88R4178 CJC/MEW-D
By: Raymond H.J.R. No. 44
A JOINT RESOLUTION
proposing a constitutional amendment to appropriate money from the
general revenue fund to the foundation school fund and use the money
to finance a temporary increase in the amount of the exemption of
residence homesteads from ad valorem taxation by a school district
and a temporary reduction in 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 1-b, Article VIII, Texas Constitution,
is amended by amending Subsections (c) and (d) and adding
Subsection (q) to read as follows:
(c) Except as otherwise provided by this subsection, the
[The] amount of $40,000 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. For the 2024 tax year, the
amount of $360,000 of the market value of the residence homestead of
such a person is exempt from ad valorem taxation for those 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 2023 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 in an amount equal to $320,000 multiplied by the 2024 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 2024
tax year, the legislature shall provide for an increase in the
amount of the limitation for the 2025 tax year and subsequent tax
years in an amount equal to $320,000 multiplied by the 2024 tax rate
for general elementary and secondary public school purposes
applicable to the residence homestead.
(q) On December 1, 2023, $20 billion of the unobligated and
otherwise unappropriated balance of the general revenue fund is
appropriated to the foundation school fund to finance for the 2024
tax year a temporary increase in the amount of the exemption of
residence homesteads from ad valorem taxation for general
elementary and secondary public school purposes under Subsection
(c) of this section and a temporary 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 Subsection
(d) of this section to reflect the increased exemption amount. This
subsection expires December 31, 2024.
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, to appropriate money from the general
revenue fund to the foundation school fund and use the money to
finance a temporary increase in the amount of the exemption of
residence homesteads from ad valorem taxation by a school district
and a temporary reduction in 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) The amendments to Sections 1-b(c) and (d), Article VIII,
of this constitution take effect for the tax year beginning January
1, 2024.
(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 to appropriate money
from the general revenue fund to the foundation school fund and use
the money to finance a temporary increase in the amount of the
exemption of residence homesteads from ad valorem taxation by a
school district and a temporary reduction in 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."