79S30952 SMH-D
By: Berman, Chisum, McReynolds, Flynn, H.J.R. No. 26
Uresti, et al.
Substitute the following for H.J.R. No. 26:
By: Edwards C.S.H.J.R. No. 26
A JOINT RESOLUTION
proposing a constitutional amendment providing for an adjustment of
the limitation on the total amount of ad valorem taxes that may be
imposed for public school purposes on the residence homesteads of
the elderly or disabled to reflect any change in the rate of those
taxes.
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 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 qualifies for the limitation provided by this subsection on
the person's residence homestead, the person or the person's spouse
qualified for the exemption for the same homestead for the
preceding tax year, 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, for the current
and subsequent tax years 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 2006 tax year or the tax year in which the person first
qualified for the limitation, 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 that, for
purposes of computing the amount of a limitation provided by this
subsection on a person's residence homestead for the 2007 tax year
and subsequent tax years, any reduction in the tax rate for general
elementary and secondary public school purposes from the 2005 tax
year to the 2006 tax year applicable to the homestead shall also be
taken into account if the first tax year the person or the person's
spouse qualified for the exemption for the homestead was a tax year
before the 2006 tax year. 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 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 79th Legislature, 3rd
Called Session, 2006, providing for an adjustment of the limitation
on the total amount of ad valorem taxes that may be imposed for
public school purposes on the residence homesteads of the elderly
or disabled to reflect any change in the rate of those taxes and
expires January 1, 2008.
(b) The amendment to Section 1-b(d), Article VIII, of this
constitution takes effect January 1, 2007, and applies only to a tax
year that begins on or after that date.
SECTION 3. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2006.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment providing for an
adjustment of the limitation on the total amount of ad valorem taxes
that may be imposed for public school purposes on the residence
homesteads of the elderly or disabled to reflect any change in the
rate of those taxes."