85R12154 CJC/MEW-D     By: Raymond H.J.R. No. 75       A JOINT RESOLUTION   proposing a constitutional amendment to appropriate money from the   economic stabilization fund to the foundation school fund and use   the money to finance a temporary increase in the amount of the   exemption of residence homesteads from ad valorem taxation by a   school district and a temporary reduction in the amount of the   limitation on school district ad valorem taxes imposed on the   residence homesteads of the elderly or disabled to reflect the   increased exemption amount.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 49-g, Article III, Texas Constitution,   is amended by adding Subsection (p) to read as follows:          (p)  On December 1, 2017, $3.05 billion of the unobligated   and otherwise unappropriated balance of the economic stabilization   fund is appropriated to the foundation school fund to finance a   temporary increase in the amount of the exemption of residence   homesteads from ad valorem taxation for general elementary and   secondary public school purposes under Section 1-b(c), Article   VIII, of this constitution, and a temporary reduction in the amount   of the limitation on the total amount of ad valorem taxes for   general elementary and secondary public school purposes imposed on   the residence homesteads of the elderly or disabled under Section   1-b(d), Article VIII, of this constitution to reflect the increased   exemption amount. This subsection expires December 31, 2018.          SECTION 2.  Sections 1-b(c) and (d), Article VIII, Texas   Constitution, are amended to read as follows:          (c)  Except as otherwise provided by this subsection, the   [The] amount of $25,000 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. For the 2018 tax year, the   amount of $71,000 of the market value of the residence homestead of   such a person is exempt from ad valorem taxation for those 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 65 years of age or   older 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 2017 tax year or an earlier tax   year, the legislature shall provide for a reduction in the amount of   the limitation for the 2018 tax year in an amount equal to $46,000   multiplied by the 2018 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 2018 tax year, the legislature   shall provide for an increase in the amount of the limitation for   the 2019 tax year and subsequent tax years in an amount equal to   $46,000 multiplied by the 2018 tax rate for general elementary and   secondary public school purposes applicable to the residence   homestead.          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 85th Legislature,   Regular Session, 2017, to appropriate money from the economic   stabilization fund to the foundation school fund and use the money   to finance a temporary increase in the amount of the exemption of   residence homesteads from ad valorem taxation by a school district   and a temporary reduction in the amount of the limitation on school   district ad valorem taxes imposed on the residence homesteads of   the elderly or disabled to reflect the increased exemption amount.          (b)  The amendments to Sections 1-b(c) and (d), Article VIII,   of this constitution take effect for the tax year beginning January   1, 2018.          (c)  This temporary provision expires January 1, 2019.          SECTION 4.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 7, 2017.     The ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment to appropriate money   from the economic stabilization fund to the foundation school fund   and use the money to finance a temporary increase in the amount of   the exemption of residence homesteads from ad valorem taxation by a   school district and a temporary reduction in the amount of the   limitation on school district ad valorem taxes imposed on the   residence homesteads of the elderly or disabled to reflect the   increased exemption amount."