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."