89R11518 DRS-D
By: Bryant H.J.R. No. 200
A JOINT RESOLUTION
proposing a constitutional amendment to authorize the legislature
to provide for an exemption from ad valorem taxation by a school
district of a portion of the market value of certain leased
residential real properties, to establish and prescribe the
permissible uses of the property tax relief to rental households
fund, and to include payments from the property tax relief to rental
households fund in the exception of certain appropriations to pay
for ad valorem tax relief from the constitutional limitation on the
rate of growth of appropriations.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article VIII, Texas Constitution, is amended by
adding Sections 1-b-3 and 30 to read as follows:
Sec. 1-b-3. (a) In this section, "qualified residential
real property" means real property that:
(1) is at least 15 years old on the date the owner of
the property applies for the exemption authorized under this
section;
(2) is a multifamily residential property that
consists of or includes residential units leased to lessees and
used by those lessees as a primary residence; and
(3) satisfies the eligibility requirements prescribed
by the legislature by general law.
(b) The legislature by general law may exempt from ad
valorem taxation by a school district:
(1) 50 percent of the market value of qualified
residential real property a person owns, excluding the portion of
the market value of the property described by Subdivision (2) of
this subsection, if applicable; and
(2) any increase in the market value of qualified
residential real property that is attributable to the
rehabilitation of the property.
(c) The legislature by general law may prescribe additional
eligibility requirements for the exemption.
(d) The legislature by general law may prescribe procedures
for the implementation and administration of this section.
Sec. 30. (a) The property tax relief to rental households
fund is established as a fund in the state treasury.
(b) The property tax relief to rental households fund may
consist of money:
(1) transferred or appropriated to the fund by the
legislature; or
(2) dedicated for deposit to the credit of the fund by
the legislature by general law.
(c) Money in the property tax relief to rental households
fund may be appropriated to the comptroller of public accounts only
for the purpose of making direct payments to rental households to
provide property tax relief in the manner prescribed by the
legislature by general law.
(d) A general law enacted under this section may:
(1) define "rental household" for purposes of this
section;
(2) prescribe eligibility requirements for the
receipt of a payment from the property tax relief to rental
households fund; and
(3) prescribe procedures for the administration of
this section.
(e) On January 1, 2026:
(1) the amount of $3.8 billion is appropriated from
the general revenue fund to the comptroller of public accounts for
the purpose of immediate deposit to the credit of the property tax
relief to rental households fund; and
(2) the amount of $3.8 billion is appropriated from
the property tax relief to rental households fund to the
comptroller of public accounts for the purpose of making direct
payments to rental households during the state fiscal biennium
ending August 31, 2027, in the manner prescribed by the general law
enacted under this section.
(f) For purposes of Section 22 of this article, an
appropriation made under Subsection (e) of this section is treated
as if it were an appropriation of revenues dedicated by this
constitution.
(g) This subsection and Subsections (e) and (f) of this
section expire December 31, 2026.
SECTION 2. Section 22(a-1), Article VIII, Texas
Constitution, is amended 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,
including payments made from the property tax relief to rental
households fund under Section 30 of this article, 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 3. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, to authorize the legislature to provide for
an exemption from ad valorem taxation by a school district of a
portion of the market value of certain leased residential real
properties, to establish and prescribe the permissible uses of the
property tax relief to rental households fund, and to include
payments from the property tax relief to rental households fund in
the exception of certain appropriations to pay for ad valorem tax
relief from the constitutional limitation on the rate of growth of
appropriations.
(b) The amendments adding Sections 1-b-3 and 30 to Article
VIII of this constitution take effect beginning with the tax year
beginning January 1, 2026.
(c) The amendment to Section 22(a-1), Article VIII, of this
constitution applies to appropriations made for the state fiscal
biennium beginning September 1, 2025, and subsequent state fiscal
bienniums.
(d) This temporary provision expires January 1, 2027.
SECTION 4. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 4, 2025.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment to authorize the
legislature to provide for an exemption from ad valorem taxation by
a school district of a portion of the market value of certain leased
residential real properties, to establish and prescribe the
permissible uses of the property tax relief to rental households
fund, and to include payments from the property tax relief to rental
households fund in the exception of certain appropriations to pay
for ad valorem tax relief from the constitutional limitation on the
rate of growth of appropriations."