SRC-TNM S.J.R. 22 75(R)    BILL ANALYSIS


Senate Research CenterS.J.R. 22
By: Harris
Finance
2-12-97
As Filed


DIGEST 

Currently, a senior citizen who has an ad valorem property tax freeze for
school taxes cannot carry that property tax freeze to a new homestead if
the homestead is taken by a public entity under eminent domain.  The value
of the property tax freeze is not considered to be either a part of the
property's fair market value, nor is the value of the tax freeze portable.
As a consequence, a senior citizen who is forced to move from a tax-frozen
homestead may only claim a property tax freeze on his or her next
homestead, but at a current, not the original level.  The difference can
be several hundred dollars a year, especially if the freeze had been in
effect for several years.   S.J.R. 22 prohibits the total amount of ad
valorem taxes on an elderly person's homestead from being increased. 

PURPOSE

As proposed, S.J.R. 22 requires the submission to the voters of a
constitutional amendment to provide for transferring the school tax freeze
on the homestead of an elderly person to a new homestead in certain
circumstances. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1-b(d), Article VIII, Texas Constitution, to
prohibit the total amount of ad valorem taxes imposed on a person's new
homestead for general elementary and secondary school purposes from being
increased above the total amount of ad valorem taxes that were imposed on
the person's former homestead while the new homestead remains the
residence homestead of that person or that person's spouse who receives
the exemption, if the residence homestead of a person 65 years of age or
older that qualified for the limitation provided by this subsection is
taken for a public use, and the person acquires a new residence homestead
that has an appraised value of the former homestead for the tax year in
which the former homestead was taken. 

SECTION 2. Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 4, 1997.  Sets forth the
required language for the ballot.