Texas 2023 - 88th 1st C.S.

Texas Senate Bill SJR1 Compare Versions

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1	1	By: Bettencourt, et al. S.J.R. No. 1
2	2	SENATE JOINT RESOLUTION
3	3
4	4
5	5	proposing a constitutional amendment to increase the amount of the
6	6	exemption from ad valorem taxation by a school district applicable
7	7	to residence homesteads, to adjust the amount of the limitation on
8	8	school district ad valorem taxes imposed on the residence
9	9	homesteads of the elderly or disabled to reflect increases in
10	10	certain exemption amounts, and to except certain appropriations to
11	11	pay for school district ad valorem tax relief from the
12	12	constitutional limitation on the rate of growth of appropriations.
13	13	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Sections 1-b(c) and (d), Article VIII, Texas
15	15	Constitution, are amended to read as follows:
16	16	(c) The amount of $100,000 [$40,000] of the market value of
17	17	the residence homestead of a married or unmarried adult, including
18	18	one living alone, is exempt from ad valorem taxation for general
19	19	elementary and secondary public school purposes. The legislature
20	20	by general law may provide that all or part of the exemption does
21	21	not apply to a district or political subdivision that imposes ad
22	22	valorem taxes for public education purposes but is not the
23	23	principal school district providing general elementary and
24	24	secondary public education throughout its territory. In addition
25	25	to this exemption, the legislature by general law may exempt an
26	26	amount not to exceed $10,000 of the market value of the residence
27	27	homestead of a person who is disabled as defined in Subsection (b)
28	28	of this section and of a person 65 years of age or older from ad
29	29	valorem taxation for general elementary and secondary public school
30	30	purposes. The legislature by general law may base the amount of and
31	31	condition eligibility for the additional exemption authorized by
32	32	this subsection for disabled persons and for persons 65 years of age
33	33	or older on economic need. An eligible disabled person who is 65
34	34	years of age or older may not receive both exemptions from a school
35	35	district but may choose either. An eligible person is entitled to
36	36	receive both the exemption required by this subsection for all
37	37	residence homesteads and any exemption adopted pursuant to
38	38	Subsection (b) of this section, but the legislature shall provide
39	39	by general law whether an eligible disabled or elderly person may
40	40	receive both the additional exemption for the elderly and disabled
41	41	authorized by this subsection and any exemption for the elderly or
42	42	disabled adopted pursuant to Subsection (b) of this section. Where
43	43	ad valorem tax has previously been pledged for the payment of debt,
44	44	the taxing officers of a school district may continue to levy and
45	45	collect the tax against the value of homesteads exempted under this
46	46	subsection until the debt is discharged if the cessation of the levy
47	47	would impair the obligation of the contract by which the debt was
48	48	created. The legislature shall provide for formulas to protect
49	49	school districts against all or part of the revenue loss incurred by
50	50	the implementation of this subsection, Subsection (d) of this
51	51	section, and Section 1-d-1 of this article. The legislature by
52	52	general law may define residence homestead for purposes of this
53	53	section.
54	54	(d) Except as otherwise provided by this subsection, if a
55	55	person receives a residence homestead exemption prescribed by
56	56	Subsection (c) of this section for homesteads of persons who are 65
57	57	years of age or older or who are disabled, the total amount of ad
58	58	valorem taxes imposed on that homestead for general elementary and
59	59	secondary public school purposes may not be increased while it
60	60	remains the residence homestead of that person or that person's
61	61	spouse who receives the exemption. If a person who is 65 years of
62	62	age or older or who is disabled dies in a year in which the person
63	63	received the exemption, the total amount of ad valorem taxes
64	64	imposed on the homestead for general elementary and secondary
65	65	public school purposes may not be increased while it remains the
66	66	residence homestead of that person's surviving spouse if the spouse
67	67	is 55 years of age or older at the time of the person's death,
68	68	subject to any exceptions provided by general law. The
69	69	legislature, by general law, may provide for the transfer of all or
70	70	a proportionate amount of a limitation provided by this subsection
71	71	for a person who qualifies for the limitation and establishes a
72	72	different residence homestead. However, taxes otherwise limited
73	73	by this subsection may be increased to the extent the value of the
74	74	homestead is increased by improvements other than repairs or
75	75	improvements made to comply with governmental requirements and
76	76	except as may be consistent with the transfer of a limitation under
77	77	this subsection. For a residence homestead subject to the
78	78	limitation provided by this subsection in the 1996 tax year or an
79	79	earlier tax year, the legislature shall provide for a reduction in
80	80	the amount of the limitation for the 1997 tax year and subsequent
81	81	tax years in an amount equal to $10,000 multiplied by the 1997 tax
82	82	rate for general elementary and secondary public school purposes
83	83	applicable to the residence homestead. For a residence homestead
84	84	subject to the limitation provided by this subsection in the 2014
85	85	tax year or an earlier tax year, the legislature shall provide for a
86	86	reduction in the amount of the limitation for the 2015 tax year and
87	87	subsequent tax years in an amount equal to $10,000 multiplied by the
88	88	2015 tax rate for general elementary and secondary public school
89	89	purposes applicable to the residence homestead. For a residence
90	90	homestead subject to the limitation provided by this subsection in
91	91	the 2021 tax year or an earlier tax year, the legislature shall
92	92	provide for a reduction in the amount of the limitation for the 2023
93	93	tax year and subsequent tax years in an amount equal to $15,000
94	94	multiplied by the 2022 tax rate for general elementary and
95	95	secondary public school purposes applicable to the residence
96	96	homestead. Beginning with the 2023 tax year, for any tax year in
97	97	which the amount of the exemption provided by Subsection (c) of this
98	98	section applicable to the residence homestead of a married or
99	99	unmarried adult, including one living alone, or the amount of the
100	100	exemption provided by Subsection (c) of this section applicable to
101	101	the residence homestead of a person who is disabled as defined by
102	102	Subsection (b) of this section and of a person 65 years of age or
103	103	older is increased, the legislature shall provide for a reduction
104	104	for that tax year and subsequent tax years in the amount of the
105	105	limitation provided by this subsection applicable to a residence
106	106	homestead that was subject to the limitation in the tax year
107	107	preceding the tax year in which the amount of the exemption is
108	108	increased in an amount equal to the amount by which the amount of
109	109	the exemption is increased multiplied by the tax rate for general
110	110	elementary and secondary public school purposes applicable to the
111	111	residence homestead for the tax year in which the amount of the
112	112	exemption is increased.
113	113	SECTION 2. Section 22, Article VIII, Texas Constitution, is
114	114	amended by adding Subsection (a-1) to read as follows:
115	115	(a-1) Appropriations from state tax revenues not dedicated
116	116	by this constitution that are made for the purpose of paying for
117	117	school district ad valorem tax relief as identified by the
118	118	legislature by general law are not included as appropriations for
119	119	purposes of determining whether the rate of growth of
120	120	appropriations exceeds the limitation prescribed by Subsection (a)
121	121	of this section.
122	122	SECTION 3. The following temporary provision is added to
123	123	the Texas Constitution:
124	124	TEMPORARY PROVISION. (a) This temporary provision applies
125	125	to the constitutional amendment proposed by the 88th Legislature,
126	126	1st Called Session, 2023, to increase the amount of the exemption
127	127	from ad valorem taxation by a school district applicable to
128	128	residence homesteads, to adjust the amount of the limitation on
129	129	school district ad valorem taxes imposed on the residence
130	130	homesteads of the elderly or disabled to reflect increases in
131	131	certain exemption amounts, and to except certain appropriations to
132	132	pay for school district ad valorem tax relief from the
133	133	constitutional limitation on the rate of growth of appropriations.
134	134	(b) The amendments to Sections 1-b(c) and (d), Article VIII,
135	135	of this constitution take effect for the tax year beginning January
136	136	1, 2023.
137	137	(c) The amendment to Section 22, Article VIII, of this
138	138	constitution applies to appropriations made for the state fiscal
139	139	biennium beginning September 1, 2023, and subsequent state fiscal
140	140	bienniums.
141	141	(d) This temporary provision expires January 1, 2025.
142	142	SECTION 4. This proposed constitutional amendment shall be
143	143	submitted to the voters at an election to be held November 7, 2023.
144	144	The ballot shall be printed to provide for voting for or against the
145	145	proposition: "The constitutional amendment to increase the amount
146	146	of the residence homestead exemption from ad valorem taxation for
147	147	public school purposes from $40,000 to $100,000; to adjust the
148	148	amount of the limitation on ad valorem taxes for public school
149	149	purposes imposed on the residence homestead of a person who is
150	150	disabled or is 65 years of age or older to reflect increases in
151	151	certain exemption amounts; and to except certain appropriations to
152	152	pay for school district ad valorem tax relief from the
153	153	constitutional limitation on the rate of growth of appropriations."