Texas 2023 - 88th 1st C.S.

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1	1	88S10075 CJC/TJB/KJE-D
2	2	By: Bettencourt S.J.R. No. 2
3	3
4	4
5	5	A JOINT RESOLUTION
6	6	proposing a constitutional amendment to increase the amount of the
7	7	exemption from ad valorem taxation by a school district applicable
8	8	to residence homesteads, to adjust the amount of the limitation on
9	9	school district ad valorem taxes imposed on the residence
10	10	homesteads of the elderly or disabled to reflect increases in
11	11	certain exemption amounts, and to except certain appropriations to
12	12	pay for school district ad valorem tax relief from the
13	13	constitutional limitation on the rate of growth of appropriations.
14	14	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Sections 1-b(c) and (d), Article VIII, Texas
16	16	Constitution, are amended to read as follows:
17	17	(c) The amount of $100,000 [$40,000] of the market value of
18	18	the residence homestead of a married or unmarried adult, including
19	19	one living alone, is exempt from ad valorem taxation for general
20	20	elementary and secondary public school purposes. The legislature
21	21	by general law may provide that all or part of the exemption does
22	22	not apply to a district or political subdivision that imposes ad
23	23	valorem taxes for public education purposes but is not the
24	24	principal school district providing general elementary and
25	25	secondary public education throughout its territory. In addition
26	26	to this exemption, the legislature by general law may exempt an
27	27	amount not to exceed $10,000 of the market value of the residence
28	28	homestead of a person who is disabled as defined in Subsection (b)
29	29	of this section and of a person 65 years of age or older from ad
30	30	valorem taxation for general elementary and secondary public school
31	31	purposes. The legislature by general law may base the amount of and
32	32	condition eligibility for the additional exemption authorized by
33	33	this subsection for disabled persons and for persons 65 years of age
34	34	or older on economic need. An eligible disabled person who is 65
35	35	years of age or older may not receive both exemptions from a school
36	36	district but may choose either. An eligible person is entitled to
37	37	receive both the exemption required by this subsection for all
38	38	residence homesteads and any exemption adopted pursuant to
39	39	Subsection (b) of this section, but the legislature shall provide
40	40	by general law whether an eligible disabled or elderly person may
41	41	receive both the additional exemption for the elderly and disabled
42	42	authorized by this subsection and any exemption for the elderly or
43	43	disabled adopted pursuant to Subsection (b) of this section. Where
44	44	ad valorem tax has previously been pledged for the payment of debt,
45	45	the taxing officers of a school district may continue to levy and
46	46	collect the tax against the value of homesteads exempted under this
47	47	subsection until the debt is discharged if the cessation of the levy
48	48	would impair the obligation of the contract by which the debt was
49	49	created. The legislature shall provide for formulas to protect
50	50	school districts against all or part of the revenue loss incurred by
51	51	the implementation of this subsection, Subsection (d) of this
52	52	section, and Section 1-d-1 of this article. The legislature by
53	53	general law may define residence homestead for purposes of this
54	54	section.
55	55	(d) Except as otherwise provided by this subsection, if a
56	56	person receives a residence homestead exemption prescribed by
57	57	Subsection (c) of this section for homesteads of persons who are 65
58	58	years of age or older or who are disabled, the total amount of ad
59	59	valorem taxes imposed on that homestead for general elementary and
60	60	secondary public school purposes may not be increased while it
61	61	remains the residence homestead of that person or that person's
62	62	spouse who receives the exemption. If a person who is 65 years of
63	63	age or older or who is disabled dies in a year in which the person
64	64	received the exemption, the total amount of ad valorem taxes
65	65	imposed on the homestead for general elementary and secondary
66	66	public school purposes may not be increased while it remains the
67	67	residence homestead of that person's surviving spouse if the spouse
68	68	is 55 years of age or older at the time of the person's death,
69	69	subject to any exceptions provided by general law. The
70	70	legislature, by general law, may provide for the transfer of all or
71	71	a proportionate amount of a limitation provided by this subsection
72	72	for a person who qualifies for the limitation and establishes a
73	73	different residence homestead. However, taxes otherwise limited
74	74	by this subsection may be increased to the extent the value of the
75	75	homestead is increased by improvements other than repairs or
76	76	improvements made to comply with governmental requirements and
77	77	except as may be consistent with the transfer of a limitation under
78	78	this subsection. For a residence homestead subject to the
79	79	limitation provided by this subsection in the 1996 tax year or an
80	80	earlier tax year, the legislature shall provide for a reduction in
81	81	the amount of the limitation for the 1997 tax year and subsequent
82	82	tax years in an amount equal to $10,000 multiplied by the 1997 tax
83	83	rate for general elementary and secondary public school purposes
84	84	applicable to the residence homestead. For a residence homestead
85	85	subject to the limitation provided by this subsection in the 2014
86	86	tax year or an earlier tax year, the legislature shall provide for a
87	87	reduction in the amount of the limitation for the 2015 tax year and
88	88	subsequent tax years in an amount equal to $10,000 multiplied by the
89	89	2015 tax rate for general elementary and secondary public school
90	90	purposes applicable to the residence homestead. For a residence
91	91	homestead subject to the limitation provided by this subsection in
92	92	the 2021 tax year or an earlier tax year, the legislature shall
93	93	provide for a reduction in the amount of the limitation for the 2023
94	94	tax year and subsequent tax years in an amount equal to $15,000
95	95	multiplied by the 2022 tax rate for general elementary and
96	96	secondary public school purposes applicable to the residence
97	97	homestead. Beginning with the 2023 tax year, for any tax year in
98	98	which the amount of the exemption provided by Subsection (c) of this
99	99	section applicable to the residence homestead of a married or
100	100	unmarried adult, including one living alone, or the amount of the
101	101	exemption provided by Subsection (c) of this section applicable to
102	102	the residence homestead of a person who is disabled as defined by
103	103	Subsection (b) of this section and of a person 65 years of age or
104	104	older is increased, the legislature shall provide for a reduction
105	105	for that tax year and subsequent tax years in the amount of the
106	106	limitation provided by this subsection applicable to a residence
107	107	homestead that was subject to the limitation in the tax year
108	108	preceding the tax year in which the amount of the exemption is
109	109	increased in an amount equal to the amount by which the amount of
110	110	the exemption is increased multiplied by the tax rate for general
111	111	elementary and secondary public school purposes applicable to the
112	112	residence homestead for the tax year in which the amount of the
113	113	exemption is increased.
114	114	SECTION 2. Section 22, Article VIII, Texas Constitution, is
115	115	amended by adding Subsection (a-1) to read as follows:
116	116	(a-1) Appropriations from state tax revenues not dedicated
117	117	by this constitution that are made for the purpose of paying for
118	118	school district ad valorem tax relief as identified by the
119	119	legislature by general law are not included as appropriations for
120	120	purposes of determining whether the rate of growth of
121	121	appropriations exceeds the limitation prescribed by Subsection (a)
122	122	of this section.
123	123	SECTION 3. The following temporary provision is added to
124	124	the Texas Constitution:
125	125	TEMPORARY PROVISION. (a) This temporary provision applies
126	126	to the constitutional amendment proposed by the 88th Legislature,
127	127	1st Called Session, 2023, to increase the amount of the exemption
128	128	from ad valorem taxation by a school district applicable to
129	129	residence homesteads, to adjust the amount of the limitation on
130	130	school district ad valorem taxes imposed on the residence
131	131	homesteads of the elderly or disabled to reflect increases in
132	132	certain exemption amounts, and to except certain appropriations to
133	133	pay for school district ad valorem tax relief from the
134	134	constitutional limitation on the rate of growth of appropriations.
135	135	(b) The amendments to Sections 1-b(c) and (d), Article VIII,
136	136	of this constitution take effect for the tax year beginning January
137	137	1, 2023.
138	138	(c) The amendment to Section 22, Article VIII, of this
139	139	constitution applies to appropriations made for the state fiscal
140	140	biennium beginning September 1, 2023, and subsequent state fiscal
141	141	bienniums.
142	142	(d) This temporary provision expires January 1, 2025.
143	143	SECTION 4. This proposed constitutional amendment shall be
144	144	submitted to the voters at an election to be held November 7, 2023.
145	145	The ballot shall be printed to provide for voting for or against the
146	146	proposition: "The constitutional amendment to increase the amount
147	147	of the residence homestead exemption from ad valorem taxation for
148	148	public school purposes from $40,000 to $100,000; to adjust the
149	149	amount of the limitation on ad valorem taxes for public school
150	150	purposes imposed on the residence homestead of a person who is
151	151	disabled or is 65 years of age or older to reflect increases in
152	152	certain exemption amounts; and to except certain appropriations to
153	153	pay for school district ad valorem tax relief from the
154	154	constitutional limitation on the rate of growth of appropriations."