88S20071 CJC/TJB/KJE-D     By: Bettencourt S.J.R. No. 1       A JOINT RESOLUTION   proposing a constitutional amendment 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, and to except certain appropriations to   pay for school district ad valorem tax relief from the   constitutional limitation on the rate of growth of appropriations.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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 2.  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   school district 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 3.  The following temporary provision is added to   the Texas Constitution:          TEMPORARY PROVISION. (a) This temporary provision applies   to the constitutional amendment proposed by the 88th Legislature,   2nd Called Session, 2023, 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, and to except certain appropriations to   pay for school district ad valorem tax relief from the   constitutional limitation on the rate of growth of appropriations.          (b)  The amendments to Sections 1-b(c) and (d), 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 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 provide for voting for or against the   proposition: "The constitutional amendment to increase the amount   of the residence homestead exemption from ad valorem taxation for   public school purposes from $40,000 to $100,000; to adjust the   amount of the limitation on ad valorem taxes for public school   purposes imposed on the residence homestead of a person who is   disabled or is 65 years of age or older to reflect increases in   certain exemption amounts; and to except certain appropriations to   pay for school district ad valorem tax relief from the   constitutional limitation on the rate of growth of appropriations."