75R14145 SMH-D                          

         By Cain                                               S.J.R. No. 43

         Substitute the following for S.J.R. No. 43:

         By Hilbert                                        C.S.S.J.R. No. 43

                                 A JOINT RESOLUTION

 1-1     proposing a constitutional amendment authorizing the legislature to

 1-2     limit increases in value and the frequency of appraisals of

 1-3     residence homesteads for property tax purposes and to  provide for

 1-4     the transfer to a different residence homestead of the school

 1-5     property tax freeze on residence homesteads of the elderly.

 1-6           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7           SECTION 1.  Section 1, Article VIII, Texas Constitution, is

 1-8     amended by adding Subsections (i) and (j) to read as follows:

 1-9           (i)  Notwithstanding Subsections (a) and (b) of this section,

1-10     the Legislature by general law may limit the maximum annual

1-11     increase in the appraised value of residence homesteads for ad

1-12     valorem tax purposes in order to provide tax relief from the

1-13     effects of increases in the market value of residence homesteads.

1-14     A limitation on appraisal increases authorized by this subsection:

1-15                 (1)  takes effect as to a residence homestead on the

1-16     later of the effective date of the law imposing the limitation or

1-17     January 1 of the tax year following the first tax year the owner

1-18     qualifies the property for an exemption under Section 1-b of this

1-19     article; and

1-20                 (2)  expires on January 1 of the first tax year that

1-21     neither the owner of the property when the limitation took effect,

1-22     the owner's spouse or surviving spouse, nor a minor child of the

1-23     owner qualifies for an exemption under Section 1-b.

1-24           (j)  Notwithstanding Subsections (a) and (b) of this section,

 2-1     the Legislature by general law may limit the frequency with which

 2-2     increases in the appraised value of real property for ad valorem

 2-3     tax purposes may be recognized.

 2-4           SECTION 2.  Section 1-b(d), Article VIII, Texas Constitution,

 2-5     is amended to read as follows:

 2-6           (d)  Except as otherwise provided by this subsection, if a

 2-7     person receives the residence homestead exemption prescribed by

 2-8     Subsection (c) of this section for homesteads of persons sixty-five

 2-9     (65) years of age or older, the total amount of ad valorem taxes

2-10     imposed on that homestead for general elementary and secondary

2-11     public school purposes may not be increased while it remains the

2-12     residence homestead of that person or that person's spouse who

2-13     receives the exemption.  If a person sixty-five (65) years of age

2-14     or older dies in a year in which the person received the exemption,

2-15     the total amount of ad valorem taxes imposed on the homestead for

2-16     general elementary and secondary public school purposes may not be

2-17     increased while it remains the residence homestead of that person's

2-18     surviving spouse if the spouse is fifty-five (55) years of age or

2-19     older at the time of the person's death, subject to any exceptions

2-20     provided by general law.  The legislature, by general law, may

2-21     provide for the transfer of all or a proportionate amount of a

2-22     limitation provided by this subsection for a person who qualifies

2-23     for the limitation and establishes a different residence homestead.

2-24     However, taxes otherwise limited by this subsection may be

2-25     increased to the extent the value of the homestead is increased by

2-26     improvements other than repairs or improvements made to comply with

2-27     governmental requirements and except as may be consistent with the

 3-1     transfer of a limitation  under this subsection.

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

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

 3-4     but only if the constitutional amendment proposed by H.J.R. No. 4,

 3-5     75th Legislature, Regular Session, 1997, is not approved by the

 3-6     voters.  The ballot shall be printed to permit voting for or

 3-7     against the proposition:  "The constitutional amendment authorizing

 3-8     the legislature to limit increases in value and the frequency of

 3-9     appraisals of residence homesteads for property tax purposes and to

3-10     provide for the transfer to a different residence homestead of the

3-11     school property tax freeze on residence homesteads of the elderly."