88R6767 RDS-D
By: Allison H.J.R. No. 87
A JOINT RESOLUTION
proposing a constitutional amendment authorizing the legislature
to limit the maximum appraised value of residential real property
for ad valorem tax purposes to 105 percent or more of the appraised
value of the property for the preceding tax year, to exempt from ad
valorem taxation the total appraised value of property purchased by
an individual for the first tax year the individual qualifies the
property as the individual's residence homestead if the property is
the individual's first residence homestead and has an appraised
value of less than $300,000, and to limit the total amount of ad
valorem taxes that a political subdivision may impose on the
residence homestead of an individual and the surviving spouse of
the individual if the individual qualifies the property as the
individual's residence homestead for at least 25 consecutive tax
years.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1(i), Article VIII, Texas Constitution,
is amended to read as follows:
(i) Notwithstanding Subsections (a) and (b) of this
section, the Legislature by general law may limit the maximum
appraised value of residential real property, as defined by the
Legislature, [a residence homestead] for ad valorem tax purposes in
a tax year to the lesser of the most recent market value of the
property [residence homestead] as determined by the appraisal
entity or 105 [110] percent, or a greater percentage, of the
appraised value of the property [residence homestead] for the
preceding tax year. A limitation on appraised values authorized by
this subsection:
(1) takes effect in the tax year following the first
tax year in which the owner owns the property on January 1 [as to a
residence homestead on the later of the effective date of the law
imposing the limitation or January 1 of the tax year following the
first tax year the owner qualifies the property for an exemption
under Section 1-b of this article]; and
(2) expires on January 1 of the [first] tax year
following the tax year in which [that neither] the owner of the
property when the limitation took effect ceases to own the
property, except that the Legislature by general law may provide
for the limitation applicable to a residence homestead to continue
during ownership of the property by [nor] the owner's spouse or
surviving spouse [qualifies for an exemption under Section 1-b of
this article].
SECTION 2. Section 1-b, Article VIII, Texas Constitution,
is amended by adding Subsection (w) to read as follows:
(w) The legislature by general law may provide that an
individual who purchases property and qualifies the property as the
individual's residence homestead is entitled to an exemption from
ad valorem taxation of the total appraised value of the property for
the first tax year the individual qualifies the property as the
individual's residence homestead if the property is the first
property the individual has ever qualified as the individual's
residence homestead and has an appraised value of less than
$300,000 for that first tax year. Where ad valorem tax of a
political subdivision has previously been pledged for the payment
of debt, the taxing officers of the political subdivision may
continue to levy and collect the tax against the value of residence
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. The legislature by general law may prescribe
procedures for the administration of this subsection.
SECTION 3. Article VIII, Texas Constitution, is amended by
adding Section 1-b-1 to read as follows:
Sec. 1-b-1. (a) The legislature by general law may limit
the total amount of ad valorem taxes imposed by a political
subdivision on the residence homestead of an individual who
qualifies the property as the individual's residence homestead for
at least 25 consecutive tax years. A law enacted under this section
may provide that the taxes imposed by the political subdivision on
the residence homestead after that 25th tax year may not exceed the
amount of taxes imposed by the political subdivision on the
property in that 25th tax year.
(b) A law enacted under this section may provide that if the
first tax year an individual qualified property as the individual's
residence homestead was a tax year before the 24th tax year before
the tax year in which the law took effect, the individual is
considered to have qualified the property as the individual's
residence homestead for the first time in the 24th tax year before
the tax year in which the law took effect.
(c) A law enacted under this section may provide that the
total amount of ad valorem taxes imposed by a political subdivision
on a residence homestead may not be increased while the property
remains the residence homestead of the surviving spouse of an
individual who dies in a tax year in which the taxes on the property
are subject to the limitation authorized by Subsection (a) of this
section.
(d) Notwithstanding Subsection (a) or (c) of this section, a
law enacted under this section may provide that taxes on a residence
homestead subject to the limitation authorized by this section may
be increased to the extent the value of the residence homestead is
increased by an improvement made to the property, other than:
(1) a repair; or
(2) an improvement made to comply with a governmental
requirement.
(e) A law enacted under this section may prescribe:
(1) additional eligibility requirements for the tax
limitation authorized by this section; and
(2) procedures for the administration of the
limitation.
SECTION 4. 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 authorizing the
legislature to limit the maximum appraised value of residential
real property for ad valorem tax purposes to 105 percent or more of
the appraised value of the property for the preceding tax year, to
exempt from ad valorem taxation the total appraised value of
property purchased by an individual for the first tax year the
individual qualifies the property as the individual's residence
homestead if the property is the individual's first residence
homestead and has an appraised value of less than $300,000, and to
limit the total amount of ad valorem taxes that a political
subdivision may impose on the residence homestead of an individual
and the surviving spouse of the individual if the individual
qualifies the property as the individual's residence homestead for
at least 25 consecutive tax years."