SRC-HRD S.J.R. 37 75(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 37
By: Gallegos
Finance
5-16-97
As Filed


DIGEST 

Currently, Chapter 11, Tax Code (Exemptions), provides for ad valorem tax
exemptions for certain organizations that provide certain public policy
goals, and Section 23.18, Tax Code, provides a nominal exemption for the
property owned by a nonprofit homeowners' organization.  Currently,
neighborhood associations that preserve, protect, improve, and monitor
matters affecting a defined residential area have no special tax
treatment.          

PURPOSE

As proposed, S.J.R. 37 requires the submission to the voters of a
constitutional amendment regarding the exemption from ad valorem taxation
the property of a neighborhood association. 

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 Article VIII, Texas Constitution, by adding Section 1-m,
as follows: 

Sec. 1-m.  PROPERTY OF NEIGHBORHOOD ASSOCIATIONS; EXEMPTION FROM AD
VALOREM TAXATION.  Authorizes the legislature by general law to exempt
from ad valorem taxation the property a neighborhood association owns and
uses exclusively for the purposes for which the association is organized.
Defines "neighborhood association." Authorizes the legislature to impose
additional requirements for qualification for an exemption under this
section. 

SECTION 2. Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 4, 1997.  Requires the
ballot to be printed to permit voting for or against the proposition.
Sets forth the language of the proposition.  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.