Texas 2023 - 88th 2nd C.S.

Texas House Bill HJR14 Compare Versions

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1	1	By: Bryant H.J.R. No. 14
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4	4	A JOINT RESOLUTION
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, to establish the property tax relief to
11	11	rental households fund and authorize the legislature to provide
12	12	payments to rental households from that fund based on a proportion
13	13	of rent paid, and to except certain appropriations to pay for school
14	14	district ad valorem tax relief and property tax relief payments to
15	15	rental households from the constitutional limitation on the rate of
16	16	growth of appropriations.
17	17	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
18	18	SECTION 1. Sections 1-b(c) and (d), Article VIII, Texas
19	19	Constitution, are amended to read as follows:
20	20	(c) Subject to subsection (c-1), the greater of $100,000, or
21	21	a greater amount prescribed by the legislature by general law, or 25
22	22	percent [amount of $40,000] of the market value of the residence
23	23	homestead of a married or unmarried adult, including one living
24	24	alone, is exempt from ad valorem taxation for general elementary
25	25	and secondary public school purposes. The legislature by general
26	26	law may provide that all or part of the exemption does not apply to a
27	27	district or political subdivision that imposes ad valorem taxes for
28	28	public education purposes but is not the principal school district
29	29	providing general elementary and secondary public education
30	30	throughout its territory. In addition to this exemption, the
31	31	legislature by general law may exempt an amount not to exceed
32	32	$10,000 of the market value of the residence homestead of a person
33	33	who is disabled as defined in Subsection (b) of this section and of
34	34	a person 65 years of age or older from ad valorem taxation for
35	35	general elementary and secondary public school purposes. The
36	36	legislature by general law may base the amount of and condition
37	37	eligibility for the additional exemption authorized by this
38	38	subsection for disabled persons and for persons 65 years of age or
39	39	older on economic need. An eligible disabled person who is 65 years
40	40	of age or older may not receive both exemptions from a school
41	41	district but may choose either. An eligible person is entitled to
42	42	receive both the exemption required by this subsection for all
43	43	residence homesteads and any exemption adopted pursuant to
44	44	Subsection (b) of this section, but the legislature shall provide
45	45	by general law whether an eligible disabled or elderly person may
46	46	receive both the additional exemption for the elderly and disabled
47	47	authorized by this subsection and any exemption for the elderly or
48	48	disabled adopted pursuant to Subsection (b) of this section. Where
49	49	ad valorem tax has previously been pledged for the payment of debt,
50	50	the taxing officers of a school district may continue to levy and
51	51	collect the tax against the value of homesteads exempted under this
52	52	subsection until the debt is discharged if the cessation of the levy
53	53	would impair the obligation of the contract by which the debt was
54	54	created. The legislature shall provide for formulas to protect
55	55	school districts against all or part of the revenue loss incurred by
56	56	the implementation of this subsection, Subsection (d) of this
57	57	section, and Section 1-d-1 of this article. The legislature by
58	58	general law may define residence homestead for purposes of this
59	59	section.
60	60	(c-1) An exemption of 25 percent of the appraised value of
61	61	the adult's residence homestead may not exceed $200,000, or a
62	62	greater amount prescribed by the legislature by general law, of the
63	63	appraised value of the adult's residence homestead.
64	64	(d) Except as otherwise provided by this subsection, if a
65	65	person receives a residence homestead exemption prescribed by
66	66	Subsection (c) of this section for homesteads of persons who are 65
67	67	years of age or older or who are disabled, the total amount of ad
68	68	valorem taxes imposed on that homestead for general elementary and
69	69	secondary public school purposes may not be increased while it
70	70	remains the residence homestead of that person or that person's
71	71	spouse who receives the exemption. If a person who is 65 years of
72	72	age or older or who is disabled dies in a year in which the person
73	73	received the exemption, the total amount of ad valorem taxes
74	74	imposed on the homestead for general elementary and secondary
75	75	public school purposes may not be increased while it remains the
76	76	residence homestead of that person's surviving spouse if the spouse
77	77	is 55 years of age or older at the time of the person's death,
78	78	subject to any exceptions provided by general law. The
79	79	legislature, by general law, may provide for the transfer of all or
80	80	a proportionate amount of a limitation provided by this subsection
81	81	for a person who qualifies for the limitation and establishes a
82	82	different residence homestead. However, taxes otherwise limited by
83	83	this subsection may be increased to the extent the value of the
84	84	homestead is increased by improvements other than repairs or
85	85	improvements made to comply with governmental requirements and
86	86	except as may be consistent with the transfer of a limitation under
87	87	this subsection. For a residence homestead subject to the
88	88	limitation provided by this subsection in the 1996 tax year or an
89	89	earlier tax year, the legislature shall provide for a reduction in
90	90	the amount of the limitation for the 1997 tax year and subsequent
91	91	tax years in an amount equal to $10,000 multiplied by the 1997 tax
92	92	rate for general elementary and secondary public school purposes
93	93	applicable to the residence homestead. For a residence homestead
94	94	subject to the limitation provided by this subsection in the 2014
95	95	tax year or an earlier tax year, the legislature shall provide for a
96	96	reduction in the amount of the limitation for the 2015 tax year and
97	97	subsequent tax years in an amount equal to $10,000 multiplied by the
98	98	2015 tax rate for general elementary and secondary public school
99	99	purposes applicable to the residence homestead. For a residence
100	100	homestead subject to the limitation provided by this subsection in
101	101	the 2021 tax year or an earlier tax year, the legislature shall
102	102	provide for a reduction in the amount of the limitation for the 2023
103	103	tax year and subsequent tax years in an amount equal to $15,000
104	104	multiplied by the 2022 tax rate for general elementary and
105	105	secondary public school purposes applicable to the residence
106	106	homestead. Beginning with the 2023 tax year, for any tax year in
107	107	which the amount of the exemption provided by Subsection (c) of this
108	108	section applicable to the residence homestead of a married or
109	109	unmarried adult, including one living alone, or the amount of the
110	110	exemption provided by Subsection (c) of this section applicable to
111	111	the residence homestead of a person who is disabled as defined by
112	112	Subsection (b) of this section and of a person 65 years of age or
113	113	older is increased, the legislature shall provide for a reduction
114	114	for that tax year and subsequent tax years in the amount of the
115	115	limitation provided by this subsection applicable to a residence
116	116	homestead that was subject to the limitation in the tax year
117	117	preceding the tax year in which the amount of the exemption is
118	118	increased in an amount equal to the amount by which the amount of
119	119	the exemption is increased multiplied by the tax rate for general
120	120	elementary and secondary public school purposes applicable to the
121	121	residence homestead for the tax year in which the amount of the
122	122	exemption is increased.
123	123	SECTION 2. Article VIII, Texas Constitution, is amended by
124	124	adding Section 30 to read as follows:
125	125	Sec. 30. (a) The property tax relief to rental households
126	126	fund is created, and the comptroller of public accounts shall
127	127	transfer into it $3.8 billion for the fiscal biennium beginning
128	128	September 1, 2023. The Legislature may by general law direct
129	129	general revenue into the fund and authorize the comptroller of
130	130	public accounts to make direct payments from the fund to rental
131	131	households to provide property tax relief.
132	132	(c) The legislature by general law may prescribe additional
133	133	eligibility requirements for distributions from the fund.
134	134	(d) The legislature by general law may prescribe procedures
135	135	for the administration of this section.
136	136	SECTION 3. Section 22, Article VIII, Texas Constitution, is
137	137	amended by adding Subsection (a-1) to read as follows:
138	138	(a-1) Appropriations from state tax revenues not dedicated
139	139	by this constitution that are made for the purpose of paying for
140	140	school district ad valorem tax relief, and for the purpose of paying
141	141	for property tax relief to rental households through the
142	142	comptroller of public accounts as described in Article VIII, Texas
143	143	Constitution, Section 30, as identified by the legislature by
144	144	general law are not included as appropriations for purposes of
145	145	determining whether the rate of growth of appropriations exceeds
146	146	the limitation prescribed by Subsection (a) of this section.
147	147	SECTION 4. The following temporary provision is added to
148	148	the Texas Constitution:
149	149	TEMPORARY PROVISION. (a) This temporary provision applies
150	150	to the constitutional amendment proposed by the 88th Legislature,
151	151	2nd Called Session, 2023, to increase the amount of the exemption
152	152	from ad valorem taxation by a school district applicable to
153	153	residence homesteads, to adjust the amount of the limitation on
154	154	school district ad valorem taxes imposed on the residence
155	155	homesteads of the elderly or disabled to reflect increases in
156	156	certain exemption amounts, to establish the property tax relief to
157	157	rental households fund and authorize the legislature to provide
158	158	payments to rental households from that fund based on a proportion
159	159	of rent paid, and to except certain appropriations to pay for school
160	160	district ad valorem tax relief and property tax relief payments to
161	161	rental households from the constitutional limitation on the rate of
162	162	growth of appropriations.
163	163	(b) The amendments to Sections 1-b(c) and (d), Article VIII,
164	164	of this constitution take effect for the tax year beginning January
165	165	1, 2023.
166	166	(c) The amendment adding Section 30 to Article VIII of this
167	167	constitution takes effect beginning with the tax year beginning
168	168	January 1, 2024.
169	169	(d) The amendment to Section 22, Article VIII, of this
170	170	constitution applies to appropriations made for the state fiscal
171	171	biennium beginning September 1, 2023, and subsequent state fiscal
172	172	bienniums.
173	173	(e) This temporary provision expires January 1, 2025.
174	174	SECTION 5. This proposed constitutional amendment shall be
175	175	submitted to the voters at an election to be held November 7, 2023.
176	176	The ballot shall be printed to provide for voting for or against the
177	177	proposition: "The constitutional amendment to increase the amount
178	178	of the residence homestead exemption from ad valorem taxation for
179	179	public school purposes; to adjust the amount of the limitation on ad
180	180	valorem taxes for public school purposes imposed on the residence
181	181	homestead of a person who is disabled or is 65 years of age or older
182	182	to reflect increases in certain exemption amounts; to establish the
183	183	property tax relief to rental households fund and authorize the
184	184	legislature to provide payments to rental households from that fund
185	185	based on a proportion of rent paid, and to except certain
186	186	appropriations to pay for school district ad valorem tax relief and
187	187	property tax relief payments to rental households from the
188	188	constitutional limitation on the rate of growth of appropriations."