By West                                         H.J.R. No. 40

      75R2560 JD-D                           

                                 A JOINT RESOLUTION

 1-1     proposing a constitutional amendment relating to the appraisal of

 1-2     real property for ad valorem taxation.

 1-3           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.   Section 1, Article VIII, Texas Constitution, is

 1-5     amended by adding Subsections (i), (j), and (k) to read as follows:

 1-6           (i)  Notwithstanding Subsections (a) and (b) of this section,

 1-7     the maximum appraised value of real property, other than real

 1-8     property appraised as provided by Section 1-d or 1-d-1 of this

 1-9     article, for ad valorem taxation in a tax year is the sum of:

1-10                 (1)  the appraised value of the property for taxation

1-11     for the preceding year as adjusted by the appraisal office for the

1-12     current tax year to reflect the change from the preceding year in

1-13     the purchasing power of the dollar for consumers in this state; and

1-14                 (2)  the market value of all new improvements to the

1-15     property.

1-16           (j)  In Subsection (i) of this section, "new improvement"

1-17     means an improvement to real property that is made after the

1-18     appraisal of the property for the preceding year and that increases

1-19     the market value of the property.  The term does not include

1-20     ordinary maintenance of an existing structure or the grounds or

1-21     another feature of the property.

1-22           (k)  For each tax year that begins on or after January 1,

1-23     1998, using the index that the Comptroller of Public Accounts

1-24     considers most accurately to report changes in the purchasing power

 2-1     of the dollar for consumers in this state, the comptroller shall

 2-2     determine and publicize the percentage by which the appraised value

 2-3     of real property may be increased under Subsection (i)(1) of this

 2-4     section.  Each appraisal office shall use the percentage determined

 2-5     by the comptroller under this subsection to determine the maximum

 2-6     increase in the appraised value of real property appraised by that

 2-7     appraisal office.

 2-8           SECTION 2.   This proposed constitutional amendment shall be

 2-9     submitted to the voters at an election to be held November 4, 1997.

2-10     The ballot shall be printed to permit voting for or against the

2-11     proposition:  "The constitutional amendment to limit increases in

2-12     the appraised value of real property for ad valorem tax purposes."