By Sadler                                      H.J.R. No. 117

      75R9118 JBN-D                           

                                 A JOINT RESOLUTION

 1-1     proposing a constitutional amendment to provide funding for public

 1-2     elementary and secondary schools, property tax relief, tax equity,

 1-3     and revenue enhancement.

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

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

 1-6     amended to read as follows:

 1-7           Sec. 1-e. 1.  Except as provided by Subdivision 2 of this

 1-8     section, no  [No] State ad valorem taxes shall be levied upon any

 1-9     property within this State.

1-10           2.  Ad valorem taxes may be imposed by the legislature at a

1-11     rate not to exceed $1.50 for each $100 of market value for

1-12     elementary and secondary public school purposes on property held or

1-13     used for profit. The legislature may provide for the single

1-14     appraisal and equalization of personal property taxable under this

1-15     section and held by a person engaged in business in more than one

1-16     county or both in and outside this State. [All receipts from

1-17     previously authorized State ad valorem taxes that are collected on

1-18     or after  the effective date of the 1982 amendment to this section

1-19     shall be deposited to the credit of the general fund of the county

1-20     collecting the taxes and may be expended for county purposes.

1-21     Receipts from taxes collected before that date shall be distributed

1-22     by the legislature among institutions eligible to receive

1-23     distributions under prior law.  Those receipts and receipts

1-24     distributed under prior law may be expended for the purposes

 2-1     provided under prior law or for repair and renovation of existing

 2-2     permanent improvements.]

 2-3           SECTION 2.  Section 24, Article VIII, Texas Constitution, is

 2-4     amended by adding Subsection (k) to read as follows:

 2-5           (k)  This section does not apply to the taxation of the

 2-6     partnership share of a person who is not a resident of this state

 2-7     and who is a partner in a partnership doing business in this state

 2-8     if one or more of the partners, including the person, is not an

 2-9     individual.

2-10           SECTION 3.  Section 1-b(d), Article VIII, Texas Constitution,

2-11     is amended to read as follows:

2-12           (d)  Except as otherwise provided by this subsection, if a

2-13     person receives the residence homestead exemption prescribed by

2-14     Subsection (c) of this section for homesteads of persons sixty-five

2-15     (65) years of age or older, the total amount of ad valorem taxes

2-16     imposed on that homestead for general elementary and secondary

2-17     public school purposes may not be increased while it remains the

2-18     residence homestead of that person or that person's spouse who

2-19     receives the exemption.  If a person sixty-five (65) years of age

2-20     or older dies in a year in which the person received the exemption,

2-21     the total amount of ad valorem taxes imposed on the homestead for

2-22     general elementary and secondary public school purposes may not be

2-23     increased while it remains the residence homestead of that person's

2-24     surviving spouse if the spouse is fifty-five (55) years of age or

2-25     older at the time of the person's death, subject to any exceptions

2-26     provided by general law.  The legislature, by general law, may

2-27     provide for the transfer of all or a portion of a limitation

 3-1     provided by this subsection for a person who qualifies for the

 3-2     limitation and establishes a different residence homestead.

 3-3     However, taxes otherwise limited by this subsection may be

 3-4     increased to the extent the value of the homestead is increased by

 3-5     improvements other than repairs or improvements made to comply with

 3-6     governmental requirements and except as may be consistent with the

 3-7     transfer of a limitation  under this section.

 3-8           SECTION 4.  Section 47(e), Article III, Texas Constitution,

 3-9     is amended to read as follows:

3-10           (e)  The Legislature by general law may authorize the State

3-11     to operate lotteries and may authorize the State to enter into a

3-12     contract with one or more legal entities that will operate

3-13     lotteries on behalf of the State.  The net proceeds from the sales

3-14     of chances  are dedicated to public elementary and secondary

3-15     education and may be used for the replacement of school district ad

3-16     valorem tax revenue lost because of an exemption or exclusion of,

3-17     or rate limitation on, school district ad valorem taxes provided by

3-18     this constitution or by law.

3-19           SECTION 5.  This proposed constitutional amendment shall be

3-20     submitted to the voters at an election to be held November 4, 1997.

3-21     The ballot shall be printed to permit voting for or against the

3-22     proposition:  "The constitutional amendment to provide funding for

3-23     public elementary and secondary schools and to provide property tax

3-24     relief, tax equity, and revenue enhancement."