79S20005 MFC-D
By: Hopson H.J.R. No. 14
A JOINT RESOLUTION
proposing a constitutional amendment increasing the amount of the
residence homestead exemption from ad valorem taxation for public
school purposes to $45,000 and providing for an adjustment of the
limitation on the total amount of taxes that may be imposed for
those purposes on the homesteads of the elderly or disabled to
reflect the increased exemption amount and changes in school
district ad valorem tax rates.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1-b(c) and (d), Article VIII, Texas
Constitution, are amended to read as follows:
(c) The amount of $45,000 [Fifteen Thousand Dollars
($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. The legislature by general law may provide
that all or part of the exemption does not apply to a district or
political subdivision that imposes ad valorem taxes for public
education purposes but is not the principal school district
providing general elementary and secondary public education
throughout its territory. In addition to this exemption, the
legislature by general law may exempt an amount not to exceed [Ten
Thousand Dollars (] $10,000[)] of the market value of the residence
homestead of a person who is disabled as defined in Subsection (b)
of this section and of a person sixty-five (65) years of age or
older from ad valorem taxation for general elementary and secondary
public school purposes. The legislature by general law may base the
amount of and condition eligibility for the additional exemption
authorized by this subsection for disabled persons and for persons
sixty-five (65) years of age or older on economic need. An eligible
disabled person who is sixty-five (65) years of age or older may not
receive both exemptions from a school district but may choose
either. An eligible person is entitled to receive both the
exemption required by this subsection for all residence homesteads
and any exemption adopted pursuant to Subsection (b) of this
section, but the legislature shall provide by general law whether
an eligible disabled or elderly person may receive both the
additional exemption for the elderly and disabled authorized by
this subsection and any exemption for the elderly or disabled
adopted pursuant to Subsection (b) of this section. Where ad
valorem tax has previously been pledged for the payment of debt, the
taxing officers of a school district may continue to levy and
collect the tax against the value of homesteads exempted under this
subsection until the debt is discharged if the cessation of the levy
would impair the obligation of the contract by which the debt was
created. The legislature shall provide for formulas to protect
school districts against all or part of the revenue loss incurred by
the implementation of Article VIII, Sections 1-b(c), 1-b(d), and
1-d-1, of this constitution. The legislature by general law may
define residence homestead for purposes of this section.
(d) Except as otherwise provided by this subsection, if a
person receives a residence homestead exemption prescribed by
Subsection (c) of this section for homesteads of persons who are
sixty-five (65) years of age or older or who are disabled, the total
amount of ad valorem taxes imposed on that homestead for general
elementary and secondary public school purposes may not be
increased while 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 for general elementary and secondary
public school purposes may not be increased while 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. If a
person receives the limitation provided by this subsection for the
person's residence homestead and the person or the person's spouse
received the limitation in the preceding tax year for that
homestead and the tax rate for general elementary and secondary
public school purposes applicable to the homestead for the current
tax year is higher or lower than the tax rate for those purposes
applicable to that homestead for the preceding tax year, the
limitation provided by this subsection on the total amount of ad
valorem taxes that may be imposed for those purposes on the
homestead is increased or reduced, as applicable, in proportion to
the increase or reduction in the tax rate, except that the total
amount of ad valorem taxes that may be imposed for those purposes on
the homestead may not exceed the amount of taxes imposed for those
purposes for the later of the 2005 tax year or the tax year in which
the limitation took effect, as that limitation may have been
increased in subsequent tax years or may be increased for the
current tax year because of improvements as authorized by this
subsection. 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. For a residence homestead
subject to the limitation provided by this subsection in the 2005
[1996] tax year or an earlier tax year, the legislature shall reduce
[provide for a reduction in] the amount of the limitation for the
2006 [1997] tax year and subsequent tax years in an amount equal to
$30,000 [$10,000] multiplied by the 2006 [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 79th Legislature,
2nd Called Session, 2005, increasing the amount of the residence
homestead exemption from ad valorem taxation for public school
purposes and providing for an adjustment of the limitation on the
total amount of ad valorem taxes that may be imposed for those
purposes on the homesteads of the elderly or disabled to reflect the
increased exemption amount and changes in school district ad
valorem tax rates and expires January 1, 2007.
(b) The amendment to Sections 1-b(c) and (d), Article VIII,
of this constitution takes effect January 1, 2006, and applies only
to a tax year beginning on or after that date.
SECTION 3. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 8, 2005.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment increasing the amount
of the residence homestead exemption from ad valorem taxation for
public school purposes from $15,000 to $45,000, providing for an
adjustment of the limitation on the total amount of ad valorem taxes
that may be imposed for those purposes on the homestead of an
elderly or disabled person to reflect the increased exemption
amount, and increasing or reducing, as applicable, the amount of
the limitation on the total amount of ad valorem taxes that may be
imposed by a school district on the homestead of an elderly or
disabled person in proportion to any increase or reduction in the
tax rate of the school district but not to exceed the amount of the
limitation for the later of the 2005 tax year or the tax year in
which the limitation took effect, subject to increases for
improvements."