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A JOINT RESOLUTION
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proposing a constitutional amendment to provide for an exemption |
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from ad valorem taxation of the total market value of real property |
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on which the ad valorem taxes have been prepaid and to establish the |
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prepaid property tax trust fund to provide annual distributions to |
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political subdivisions affected by the exemption. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article III, Texas Constitution, is amended by |
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adding Section 49-s to read as follows: |
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Sec. 49-s. (a) The prepaid property tax trust fund is |
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established as a trust fund outside the state treasury to be held |
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and administered by the comptroller of public accounts as trustee |
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for eligible political subdivisions. |
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(b) The fund consists of prepayments of ad valorem taxes on |
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real property received by the comptroller for the purpose of |
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exempting the real property from ad valorem taxation under a |
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general law authorized by Section 1-z, Article VIII, of this |
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constitution. |
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(c) The comptroller shall make annual disbursements from |
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the fund to eligible political subdivisions. A political |
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subdivision is eligible for a disbursement from the fund in any year |
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in which real property subject to ad valorem taxation by the |
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political subdivision receives an exemption under a general law |
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authorized by Section 1-z, Article VIII, of this constitution. |
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(d) The comptroller shall determine the amount available |
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for distribution from the fund each year in accordance with a |
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distribution policy adopted by the comptroller that is designed to |
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provide as nearly as practicable an annual distribution from the |
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fund to each eligible political subdivision in an amount equal to a |
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reimbursement amount determined by the comptroller in the manner |
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provided by general law. The comptroller may proportionally reduce |
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the distributions made from the fund in any year to prevent the fund |
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from becoming insolvent. |
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(e) In managing the assets of the fund the comptroller may |
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acquire, exchange, sell, supervise, manage, or retain any kind of |
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investment that a prudent investor, exercising reasonable care, |
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skill, and caution, would acquire or retain in light of the |
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purposes, terms, distribution requirements, and other |
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circumstances of the fund then prevailing, taking into |
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consideration the investment of all the assets of the fund rather |
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than a single investment. |
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SECTION 2. Article VIII, Texas Constitution, is amended by |
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adding Section 1-z to read as follows: |
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Sec. 1-z. The legislature by general law may exempt from ad |
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valorem taxation by a political subdivision the total market value |
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of real property for which the property owner prepays an estimate of |
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the property's future ad valorem tax liability, as determined |
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pursuant to a formula adopted by the comptroller of public |
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accounts. The general law may require additional prepayments to |
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exempt any portion of the value of the property attributable to |
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improvements made after the initial prepayment of taxes on the |
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property. A general law adopted under this section may provide |
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additional eligibility requirements for the exemption. |
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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 4, 2025. |
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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 provide for an |
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exemption from ad valorem taxation of the total market value of real |
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property on which the ad valorem taxes have been prepaid and to |
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establish the prepaid property tax trust fund to provide annual |
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distributions to political subdivisions affected by the |
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exemption." |