80R8178 JD-D

By: Estes S.J.R. No. 44

A JOINT RESOLUTION

proposing a constitutional amendment authorizing the legislature to permit a municipality with a population of less than 10,000 to provide that municipal ad valorem taxes imposed on real property in or adjacent to an area that has qualified for funding under certain revitalization or redevelopment programs not be increased for a limited period.

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

SECTION 1. Article VIII, Texas Constitution, is amended by adding Section 1-o to read as follows:

Sec. 1-o. To aid in the elimination of slum and blighted conditions in less populated communities in this state, to promote rural economic development in this state, and to improve the economy of this state, the legislature by general law may authorize the governing body of a municipality having a population of less than 10,000, in the manner required by law for official action, to provide that ad valorem taxes imposed by the municipality on real property that is located in or adjacent to a designated area of the municipality that has qualified for funding under the Downtown Revitalization Program or the Main Street Improvements Program administered by the Texas Department of Agriculture, or a successor program administered by that agency, not be increased for the first five tax years after the tax year in which the limitation on municipal tax increases is established. A general law enacted under this section must provide that a limitation on ad valorem tax increases authorized by this section:

(1) must be established by the governing body of the municipality before December 31 of the first tax year after the tax year in which funding under the program administered by the Texas Department of Agriculture is initially approved for the designated area;

(2) takes effect as to a parcel of real property on January 1 of the tax year following the tax year in which the governing body takes action under this section; and

(3) expires on the earlier of:

(A) January 1 of the sixth tax year following the tax year in which the governing body takes action under this section; or

(B) January 1 of the first tax year in which the owner of the property when the limitation takes effect ceases to own the property.

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 80th Legislature, Regular Session, 2007, authorizing the legislature to permit the governing body of a municipality having a population of less than 10,000 to provide that municipal ad valorem taxes imposed on real property in or adjacent to an area that has qualified for funding under certain programs administered by the Texas Department of Agriculture not be increased for the first five tax years after the tax year in which the limitation is established and expires January 1, 2009.

(b) Section 1-o, Article VIII, of this constitution takes effect January 1, 2008, 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 6, 2007. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the legislature to permit the governing body of a municipality having a population of less than 10,000 to provide that municipal ad valorem taxes imposed on real property in or adjacent to an area that has qualified for funding under certain programs administered by the Texas Department of Agriculture not be increased for the first five tax years after the tax year in which the limitation on municipal tax increases is established."