By:  Wentworth                                                  S.J.R. No. 7  

	(In the Senate - Filed July 25, 2005; July 25, 2005, read 

first time and referred to Committee on Finance; August 5, 2005, 

reported adversely, with favorable Committee Substitute by the 

following vote:  Yeas 11, Nays 0; August 5, 2005, sent to printer.)





COMMITTEE SUBSTITUTE FOR S.J.R. No. 7                                    By:  Williams





SENATE JOINT RESOLUTION





proposing a constitutional amendment increasing the amount of the 

residence homestead exemption from ad valorem taxation for public 

school purposes to $22,500 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.  Subsections (c) and (d), Section 1-b, Article 

VIII, Texas Constitution, are amended to read as follows:

	(c)  The amount of $22,500 [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 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 reduced in 

proportion to the reduction in the tax rate.  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 $7,500 [$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 reductions 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 $22,500, providing for a 

reduction 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 reducing 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 reduction in the tax rate of the school district."







* * * * *