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A JOINT RESOLUTION
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proposing a constitutional amendment authorizing the legislature |
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to limit the maximum appraised value of residential real property |
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for ad valorem tax purposes to 105 percent or more of the appraised |
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value of the property for the preceding tax year, to exempt from ad |
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valorem taxation the total appraised value of property purchased by |
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an individual for the first tax year the individual qualifies the |
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property as the individual's residence homestead if the property is |
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the individual's first residence homestead and has an appraised |
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value of less than $300,000, and to limit the total amount of ad |
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valorem taxes that a political subdivision may impose on the |
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residence homestead of an individual and the surviving spouse of |
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the individual if the individual qualifies the property as the |
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individual's residence homestead for at least 25 consecutive tax |
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years. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1(i), Article VIII, Texas Constitution, |
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is amended to read as follows: |
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(i) Notwithstanding Subsections (a) and (b) of this |
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section, the Legislature by general law may limit the maximum |
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appraised value of residential real property, as defined by the |
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Legislature, [a residence homestead] for ad valorem tax purposes in |
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a tax year to the lesser of the most recent market value of the |
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property [residence homestead] as determined by the appraisal |
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entity or 105 [110] percent, or a greater percentage, of the |
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appraised value of the property [residence homestead] for the |
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preceding tax year. A limitation on appraised values authorized by |
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this subsection: |
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(1) takes effect in the tax year following the first |
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tax year in which the owner owns the property on January 1 [as to a |
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residence homestead on the later of the effective date of the law |
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imposing the limitation or January 1 of the tax year following the |
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first tax year the owner qualifies the property for an exemption |
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under Section 1-b of this article]; and |
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(2) expires on January 1 of the [first] tax year |
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following the tax year in which [that neither] the owner of the |
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property when the limitation took effect ceases to own the |
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property, except that the Legislature by general law may provide |
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for the limitation applicable to a residence homestead to continue |
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during ownership of the property by [nor] the owner's spouse or |
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surviving spouse [qualifies for an exemption under Section 1-b of |
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this article]. |
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SECTION 2. Section 1-b, Article VIII, Texas Constitution, |
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is amended by adding Subsection (w) to read as follows: |
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(w) The legislature by general law may provide that an |
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individual who purchases property and qualifies the property as the |
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individual's residence homestead is entitled to an exemption from |
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ad valorem taxation of the total appraised value of the property for |
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the first tax year the individual qualifies the property as the |
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individual's residence homestead if the property is the first |
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property the individual has ever qualified as the individual's |
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residence homestead and has an appraised value of less than |
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$300,000 for that first tax year. Where ad valorem tax of a |
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political subdivision has previously been pledged for the payment |
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of debt, the taxing officers of the political subdivision may |
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continue to levy and collect the tax against the value of residence |
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homesteads exempted under this subsection until the debt is |
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discharged if the cessation of the levy would impair the obligation |
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of the contract by which the debt was created. The legislature |
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shall provide for formulas to protect school districts against all |
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or part of the revenue loss incurred by the implementation of this |
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subsection. The legislature by general law may prescribe |
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procedures for the administration of this subsection. |
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SECTION 3. Article VIII, Texas Constitution, is amended by |
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adding Section 1-b-1 to read as follows: |
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Sec. 1-b-1. (a) The legislature by general law may limit |
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the total amount of ad valorem taxes imposed by a political |
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subdivision on the residence homestead of an individual who |
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qualifies the property as the individual's residence homestead for |
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at least 25 consecutive tax years. A law enacted under this section |
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may provide that the taxes imposed by the political subdivision on |
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the residence homestead after that 25th tax year may not exceed the |
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amount of taxes imposed by the political subdivision on the |
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property in that 25th tax year. |
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(b) A law enacted under this section may provide that if the |
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first tax year an individual qualified property as the individual's |
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residence homestead was a tax year before the 24th tax year before |
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the tax year in which the law took effect, the individual is |
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considered to have qualified the property as the individual's |
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residence homestead for the first time in the 24th tax year before |
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the tax year in which the law took effect. |
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(c) A law enacted under this section may provide that the |
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total amount of ad valorem taxes imposed by a political subdivision |
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on a residence homestead may not be increased while the property |
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remains the residence homestead of the surviving spouse of an |
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individual who dies in a tax year in which the taxes on the property |
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are subject to the limitation authorized by Subsection (a) of this |
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section. |
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(d) Notwithstanding Subsection (a) or (c) of this section, a |
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law enacted under this section may provide that taxes on a residence |
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homestead subject to the limitation authorized by this section may |
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be increased to the extent the value of the residence homestead is |
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increased by an improvement made to the property, other than: |
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(1) a repair; or |
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(2) an improvement made to comply with a governmental |
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requirement. |
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(e) A law enacted under this section may prescribe: |
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(1) additional eligibility requirements for the tax |
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limitation authorized by this section; and |
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(2) procedures for the administration of the |
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limitation. |
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SECTION 4. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 7, 2023. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment authorizing the |
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legislature to limit the maximum appraised value of residential |
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real property for ad valorem tax purposes to 105 percent or more of |
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the appraised value of the property for the preceding tax year, to |
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exempt from ad valorem taxation the total appraised value of |
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property purchased by an individual for the first tax year the |
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individual qualifies the property as the individual's residence |
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homestead if the property is the individual's first residence |
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homestead and has an appraised value of less than $300,000, and to |
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limit the total amount of ad valorem taxes that a political |
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subdivision may impose on the residence homestead of an individual |
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and the surviving spouse of the individual if the individual |
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qualifies the property as the individual's residence homestead for |
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at least 25 consecutive tax years." |