By Chisum H.J.R. No. 11 75R224 SMH-D A JOINT RESOLUTION 1-1 proposing a constitutional amendment to limit the aggregate ad 1-2 valorem tax rate on property. 1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article VIII, Texas Constitution, is amended by 1-5 adding Section 12 to read as follows: 1-6 Sec. 12. MAXIMUM AD VALOREM TAX RATE. (a) The aggregate ad 1-7 valorem tax rate of all taxing units on property may not exceed 1-8 $2.50 on the $100 valuation. 1-9 (b) For each tax year that begins on or after January 1, 1-10 1998, the governing bodies of taxing units that impose ad valorem 1-11 taxes on property shall adopt ad valorem tax rates that in the 1-12 aggregate do not exceed the rate prescribed by Subsection (a) of 1-13 this section. If the governing bodies fail or refuse to adopt such 1-14 tax rates, the maximum tax rate of each taxing unit is computed by: 1-15 (1) dividing the tax rate of the taxing unit for the 1-16 preceding tax year by the aggregate tax rate of all taxing units 1-17 for that year; and 1-18 (2) multiplying the amount computed under Subdivision 1-19 (1) by $2.50 on the $100 valuation. 1-20 (c) Notwithstanding Subsection (a) of this section, a taxing 1-21 unit established on or after January 1, 1998, may impose an ad 1-22 valorem tax on property at a rate that would cause the aggregate 1-23 tax rate of all taxing units that tax the property to exceed the 1-24 aggregate tax rate prescribed by Subsection (a) of this section if: 2-1 (1) imposition of the tax is approved in an election 2-2 called for that purpose; and 2-3 (2) the ballot proposition states that imposition of 2-4 the tax would cause the aggregate tax rate to exceed the rate 2-5 prescribed by Subsection (a) of this section. 2-6 (d) This section does not impair the rights or remedies of a 2-7 holder of any bond issued before January 1, 1998. A taxing unit may 2-8 impose ad valorem taxes as necessary to pay: 2-9 (1) the principal of and interest on the bonds; 2-10 (2) interest on any unpaid installment of interest; 2-11 and 2-12 (3) all costs and expenses related to an action or 2-13 proceeding by or on behalf of the bondholders. 2-14 (e) The legislature by general law may prescribe procedures 2-15 for implementing this section. 2-16 SECTION 2. This proposed constitutional amendment shall be 2-17 submitted to the voters at an election to be held November 4, 1997. 2-18 The ballot shall be printed to permit voting for or against the 2-19 proposition: "The constitutional amendment limiting the aggregate 2-20 ad valorem tax rate on property."