RESOLUTION ANALYSIS

H.J.R. 73

By: Wilson

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The resolution author has informed the committee that Texas has provided those among the most vulnerable of our population much needed property tax relief by limiting the amount of property taxes that certain taxing units, such as school districts, counties, municipalities, and junior college districts, can impose on residence homesteads of low-income individuals who are either disabled or elderly. However, the resolution author has further informed the committee that the Texas Legislature has yet to extend such limits to other political subdivisions, for example municipal utility districts and hospital districts. H.J.R. 73 seeks to provide comprehensive property tax relief to low-income individuals who are disabled or elderly, as well as their surviving spouses.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this resolution does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this resolution does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.J.R. 73 proposes an amendment to the Texas Constitution to authorize the governing body of a political subdivision other than a public school district, county, city or town, or junior college district by official action to prohibit the total amount of property taxes imposed by the political subdivision on the homestead of a person who is of limited financial means, is disabled or is 65 years of age or older, and receives a residence homestead exemption on the homestead from being increased while the homestead remains the residence homestead of that person or that person's spouse if the spouse is of limited financial means, is disabled or is 65 years of age or older, and receives a residence homestead exemption on the homestead. The resolution requires, as an alternative, that the governing body of the political subdivision call an election to determine by majority vote whether to establish such a tax limitation on receipt of a petition signed by five percent of the political subdivision's registered voters. If a political subdivision establishes the tax limitation and a person of limited financial means who is disabled or is 65 years of age or older dies in a year in which the person received a residence homestead exemption, the total amount of property taxes imposed on the homestead by the political subdivision may not be increased while the homestead remains the residence homestead of that person's surviving spouse if the spouse is of limited financial means and is 55 years of age or older at the time of the person's death, subject to any exceptions provided by general law.

H.J.R. 73 authorizes the legislature, by general law, to provide for the transfer of all or a proportionate amount of the tax limitation for a person who qualifies for the limitation and establishes a different residence homestead located in the same political subdivision. The resolution requires a political subdivision that establishes the tax limitation to comply with a law providing for the transfer of the limitation, even if the legislature enacts the law subsequent to the establishment by the political subdivision of the limitation. The resolution authorizes taxes otherwise limited by a political subdivision under the resolution's provisions to be increased to the extent the value of the homestead is increased by improvements other than repairs and other than improvements made to comply with governmental requirements and except as may be consistent with the transfer of the tax limitation under a law authorized by the resolution.

H.J.R. 73 prohibits the governing body of a political subdivision from repealing or rescinding the tax limitation. The resolution authorizes the legislature by general law to prescribe the method for determining whether a person is of limited financial means for purposes of the tax limitation. The resolution's provisions take effect January 1, 2026.

ELECTION DATE

The constitutional amendment proposed by this joint resolution will be submitted to the voters at an election to be held November 4, 2025.