BILL ANALYSIS

Senate Research Center                                                                                                        S.J.R. 13

79S10187 SMH-F                                                                                                      By: Wentworth

Finance

7/15/2005

As Filed

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

S.J.R. 13 increases the homestead exemption from ad valorem taxation for public school purposes to $22,500 and provides for a corresponding adjustment to the imitation on the amount of ad valorem taxes that may be imposed for those purposes on certain persons. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1-b, Article VIII, Texas Constitution, by amending Subsections (c) and (d) and adding Subsection (h-1), as follows:

(c)  Provides that the amount of $22,500, rather than $15,000, of the market value of the residence homestead of a married or unmarried adult, including one living alone, is exempt from ad valorem taxation for general elementary and secondary public school purposes.  Makes a nonsubstantive change.

(d)  Requires the legislature, for a residence homestead subject to the limitation provided by this subsection in the 2005, rather than 1996, tax year or an earlier tax year, to reduce the amount of the limitation for the 2006, rather than 1997, tax year and subsequent tax years in an amount equal to $7,500, rather than $10,000, multiplied by the 2006, rather than 1997, tax rate for general elementary and secondary public school purposes applicable to the residence homestead.  Makes a nonsubstantive change. 

(h-1)  TEMPORARY PROVISION.  (a)  Provides that this temporary provision applies to the constitutional amendment proposed by the 79th Legislature, 1st Called Session, 2005, increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes and providing for a corresponding adjustment of the limitation on the amount of ad valorem taxes that may be imposed for those purposes on the homesteads of certain persons and expires January 1, 2007.

(b)  Provides that the amendment to Section 1-b(c), Article VIII, of this constitution takes effect January 1, 2006, and applies only to a tax year beginning on or after that date.   

SECTION 2.  Requires this proposed constitutional amendment to be submitted to the voters at an election to be held November 8, 2005.  Sets forth the required language for the ballot.