By: Bryant H.J.R. No. 14
A JOINT RESOLUTION
proposing a constitutional amendment to increase the amount of the
exemption from ad valorem taxation by a school district applicable
to residence homesteads, to adjust the amount of the limitation on
school district ad valorem taxes imposed on the residence
homesteads of the elderly or disabled to reflect increases in
certain exemption amounts, to establish the property tax relief to
rental households fund and authorize the legislature to provide
payments to rental households from that fund based on a proportion
of rent paid, and to except certain appropriations to pay for school
district ad valorem tax relief and property tax relief payments to
rental households from the constitutional limitation on the rate of
growth of appropriations.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1-b(c) and (d), Article VIII, Texas
Constitution, are amended to read as follows:
(c) Subject to subsection (c-1), the greater of $100,000, or
a greater amount prescribed by the legislature by general law, or 25
percent [amount of $40,000] of the market value of the residence
homestead of a married or unmarried adult, including one living
alone, is exempt from ad valorem taxation for general elementary
and secondary public school purposes. The legislature by general
law may provide that all or part of the exemption does not apply to a
district or political subdivision that imposes ad valorem taxes for
public education purposes but is not the principal school district
providing general elementary and secondary public education
throughout its territory. In addition to this exemption, the
legislature by general law may exempt an amount not to exceed
$10,000 of the market value of the residence homestead of a person
who is disabled as defined in Subsection (b) of this section and of
a person 65 years of age or older from ad valorem taxation for
general elementary and secondary public school purposes. The
legislature by general law may base the amount of and condition
eligibility for the additional exemption authorized by this
subsection for disabled persons and for persons 65 years of age or
older on economic need. An eligible disabled person who is 65 years
of age or older may not receive both exemptions from a school
district but may choose either. An eligible person is entitled to
receive both the exemption required by this subsection for all
residence homesteads and any exemption adopted pursuant to
Subsection (b) of this section, but the legislature shall provide
by general law whether an eligible disabled or elderly person may
receive both the additional exemption for the elderly and disabled
authorized by this subsection and any exemption for the elderly or
disabled adopted pursuant to Subsection (b) of this section. Where
ad valorem tax has previously been pledged for the payment of debt,
the taxing officers of a school district may continue to levy and
collect the tax against the value of 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. The legislature shall provide for formulas to protect
school districts against all or part of the revenue loss incurred by
the implementation of this subsection, Subsection (d) of this
section, and Section 1-d-1 of this article. The legislature by
general law may define residence homestead for purposes of this
section.
(c-1) An exemption of 25 percent of the appraised value of
the adult's residence homestead may not exceed $200,000, or a
greater amount prescribed by the legislature by general law, of the
appraised value of the adult's residence homestead.
(d) Except as otherwise provided by this subsection, if a
person receives a residence homestead exemption prescribed by
Subsection (c) of this section for homesteads of persons who are 65
years of age or older or who are disabled, the total amount of ad
valorem taxes imposed on that homestead for general elementary and
secondary public school purposes may not be increased while it
remains the residence homestead of that person or that person's
spouse who receives the exemption. If a person who is 65 years of
age or older or who is disabled dies in a year in which the person
received the exemption, the total amount of ad valorem taxes
imposed on the homestead for general elementary and secondary
public school purposes may not be increased while it remains the
residence homestead of that person's surviving spouse if the spouse
is 55 years of age or older at the time of the person's death,
subject to any exceptions provided by general law. The
legislature, by general law, may provide for the transfer of all or
a proportionate amount of a limitation provided by this subsection
for a person who qualifies for the limitation and establishes a
different residence homestead. However, taxes otherwise limited by
this subsection may be increased to the extent the value of the
homestead is increased by improvements other than repairs or
improvements made to comply with governmental requirements and
except as may be consistent with the transfer of a limitation under
this subsection. For a residence homestead subject to the
limitation provided by this subsection in the 1996 tax year or an
earlier tax year, the legislature shall provide for a reduction in
the amount of the limitation for the 1997 tax year and subsequent
tax years in an amount equal to $10,000 multiplied by the 1997 tax
rate for general elementary and secondary public school purposes
applicable to the residence homestead. For a residence homestead
subject to the limitation provided by this subsection in the 2014
tax year or an earlier tax year, the legislature shall provide for a
reduction in the amount of the limitation for the 2015 tax year and
subsequent tax years in an amount equal to $10,000 multiplied by the
2015 tax rate for general elementary and secondary public school
purposes applicable to the residence homestead. For a residence
homestead subject to the limitation provided by this subsection in
the 2021 tax year or an earlier tax year, the legislature shall
provide for a reduction in the amount of the limitation for the 2023
tax year and subsequent tax years in an amount equal to $15,000
multiplied by the 2022 tax rate for general elementary and
secondary public school purposes applicable to the residence
homestead. Beginning with the 2023 tax year, for any tax year in
which the amount of the exemption provided by Subsection (c) of this
section applicable to the residence homestead of a married or
unmarried adult, including one living alone, or the amount of the
exemption provided by Subsection (c) of this section applicable to
the residence homestead of a person who is disabled as defined by
Subsection (b) of this section and of a person 65 years of age or
older is increased, the legislature shall provide for a reduction
for that tax year and subsequent tax years in the amount of the
limitation provided by this subsection applicable to a residence
homestead that was subject to the limitation in the tax year
preceding the tax year in which the amount of the exemption is
increased in an amount equal to the amount by which the amount of
the exemption is increased multiplied by the tax rate for general
elementary and secondary public school purposes applicable to the
residence homestead for the tax year in which the amount of the
exemption is increased.
SECTION 2. Article VIII, Texas Constitution, is amended by
adding Section 30 to read as follows:
Sec. 30. (a) The property tax relief to rental households
fund is created, and the comptroller of public accounts shall
transfer into it $3.8 billion for the fiscal biennium beginning
September 1, 2023. The Legislature may by general law direct
general revenue into the fund and authorize the comptroller of
public accounts to make direct payments from the fund to rental
households to provide property tax relief.
(c) The legislature by general law may prescribe additional
eligibility requirements for distributions from the fund.
(d) The legislature by general law may prescribe procedures
for the administration of this section.
SECTION 3. Section 22, Article VIII, Texas Constitution, is
amended by adding Subsection (a-1) to read as follows:
(a-1) Appropriations from state tax revenues not dedicated
by this constitution that are made for the purpose of paying for
school district ad valorem tax relief, and for the purpose of paying
for property tax relief to rental households through the
comptroller of public accounts as described in Article VIII, Texas
Constitution, Section 30, as identified by the legislature by
general law are not included as appropriations for purposes of
determining whether the rate of growth of appropriations exceeds
the limitation prescribed by Subsection (a) of this section.
SECTION 4. 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,
2nd Called Session, 2023, to increase the amount of the exemption
from ad valorem taxation by a school district applicable to
residence homesteads, to adjust the amount of the limitation on
school district ad valorem taxes imposed on the residence
homesteads of the elderly or disabled to reflect increases in
certain exemption amounts, to establish the property tax relief to
rental households fund and authorize the legislature to provide
payments to rental households from that fund based on a proportion
of rent paid, and to except certain appropriations to pay for school
district ad valorem tax relief and property tax relief payments to
rental households from the constitutional limitation on the rate of
growth of appropriations.
(b) The amendments to Sections 1-b(c) and (d), Article VIII,
of this constitution take effect for the tax year beginning January
1, 2023.
(c) The amendment adding Section 30 to Article VIII of this
constitution takes effect beginning with the tax year beginning
January 1, 2024.
(d) The amendment to Section 22, Article VIII, of this
constitution applies to appropriations made for the state fiscal
biennium beginning September 1, 2023, and subsequent state fiscal
bienniums.
(e) This temporary provision expires January 1, 2025.
SECTION 5. 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 provide for voting for or against the
proposition: "The constitutional amendment to increase the amount
of the residence homestead exemption from ad valorem taxation for
public school purposes; to adjust the amount of the limitation on ad
valorem taxes for public school purposes imposed on the residence
homestead of a person who is disabled or is 65 years of age or older
to reflect increases in certain exemption amounts; to establish the
property tax relief to rental households fund and authorize the
legislature to provide payments to rental households from that fund
based on a proportion of rent paid, and to except certain
appropriations to pay for school district ad valorem tax relief and
property tax relief payments to rental households from the
constitutional limitation on the rate of growth of appropriations."