By Merritt                                     H.J.R. No. 122

      75R8125 SMH-D                           

                                 A JOINT RESOLUTION

 1-1     proposing a constitutional amendment to limit increases in the

 1-2     appraised value of real property for ad valorem tax purposes.

 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), (k), and (l) to read as

 1-6     follows:

 1-7           (i)  The 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 tax purposes for the first tax year after

1-10     the tax year in which the owner acquires the property may not

1-11     exceed the market value of the property.  Notwithstanding

1-12     Subsections (a) and (b) of this section, the appraised value of the

1-13     property in each subsequent tax year until the end of the tax year

1-14     in which the ownership of the property changes may not exceed the

1-15     sum of:

1-16                 (1)  the appraised value of the property for tax

1-17     purposes for the preceding year as adjusted by the appraisal office

1-18     for the current tax year to reflect the change from the preceding

1-19     tax year in the purchasing power of the dollar for consumers in

1-20     this state; and

1-21                 (2)  the market value of all new improvements to the

1-22     property.

1-23           (j)  In Subsection (i) of this section, "new improvement"

1-24     means an improvement to real property that is made after the

 2-1     appraisal of the property for the preceding tax year and that

 2-2     increases the market value of the property.  The term does not

 2-3     include ordinary maintenance of an existing structure or the

 2-4     grounds or another feature of the property.

 2-5           (k)  For each tax year, using the index that the Comptroller

 2-6     of Public Accounts considers to most accurately report changes in

 2-7     the purchasing power of the dollar for consumers in this state, the

 2-8     comptroller shall determine and publicize the percentage by which

 2-9     the appraised value of real property may be increased under

2-10     Subsection (i)(1) of this section.  Each appraisal office shall use

2-11     the percentage determined by the comptroller under this subsection

2-12     to determine the maximum increase in the appraised value of real

2-13     property appraised by that appraisal office.

2-14           (l)  For purposes of Subsection (i) of this section, the

2-15     owner of real property on January 1, 1998, is considered to have

2-16     acquired the property in the 1997 tax year.

2-17           SECTION 2.  The following temporary provision is added to the

2-18     Texas Constitution:

2-19           TEMPORARY PROVISION.  (a)  This temporary provision applies

2-20     to the constitutional amendment proposed by __J.R. No. __, 75th

2-21     Legislature, Regular Session, 1997, and expires January 1, 2000.

2-22           (b)  The amendment takes effect January 1, 1998.

2-23           SECTION 3.  This proposed constitutional amendment shall be

2-24     submitted to the voters at an election to be held November 4, 1997.

2-25     The ballot shall be printed to permit voting for or against the

2-26     proposition: "The constitutional amendment to limit increases in

2-27     the appraised value of real property for ad valorem tax purposes."