By: Blanco S.J.R. No. 31
A JOINT RESOLUTION
proposing a constitutional amendment authorizing the governing
body of a political subdivision other than a school district to
adopt an exemption from ad valorem taxation of a portion, expressed
as a dollar amount, of the market value of an individual's residence
homestead.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1-b, Article VIII, Texas Constitution,
is amended by adding Subsections (q), (r), and (s) to read as
follows:
(q) The governing body of a political subdivision other than
a school district by official action may exempt from ad valorem
taxation a portion of the market value of the residence homestead of
an individual. The amount of the exemption is $14,000 except that
if the average market value of residence homesteads in the
political subdivision in the tax year in which the exemption is
adopted exceeds $70,000, the governing body may authorize an
exemption in a larger dollar amount not to exceed an amount equal to
20 percent of the average market value of residence homesteads in
the political subdivision in the tax year in which the exemption is
adopted. The legislature by general law shall specify the method
for computing the average market value of residence homesteads for
purposes of this subsection. The legislature by general law may
prohibit the governing body of a political subdivision that adopts
an exemption under this subsection from reducing the amount of or
repealing the exemption. Where ad valorem tax has previously been
pledged for the payment of debt, the governing body may continue to
levy and collect the tax against the value of the 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.
(r) The exemption amount and the average market value of
residence homesteads amount described in Subsection (q) of this
section apply to the 2024 tax year. For each subsequent tax year,
the comptroller shall adjust those amounts to reflect inflation by
using the index that the comptroller considers to most accurately
report changes in the purchasing power of the dollar for consumers
in this state and shall publicize the adjusted amounts.
(s) This subsection applies only to a political subdivision
the governing body of which has ceased granting an exemption under
Subsection (e) of this section, if doing so is not prohibited by the
legislature by general law, and has adopted an exemption under
Subsection (q) of this section. An individual who would have been
entitled to an exemption from ad valorem taxation by the political
subdivision under Subsection (e) of this section had the governing
body not ceased granting an exemption under that subsection is
entitled to continue to receive an exemption under that subsection
in lieu of the exemption under Subsection (q) of this section if the
individual otherwise qualifies for the exemption under Subsection
(e) of this section and the amount of the exemption under that
subsection exceeds the amount of the exemption under Subsection (q)
of this section. The exemption applies only to property for which
the individual received an exemption under Subsection (e) of this
section in the last tax year in which the governing body granted an
exemption under that subsection. The exemption expires in the
event of a change in ownership of the property or, if the property
is owned by a trust and the trustor of the trust or a beneficiary of
the trust has the right to use and occupy the property as the
trustor's or beneficiary's principal residential property, a change
in the trustor or beneficiary of the trust, respectively.
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, authorizing the governing body of a
political subdivision other than a school district to adopt an
exemption from ad valorem taxation of a portion, expressed as a
dollar amount, of the market value of an individual's residence
homestead.
(b) The amendment to Section 1-b, Article VIII, of this
constitution takes effect beginning with the tax year that begins
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 authorizing the
governing body of a political subdivision other than a school
district to adopt an exemption from ad valorem taxation of a
portion, expressed as a dollar amount, of the market value of an
individual's residence homestead."