By: Geren H.J.R. No. 108

A JOINT RESOLUTION

proposing a constitutional amendment allowing for ad valorem taxation administered by the comptroller; relying on self-reports; sales disclosure by taxpayers; abolition of central appraisal districts and all related functions; and requiring a statewide referendum before the legislature may impose a real estate transfer fee or tax.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Article VIII, Section 1(b), Texas Constitution, is amended to read as follows:

(b) All real property and tangible personal property in this State, unless exempt as required or permitted by this Constitution, whether owned by natural persons or corporations, other than municipal, shall be taxed in proportion to its value as determined by rendered and adjusted, which shall be ascertained as may be provided by law. The Legislature may provide by law for a procedure of value determined by rendition and adjustment. The procedure may include a rendition by a taxpayer of a good faith estimate of value and a review or audit to determine whether the good faith estimate represents the market value of the property. The Legislature may implement review and appeal procedures through the state.

SECTION 2. Article VIII, Section 18, Texas Constitution, is amended to read as follows:

(a) The Legislature shall provide for equalizing, as near as may be, the valuation by rendition and adjustment of all property subject to [or rendered for] taxation, and may also provide for the classification of all lands with reference to their value in the several counties.

(b) A single determination of valuation by rendition and adjustment [appraisal] within each county of all property subject to ad valorem taxation by the county and all other taxing units located therein shall be provided by general law. [The Legislature, by general law, may authorize appraisals outside a county when political subdivisions are situated in more than one county or when two or more counties elect to consolidate appraisal services.]

(c) [The Legislature, by general law, shall provide for a single board of equalization for each appraisal entity consisting of qualified persons residing within the territory appraised by that entity. Members of the board of equalization may not be elected officials of the county or of the governing body of a taxing unit.]

[(d)] The Legislature shall prescribe by general law the methods, timing, and administrative process for implementing the requirements of this section [and for procedures for valuation by rendition and adjustment].

SECTION 3. Article VIII, Section 25, Texas Constitution is added to read as follows:

(a) A general law enacted by the legislature that imposes a tax on the transfer of real estate must provide that the law imposing the tax not take effect until approved by a majority of the registered voters voting in a statewide referendum held on the question of imposing the tax. The referendum must specify the rate of the tax that will apply to the transfer of real estate.

(b) The amendments to Article VIII, of this constitution takes effect on the date of the official canvass of returns showing adoption of the amendment and applies beginning with the tax year that begins January 1, 2008.

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 80th Legislature, Regular Session, 2007, authorizing the legislature to abolish central appraisal districts and requiring a statewide referendum before the legislature may impose a real estate transfer tax or fee and expires January 1, 2009.

(b) The amendments to Article VIII, of this constitution takes effect on the date of the official canvass of returns showing adoption of the amendment and applies beginning with the tax year that begins January 1, 2008.

SECTION 5. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 6, 2007. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the legislature to abolish central appraisal districts and requiring a statewide referendum before the legislature may impose a real estate transfer tax or fee."