# THE ATIXBECNEY GENERAL OP TEXAS

December 27,1972
Honorable Preston Smith Governor of Texas State Capitol Building Austin, Texas 78711

Dear Governor Smith: Opinion No. M- 1283
Re: Several questions relating to the interpretation and application of the amendment to Article VI?'I,Section l-b, of the Constitution of Texas, adopted at the general election inNovember 1972. Your request for anopinion asks the following questions:
"(1) In~theevent that twenty percent of the voters who voted in the lastpreceding election held by thepolitical,subdivision, petition the governing body of apolitical subdivision, and an election is called, would themajority vote then be binding on the governing body of that political subdivision? "(2) What courses of action might be available to insure that a governing body acts in compliance w~iththemandate of the majority vote? W(3) Does the amendment provide specifically orby implication amaximum amount for homestead exemptions provided by the local governing body? "(4) Is legislative action necessary to implement theprovisions of this amendment, or is it in full force and effect after January 1, 1973?" Section l-b ofArticle VIII of the Constitution of Texas provides: "Section l-b. (a) Three Thousand Dollars ,($3,000)of the assessed taxable value of all residence homesteads asnow defined by law shall be exempt from all taxation for all State purposes.
-6296-Hon. Preston Smith, page 2 (M-1283)

"(b) From and after January 1, 1973, the governing body of any county, city, town, schoo'l district, or other political subdivision of the State may exempt by its own action not less than Three Thousand Dollars ($3,000)of the assessed value of residence homesteads ofpersons sixtyfive (65)years of age or older from all ad valorem taxes thereafter levied by thepolitical subdivision. As an alternative, upon receipt of apetition signed by twenty percent (20%),ofthe voters who voted in the last orecedina election held by thepolitical subdivision, the governing body of the subdivision shall call an election to determine bymajority votewhether an amount not less than Three Thousand Dollars ($3;000) asprovided in thepetition, of the assessed value of residence homesteads ofpersons sixty-five (65)years of age or over shall be exempt from advalorem taxes there= levied by thepolitical subdivision. Where anv advalorem taxhas theretofore been oledaed for thepayment of any debt, the taxing officers of thepolitical subdivision shall have authority to continue to levy and collect the tax against thehomestead propertv at the same rate as the tax sopledged-until the debt is discharged, if the cessation of the levywould impair the obligation of the contract bywhich the debtwas created." (Emphasis added.)
An analysis of the foregoing constitutional provision reveals that the governing body of the various political subdivisions of the State may authorize the exemption on its own action and the exemption isrequired when amajority vote determines that the exemption shall be allowed with the exception that the governing body has the authority to continue to levy and collect the tax if the tax is pledged for thepayment of adebt. Your questions are accordingly answered as follows:



# (1)In the event that twenty percent of the voters-who voted in the lastpreceding election held by the political subdivision, petition the governing body of apolitical subdivision, and an election is called, themajority votewould then be binding on the governing body of that political subdivision.

(2) In the event of an affirmative vote to allow.the exemption, such exemption becomes an automatic exemption provided
-6297-

.Hon. Preston Smith, page 3 (M-1283)

for in Section l-b ofArticle VIII of the Constitution of Texas.

(3) Nomaximum amount forhomestead exemptions ipprovided in Section l-b ofArticle 'VIIIof the Constitution of Texas; on the contrary, the exemption is fornot less than $3,000.00 of the assessed value of residential homesteads ofpersons sixtyfive years of age or older.

(4) No legislation isnecessary to implement theprovisions of Section l-b ofArticle VIII of the Constitution of Texas. Legislation could not add to or diminish the exemptions provided therein. SUMMARY

Without enabling legislation the governing bodies of thevarious political subdivisions of the State, pursuant to theprovisions of Section l-b ofArticle VIII of the Constitution of Texas, may on their own action provide for homestead exemptions specified therein. A majority vote at an election todetermine whether the exemption shall be authorized is however, binding on the governing body of that political subdivision.

General of Texas Prepared by John Reeves Assistant Attorney General APPROVED: OPINION COMMITTEE W. E.Allen, Chairman Bob Lattimore Jack Sparks John Banks Marvin Sentell

-6298-Hon. Preston Smith, page 4 (M-1283)

SAMUEL D. MCDANIEL Staff Legal Assistant
ALFRED WALKER Executive Assistant NOLA WHITE First Assistant

-6299-