TITLE: Proposing a constitutional amendment relating to the calculation of a limitation on the total amount of ad valorem taxes that may be imposed by certain political subdivisions on the residence homestead of a person who is elderly or disabled.

SUMMARY: Proposing a constitutional amendment relating to the calculation of a limitation on the total amount of ad valorem taxes that may be imposed by certain political subdivisions on the residence homestead of a person who is elderly or disabled.

FULL TEXT:
87(3) SJR 6-Introduced version-Bill Text By: Hall S.J.R. No. 6 SENATE JOINT RESOLUTION proposing a constitutional amendment relating to the calculation of a limitation on the total amount of ad valorem taxes that may be imposed by certain political subdivisions on the residence homestead of a person who is elderly or disabled. BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. (a) This section takes effect only if the constitutional amendment proposed by H.J.R. No. 125, 87th Legislature, Regular Session, 2021, is approved by the voters. If that amendment is not approved by the voters, this section has no effect. (b) Section 1-b(d), Article VIII, Texas Constitution, is amended to read as follows: (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. For a residence homestead subject to the limitation provided by this subsection in the 2022 tax year, the amount of the limitation provided by this subsection is the amount of tax imposed on that homestead for general elementary and secondary public school purposes for the 2022 tax year. 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.] SECTION 2. (a) This section takes effect only if the constitutional amendment proposed by H.J.R. No. 125, 87th Legislature, Regular Session, 2021, is not approved by the voters. If that amendment is approved by the voters, this section has no effect. (b) Section 1-b(d), Article VIII, Texas Constitution, is amended to read as follows: (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. For a residence homestead subject to the limitation provided by this subsection in the 2022 tax year, the amount of the limitation provided by this subsection is the amount of tax imposed on that homestead for general elementary and secondary public school purposes for the 2022 tax year. 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.] SECTION 3. Section 1-b(h), Article VIII, Texas Constitution, is amended to read as follows: (h) The governing body of a county, a city or town, or a junior college district by official action may provide that if a person who is disabled or is 65 [sixty-five (65)] years of age or older receives a residence homestead exemption prescribed or authorized by this section, the total amount of ad valorem taxes imposed on that homestead by the county, the city or town, or the junior college district may not be increased while it remains the residence homestead of that person or that person's spouse who is disabled or 65 [sixty-five (65)] years of age or older and receives a residence homestead exemption on the homestead. As an alternative, on receipt of a petition signed by five percent [(5%)] of the registered voters of the county, the city or town, or the junior college district, the governing body of the county, the city or town, or the junior college district shall call an election to determine by majority vote whether to establish a tax limitation provided by this subsection. For a residence homestead subject to the limitation provided by this subsection in the 2022 tax year, the amount of the limitation provided by this subsection is the amount of tax imposed on that homestead by the county, the city or town, or the junior college district for the 2022 tax year. If a county, a city or town, or a junior college district establishes a tax limitation provided by this subsection and a disabled person or a person 65 [sixty-five (65)] years of age or older dies in a year in which the person received a residence homestead exemption, the total amount of ad valorem taxes imposed on the homestead by the county, the city or town, or the junior college district may not be increased while it remains the residence homestead of that person's surviving spouse if the spouse is 55 [fifty-five (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 tax limitation provided by this subsection for a person who qualifies for the limitation and establishes a different residence homestead within the same county, within the same city or town, or within the same junior college district. A county, a city or town, or a junior college district that establishes a tax limitation under this subsection must comply with a law providing for the transfer of the limitation, even if the legislature enacts the law subsequent to the county's, the city's or town's, or the junior college district's establishment of the limitation. [Taxes otherwise limited by a county, a city or town, or a junior college district under this subsection may 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 a tax limitation under a law authorized by this subsection.] The governing body of a county, a city or town, or a junior college district may not repeal or rescind a tax limitation established under this subsection. SECTION 4. Section 1-b(d-1), Article VIII, Texas Constitution, is repealed. SECTION 5. The following temporary provision is added to the Texas Constitution: TEMPORARY PROVISION. (a) This temporary provision applies to the constitutional amendment proposed by the 87th Legislature, 2nd Called Session, 2021, relating to the calculation of a limitation on the total amount of ad valorem taxes that may be imposed by certain political subdivisions on the residence homestead of a person who is elderly or disabled. (b) The amendments to Sections 1-b(d) and (h), Article VIII, of this constitution and the repeal of Section 1-b(d-1), Article VIII, of this constitution take effect January 1, 2023, and apply only to a tax year that begins on or after that date. (c) This temporary provision expires January 1, 2024. SECTION 6. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 8, 2022. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment relating to the calculation of a limitation on the total amount of ad valorem taxes that may be imposed by certain political subdivisions on the residence homestead of a person who is elderly or disabled."