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A JOINT RESOLUTION
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proposing a constitutional amendment providing for an exemption |
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from ad valorem taxation for public school purposes of a dollar |
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amount or a percentage, whichever is greater, of the market value of |
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a residence homestead and providing for a reduction of the |
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limitation on the total amount of ad valorem taxes that may be |
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imposed for those purposes on the homestead of a person who is |
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elderly or disabled to reflect any increase in the exemption |
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amount. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1-b(c), Article VIII, Texas |
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Constitution, is amended to read as follows: |
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(c) The amount of $25,000 of the market value of the |
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residence homestead of a married or unmarried adult, including one |
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living alone, or 16.7 percent of the market value of the residence |
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homestead, whichever is greater, is exempt from ad valorem taxation |
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for general elementary and secondary public school purposes. The |
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legislature by general law may provide that all or part of the |
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exemption does not apply to a district or political subdivision |
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that imposes ad valorem taxes for public education purposes but is |
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not the principal school district providing general elementary and |
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secondary public education throughout its territory. In addition |
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to this exemption, the legislature by general law may exempt an |
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amount not to exceed $10,000 of the market value of the residence |
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homestead of a person who is disabled as defined in Subsection (b) |
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of this section and of a person 65 years of age or older from ad |
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valorem taxation for general elementary and secondary public school |
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purposes. The legislature by general law may base the amount of and |
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condition eligibility for the additional exemption authorized by |
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this subsection for disabled persons and for persons 65 years of age |
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or older on economic need. An eligible disabled person who is 65 |
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years of age or older may not receive both exemptions from a school |
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district but may choose either. An eligible person is entitled to |
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receive both the exemption required by this subsection for all |
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residence homesteads and any exemption adopted pursuant to |
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Subsection (b) of this section, but the legislature shall provide |
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by general law whether an eligible disabled or elderly person may |
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receive both the additional exemption for the elderly and disabled |
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authorized by this subsection and any exemption for the elderly or |
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disabled adopted pursuant to Subsection (b) of this section. Where |
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ad valorem tax has previously been pledged for the payment of debt, |
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the taxing officers of a school district may continue to levy and |
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collect the tax against the value of homesteads exempted under this |
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subsection until the debt is discharged if the cessation of the levy |
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would impair the obligation of the contract by which the debt was |
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created. The legislature shall provide for formulas to protect |
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school districts against all or part of the revenue loss incurred by |
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the implementation of this subsection, Subsection (d) of this |
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section, and Section 1-d-1 of this article. The legislature by |
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general law may define residence homestead for purposes of this |
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section. |
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SECTION 2. (a) This section takes effect only if the |
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constitutional amendment proposed by H.J.R. No. 125, 87th |
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Legislature, Regular Session, 2021, is approved by the voters. If |
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that amendment is not approved by the voters, this section has no |
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effect. |
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(b) Section 1-b(d), Article VIII, Texas Constitution, is |
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amended to read as follows: |
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(d) Except as otherwise provided by this subsection, if a |
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person receives a residence homestead exemption prescribed by |
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Subsection (c) of this section for homesteads of persons who are 65 |
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years of age or older or who are disabled, the total amount of ad |
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valorem taxes imposed on that homestead for general elementary and |
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secondary public school purposes may not be increased while it |
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remains the residence homestead of that person or that person's |
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spouse who receives the exemption. If a person who is 65 years of |
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age or older or who is disabled dies in a year in which the person |
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received the exemption, the total amount of ad valorem taxes |
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imposed on the homestead for general elementary and secondary |
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public school purposes may not be increased while it remains the |
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residence homestead of that person's surviving spouse if the spouse |
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is 55 years of age or older at the time of the person's death, |
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subject to any exceptions provided by general law. The |
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legislature, by general law, may provide for the transfer of all or |
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a proportionate amount of a limitation provided by this subsection |
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for a person who qualifies for the limitation and establishes a |
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different residence homestead. However, taxes otherwise limited |
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by this subsection may be increased to the extent the value of the |
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homestead is increased by improvements other than repairs or |
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improvements made to comply with governmental requirements and |
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except as may be consistent with the transfer of a limitation under |
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this subsection. For a residence homestead subject to the |
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limitation provided by this subsection in the 1996 tax year or an |
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earlier tax year, the legislature shall provide for a reduction in |
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the amount of the limitation for the 1997 tax year and subsequent |
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tax years in an amount equal to $10,000 multiplied by the 1997 tax |
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rate for general elementary and secondary public school purposes |
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applicable to the residence homestead. For a residence homestead |
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subject to the limitation provided by this subsection in the 2014 |
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tax year or an earlier tax year, the legislature shall provide for a |
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reduction in the amount of the limitation for the 2015 tax year and |
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subsequent tax years in an amount equal to $10,000 multiplied by the |
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2015 tax rate for general elementary and secondary public school |
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purposes applicable to the residence homestead. For a residence |
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homestead subject to the limitation provided by this subsection in |
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the 2022 tax year or an earlier tax year that has a market value in |
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the 2023 tax year of more than $149,701, the legislature shall |
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provide for a reduction in the amount of the limitation for the 2023 |
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tax year and subsequent tax years in an amount equal to the amount |
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computed by subtracting $25,000 from an amount equal to 16.7 |
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percent of the market value of the homestead in the 2023 tax year |
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and multiplying that amount by the 2023 tax rate for general |
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elementary and secondary public school purposes applicable to the |
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residence homestead. |
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SECTION 3. (a) This section takes effect only if the |
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constitutional amendment proposed by H.J.R. No. 125, 87th |
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Legislature, Regular Session, 2021, is not approved by the voters. |
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If that amendment is approved by the voters, this section has no |
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effect. |
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(b) Section 1-b(d), Article VIII, Texas Constitution, is |
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amended to read as follows: |
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(d) Except as otherwise provided by this subsection, if a |
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person receives a residence homestead exemption prescribed by |
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Subsection (c) of this section for homesteads of persons who are 65 |
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years of age or older or who are disabled, the total amount of ad |
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valorem taxes imposed on that homestead for general elementary and |
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secondary public school purposes may not be increased while it |
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remains the residence homestead of that person or that person's |
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spouse who receives the exemption. If a person 65 years of age or |
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older dies in a year in which the person received the exemption, the |
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total amount of ad valorem taxes imposed on the homestead for |
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general elementary and secondary public school purposes may not be |
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increased while it remains the residence homestead of that person's |
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surviving spouse if the spouse is 55 years of age or older at the |
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time of the person's death, subject to any exceptions provided by |
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general law. The legislature, by general law, may provide for the |
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transfer of all or a proportionate amount of a limitation provided |
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by this subsection for a person who qualifies for the limitation and |
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establishes a different residence homestead. However, taxes |
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otherwise limited by this subsection may be increased to the extent |
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the value of the homestead is increased by improvements other than |
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repairs or improvements made to comply with governmental |
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requirements and except as may be consistent with the transfer of a |
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limitation under this subsection. For a residence homestead |
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subject to the limitation provided by this subsection in the 1996 |
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tax year or an earlier tax year, the legislature shall provide for a |
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reduction in the amount of the limitation for the 1997 tax year and |
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subsequent tax years in an amount equal to $10,000 multiplied by the |
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1997 tax rate for general elementary and secondary public school |
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purposes applicable to the residence homestead. For a residence |
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homestead subject to the limitation provided by this subsection in |
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the 2014 tax year or an earlier tax year, the legislature shall |
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provide for a reduction in the amount of the limitation for the 2015 |
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tax year and subsequent tax years in an amount equal to $10,000 |
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multiplied by the 2015 tax rate for general elementary and |
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secondary public school purposes applicable to the residence |
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homestead. For a residence homestead subject to the limitation |
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provided by this subsection in the 2022 tax year or an earlier tax |
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year that has a market value in the 2023 tax year of more than |
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$149,701, the legislature shall provide for a reduction in the |
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amount of the limitation for the 2023 tax year and subsequent tax |
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years in an amount equal to the amount computed by subtracting |
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$25,000 from an amount equal to 16.7 percent of the market value of |
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the homestead in the 2023 tax year and multiplying that amount by |
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the 2023 tax rate for general elementary and secondary public |
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school purposes applicable to the residence homestead. |
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SECTION 4. The following temporary provision is added to |
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the Texas Constitution: |
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TEMPORARY PROVISION. (a) This temporary provision applies |
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to the constitutional amendment proposed by the 87th Legislature, |
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2nd Called Session, 2021, providing for an exemption from ad |
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valorem taxation for public school purposes of a dollar amount or a |
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percentage, whichever is greater, of the market value of a |
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residence homestead and providing for a reduction of the limitation |
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on the total amount of ad valorem taxes that may be imposed for |
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those purposes on the homestead of a person who is elderly or |
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disabled to reflect any increase in the exemption amount. |
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(b) The amendment to Sections 1-b(c) and (d), Article VIII, |
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of this constitution takes effect January 1, 2023, and applies only |
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to a tax year beginning on or after that date. |
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(c) This temporary provision expires January 1, 2024. |
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SECTION 5. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 8, 2022. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment providing for an |
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exemption from ad valorem taxation for public school purposes of |
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$25,000 or 16.7 percent, whichever is greater, of the market value |
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of a residence homestead and providing for a reduction of the |
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limitation on the total amount of ad valorem taxes that may be |
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imposed for those purposes on the homestead of a person who is |
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elderly or disabled to reflect any increase in the exemption |
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amount." |