88R2339 SMH/MEW-D
By: Schofield H.J.R. No. 162
A JOINT RESOLUTION
proposing a constitutional amendment providing for an exemption
from ad valorem taxation for public school purposes of a dollar
amount or a percentage, whichever is greater, of the market value of
a residence homestead and providing for an adjustment of the
limitation on the total amount of ad valorem taxes that may be
imposed for those purposes on the homestead of a person who is
elderly or disabled to reflect increases in the 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) The amount of $40,000 of the market value of the
residence homestead of a married or unmarried adult, including one
living alone, or 26.7 percent of the market value of the residence
homestead, whichever is greater, 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 who is 65 years of
age or older or who is disabled 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 2021 tax year or an earlier tax year, the legislature shall
provide for a reduction in the amount of the limitation for the 2024
tax year and subsequent tax years in an amount equal to $15,000
multiplied by the 2022 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 2023 tax year or an earlier tax
year that has a market value in the 2024 tax year of more than
$149,813, the legislature shall provide for a reduction in the
amount of the limitation for the 2024 tax year and subsequent tax
years in an amount equal to the amount computed by subtracting
$40,000 from an amount equal to 26.7 percent of the market value of
the homestead in the 2024 tax year and multiplying that amount by
the 2024 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 88th Legislature,
Regular Session, 2023, providing for an exemption from ad valorem
taxation for public school purposes of a dollar amount or a
percentage, whichever is greater, of the market value of a
residence homestead and providing for an adjustment of the
limitation on the total amount of ad valorem taxes that may be
imposed for those purposes on the homestead of a person who is
elderly or disabled to reflect increases in the exemption amount.
(b) The amendment to Sections 1-b(c) and (d), Article VIII,
of this constitution takes effect January 1, 2024, and applies only
to a tax year beginning on or after that date.
(c) This temporary provision expires January 1, 2025.
SECTION 3. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2023.
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
$40,000 or 26.7 percent, whichever is greater, of the market value
of a residence homestead and providing for an adjustment of the
limitation on the total amount of ad valorem taxes that may be
imposed for those purposes on the homestead of a person who is
elderly or disabled to reflect increases in the exemption amount."