88R6767 RDS-D
 
  By: Allison H.J.R. No. 87
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment authorizing the legislature
  to limit the maximum appraised value of residential real property
  for ad valorem tax purposes to 105 percent or more of the appraised
  value of the property for the preceding tax year, to exempt from ad
  valorem taxation the total appraised value of property purchased by
  an individual for the first tax year the individual qualifies the
  property as the individual's residence homestead if the property is
  the individual's first residence homestead and has an appraised
  value of less than $300,000, and to limit the total amount of ad
  valorem taxes that a political subdivision may impose on the
  residence homestead of an individual and the surviving spouse of
  the individual if the individual qualifies the property as the
  individual's residence homestead for at least 25 consecutive tax
  years.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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 residential real property, as defined by the
  Legislature, [a residence homestead] for ad valorem tax purposes in
  a tax year to the lesser of the most recent market value of the
  property [residence homestead] as determined by the appraisal
  entity or 105 [110] percent, or a greater percentage, of the
  appraised value of the property [residence homestead] for the
  preceding tax year. A limitation on appraised values authorized by
  this subsection:
               (1)  takes effect in the tax year following the first
  tax year in which the owner owns the property on January 1 [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
  following the tax year in which [that neither] the owner of the
  property when the limitation took effect ceases to own the
  property, except that the Legislature by general law may provide
  for the limitation applicable to a residence homestead to continue
  during ownership of the property by [nor] the owner's spouse or
  surviving spouse [qualifies for an exemption under Section 1-b of
  this article].
         SECTION 2.  Section 1-b, Article VIII, Texas Constitution,
  is amended by adding Subsection (w) to read as follows:
         (w)  The legislature by general law may provide that an
  individual who purchases property and qualifies the property as the
  individual's residence homestead is entitled to an exemption from
  ad valorem taxation of the total appraised value of the property for
  the first tax year the individual qualifies the property as the
  individual's residence homestead if the property is the first
  property the individual has ever qualified as the individual's
  residence homestead and has an appraised value of less than
  $300,000 for that first tax year. Where ad valorem tax of a
  political subdivision has previously been pledged for the payment
  of debt, the taxing officers of the political subdivision may
  continue to levy and collect the tax against the value of residence
  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. The legislature by general law may prescribe
  procedures for the administration of this subsection.
         SECTION 3.  Article VIII, Texas Constitution, is amended by
  adding Section 1-b-1 to read as follows:
         Sec. 1-b-1.  (a)  The legislature by general law may limit
  the total amount of ad valorem taxes imposed by a political
  subdivision on the residence homestead of an individual who
  qualifies the property as the individual's residence homestead for
  at least 25 consecutive tax years. A law enacted under this section
  may provide that the taxes imposed by the political subdivision on
  the residence homestead after that 25th tax year may not exceed the
  amount of taxes imposed by the political subdivision on the
  property in that 25th tax year.
         (b)  A law enacted under this section may provide that if the
  first tax year an individual qualified property as the individual's
  residence homestead was a tax year before the 24th tax year before
  the tax year in which the law took effect, the individual is
  considered to have qualified the property as the individual's
  residence homestead for the first time in the 24th tax year before
  the tax year in which the law took effect.
         (c)  A law enacted under this section may provide that the
  total amount of ad valorem taxes imposed by a political subdivision
  on a residence homestead may not be increased while the property
  remains the residence homestead of the surviving spouse of an
  individual who dies in a tax year in which the taxes on the property
  are subject to the limitation authorized by Subsection (a) of this
  section.
         (d)  Notwithstanding Subsection (a) or (c) of this section, a
  law enacted under this section may provide that taxes on a residence
  homestead subject to the limitation authorized by this section may
  be increased to the extent the value of the residence homestead is
  increased by an improvement made to the property, other than:
               (1)  a repair; or
               (2)  an improvement made to comply with a governmental
  requirement.
         (e)  A law enacted under this section may prescribe:
               (1)  additional eligibility requirements for the tax
  limitation authorized by this section; and
               (2)  procedures for the administration of the
  limitation.
         SECTION 4.  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 permit voting for or against the
  proposition: "The constitutional amendment authorizing the
  legislature to limit the maximum appraised value of residential
  real property for ad valorem tax purposes to 105 percent or more of
  the appraised value of the property for the preceding tax year, to
  exempt from ad valorem taxation the total appraised value of
  property purchased by an individual for the first tax year the
  individual qualifies the property as the individual's residence
  homestead if the property is the individual's first residence
  homestead and has an appraised value of less than $300,000, and to
  limit the total amount of ad valorem taxes that a political
  subdivision may impose on the residence homestead of an individual
  and the surviving spouse of the individual if the individual
  qualifies the property as the individual's residence homestead for
  at least 25 consecutive tax years."