83R7699 SMH/KKA-D

By: Duncan S.J.R. No. 58

A JOINT RESOLUTION

proposing a constitutional amendment imposing a state property tax for public education, authorizing the legislature to establish for purposes of that tax a limit on the maximum appraised value of a residence homestead of 105 percent of the appraised value of the property for the preceding tax year, prohibiting school district property taxes for maintenance purposes, and authorizing school district property taxes for educational enrichment.

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 all taxable property at a rate of $1 for each $100 of taxable value.

(b) Notwithstanding Subsection (a) of this section and Section 1, Article VIII, of this constitution, the legislature shall provide for phasing in the imposition of the state ad valorem tax over a period of five years by basing the tax rate applicable to property that has situs in a particular school district on the maintenance and operations ad valorem tax rate of the district in the 2013 ad valorem tax year. This subsection expires at the end of the 2018 ad valorem tax year.

(c) 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.

(d) 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 2014 ad valorem tax year.

(e) For purposes of this constitution, including Section 22, Article VIII, the revenue from the state ad valorem tax imposed under this section is state tax revenue dedicated by this constitution.

SECTION 3. Section 3, Article VII, Texas Constitution, is amended by amending Subsections (d) and (e) and adding Subsections (f) through (i) to read as follows:

(d) The Legislature may provide for the formation of school districts by general laws, and all such school districts may embrace parts of two or more counties.

[(e)] The Legislature by general law may provide [shall be authorized to pass laws for the assessment and collection of taxes in all school districts and] for the management and control of the public [school or] schools of such districts.

(e) The Legislature by general law may authorize a school district to impose an ad valorem tax on all taxable property in the district for the purpose of providing an enriched educational program.

(f) The Legislature by general law may authorize a school district to impose an additional ad valorem tax on all taxable property in the district[, whether such districts are composed of territory wholly within a county or in parts of two or more counties, and the Legislature may authorize an additional ad valorem tax to be levied and collected within all school districts for the further maintenance of public free schools, and] for the erection and equipment of school buildings.

(g) A school district may not impose a tax under Subsection (e) or (f) of this section unless the tax is approved by [therein; provided that] a majority of the qualified voters of the district voting at an election to be held for that purpose[, shall approve the tax].

(h) The Legislature may pass laws for the creation of junior college districts, the management and control of those districts, and the imposition of ad valorem taxes in those districts. A junior college district may not impose a tax under this subsection unless the tax is approved by a majority of the qualified voters of the district voting at an election held for that purpose. A junior college district is not a school district for purposes of this section.

(i) An ad valorem tax approved by the voters of a junior college district under this section before November 5, 2013, is not affected by the amendment of this section approved by the voters at an election held on November 5, 2013, and the junior college district is not required to hold a new election to authorize the existing tax. This subsection expires January 1, 2014.

SECTION 4. Section 3-b, Article VII, Texas Constitution, is amended to read as follows:

Sec. 3-b. No tax for the enrichment [maintenance] of public free schools voted in any independent school district and no tax for the maintenance of a junior college voted by a junior college district, nor any bonds voted in any such district, but unissued, shall be abrogated, cancelled, or invalidated by change of any kind in the boundaries thereof. After any change in boundaries, the governing body of any such district, without the necessity of an additional election, shall have the power to assess, levy, and collect ad valorem taxes on all taxable property within the boundaries of the district as changed, for the purposes of the enrichment [maintenance] of public free schools or the maintenance of a junior college, as the case may be, and the payment of principal of and interest on all bonded indebtedness outstanding against, or attributable, adjusted, or allocated to, such district or any territory therein, in the amount, at the rate, or not to exceed the rate, and in the manner authorized in the district prior to the change in its boundaries, and further in accordance with the laws under which all such bonds, respectively, were voted; and such governing body also shall have the power, without the necessity of an additional election, to sell and deliver any unissued bonds voted in the district prior to any such change in boundaries, and to assess, levy, and collect ad valorem taxes on all taxable property in the district as changed, for the payment of principal of and interest on such bonds in the manner permitted by the laws under which such bonds were voted. In those instances where the boundaries of any such independent school district are changed by the annexation of, or consolidation with, one or more whole school districts, the taxes to be levied for the purposes hereinabove authorized may be in the amount or at not to exceed the rate theretofore voted in the district having at the time of such change the greatest scholastic population according to the latest scholastic census and only the unissued bonds of such district voted prior to such change, may be subsequently sold and delivered and any voted, but unissued, bonds of other school districts involved in such annexation or consolidation shall not thereafter be issued.

SECTION 5. Section 1(i), Article VIII, Texas Constitution, is amended to read as follows:

(i) Notwithstanding Subsections (a) and (b) of this section, the Legislature by general law may limit the maximum appraised value of a residence homestead for ad valorem tax purposes in a tax year to the lesser of the most recent market value of the residence homestead as determined by the appraisal entity or, for purposes of ad valorem taxation by the State under Section 3-a, Article VII, of this constitution, 105 [110] percent, or a greater percentage, of the appraised value of the residence homestead for the preceding tax year or, for purposes of ad valorem taxation by a political subdivision of this State, 110 percent, or a greater percentage, of the appraised value of the residence homestead for the preceding tax year. A limitation on appraised values authorized by this subsection:

(1) takes effect as to a residence homestead on the later of the effective date of the law imposing the limitation or January 1 of the tax year following the first tax year the owner qualifies the property for an exemption under Section 1-b of this article; and

(2) expires on January 1 of the first tax year that neither the owner of the property when the limitation took effect nor the owner's spouse or surviving spouse qualifies for an exemption under Section 1-b of this article.

SECTION 6. The following temporary provision is added to the Texas Constitution:

TEMPORARY PROVISION. (a) This temporary provision applies to the constitutional amendment proposed by the 83rd Legislature, Regular Session, 2013, imposing a state property tax for public education, authorizing the legislature to establish for purposes of that tax a limit on the maximum appraised value of a residence homestead of 105 percent of the appraised value of the property for the preceding tax year, prohibiting school district property taxes for maintenance purposes, and authorizing school district property taxes for educational enrichment.

(b) The amendment takes effect January 1, 2014.

(c) This temporary provision expires January 1, 2015.

SECTION 7. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 5, 2013. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment imposing a state property tax for public education, authorizing the legislature to establish for purposes of that tax a limit on the maximum appraised value of a residence homestead of 105 percent of the appraised value of the property for the preceding tax year, prohibiting school district property taxes for maintenance purposes, and authorizing school district property taxes for educational enrichment."