RESOLUTION ANALYSIS

S.J.R. 2

By: Bettencourt

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The 86th Legislature passed H.B. 3, the school finance reform bill, which provided school maintenance and operations tax rate compression for property tax payers, where the state provides additional dollars to school districts in return for lower local school tax rates. One group of Texans, homeowners with a homestead tax ceiling as a result of receiving the residence homestead property tax exemption for those age 65 or older or disabled, did not necessarily receive a reduction in their tax bill. S.J.R. 2, together with its enabling legislation S.B. 12, would put to the voters the option to extend the tax rate compression from the school finance reform bill to these taxpayers so that they too would receive additional property tax relief.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this resolution does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this resolution does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.J.R. 2 proposes an amendment to the Texas Constitution to authorize the legislature by general law to provide for the reduction of the amount of a limitation on the total amount of property taxes that may be imposed for general elementary and secondary public school purposes on the residence homestead of a person who is elderly or disabled and applicable to a residence homestead for a tax year to reflect any statutory reduction from the preceding tax year in the maximum compressed rate, as defined by general law, or a successor rate of the maintenance and operations (M&O) taxes imposed for general elementary and secondary public school purposes on the homestead. Such a law may take into account the difference between the tier one M&O rate for the 2018 tax year and the maximum compressed rate for the 2019 tax year applicable to a residence homestead and any reductions in subsequent tax years before the tax year in which the general law takes effect in the maximum compressed rate applicable to a residence homestead.

ELECTION DATE

The constitutional amendment proposed by this joint resolution will be submitted to the voters at an election to be held May 7, 2022.