88S20224 CJC/TJB-D
By: Metcalf H.J.R. No. 2
A JOINT RESOLUTION
proposing a constitutional amendment to authorize the legislature
to establish a limit on the maximum appraised value of real property
other than a residence homestead for ad valorem tax purposes; 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 except certain
appropriations to pay for ad valorem tax relief from the
constitutional limitation on the rate of growth of appropriations;
and to authorize the legislature to provide for a four-year term of
office for a member of the governing body of certain appraisal
entities.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1, Article VIII, Texas Constitution, is
amended by adding Subsection (n) to read as follows:
(n) This subsection does not apply to a residence homestead
to which Subsection (i) of this section applies. Notwithstanding
Subsections (a) and (b) of this section, the Legislature by general
law may limit the maximum appraised value of real property for ad
valorem tax purposes in a tax year to the lesser of the most recent
market value of the property as determined by the appraisal entity
or 120 percent, or a greater percentage, of the appraised value of
the property for the preceding tax year. The general law enacted
under this subsection may prescribe additional eligibility
requirements for the limitation on appraised values authorized by
this subsection. A limitation on appraised values authorized by
this subsection:
(1) takes effect as to a parcel of real property
described by this subsection on the later of the effective date of
the law imposing the limitation or January 1 of the tax year
following the first tax year in which the owner owns the property on
January 1; and
(2) expires on January 1 of the tax year following the
tax year in which the owner of the property ceases to own the
property.
SECTION 2. Sections 1-b(c) and (d), Article VIII, Texas
Constitution, are amended to read as follows:
(c) The amount of $100,000 [$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.
(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 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 ad
valorem tax relief 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. Section 30, Article XVI, Texas Constitution, is
amended by adding Subsection (e) to read as follows:
(e) The Legislature by general law may provide that members
of the governing body of an appraisal entity established in a county
with a population of 75,000 or more serve terms not to exceed four
years.
SECTION 5. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by H.J.R. 2, 88th
Legislature, 2nd Called Session, 2023.
(b) The amendments to Section 1-b, Article VIII, of this
constitution take effect for the tax year beginning January 1,
2023.
(c) 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.
(d) This temporary provision expires January 1, 2025.
SECTION 6. 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 authorize the
legislature to establish a limit on the maximum appraised value of
real property other than a residence homestead for ad valorem tax
purposes; to increase the amount of the exemption from ad valorem
taxation by a school district applicable to residence homesteads
from $40,000 to $100,000; 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 except certain appropriations to pay
for ad valorem tax relief from the constitutional limitation on the
rate of growth of appropriations; and to authorize the legislature
to provide for a four-year term of office for a member of the board
of directors of certain appraisal districts."