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Texas Senate Bill SJR3

Texas 2023 - 88th Regular

Texas Senate Bill SJR3 Compare Versions

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1-88R30132 CJC/TJB-D
21 By: Bettencourt, et al. S.J.R. No. 3
3- (Meyer)
4- Substitute the following for S.J.R. No. 3: No.
2+ SENATE JOINT RESOLUTION
53
64
7- A JOINT RESOLUTION
85 proposing a constitutional amendment to authorize the legislature
9- to limit the maximum appraised value of real property for ad valorem
10- tax purposes, to increase the amount of an exemption from ad valorem
11- taxation by a school district applicable to residence homesteads,
12- to adjust the amount of the limitation on school district ad valorem
13- taxes imposed on the residence homesteads of the elderly or
14- disabled to reflect increases in certain exemption amounts, and to
15- except certain appropriations to pay for ad valorem tax relief from
16- the constitutional limitation on the rate of growth of
17- appropriations.
6+ to exempt from ad valorem taxation a portion of the market value of
7+ tangible personal property that is held or used for the production
8+ of income, to increase the amount of certain exemptions from ad
9+ valorem taxation by a school district applicable to residence
10+ homesteads, to adjust the amount of the limitation on school
11+ district ad valorem taxes imposed on the residence homesteads of
12+ the elderly or disabled to reflect increases in the exemption
13+ amounts, and to except certain appropriations to pay for school
14+ district ad valorem tax relief from the constitutional limitation
15+ on the rate of growth of appropriations.
1816 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
19- SECTION 1. Section 1, Article VIII, Texas Constitution, is
20- amended by amending Subsection (i) and adding Subsection (i-1) to
21- read as follows:
22- (i) Notwithstanding Subsections (a) and (b) of this
23- section, the Legislature by general law may limit the maximum
24- appraised value of real property [a residence homestead] for ad
25- valorem tax purposes in a tax year to the lesser of the most recent
26- market value of the property [residence homestead] as determined by
27- the appraisal entity or 105 [110] percent, or a greater percentage,
28- of the appraised value of the property [residence homestead] for
29- the preceding tax year. A limitation on appraised values
30- authorized by this subsection:
31- (1) takes effect in the tax year following the first
32- tax year in which the owner owns the property on January 1 [as to a
33- residence homestead on the later of the effective date of the law
34- imposing the limitation or January 1 of the tax year following the
35- first tax year the owner qualifies the property for an exemption
36- under Section 1-b of this article]; and
37- (2) expires on January 1 of the [first] tax year
38- following the tax year in which [that neither] the owner of the
39- property when the limitation took effect ceases to own the
40- property, except that the Legislature by general law may provide
41- for the limitation applicable to a residence homestead to continue
42- during ownership of the property by [nor] the owner's spouse or
43- surviving spouse [qualifies for an exemption under Section 1-b of
44- this article].
45- (i-1) For purposes of Subsection (i) of this section, the
46- Legislature by general law may define real property, which may
47- include a manufactured or mobile home used as a dwelling.
17+ SECTION 1. Section 1(g), Article VIII, Texas Constitution,
18+ is amended to read as follows:
19+ (g) The Legislature by general law may exempt from ad
20+ valorem taxation $25,000 of the market value of tangible personal
21+ property that is held or used for the production of income [and has
22+ a taxable value of less than the minimum amount sufficient to
23+ recover the costs of the administration of the taxes on the
24+ property, as determined by or under the general law granting the
25+ exemption].
4826 SECTION 2. Sections 1-b(c) and (d), Article VIII, Texas
4927 Constitution, are amended to read as follows:
50- (c) The amount of $100,000 [$40,000] of the market value of
28+ (c) The amount of $70,000 [$40,000] of the market value of
5129 the residence homestead of a married or unmarried adult, including
5230 one living alone, is exempt from ad valorem taxation for general
5331 elementary and secondary public school purposes. The legislature
5432 by general law may provide that all or part of the exemption does
5533 not apply to a district or political subdivision that imposes ad
5634 valorem taxes for public education purposes but is not the
5735 principal school district providing general elementary and
5836 secondary public education throughout its territory. In addition
5937 to this exemption, the legislature by general law may exempt an
60- amount not to exceed $10,000 of the market value of the residence
61- homestead of a person who is disabled as defined in Subsection (b)
62- of this section and of a person 65 years of age or older from ad
63- valorem taxation for general elementary and secondary public school
64- purposes. The legislature by general law may base the amount of and
65- condition eligibility for the additional exemption authorized by
66- this subsection for disabled persons and for persons 65 years of age
67- or older on economic need. An eligible disabled person who is 65
68- years of age or older may not receive both exemptions from a school
69- district but may choose either. An eligible person is entitled to
70- receive both the exemption required by this subsection for all
71- residence homesteads and any exemption adopted pursuant to
72- Subsection (b) of this section, but the legislature shall provide
73- by general law whether an eligible disabled or elderly person may
74- receive both the additional exemption for the elderly and disabled
75- authorized by this subsection and any exemption for the elderly or
76- disabled adopted pursuant to Subsection (b) of this section. Where
77- ad valorem tax has previously been pledged for the payment of debt,
78- the taxing officers of a school district may continue to levy and
79- collect the tax against the value of homesteads exempted under this
80- subsection until the debt is discharged if the cessation of the levy
81- would impair the obligation of the contract by which the debt was
82- created. The legislature shall provide for formulas to protect
83- school districts against all or part of the revenue loss incurred by
84- the implementation of this subsection, Subsection (d) of this
85- section, and Section 1-d-1 of this article. The legislature by
86- general law may define residence homestead for purposes of this
87- section.
38+ amount not to exceed $30,000 [$10,000] of the market value of the
39+ residence homestead of a person who is disabled as defined in
40+ Subsection (b) of this section and of a person 65 years of age or
41+ older from ad valorem taxation for general elementary and secondary
42+ public school purposes. The legislature by general law may base the
43+ amount of and condition eligibility for the additional exemption
44+ authorized by this subsection for disabled persons and for persons
45+ 65 years of age or older on economic need. An eligible disabled
46+ person who is 65 years of age or older may not receive both
47+ exemptions from a school district but may choose either. An
48+ eligible person is entitled to receive both the exemption required
49+ by this subsection for all residence homesteads and any exemption
50+ adopted pursuant to Subsection (b) of this section, but the
51+ legislature shall provide by general law whether an eligible
52+ disabled or elderly person may receive both the additional
53+ exemption for the elderly and disabled authorized by this
54+ subsection and any exemption for the elderly or disabled adopted
55+ pursuant to Subsection (b) of this section. Where ad valorem tax
56+ has previously been pledged for the payment of debt, the taxing
57+ officers of a school district may continue to levy and collect the
58+ tax against the value of homesteads exempted under this subsection
59+ until the debt is discharged if the cessation of the levy would
60+ impair the obligation of the contract by which the debt was created.
61+ The legislature shall provide for formulas to protect school
62+ districts against all or part of the revenue loss incurred by the
63+ implementation of this subsection, Subsection (d) of this section,
64+ and Section 1-d-1 of this article. The legislature by general law
65+ may define residence homestead for purposes of this section.
8866 (d) Except as otherwise provided by this subsection, if a
8967 person receives a residence homestead exemption prescribed by
9068 Subsection (c) of this section for homesteads of persons who are 65
9169 years of age or older or who are disabled, the total amount of ad
9270 valorem taxes imposed on that homestead for general elementary and
9371 secondary public school purposes may not be increased while it
9472 remains the residence homestead of that person or that person's
9573 spouse who receives the exemption. If a person who is 65 years of
9674 age or older or who is disabled dies in a year in which the person
9775 received the exemption, the total amount of ad valorem taxes
9876 imposed on the homestead for general elementary and secondary
9977 public school purposes may not be increased while it remains the
10078 residence homestead of that person's surviving spouse if the spouse
10179 is 55 years of age or older at the time of the person's death,
10280 subject to any exceptions provided by general law. The
10381 legislature, by general law, may provide for the transfer of all or
10482 a proportionate amount of a limitation provided by this subsection
10583 for a person who qualifies for the limitation and establishes a
10684 different residence homestead. However, taxes otherwise limited
10785 by this subsection may be increased to the extent the value of the
10886 homestead is increased by improvements other than repairs or
10987 improvements made to comply with governmental requirements and
11088 except as may be consistent with the transfer of a limitation under
11189 this subsection. For a residence homestead subject to the
11290 limitation provided by this subsection in the 1996 tax year or an
11391 earlier tax year, the legislature shall provide for a reduction in
11492 the amount of the limitation for the 1997 tax year and subsequent
11593 tax years in an amount equal to $10,000 multiplied by the 1997 tax
11694 rate for general elementary and secondary public school purposes
11795 applicable to the residence homestead. For a residence homestead
11896 subject to the limitation provided by this subsection in the 2014
11997 tax year or an earlier tax year, the legislature shall provide for a
12098 reduction in the amount of the limitation for the 2015 tax year and
12199 subsequent tax years in an amount equal to $10,000 multiplied by the
122100 2015 tax rate for general elementary and secondary public school
123101 purposes applicable to the residence homestead. For a residence
124102 homestead subject to the limitation provided by this subsection in
125103 the 2021 tax year or an earlier tax year, the legislature shall
126104 provide for a reduction in the amount of the limitation for the 2023
127105 tax year and subsequent tax years in an amount equal to $15,000
128106 multiplied by the 2022 tax rate for general elementary and
129107 secondary public school purposes applicable to the residence
130108 homestead. Beginning with the 2023 tax year, for any tax year in
131109 which the amount of the exemption provided by Subsection (c) of this
132110 section applicable to the residence homestead of a married or
133111 unmarried adult, including one living alone, or the amount of the
134112 exemption provided by Subsection (c) of this section applicable to
135113 the residence homestead of a person who is disabled as defined by
136114 Subsection (b) of this section and of a person 65 years of age or
137115 older is increased, the legislature shall provide for a reduction
138116 for that tax year and subsequent tax years in the amount of the
139117 limitation provided by this subsection applicable to a residence
140118 homestead that was subject to the limitation in the tax year
141119 preceding the tax year in which the amount of the exemption is
142120 increased in an amount equal to the amount by which the amount of
143121 the exemption is increased multiplied by the tax rate for general
144122 elementary and secondary public school purposes applicable to the
145123 residence homestead for the tax year in which the amount of the
146124 exemption is increased.
147125 SECTION 3. Section 22, Article VIII, Texas Constitution, is
148126 amended by adding Subsection (a-1) to read as follows:
149127 (a-1) Appropriations from state tax revenues not dedicated
150- by this constitution that are made for the purpose of paying for ad
151- valorem tax relief as identified by the legislature by general law
152- are not included as appropriations for purposes of determining
153- whether the rate of growth of appropriations exceeds the limitation
154- prescribed by Subsection (a) of this section.
128+ by this constitution that are made for the purpose of paying for
129+ school district ad valorem tax relief as identified by the
130+ legislature by general law are not included as appropriations for
131+ purposes of determining whether the rate of growth of
132+ appropriations exceeds the limitation prescribed by Subsection (a)
133+ of this section.
155134 SECTION 4. The following temporary provision is added to
156135 the Texas Constitution:
157136 TEMPORARY PROVISION. (a) This temporary provision applies
158- to the constitutional amendment proposed by S.J.R. 3, 88th
159- Legislature, Regular Session, 2023.
160- (b) The amendments to Sections 1 and 1-b, Article VIII, of
161- this constitution take effect for the tax year beginning January 1,
162- 2023.
163- (c) The amendment to Section 22, Article VIII, of this
137+ to the constitutional amendment proposed by the 88th Legislature,
138+ Regular Session, 2023, to authorize the legislature to exempt from
139+ ad valorem taxation a portion of the market value of tangible
140+ personal property that is held or used for the production of income,
141+ to increase the amount of certain exemptions from ad valorem
142+ taxation by a school district applicable to residence homesteads,
143+ to adjust the amount of the limitation on school district ad valorem
144+ taxes imposed on the residence homesteads of the elderly or
145+ disabled to reflect increases in the exemption amounts, and to
146+ except certain appropriations to pay for school district ad valorem
147+ tax relief from the constitutional limitation on the rate of growth
148+ of appropriations.
149+ (b) The amendment to Section 1(g), Article VIII, of this
150+ constitution takes effect for the tax year beginning January 1,
151+ 2024.
152+ (c) The amendments to Sections 1-b(c) and (d), Article VIII,
153+ of this constitution take effect for the tax year beginning January
154+ 1, 2023.
155+ (d) The amendment to Section 22, Article VIII, of this
164156 constitution applies to appropriations made for the state fiscal
165157 biennium beginning September 1, 2023, and subsequent state fiscal
166158 bienniums.
167- (d) This temporary provision expires January 1, 2025.
159+ (e) This temporary provision expires January 1, 2025.
168160 SECTION 5. This proposed constitutional amendment shall be
169161 submitted to the voters at an election to be held November 7, 2023.
170- The ballot shall be printed to provide for voting for or against the
171- proposition: "The constitutional amendment to authorize the
172- legislature to limit the maximum appraised value of real property
173- for ad valorem tax purposes; to increase the amount of the residence
174- homestead exemption from ad valorem taxation for public school
175- purposes from $40,000 to $100,000; to adjust the amount of the
176- limitation on ad valorem taxes for public school purposes imposed
177- on the residence homestead of a person who is disabled or is 65
178- years of age or older to reflect increases in certain exemption
179- amounts; and to except certain appropriations to pay for ad valorem
180- tax relief from the constitutional limitation on the rate of growth
181- of appropriations."
162+ The ballot shall be printed to permit voting for or against the
163+ proposition: "The constitutional amendment to increase the amount
164+ of the residence homestead exemption from ad valorem taxation for
165+ public school purposes from $40,000 to $70,000 and increase the
166+ amount of the exemption applicable to the residence homestead of a
167+ person who is disabled or is 65 years of age or older from ad valorem
168+ taxation for public school purposes from $10,000 to $30,000; to
169+ adjust the amount of the limitation on ad valorem taxes for public
170+ school purposes imposed on the residence homestead of a person who
171+ is disabled or is 65 years of age or older to reflect increases in
172+ the exemption amounts; to authorize the legislature to exempt from
173+ ad valorem taxation $25,000 of the market value of tangible
174+ personal property that is held or used for the production of income;
175+ and to except certain appropriations to pay for school district ad
176+ valorem tax relief from the constitutional limitation on the rate
177+ of growth of appropriations."