1-1           By:  Harris                                     S.J.R. No. 22

 1-2           (In the Senate - Filed January 31, 1997; February 5, 1997,

 1-3     read first time and referred to Committee on Finance;

 1-4     February 18, 1997, reported favorably by the following vote:  Yeas

 1-5     13, Nays 0; February 18, 1997, sent to printer.)

 1-6                           SENATE JOINT RESOLUTION

 1-7     proposing a constitutional amendment to provide for transferring

 1-8     the school tax freeze on the homestead of an elderly person to a

 1-9     new homestead in certain circumstances.

1-10           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subsection (d), Section 1-b, Article VIII, Texas

1-12     Constitution, is amended to read as follows:

1-13           (d)  Except as otherwise provided by this subsection, if a

1-14     person receives the residence homestead exemption prescribed by

1-15     Subsection (c) of this section for homesteads of persons sixty-five

1-16     (65) years of age or older, the total amount of ad valorem taxes

1-17     imposed on that homestead for general elementary and secondary

1-18     public school purposes may not be increased while it remains the

1-19     residence homestead of that person or that person's spouse who

1-20     receives the exemption.  If the residence homestead of a person

1-21     sixty-five (65) years of age or older that qualified for the

1-22     limitation provided by this subsection is taken for a public use,

1-23     and the person acquires a new residence homestead that has an

1-24     appraised value when acquired that does not exceed by more than

1-25     twenty-five percent the appraised value of the former homestead for

1-26     the tax year in which the former homestead was taken, the total

1-27     amount of ad valorem taxes imposed on the person's new homestead

1-28     for general elementary and secondary school purposes may not be

1-29     increased above the total amount of ad valorem taxes that were

1-30     imposed for those purposes on the person's former homestead while

1-31     the new homestead remains the residence homestead of that person or

1-32     that person's spouse who receives the exemption.  If a person

1-33     sixty-five (65) years of age or older dies in a year in which the

1-34     person received the exemption, the total amount of ad valorem taxes

1-35     imposed on the homestead for general elementary and secondary

1-36     public school purposes may not be increased while it remains the

1-37     residence homestead of that person's surviving spouse if the spouse

1-38     is fifty-five (55) years of age or older at the time of the

1-39     person's death, subject to any exceptions provided by general law.

1-40     However, taxes otherwise limited by this subsection may be

1-41     increased to the extent the value of the homestead is increased by

1-42     improvements other than repairs or improvements made to comply with

1-43     governmental requirements.

1-44           SECTION 2.  This proposed constitutional amendment shall be

1-45     submitted to the voters at an election to be held on November 4,

1-46     1997.  The ballot shall be printed to provide for voting for or

1-47     against the proposition:  "The constitutional amendment to provide

1-48     for transferring to their new homesteads the school tax freeze for

1-49     elderly persons whose homesteads are taken for a public use."

1-50                                  * * * * *