82R8528 ALL-D

By: Schwertner H.J.R. No. 139

A JOINT RESOLUTION

proposing a constitutional amendment to revise the ad valorem tax limitations on residence homesteads of elderly and disabled persons and their surviving spouses to take into account certain residence homestead exemptions.

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

SECTION 1. Sections 1-b(d) and (h), Article VIII, Texas Constitution, are 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, and the person also receives all or part of the $15,000 exemption prescribed by Subsection (c) of this section or the exemption authorized by Subsection (e) of this section, 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 exemptions necessary to qualify for a limitation provided by this subsection [exemption]. If a person sixty-five (65) years of age or older dies in a year in which the person received the exemptions necessary to qualify for a limitation provided by this subsection [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 sixty-five (65) years of age or older dies in the first tax year the person qualified for the 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 and the person qualified for that exemption after the beginning of that first tax year, while that person's residence homestead remains the residence homestead of the person's surviving spouse, the surviving spouse is entitled to a limitation under this subsection on the residence homestead computed as if the person receiving the exemption had lived for the entire subsequent tax year and had qualified for a limitation provided by this subsection in that subsequent tax year, if the surviving 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, 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.

(h) The governing body of a county, a city or town, or a junior college district by official action may provide that if a person who is disabled or is sixty-five (65) years of age or older receives a residence homestead exemption prescribed or authorized by this section, the total amount of ad valorem taxes imposed on that homestead by the county, the city or town, or the junior college district may not be increased while it remains the residence homestead of that person or that person's spouse who is disabled or sixty-five (65) years of age or older and receives a residence homestead exemption on the homestead. As an alternative, on receipt of a petition signed by five percent (5%) of the registered voters of the county, the city or town, or the junior college district, the governing body of the county, the city or town, or the junior college district shall call an election to determine by majority vote whether to establish a tax limitation provided by this subsection. If a county, a city or town, or a junior college district establishes a tax limitation provided by this subsection, to be entitled to receive the limitation, a person who receives an exemption prescribed or authorized by this section for persons who are disabled or sixty-five (65) years of age or older must also receive a residence homestead exemption prescribed or authorized by Subsection (a) or (e) of this section. A limitation received by that person shall be applied to the person's spouse who receives the exemptions necessary to qualify for a limitation provided by this subsection. If a county, a city or town, or a junior college district establishes a tax limitation provided by this subsection and a disabled person or a person sixty-five (65) years of age or older dies in a year in which the person received the exemptions necessary to qualify for a limitation provided by this subsection [a residence homestead exemption], the total amount of ad valorem taxes imposed on the homestead by the county, the city or town, or the junior college 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. If a county, a city or town, or a junior college district establishes a tax limitation provided by this subsection, and a person who receives the exemption prescribed by Subsection (b) or (c) of this section for homesteads of persons who are sixty-five (65) years of age or older or who are disabled dies in the first tax year the person qualified for the exemption and the person qualified for the exemption after the beginning of that first tax year, while the person's residence homestead remains the residence homestead of the person's surviving spouse, the surviving spouse is entitled to a limitation under this section on the residence homestead computed as if the person receiving the exemption had lived for the entire subsequent tax year and had qualified for a limitation provided by this subsection in that subsequent tax year 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 tax limitation provided by this subsection for a person who qualifies for the limitation and establishes a different residence homestead within the same county, within the same city or town, or within the same junior college district. A county, a city or town, or a junior college district that establishes a tax limitation under this subsection must comply with a law providing for the transfer of the limitation, even if the legislature enacts the law subsequent to the county's, the city's or town's, or the junior college district's establishment of the limitation. Taxes otherwise limited by a county, a city or town, or a junior college district under this subsection may be increased to the extent the value of the homestead is increased by improvements other than repairs and other than improvements made to comply with governmental requirements and except as may be consistent with the transfer of a tax limitation under a law authorized by this subsection. The governing body of a county, a city or town, or a junior college district may not repeal or rescind a tax limitation established under this subsection.

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 82nd Legislature, Regular Session, 2011, to revise the ad valorem tax limitations on residence homesteads of elderly and disabled persons and their surviving spouses to take into account certain residence homestead exemptions.

(b) The amendment to Sections 1-b(d) and (h), Article VIII, of this constitution takes effect January 1, 2012, and applies only to a tax year beginning on or after that date.

(c) This temporary provision expires January 1, 2013.

SECTION 3. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 8, 2011. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment to revise the ad valorem tax limitations on residence homesteads of elderly and disabled persons and their surviving spouses to take into account certain residence homestead exemptions."