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  H.J.R. No. 2
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment to authorize the legislature
  to establish a temporary limit on the maximum appraised value of
  real property other than a residence homestead for ad valorem tax
  purposes; to increase the amount of the exemption from ad valorem
  taxation by a school district applicable to residence homesteads;
  to adjust the amount of the limitation on school district ad valorem
  taxes imposed on the residence homesteads of the elderly or
  disabled to reflect increases in certain exemption amounts; to
  except certain appropriations to pay for ad valorem tax relief from
  the constitutional limitation on the rate of growth of
  appropriations; and to authorize the legislature to provide for a
  four-year term of office for a member of the governing body of
  certain appraisal entities.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1, Article VIII, Texas Constitution, is
  amended by adding Subsections (n) and (n-1) to read as follows:
         (n)  This subsection does not apply to a residence homestead
  to which Subsection (i) of this section applies. Notwithstanding
  Subsections (a) and (b) of this section, the Legislature by general
  law may limit the maximum appraised value of real property for ad
  valorem tax purposes in a tax year to the lesser of the most recent
  market value of the property as determined by the appraisal entity
  or 120 percent, or a greater percentage, of the appraised value of
  the property for the preceding tax year. The general law enacted
  under this subsection may prescribe additional eligibility
  requirements for the limitation on appraised values authorized by
  this subsection.  A limitation on appraised values authorized by
  this subsection:
               (1)  takes effect as to a parcel of real property
  described by this subsection 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 in which the owner owns the property on
  January 1; and
               (2)  expires on January 1 of the tax year following the
  tax year in which the owner of the property ceases to own the
  property.
         (n-1)  This subsection and Subsection (n) of this section
  expire December 31, 2026.
         SECTION 2.  Sections 1-b(c) and (d), Article VIII, Texas
  Constitution, are amended to read as follows:
         (c)  The amount of $100,000 [$40,000] of the market value of
  the residence homestead of a married or unmarried adult, including
  one living alone, is exempt from ad valorem taxation for general
  elementary and secondary public school purposes.  The legislature
  by general law may provide that all or part of the exemption does
  not apply to a district or political subdivision that imposes ad
  valorem taxes for public education purposes but is not the
  principal school district providing general elementary and
  secondary public education throughout its territory.  In addition
  to this exemption, the legislature by general law may exempt an
  amount not to exceed $10,000 of the market value of the residence
  homestead of a person who is disabled as defined in Subsection (b)
  of this section and of a person 65 years of age or older from ad
  valorem taxation for general elementary and secondary public school
  purposes.  The legislature by general law may base the amount of and
  condition eligibility for the additional exemption authorized by
  this subsection for disabled persons and for persons 65 years of age
  or older on economic need.  An eligible disabled person who is 65
  years of age or older may not receive both exemptions from a school
  district but may choose either.  An eligible person is entitled to
  receive both the exemption required by this subsection for all
  residence homesteads and any exemption adopted pursuant to
  Subsection (b) of this section, but the legislature shall provide
  by general law whether an eligible disabled or elderly person may
  receive both the additional exemption for the elderly and disabled
  authorized by this subsection and any exemption for the elderly or
  disabled adopted pursuant to Subsection (b) of this section.  Where
  ad valorem tax has previously been pledged for the payment of debt,
  the taxing officers of a school district may continue to levy and
  collect the tax against the value of homesteads exempted under this
  subsection until the debt is discharged if the cessation of the levy
  would impair the obligation of the contract by which the debt was
  created.  The legislature shall provide for formulas to protect
  school districts against all or part of the revenue loss incurred by
  the implementation of this subsection, Subsection (d) of this
  section, and Section 1-d-1 of this article.  The legislature by
  general law may define residence homestead for purposes of this
  section.
         (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 65
  years of age or older or who are disabled, 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 exemption.  If a person who is 65 years of
  age or older or who is disabled dies in a year in which the person
  received the 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 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.  For a residence homestead
  subject to the limitation provided by this subsection in the 2014
  tax year or an earlier tax year, the legislature shall provide for a
  reduction in the amount of the limitation for the 2015 tax year and
  subsequent tax years in an amount equal to $10,000 multiplied by the
  2015 tax rate for general elementary and secondary public school
  purposes applicable to the residence homestead. For a residence
  homestead subject to the limitation provided by this subsection in
  the 2021 tax year or an earlier tax year, the legislature shall
  provide for a reduction in the amount of the limitation for the 2023
  tax year and subsequent tax years in an amount equal to $15,000
  multiplied by the 2022 tax rate for general elementary and
  secondary public school purposes applicable to the residence
  homestead. Beginning with the 2023 tax year, for any tax year in
  which the amount of the exemption provided by Subsection (c) of this
  section applicable to the residence homestead of a married or
  unmarried adult, including one living alone, or the amount of the
  exemption provided by Subsection (c) of this section applicable to
  the residence homestead of a person who is disabled as defined by
  Subsection (b) of this section and of a person 65 years of age or
  older is increased, the legislature shall provide for a reduction
  for that tax year and subsequent tax years in the amount of the
  limitation provided by this subsection applicable to a residence
  homestead that was subject to the limitation in the tax year
  preceding the tax year in which the amount of the exemption is
  increased in an amount equal to the amount by which the amount of
  the exemption is increased multiplied by the tax rate for general
  elementary and secondary public school purposes applicable to the
  residence homestead for the tax year in which the amount of the
  exemption is increased.
         SECTION 3.  Section 22, Article VIII, Texas Constitution, is
  amended by adding Subsection (a-1) to read as follows:
         (a-1)  Appropriations from state tax revenues not dedicated
  by this constitution that are made for the purpose of paying for ad
  valorem tax relief as identified by the legislature by general law
  are not included as appropriations for purposes of determining
  whether the rate of growth of appropriations exceeds the limitation
  prescribed by Subsection (a) of this section.
         SECTION 4.  Section 30, Article XVI, Texas Constitution, is
  amended by adding Subsection (e) to read as follows:
         (e)  The Legislature by general law may provide that members
  of the governing body of an appraisal entity established in a county
  with a population of 75,000 or more serve terms not to exceed four
  years.
         SECTION 5.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION. (a) This temporary provision applies
  to the constitutional amendment proposed by H.J.R. 2, 88th
  Legislature, 2nd Called Session, 2023.
         (b)  The amendments to Section 1-b, Article VIII, of this
  constitution take effect for the tax year beginning January 1,
  2023.
         (c)  The amendment to Section 22, Article VIII, of this
  constitution applies to appropriations made for the state fiscal
  biennium beginning September 1, 2023, and subsequent state fiscal
  bienniums.
         (d)  This temporary provision expires January 1, 2025.
         SECTION 6.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 7, 2023.
  The ballot shall be printed to provide for voting for or against the
  proposition: "The constitutional amendment to authorize the
  legislature to establish a temporary limit on the maximum appraised
  value of real property other than a residence homestead for ad
  valorem tax purposes; to increase the amount of the exemption from
  ad valorem taxation by a school district applicable to residence
  homesteads from $40,000 to $100,000; to adjust the amount of the
  limitation on school district ad valorem taxes imposed on the
  residence homesteads of the elderly or disabled to reflect
  increases in certain exemption amounts; to except certain
  appropriations to pay for ad valorem tax relief from the
  constitutional limitation on the rate of growth of appropriations;
  and to authorize the legislature to provide for a four-year term of
  office for a member of the board of directors of certain appraisal
  districts."
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.J.R. No. 2 was passed by the House on July
  13, 2023, by the following vote:  Yeas 132, Nays 5, 0 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.J.R. No. 2 was passed by the Senate on July
  13, 2023, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  RECEIVED:  _____________________
                     Date         
   
            _____________________
              Secretary of State