By Armbrister                                          S.R. No. 980

         75R17141 JBN-D                           

                                 R E S O L U T I O N

 1-1           BE IT RESOLVED by the Senate of the State of Texas, 75th

 1-2     Legislature, Regular Session, 1997, That Senate Rules 12.03(1),

 1-3     (2), (3), and (4) and Senate Rules 12.05(1), (2), (3), and (5) be

 1-4     suspended in part as provided by Senate Rule 12.08, to enable the

 1-5     conference committee appointed to resolve the differences on House

 1-6     Joint Resolution No. 4 to consider and take action on the following

 1-7     specific matter:

 1-8           Senate Rules 12.03(1), (2), (3), and (4) and Senate Rules

 1-9     12.05(1), (2), (3), and (5) are suspended to permit the committee

1-10     to add, change, and delete text and matters and to add a complete

1-11     substitute to H.J.R. No. 4 to read as follows:

1-12           SECTION 1.   Sections 1-b(c) and (d), Article VIII, Texas

1-13     Constitution, are amended to read as follows:

1-14           (c)  Fifteen Thousand Dollars ($15,000) [Five Thousand

1-15     Dollars ($5,000)] of the market value of the residence homestead of

1-16     a married or unmarried adult, including one living alone, is exempt

1-17     from ad valorem taxation for general elementary and secondary

1-18     public school purposes.  The legislature by general law may provide

1-19     that all or part of the exemption does not apply to a district or

1-20     political  subdivision that imposes ad valorem taxes for public

1-21     education purposes but is not the principal school district

1-22     providing general elementary and secondary public education

1-23     throughout its territory.  In addition to this exemption, the

1-24     legislature by general law may exempt an amount not to exceed Ten

 2-1     Thousand Dollars ($10,000) of the market value of the residence

 2-2     homestead of a person who is disabled as defined in Subsection (b)

 2-3     of this section and of a person sixty-five (65) years of age or

 2-4     older from ad valorem taxation for general elementary and secondary

 2-5     public school purposes.  The legislature by general law may base

 2-6     the amount of and condition eligibility for the additional

 2-7     exemption authorized by this subsection for disabled persons and

 2-8     for persons sixty-five (65) years of age or older on economic need.

 2-9     An eligible disabled person who is sixty-five (65) years of age or

2-10     older may not receive both exemptions from a school district but

2-11     may choose either.  An eligible person is entitled to receive both

2-12     the exemption required by this subsection for all residence

2-13     homesteads and any exemption adopted pursuant to Subsection (b) of

2-14     this section, but the legislature shall provide by general law

2-15     whether an eligible disabled or elderly person may receive both the

2-16     additional exemption for the elderly and disabled authorized by

2-17     this subsection and any exemption for the elderly or disabled

2-18     adopted pursuant to Subsection (b) of this section.  Where ad

2-19     valorem tax has previously been pledged for the payment of debt,

2-20     the taxing officers of a school district may continue to levy and

2-21     collect the tax against the value of homesteads exempted under this

2-22     subsection until the debt is discharged if the cessation of the

2-23     levy would impair the obligation of the contract by which the debt

2-24     was created.  The legislature shall provide for formulas to protect

2-25     school districts against all or part of the revenue loss incurred

2-26     by the implementation of Article VIII, Sections 1-b(c), 1-b(d), and

2-27     1-d-1, of this constitution.  The legislature by general law may

 3-1     define residence homestead for purposes of this section.

 3-2           (d)  Except as otherwise provided by this subsection, if a

 3-3     person receives the residence homestead exemption prescribed by

 3-4     Subsection (c) of this section for homesteads of persons sixty-five

 3-5     (65) years of age or older, the total amount of ad valorem taxes

 3-6     imposed on that homestead for general elementary and secondary

 3-7     public school purposes may not be increased while it remains the

 3-8     residence homestead of that person or that person's spouse who

 3-9     receives the exemption.  If a person sixty-five (65) years of age

3-10     or older dies in a year in which the person received the exemption,

3-11     the total amount of ad valorem taxes imposed on the homestead for

3-12     general elementary and secondary public school purposes may not be

3-13     increased while it remains the residence homestead of that person's

3-14     surviving spouse if the spouse is fifty-five (55) years of age or

3-15     older at the time of the person's death, subject to any exceptions

3-16     provided by general law.  The legislature, by general law, may

3-17     provide for the transfer of all or a proportionate amount of a

3-18     limitation provided by this subsection for a person who qualifies

3-19     for the limitation and establishes a different residence homestead.

3-20     However, taxes otherwise limited by this subsection may be

3-21     increased to the  extent the value of the homestead is increased by

3-22     improvements other than repairs or improvements made to comply with

3-23     governmental requirements and except as may be consistent with the

3-24     transfer of a limitation under this subsection.  For a residence

3-25     homestead subject to the limitation provided by this subsection in

3-26     the 1996 tax year or an earlier tax year, the legislature shall

3-27     provide for a reduction in the amount of the limitation for the

 4-1     1997 tax year  and subsequent tax years in an amount equal to

 4-2     $10,000 multiplied by the 1997 tax rate for general elementary and

 4-3     secondary public school purposes applicable to the residence

 4-4     homestead.

 4-5           SECTION 2.  The following temporary provision is added to the

 4-6     Texas Constitution:

 4-7           TEMPORARY PROVISION.  (a)  This temporary provision applies

 4-8     to the constitutional amendment proposed by H.J.R. No. 4, 75th

 4-9     Legislature, Regular Session, 1997, and expires January 2, 1998.

4-10           (b)  The amendment to Section 1-b(c), Article VIII, of this

4-11     constitution takes effect for the tax year beginning January 1,

4-12     1997.

4-13           SECTION 3.  This proposed constitutional amendment shall be

4-14     submitted to the voters at an election to be held August 9, 1997.

4-15     The ballot shall be printed to permit voting for or against the

4-16     proposition:  "The constitutional amendment providing school

4-17     property tax relief by increasing the residence homestead exemption

4-18     by $10,000 and providing for the transfer of the tax limitation to

4-19     another qualified homestead for persons over 65 and  a reduction in

4-20     taxes on homesteads subject to the limitation."

4-21           Explanation:  This change is necessary to provide for

4-22     property tax relief to owners of residence homestead property.