By Hochberg                                     H.J.R. No. 91

      75R6678 JD-D                           

                                 A JOINT RESOLUTION

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

 1-2     residence homesteads for ad valorem taxation by school districts

 1-3     and other political subdivisions of this state.

 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 1, Article VIII, Texas Constitution, is

 1-6     amended by adding Subsections (i) and (j) to read as follows:

 1-7           (i)  Notwithstanding Subsections (a) and (b) of this section,

 1-8     the maximum appraised value of the residence homestead of a married

 1-9     or unmarried adult, including one living alone, for ad valorem

1-10     taxation for general elementary and secondary education purposes in

1-11     a tax year is the sum of the appraised value of the residence

1-12     homestead for taxation for general elementary and secondary

1-13     education purposes for the preceding year multiplied by 1.05 and

1-14     the market value of all new improvements to the residence

1-15     homestead.  In this subsection, "new improvement" means an

1-16     improvement to a residence homestead that is made after the

1-17     appraisal of the residence homestead for the preceding year and

1-18     that increases the market value of the residence homestead.  The

1-19     term does not include ordinary maintenance of an existing structure

1-20     or the grounds or another feature of the residence homestead.  The

1-21     legislature shall provide for formulas to protect school districts

1-22     against all or part of the revenue loss incurred by the

1-23     implementation of this subsection.

1-24           (j)  In any tax year, the governing body of a county,

 2-1     municipality, or other political subdivision of this state may

 2-2     elect to use the appraised value of residence homesteads

 2-3     established under Subsection (i) of this section for school taxes

 2-4     as the appraised value of the homesteads for purposes of ad valorem

 2-5     taxation by the political subdivision.

 2-6           SECTION 2.   This proposed constitutional amendment shall be

 2-7     submitted to the voters at an election to be held November 4, 1997.

 2-8     The ballot shall be printed to permit voting for or against the

 2-9     proposition:  "The constitutional amendment to limit increases in

2-10     the appraised value of residence homesteads for ad valorem taxation

2-11     by school districts and to authorize the governing bodies of

2-12     counties, municipalities, and other political subdivisions of this

2-13     state to adopt the same limitation."