This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.
79R3169 JD-D
By: Oliveira H.J.R. No. 7
A JOINT RESOLUTION
proposing a constitutional amendment imposing a state property tax
for public education, establishing a residence homestead exemption
from the state property tax, and increasing the amount of the school
district residence homestead property tax exemption.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1-e, Article VIII, Texas Constitution,
is amended to read as follows:
Sec. 1-e. Except as provided by Section 3-a, Article VII, of
this constitution, no [No] State ad valorem taxes shall be levied
upon any property within this State.
SECTION 2. Article VII, Texas Constitution, is amended by
adding Section 3-a to read as follows:
Sec. 3-a. (a) A state ad valorem tax for elementary and
secondary public free school purposes is imposed on real property
and tangible personal property not otherwise exempted by this
constitution or by the legislature under the authority of this
constitution. The tax is imposed at the rate of $1.25 for each $100
of taxable value.
(b) Notwithstanding Section 23, Article VIII, of this
constitution, the legislature may provide for the appraisal of
property subject to state ad valorem taxes, for the equalization of
the taxable values of that property, and for the collection of the
state ad valorem taxes imposed on that property.
(c) State ad valorem taxes shall be assessed on the
valuation of property subject to those taxes as determined by the
appraisal officials in the county in which the property is located.
If an appraisal official uses generally accepted appraisal
standards and practices to appraise property subject to the state
ad valorem tax and the valuation of the property subject to that tax
conforms to or is equalized by the local appraisal review process to
conform to the accepted standards and practices, the assessment of
a state ad valorem tax on that valuation is not invalid. This
subsection expires at the end of the 2006 ad valorem tax year.
SECTION 3. Section 1-b, Article VIII, Texas Constitution,
is amended by amending Subsections (c) and (d) and adding
Subsection (c-1) to read as follows:
(c) Unless a greater amount is established by general law
enacted by the legislature, $40,000 [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 by a school district 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 by a
school district 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.
(c-1) Unless a greater amount is established by general law
enacted by the legislature, $40,000 of the market value of the
residence homestead of a married or unmarried adult, including one
living alone, is exempt from state ad valorem taxation for general
elementary and secondary public school purposes.
(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 by a school
district 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 by a school
district 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. 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, school district 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 on school district taxes provided by this
subsection in the 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 the sum of $10,000 multiplied by the 1997
school district tax rate for general elementary and secondary
public school purposes applicable to the residence homestead and
the greater of $25,000 or the difference between $15,000 and the
amount of the residence homestead exemption established by the
legislature under Subsection (c) of this section for the 2006 tax
year multiplied by the 2006 school district tax rate for general
elementary and secondary public school purposes applicable to the
residence homestead. For a residence homestead subject to the
limitation provided by this subsection in the 2005 tax year or an
earlier tax year but not in the 1996 tax year or an earlier tax year,
the legislature shall reduce the amount of the limitation for the
2006 tax year and subsequent tax years in an amount equal to the
greater of $25,000 or the difference between $15,000 and the amount
of the residence homestead exemption established by the legislature
under Subsection (c) of this section for the 2006 tax year
multiplied by the 2006 school district tax rate for general
elementary and secondary public school purposes applicable to the
residence homestead. If for a tax year after the 2006 tax year the
legislature establishes a residence homestead exemption under
Subsection (c) of this section that exceeds the amount of the
exemption for the preceding tax year, the legislature shall further
reduce, for the tax year in which the increase takes effect and for
subsequent tax years, the amount of the limitation on school
district taxes provided by this subsection applicable to a
residence homestead that was subject to the limitation in the
preceding tax year by an amount equal to the increase multiplied by
the school district tax rate for general elementary and secondary
public school purposes applicable to the residence homestead for
the tax year in which the increase takes effect.
SECTION 4. 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,
Regular Session, 2005, imposing a state property tax for public
education, establishing a residence homestead exemption from the
state property tax, and increasing the amount of the mandatory
residence homestead property tax exemption from local school taxes
and expires January 1, 2007.
(b) The amendments to Section 1-b, Article VIII, of this
constitution take effect January 1, 2006, and apply only to a tax
year that begins on or after that date.
SECTION 5. 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 imposing a state
property tax for public education, establishing a residence
homestead exemption from the state property tax, and increasing the
amount of the school district residence homestead property tax
exemption from local school taxes."