87R2042 SMH-D
 
  By: Middleton H.J.R. No. 75
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment authorizing the legislature
  to provide for the appraisal of certain real property for ad valorem
  tax purposes based on its purchase price, exempting all tangible
  personal property in this state from ad valorem taxation, and
  authorizing the legislature to permit legislators to appoint
  members of the board of equalization for an appraisal entity.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1, Article VIII, Texas Constitution, is
  amended by amending Subsection (b) and adding Subsections (k) and
  (l) 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,
  which shall be ascertained as may be provided by law. All tangible
  personal property in this State is exempt from ad valorem taxation,
  except as provided by Subsection (l) of this section.
         (k)  Notwithstanding Subsections (a), (b), and (i) of this
  section, for each tax year following the year in which the property
  was purchased until the end of the tax year in which the ownership
  of the property changes, the legislature by general law may limit
  the maximum appraised value of residential property consisting of
  not more than four individual dwelling units, including a
  single-family home, or of a tract of unimproved land for ad valorem
  tax purposes to the lesser of the market value of the property as
  determined by the appraisal entity or the sum of the amount the
  owner of the property paid for the property and the initial market
  value of each new improvement to the property. The applicability of
  a general law enacted under this subsection must be limited to a
  bona fide purchaser for value of a property who, in the manner
  provided by law, applies for the limitation on appraised value
  under this subsection not later than a date prescribed by general
  law in the tax year following the year in which the person purchased
  the property. The legislature may prescribe or delegate to an
  appropriate public official or entity the authority to prescribe
  standards and procedures to administer a law enacted under this
  subsection, including criteria to be used to determine whether a
  person was a bona fide purchaser for value.
         (l)  If before January 1, 2024, an ad valorem tax on tangible
  personal property is pledged for the payment of a debt, the
  appropriate tax authorities may continue to levy and collect the
  tax against that tangible personal property at the same rate as the
  pledged tax until the debt is discharged, if cessation of the levy
  and collection of the tax would impair the obligation of the
  contract by which the debt was created. This subsection applies to
  tangible personal property that was taxable under the law in effect
  on January 1, 2023, but that became exempt under Subsection (b) of
  this section on January 1, 2024, as a result of the amendment of
  this section adopted by the voters in 2021 to exempt all tangible
  personal property from ad valorem taxation.
         SECTION 2.  Section 8, Article VIII, Texas Constitution, is
  amended to read as follows:
         Sec. 8.  All real property of railroad companies shall be
  assessed, and the taxes collected in the several counties in which
  said real property is situated, including so much of the roadbed and
  fixtures as shall be in each county. [The rolling stock may be
  assessed in gross in the county where the principal office of the
  company is located, and the county tax paid upon it shall be
  apportioned as provided by general law in proportion to the
  distance such road may run through any such county, among the
  several counties through which the road passes, as a part of their
  tax assets.]
         SECTION 3.  Section 18(c), Article VIII, Texas Constitution,
  is amended to read as follows:
         (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. The Legislature, by general law, may authorize a
  single board of equalization for two or more adjoining appraisal
  entities that elect to provide for consolidated equalizations.
  Members of a board of equalization may not be elected officials of a
  county or of the governing body of a taxing unit. Notwithstanding
  Section 1, Article II, of this constitution, the Legislature, by
  general law, may provide for the appointment of members of the board
  of equalization for an appraisal entity by the state senators and
  state representatives whose districts contain any part of the
  territory appraised by that entity.
         SECTION 4.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION. The constitutional amendment
  authorizing the legislature to provide for the appraisal of certain
  real property for ad valorem tax purposes based on its purchase
  price, exempting all tangible personal property in this state from
  ad valorem taxation, and authorizing the legislature to permit
  legislators to appoint members of the board of equalization for an
  appraisal entity takes effect January 1, 2024, and applies only to
  taxes imposed on or after that date. This temporary provision
  expires January 1, 2025.
         SECTION 5.  The following provisions of Article VIII, Texas
  Constitution, are repealed:
               (1)  Sections 1(d), (e), and (g);
               (2)  Section 1-i;
               (3)  Section 1-j;
               (4)  Section 1-n, as proposed by S.J.R. 47, 77th
  Legislature, Regular Session, 2001;
               (5)  Section 1-n, as proposed by S.J.R. 6, 77th
  Legislature, Regular Session, 2001;
               (6)  Section 1-p;
               (7)  Section 19; and
               (8)  Section 19a.
         SECTION 6.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 2, 2021.
  The ballot shall be printed to permit voting for or against the
  proposition: "The constitutional amendment authorizing the
  legislature to provide for the appraisal of certain residential or
  unimproved real property for ad valorem tax purposes based on its
  purchase price, exempting all tangible personal property in this
  state from ad valorem taxation, and authorizing the legislature to
  permit legislators to appoint members of the board of equalization
  for an appraisal entity."