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."