taxation for general elementary |
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| 36 | 36 | | and secondary public school purposes. For the 2023 tax year, the |
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| 37 | 37 | | amount of $105,000 of the market value of the residence homestead of |
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| 38 | 38 | | such a person is exempt from ad valorem taxation for those purposes. |
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| 39 | 39 | | The legislature by general law may provide that all or part of the |
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| 40 | 40 | | exemption does not apply to a district or political subdivision |
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| 41 | 41 | | that imposes ad valorem taxes for public education purposes but is |
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| 42 | 42 | | not the principal school district providing general elementary and |
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| 43 | 43 | | secondary public education throughout its territory. In addition |
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| 44 | 44 | | to this exemption, the legislature by general law may exempt an |
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| 45 | 45 | | amount not to exceed $10,000 of the market value of the residence |
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| 46 | 46 | | homestead of a person who is disabled as defined in Subsection (b) |
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| 47 | 47 | | of this section and of a person 65 years of age or older from ad |
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| 48 | 48 | | valorem taxation for general elementary and secondary public school |
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| 49 | 49 | | purposes. The legislature by general law may base the amount of and |
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| 50 | 50 | | condition eligibility for the additional exemption authorized by |
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| 51 | 51 | | this subsection for disabled persons and for persons 65 years of age |
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| 52 | 52 | | or older on economic need. An eligible disabled person who is 65 |
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| 53 | 53 | | years of age or older may not receive both exemptions from a school |
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| 54 | 54 | | district but may choose either. An eligible person is entitled to |
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| 55 | 55 | | receive both the exemption required by this subsection for all |
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| 56 | 56 | | residence homesteads and any exemption adopted pursuant to |
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| 57 | 57 | | Subsection (b) of this section, but the legislature shall provide |
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| 58 | 58 | | by general law whether an eligible disabled or elderly person may |
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| 59 | 59 | | receive both the additional exemption for the elderly and disabled |
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| 60 | 60 | | authorized by this subsection and any exemption for the elderly or |
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| 61 | 61 | | disabled adopted pursuant to Subsection (b) of this section. Where |
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| 62 | 62 | | ad valorem tax has previously been pledged for the payment of debt, |
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| 63 | 63 | | the taxing officers of a school district may continue to levy and |
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| 64 | 64 | | collect the tax against the value of homesteads exempted under this |
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| 65 | 65 | | subsection until the debt is discharged if the cessation of the levy |
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| 66 | 66 | | would impair the obligation of the contract by which the debt was |
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| 67 | 67 | | created. The legislature shall provide for formulas to protect |
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| 68 | 68 | | school districts against all or part of the revenue loss incurred by |
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| 69 | 69 | | the implementation of this subsection, Subsection (d) of this |
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| 70 | 70 | | section, and Section 1-d-1 of this article. The legislature by |
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| 71 | 71 | | general law may define residence homestead for purposes of this |
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| 72 | 72 | | section. |
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| 73 | 73 | | SECTION 3. (a) This section takes effect only if the |
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| 74 | 74 | | constitutional amendment proposed by H.J.R. No. 125, 87th |
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| 75 | 75 | | Legislature, Regular Session, 2021, is approved by the voters. If |
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| 76 | 76 | | that amendment is not approved by the voters, this section has no |
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| 77 | 77 | | effect. |
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| 78 | 78 | | (b) Section 1-b(d), Article VIII, Texas Constitution, is |
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| 79 | 79 | | amended to read as follows: |
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| 80 | 80 | | (d) Except as otherwise provided by this subsection, if a |
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| 81 | 81 | | person receives a residence homestead exemption prescribed by |
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| 82 | 82 | | Subsection (c) of this section for homesteads of persons who are 65 |
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| 83 | 83 | | years of age or older or who are disabled, the total amount of ad |
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| 84 | 84 | | valorem taxes imposed on that homestead for general elementary and |
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| 85 | 85 | | secondary public school purposes may not be increased while it |
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| 86 | 86 | | remains the residence homestead of that person or that person's |
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| 87 | 87 | | spouse who receives the exemption. If a person who is 65 years of |
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| 88 | 88 | | age or older or who is disabled dies in a year in which the person |
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| 89 | 89 | | received the exemption, the total amount of ad valorem taxes |
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| 90 | 90 | | imposed on the homestead for general elementary and secondary |
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| 91 | 91 | | public school purposes may not be increased while it remains the |
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| 92 | 92 | | residence homestead of that person's surviving spouse if the spouse |
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| 93 | 93 | | is 55 years of age or older at the time of the person's death, |
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| 94 | 94 | | subject to any exceptions provided by general law. The |
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| 95 | 95 | | legislature, by general law, may provide for the transfer of all or |
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| 96 | 96 | | a proportionate amount of a limitation provided by this subsection |
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| 97 | 97 | | for a person who qualifies for the limitation and establishes a |
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| 98 | 98 | | different residence homestead. However, taxes otherwise limited by |
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| 99 | 99 | | this subsection may be increased to the extent the value of the |
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| 100 | 100 | | homestead is increased by improvements other than repairs or |
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| 101 | 101 | | improvements made to comply with governmental requirements and |
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| 102 | 102 | | except as may be consistent with the transfer of a limitation under |
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| 103 | 103 | | this subsection. For a residence homestead subject to the |
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| 104 | 104 | | limitation provided by this subsection in the 1996 tax year or an |
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| 105 | 105 | | earlier tax year, the legislature shall provide for a reduction in |
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| 106 | 106 | | the amount of the limitation for the 1997 tax year and subsequent |
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| 107 | 107 | | tax years in an amount equal to $10,000 multiplied by the 1997 tax |
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| 108 | 108 | | rate for general elementary and secondary public school purposes |
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| 109 | 109 | | applicable to the residence homestead. For a residence homestead |
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| 110 | 110 | | subject to the limitation provided by this subsection in the 2014 |
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| 111 | 111 | | tax year or an earlier tax year, the legislature shall provide for a |
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| 112 | 112 | | reduction in the amount of the limitation for the 2015 tax year and |
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| 113 | 113 | | subsequent tax years in an amount equal to $10,000 multiplied by the |
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| 114 | 114 | | 2015 tax rate for general elementary and secondary public school |
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| 115 | 115 | | purposes applicable to the residence homestead. For a residence |
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| 116 | 116 | | homestead subject to the limitation provided by this subsection in |
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| 117 | 117 | | the 2022 tax year or an earlier tax year, the legislature shall |
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| 118 | 118 | | provide for a reduction in the amount of the limitation for the 2023 |
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| 119 | 119 | | tax year in an amount equal to $80,000 multiplied by the 2023 tax |
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| 120 | 120 | | rate for general elementary and secondary public school purposes |
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| 121 | 121 | | applicable to the residence homestead. For a residence homestead |
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| 122 | 122 | | subject to the limitation provided by this subsection in the 2023 |
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| 123 | 123 | | tax year, the legislature shall provide for an increase in the |
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| 124 | 124 | | amount of the limitation for the 2024 tax year and subsequent tax |
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| 125 | 125 | | years in an amount equal to $80,000 multiplied by the 2023 tax rate |
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| 126 | 126 | | for general elementary and secondary public school purposes |
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| 127 | 127 | | applicable to the residence homestead. |
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| 128 | 128 | | SECTION 4. (a) This section takes effect only if the |
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| 129 | 129 | | constitutional amendment proposed by H.J.R. No. 125, 87th |
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| 130 | 130 | | Legislature, Regular Session, 2021, is not approved by the voters. |
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| 131 | 131 | | If that amendment is approved by the voters, this section has no |
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| 132 | 132 | | effect. |
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| 133 | 133 | | (b) Section 1-b(d), Article VIII, Texas Constitution, is |
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| 134 | 134 | | amended to read as follows: |
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| 135 | 135 | | (d) Except as otherwise provided by this subsection, if a |
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| 136 | 136 | | person receives a residence homestead exemption prescribed by |
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| 137 | 137 | | Subsection (c) of this section for homesteads of persons who are 65 |
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| 138 | 138 | | years of age or older or who are disabled, the total amount of ad |
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| 139 | 139 | | valorem taxes imposed on that homestead for general elementary and |
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| 140 | 140 | | secondary public school purposes may not be increased while it |
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| 141 | 141 | | remains the residence homestead of that person or that person's |
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| 142 | 142 | | spouse who receives the exemption. If a person 65 years of age or |
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| 143 | 143 | | older dies in a year in which the person received the exemption, the |
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| 144 | 144 | | total amount of ad valorem taxes imposed on the homestead for |
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| 145 | 145 | | general elementary and secondary public school purposes may not be |
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| 146 | 146 | | increased while it remains the residence homestead of that person's |
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| 147 | 147 | | surviving spouse if the spouse is 55 years of age or older at the |
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| 148 | 148 | | time of the person's death, subject to any exceptions provided by |
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| 149 | 149 | | general law. The legislature, by general law, may provide for the |
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| 150 | 150 | | transfer of all or a proportionate amount of a limitation provided |
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| 151 | 151 | | by this subsection for a person who qualifies for the limitation and |
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| 152 | 152 | | establishes a different residence homestead. However, taxes |
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| 153 | 153 | | otherwise limited by this subsection may be increased to the extent |
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| 154 | 154 | | the value of the homestead is increased by improvements other than |
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| 155 | 155 | | repairs or improvements made to comply with governmental |
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| 156 | 156 | | requirements and except as may be consistent with the transfer of a |
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| 157 | 157 | | limitation under this subsection. For a residence homestead |
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| 158 | 158 | | subject to the limitation provided by this subsection in the 1996 |
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| 159 | 159 | | tax year or an earlier tax year, the legislature shall provide for a |
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| 160 | 160 | | reduction in the amount of the limitation for the 1997 tax year and |
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| 161 | 161 | | subsequent tax years in an amount equal to $10,000 multiplied by the |
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| 162 | 162 | | 1997 tax rate for general elementary and secondary public school |
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| 163 | 163 | | purposes applicable to the residence homestead. For a residence |
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| 164 | 164 | | homestead subject to the limitation provided by this subsection in |
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| 165 | 165 | | the 2014 tax year or an earlier tax year, the legislature shall |
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| 166 | 166 | | provide for a reduction in the amount of the limitation for the 2015 |
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| 167 | 167 | | tax year and subsequent tax years in an amount equal to $10,000 |
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| 168 | 168 | | multiplied by the 2015 tax rate for general elementary and |
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| 169 | 169 | | secondary public school purposes applicable to the residence |
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| 170 | 170 | | homestead. For a residence homestead subject to the limitation |
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| 171 | 171 | | provided by this subsection in the 2022 tax year or an earlier tax |
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| 172 | 172 | | year, the legislature shall provide for a reduction in the amount of |
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| 173 | 173 | | the limitation for the 2023 tax year in an amount equal to $80,000 |
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| 174 | 174 | | multiplied by the 2023 tax rate for general elementary and |
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| 175 | 175 | | secondary public school purposes applicable to the residence |
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| 176 | 176 | | homestead. For a residence homestead subject to the limitation |
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| 177 | 177 | | provided by this subsection in the 2023 tax year, the legislature |
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| 178 | 178 | | shall provide for an increase in the amount of the limitation for |
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| 179 | 179 | | the 2024 tax year and subsequent tax years in an amount equal to |
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| 180 | 180 | | $80,000 multiplied by the 2023 tax rate for general elementary and |
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| 181 | 181 | | secondary public school purposes applicable to the residence |
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| 182 | 182 | | homestead. |
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| 183 | 183 | | SECTION 5. The following temporary provision is added to |
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| 184 | 184 | | the Texas Constitution: |
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| 185 | 185 | | TEMPORARY PROVISION. (a) This temporary provision applies |
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| 186 | 186 | | to the constitutional amendment proposed by the 87th Legislature, |
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| 187 | 187 | | 3rd Called Session, 2021, to appropriate money from the economic |
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| 188 | 188 | | stabilization fund to the foundation school fund and use the money |
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| 189 | 189 | | to finance a temporary increase in the amount of the exemption of |
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| 190 | 190 | | residence homesteads from ad valorem taxation by a school district |
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| 191 | 191 | | and a temporary reduction in the amount of the limitation on school |
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| 192 | 192 | | district ad valorem taxes imposed on the residence homesteads of |
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| 193 | 193 | | the elderly or disabled to reflect the increased exemption amount. |
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| 194 | 194 | | (b) The amendments to Sections 1-b(c) and (d), Article VIII, |
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| 195 | 195 | | of this constitution take effect for the tax year beginning January |
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| 196 | 196 | | 1, 2023. |
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| 197 | 197 | | (c) This temporary provision expires January 1, 2024. |
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| 198 | 198 | | SECTION 6. This proposed constitutional amendment shall be |
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| 199 | 199 | | submitted to the voters at an election to be held November 8, 2022. |
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| 200 | 200 | | The ballot shall be printed to permit voting for or against the |
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| 201 | 201 | | proposition: "The constitutional amendment to appropriate money |
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| 202 | 202 | | from the economic stabilization fund to the foundation school fund |
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| 203 | 203 | | and use the money to finance a temporary increase in the amount of |
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| 204 | 204 | | the exemption of residence homesteads from ad valorem taxation by a |
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| 205 | 205 | | school district and a temporary reduction in the amount of the |
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| 206 | 206 | | limitation on school district ad valorem taxes imposed on the |
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| 207 | 207 | | residence homesteads of the elderly or disabled to reflect the |
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| 208 | 208 | | increased exemption amount." |
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