79S31513 JD-D

By:  Wong                                                       H.J.R. No. 36 



A JOINT RESOLUTION

proposing a constitutional amendment authorizing the governing 
body of a school district to establish for purposes of ad valorem 
taxation by the school district a limitation on the maximum average 
annual percentage increase in the appraised value of real property 
in the school district.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:                       
	SECTION 1.  Section 1, Article VIII, Texas Constitution, is 
amended by adding Subsections (i-1) and (i-2) to read as follows:
	(i-1)  Notwithstanding Subsections (a) and (b) of this 
section, the governing body of a school district may establish for 
purposes of ad valorem taxation by the district a limitation on the 
maximum average annual percentage increase in the appraised value 
of real property in the district that is less than 10 percent but 
not less than five percent.  If a school district establishes a 
limitation under this subsection applicable to a tax year for which 
the Legislature has enacted a limitation under Subsection (i) of 
this section, the lower percentage limitation applies to ad valorem 
taxation of residence homesteads by the school district.  If the 
governing body of a school district establishes a limitation on 
appraisal increases under this subsection, that limitation remains 
in effect until amended, repealed, or rescinded by the governing 
body.  An amendment, repeal, or rescission of the limitation may not 
take effect before January 1 of the tax year following the year in 
which the amendment, repeal, or rescission is made.
	(i-2)  A limitation on appraisal increases authorized by 
Subsection (i-1) of this section:
		(1)  takes effect:                                                     
			(A)  in the tax year following the first tax year 
in which the owner owns the property on January 1; or
			(B)  in the tax year following the tax year in 
which the owner acquires the property if the property qualifies for 
an exemption as the residence homestead of the owner under Section 
1-b of this article in the tax year in which the owner acquires the 
property; and
		(2)  expires on January 1 of the first tax year 
following the tax year in which the owner of the property when the 
limitation took effect ceases to own the property, except that the 
Legislature by general law may provide for the limitation 
applicable to a residence homestead to continue during ownership of 
the property by the owner's spouse or surviving spouse.
	SECTION 2.  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 authorizing the 
governing body of a school district to establish for purposes of ad 
valorem taxation by the school district a limitation on the maximum 
average annual percentage increase in the appraised value of real 
property in the school district that is less than 10 percent but not 
less than five percent."