By Cain                                         S.J.R. No. 42

      75R2099 SMH-D                           

                                 A JOINT RESOLUTION

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

 1-2     residence homesteads 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 Subsection (i) to read as follows:

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

 1-7     the Legislature by general law may limit the maximum annual

 1-8     increase in the appraised value of residence homesteads for ad

 1-9     valorem tax purposes in order to provide tax relief from the

1-10     effects of rapid increases in the market value of residence

1-11     homesteads.  A limitation on appraisal increases authorized by this

1-12     subsection:

1-13                 (1)  takes effect as to a residence homestead on the

1-14     later of the effective date of the law imposing the limitation or

1-15     January 1 of the tax year following the first tax year the owner

1-16     qualifies the property for an exemption under Section 1-b of this

1-17     article; and

1-18                 (2)  expires on January 1 of the first tax year that

1-19     neither the owner of the property when the limitation took effect,

1-20     the owner's spouse or surviving spouse, nor a minor child of the

1-21     owner qualifies for an exemption under Section 1-b.

1-22           SECTION 2.  This proposed constitutional amendment shall be

1-23     submitted to the voters at an election to be held November 4, 1997.

1-24     The ballot shall be printed to permit voting for or against the

 2-1     proposition:  "The constitutional amendment to authorize the

 2-2     legislature to limit the appraised value of residence homesteads

 2-3     for ad valorem tax purposes."