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A JOINT RESOLUTION
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proposing a constitutional amendment to appropriate money from the |
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general revenue fund to the foundation school fund and use the money |
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to finance a temporary increase in the amount of the exemption of |
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residence homesteads from ad valorem taxation by a school district |
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and a temporary reduction in the amount of the limitation on school |
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district ad valorem taxes imposed on the residence homesteads of |
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the elderly or disabled to reflect the increased exemption 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, Article VIII, Texas Constitution, |
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is amended by amending Subsections (c) and (d) and adding |
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Subsection (q) to read as follows: |
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(c) Except as otherwise provided by this subsection, the |
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[The] amount of $40,000 of the market value of the residence |
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homestead of a married or unmarried adult, including one living |
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alone, is exempt from ad valorem taxation for general elementary |
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and secondary public school purposes. For the 2024 tax year, the |
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amount of $360,000 of the market value of the residence homestead of |
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such a person is exempt from ad valorem taxation for those purposes. |
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The 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 |
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and condition eligibility for the additional exemption authorized |
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by this subsection for disabled persons and for persons 65 years of |
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age or older on economic need. An eligible disabled person who is |
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65 years of age or older may not receive both exemptions from a |
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school district but may choose either. An eligible person is |
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entitled to receive both the exemption required by this subsection |
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for all 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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(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 by |
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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 2023 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 2024 |
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tax year in an amount equal to $320,000 multiplied by the 2024 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 2024 |
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tax year, the legislature shall provide for an increase in the |
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amount of the limitation for the 2025 tax year and subsequent tax |
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years in an amount equal to $320,000 multiplied by the 2024 tax rate |
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for general elementary and secondary public school purposes |
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applicable to the residence homestead. |
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(q) On December 1, 2023, $20 billion of the unobligated and |
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otherwise unappropriated balance of the general revenue fund is |
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appropriated to the foundation school fund to finance for the 2024 |
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tax year a temporary increase in the amount of the exemption of |
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residence homesteads from ad valorem taxation for general |
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elementary and secondary public school purposes under Subsection |
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(c) of this section and a temporary reduction in the amount of the |
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limitation on the total amount of ad valorem taxes for general |
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elementary and secondary public school purposes imposed on the |
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residence homesteads of the elderly or disabled under Subsection |
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(d) of this section to reflect the increased exemption amount. This |
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subsection expires December 31, 2024. |
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SECTION 2. 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 88th Legislature, |
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Regular Session, 2023, to appropriate money from the general |
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revenue fund to the foundation school fund and use the money to |
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finance a temporary increase in the amount of the exemption of |
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residence homesteads from ad valorem taxation by a school district |
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and a temporary reduction in the amount of the limitation on school |
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district ad valorem taxes imposed on the residence homesteads of |
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the elderly or disabled to reflect the increased exemption amount. |
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(b) The amendments to Sections 1-b(c) and (d), Article VIII, |
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of this constitution take effect for the tax year beginning January |
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1, 2024. |
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(c) This temporary provision expires January 1, 2025. |
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SECTION 3. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 7, 2023. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment to appropriate money |
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from the general revenue fund to the foundation school fund and use |
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the money to finance a temporary increase in the amount of the |
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exemption of residence homesteads from ad valorem taxation by a |
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school district and a temporary reduction in the amount of the |
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limitation on school district ad valorem taxes imposed on the |
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residence homesteads of the elderly or disabled to reflect the |
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increased exemption amount." |