78R2453 SMH-D

By:  McClendon                                                  H.J.R. No. 60 



A JOINT RESOLUTION

proposing a constitutional amendment to prohibit increases in ad 
valorem taxes imposed by a political subdivision on the residence 
homestead of an elderly person or the person's surviving spouse.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:                       
	SECTION 1.  Section 1-b(d), Article VIII, Texas 
Constitution, is amended to read as follows:
	(d)  Except as otherwise provided by this subsection, if a 
person receives any [the] residence homestead exemption prescribed 
by [Subsection (c) of] this section for homesteads of persons 
sixty-five (65) years of age or older, the total amount of ad 
valorem taxes imposed on that homestead by a political subdivision 
in any tax year following the first tax year in which the person 
received the exemption [for general elementary and secondary public 
school purposes] may not be increased above the amount of taxes 
imposed by that political subdivision in the preceding tax year
while the homestead [it] remains the residence homestead of that 
person or that person's spouse who receives the exemption.  If a 
person sixty-five (65) years of age or older dies in a year in which 
the person received the exemption, the total amount of ad valorem 
taxes imposed on the homestead by a political subdivision in any tax 
year following that tax year [for general elementary and secondary 
public school purposes] may not be increased above the amount of 
taxes imposed by that political subdivision in the preceding tax 
year while the homestead [it] remains the residence homestead of 
that person's surviving spouse if the spouse is fifty-five (55) 
years of age or older at the time of the person's death, subject to 
any exceptions provided by general law.  The legislature, by 
general law, may provide for the transfer of all or a proportionate 
amount of a limitation provided by this subsection for a person who 
qualifies for the limitation and establishes a different residence 
homestead.  However, taxes otherwise limited by this subsection may 
be increased to the extent the value of the homestead is increased 
by improvements other than repairs or improvements made to comply 
with governmental requirements and except as may be consistent with 
the transfer of a limitation under this subsection.  The 
limitations provided by this subsection apply to taxes imposed on a 
residence homestead by a school district whose boundaries are 
changed to include the residence homestead as if the taxes imposed 
on the residence homestead by the school district in which the 
residence homestead was previously located had been imposed by the 
school district whose boundaries include the residence homestead 
after the boundary change. [For a residence homestead subject to 
the limitation provided by this subsection in the 1996 tax year or 
an earlier tax year, the legislature shall provide for a reduction 
in the amount of the limitation for the 1997 tax year and subsequent 
tax years in an amount equal to $10,000 multiplied by the 1997 tax 
rate for general elementary and secondary public school purposes 
applicable to the residence homestead.]
	SECTION 2.  The following temporary provision is added to 
the Texas Constitution:
	TEMPORARY PROVISION.  (a) This temporary provision applies to 
the constitutional amendment proposed by the 78th Legislature, 
Regular Session, 2003, to prohibit a political subdivision from 
increasing ad valorem taxes on the residence homestead of an 
elderly person or the surviving spouse of an elderly person.  This 
temporary provision expires January 1, 2005.
	(b)  The amendment to Section 1-b(d), Article VIII, of this 
constitution takes effect January 1, 2004.  The limitations 
provided by Section 1-b(d), as amended, on ad valorem tax increases 
by political subdivisions apply beginning with taxes imposed for 
the 2004 tax year.
	SECTION 3.  This proposed constitutional amendment shall be 
submitted to the voters at an election to be held November 4, 2003. 
The ballot shall be printed to permit voting for or against the 
proposition: "The constitutional amendment to prohibit a political 
subdivision from increasing ad valorem taxes on the residence 
homestead of an elderly person or the surviving spouse of an elderly 
person."