By Brown of Kaufman                                    H.J.R. No. 7
         77R5199 JD-D                           
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment to authorize a county or a
 1-2     city or town to establish an ad valorem tax freeze on residence
 1-3     homesteads of the elderly and their spouses.
 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 1-b, Article VIII, Texas Constitution, is
 1-6     amended by adding Subsection (h) to read as follows:
 1-7           (h)  The governing body of a county or a city or town by
 1-8     official action may provide that if a person sixty-five (65) years
 1-9     of age or older receives a residence homestead exemption prescribed
1-10     or authorized by this section, the total amount of ad valorem taxes
1-11     imposed on that homestead by the county or the city or town may not
1-12     be increased while it remains the residence homestead of that
1-13     person or that person's spouse who is sixty-five (65) years of age
1-14     or older and receives a residence homestead exemption on the
1-15     homestead.  As an alternative, on receipt of a petition signed by
1-16     five percent (5%) of the registered voters of the county or of the
1-17     city or town, the governing body of the county or the city or town
1-18     shall call an election to determine by majority vote whether to
1-19     establish a tax limitation provided by this subsection.  If a
1-20     person sixty-five (65) years of age or older dies in a year in
1-21     which the person received a residence homestead exemption, the
1-22     total amount of ad valorem taxes imposed on the homestead by the
1-23     county or the city or town may not be increased while it remains
1-24     the residence homestead of that person's surviving spouse if the
 2-1     spouse is fifty-five (55) years of age or older at the time of the
 2-2     person's death, subject to any exceptions provided by general law.
 2-3     The legislature, by general law, may provide for the transfer of
 2-4     all or a proportionate amount of a tax limitation provided by this
 2-5     subsection for a person who qualifies for the limitation and
 2-6     establishes a different residence homestead within the same county
 2-7     or within the same city or town.  A county or a city or town that
 2-8     establishes a tax limitation under this subsection must comply with
 2-9     a law providing for the transfer of the limitation, even if the
2-10     legislature enacts the law subsequent to the county's or the city
2-11     or town's establishment of the limitation.  Taxes otherwise limited
2-12     by a county or a city or town under this subsection may be
2-13     increased to the extent the value of the homestead is increased by
2-14     improvements other than repairs or improvements made to comply with
2-15     governmental requirements and except as may be consistent with the
2-16     transfer of a tax limitation under a law authorized by this
2-17     subsection.  The governing body of a county or a city or town may
2-18     not repeal or rescind a tax limitation established under this
2-19     subsection.
2-20           SECTION 2.  This proposed constitutional amendment shall be
2-21     submitted to the voters at an election to be held on November 6,
2-22     2001.  The ballot shall be printed to provide for voting for or
2-23     against the proposition:  "The constitutional amendment to permit
2-24     counties, cities, and towns to establish an ad valorem tax freeze
2-25     on residence homesteads of the elderly and their spouses."