By Chisum H.J.R. No. 17 76R522 SMH-D A JOINT RESOLUTION 1-1 proposing a constitutional amendment to limit the aggregate ad 1-2 valorem tax rate on property. 1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article VIII, Texas Constitution, is amended by 1-5 adding Section 12 to read as follows: 1-6 Sec. 12. MAXIMUM AD VALOREM TAX RATE. (a) The aggregate ad 1-7 valorem tax rate of all political subdivisions on property in any 1-8 year may not exceed $2.50 on the $100 valuation. 1-9 (b) For each tax year that begins on or after January 1, 1-10 2000, the governing bodies of political subdivisions that impose ad 1-11 valorem taxes on property shall adopt ad valorem tax rates that in 1-12 the aggregate do not exceed the rate prescribed by Subsection (a) 1-13 of this section. If the governing bodies fail or refuse to adopt 1-14 such tax rates, the maximum tax rate of each political subdivision 1-15 is computed by: 1-16 (1) dividing the tax rate of the political subdivision 1-17 for the preceding tax year by the aggregate tax rate of all 1-18 political subdivisions for that year; and 1-19 (2) multiplying the amount computed under Subdivision 1-20 (1) by $2.50 on the $100 valuation. 1-21 (c) Notwithstanding Subsection (a) of this section, a 1-22 political subdivision established on or after January 1, 2000, may 1-23 impose an ad valorem tax on property at a rate that would cause the 1-24 aggregate tax rate of all political subdivisions that tax the 2-1 property to exceed the aggregate tax rate prescribed by Subsection 2-2 (a) of this section if: 2-3 (1) imposition of the tax is approved in an election 2-4 called for that purpose; and 2-5 (2) the ballot proposition states that imposition of 2-6 the tax would cause the aggregate tax rate to exceed the rate 2-7 prescribed by Subsection (a) of this section. 2-8 (d) This section does not impair the rights or remedies of 2-9 the holders of any bonds issued before January 1, 2000. A political 2-10 subdivision may continue to impose ad valorem taxes pledged before 2-11 January 1, 2000, to the payment of the bonds as necessary to pay: 2-12 (1) the principal of and interest on the bonds; 2-13 (2) interest on any unpaid installment of interest; 2-14 and 2-15 (3) all costs and expenses related to an action or 2-16 proceeding by or on behalf of the bondholders. 2-17 (e) The legislature by general law may prescribe procedures 2-18 to implement this section. 2-19 SECTION 2. This proposed constitutional amendment shall be 2-20 submitted to the voters at an election to be held November 2, 1999. 2-21 The ballot shall be printed to permit voting for or against the 2-22 proposition: "The constitutional amendment limiting the aggregate 2-23 ad valorem tax rate on property."