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  82R3512 SMH-D
 
  By: Christian H.J.R. No. 93
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment exempting residential real
  property from ad valorem taxation.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1(d), Article VIII, Texas Constitution,
  is amended to read as follows:
         (d)  The Legislature by general law shall exempt from ad
  valorem taxation household goods not held or used for the
  production of income and personal effects not held or used for the
  production of income. The Legislature by general law may exempt
  from ad valorem taxation:
               (1)  all or part of the personal property homestead of a
  family or single adult, "personal property homestead" meaning that
  personal property exempt by law from forced sale for debt;
               (2)  subject to Subsections (e) and (g) of this
  section, all other tangible personal property, except [structures
  which are substantially affixed to real estate and are used or
  occupied as residential dwellings and except] property held or used
  for the production of income;
               (3)  subject to Subsection (e) of this section, a
  leased motor vehicle that is not held primarily for the production
  of income by the lessee and that otherwise qualifies under general
  law for exemption; and
               (4)  one motor vehicle, as defined by general law,
  owned by an individual that is used in the course of the
  individual's occupation or profession and is also used for personal
  activities of the owner that do not involve the production of
  income.
         SECTION 2.  Section 1-a, Article VIII, Texas Constitution,
  is amended to read as follows:
         Sec. 1-a.  The several counties of the State are authorized
  to levy ad valorem taxes upon all property within their respective
  boundaries for county purposes, [except the first Three Thousand
  Dollars ($3,000) value of residential homesteads of married or
  unmarried adults, including those living alone,] not to exceed
  thirty cents (30¢) on each One Hundred Dollars ($100) valuation, in
  addition to all other ad valorem taxes authorized by the
  Constitution of this State, provided the revenue derived therefrom
  shall be used for construction and maintenance of Farm to Market
  Roads or for Flood Control, except as herein otherwise provided.
         SECTION 3.  Section 1-b, Article VIII, Texas Constitution,
  is amended to read as follows:
         Sec. 1-b.  A person is entitled to an exemption from ad
  valorem taxation of the total appraised value of real property
  owned by the person that is designed or adapted for residential
  purposes and is used primarily for residential purposes. The
  assessor and collector for a political subdivision of this state
  may disregard the exemption authorized by this section and assess
  and collect an ad valorem tax pledged for payment of debt without
  deduction if, prior to the adoption of the exemption, the political
  subdivision pledged the taxes for the payment of a debt and granting
  the exemption would impair the obligation of the contract creating
  the debt. [(a) Three Thousand Dollars ($3,000) of the assessed
  taxable value of all residence homesteads of married or unmarried
  adults, male or female, including those living alone, shall be
  exempt from all taxation for all State purposes.
         [(b)     The governing body of any county, city, town, school
  district, or other political subdivision of the State may exempt by
  its own action not less than Three Thousand Dollars ($3,000) of the
  market value of residence homesteads of persons, married or
  unmarried, including those living alone, who are under a disability
  for purposes of payment of disability insurance benefits under
  Federal Old-Age, Survivors, and Disability Insurance or its
  successor or of married or unmarried persons sixty-five (65) years
  of age or older, including those living alone, from all ad valorem
  taxes thereafter levied by the political subdivision. As an
  alternative, upon receipt of a petition signed by twenty percent
  (20%) of the voters who voted in the last preceding election held by
  the political subdivision, the governing body of the subdivision
  shall call an election to determine by majority vote whether an
  amount not less than Three Thousand Dollars ($3,000) as provided in
  the petition, of the market value of residence homesteads of
  disabled persons or of persons sixty-five (65) years of age or over
  shall be exempt from ad valorem taxes thereafter levied by the
  political subdivision. An eligible disabled person who is
  sixty-five (65) years of age or older may not receive both
  exemptions from the same political subdivision in the same year but
  may choose either if the subdivision has adopted both. Where any ad
  valorem tax has theretofore been pledged for the payment of any
  debt, the taxing officers of the political subdivision shall have
  authority to continue to levy and collect the tax against the
  homestead property at the same rate as the tax so pledged until the
  debt is discharged, if the cessation of the levy would impair the
  obligation of the contract by which the debt was created.
         [(c)     Fifteen Thousand Dollars ($15,000) 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 Ten Thousand Dollars ($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 sixty-five
  (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 sixty-five (65) years of age or older on
  economic need. An eligible disabled person who is sixty-five (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 Article VIII, Sections 1-b(c), 1-b(d), and
  1-d-1, of this constitution. 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
  sixty-five (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
  sixty-five (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 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 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.
         [(d-1)     Notwithstanding Subsection (d) of this section, the
  legislature by general law may provide for the reduction of the
  amount of a limitation provided by that subsection and applicable
  to a residence homestead for the 2007 tax year to reflect any
  reduction from the 2006 tax year in the tax rate for general
  elementary and secondary public school purposes applicable to the
  homestead. A general law enacted under this subsection may also
  take into account any reduction in the tax rate for those purposes
  from the 2005 tax year to the 2006 tax year if the homestead was
  subject to the limitation in the 2006 tax year. A general law
  enacted under this subsection may provide that, except as otherwise
  provided by Subsection (d) of this section, a limitation provided
  by that subsection that is reduced under the general law continues
  to apply to the residence homestead in subsequent tax years until
  the limitation expires.
         [(e)     The governing body of a political subdivision, other
  than a county education district, may exempt from ad valorem
  taxation a percentage of the market value of the residence
  homestead of a married or unmarried adult, including one living
  alone. In the manner provided by law, the voters of a county
  education district at an election held for that purpose may exempt
  from ad valorem taxation a percentage of the market value of the
  residence homestead of a married or unmarried adult, including one
  living alone. The percentage may not exceed twenty percent.
  However, the amount of an exemption authorized pursuant to this
  subsection may not be less than Five Thousand Dollars ($5,000)
  unless the legislature by general law prescribes other monetary
  restrictions on the amount of the exemption. An eligible adult is
  entitled to receive other applicable exemptions provided by law.
  Where ad valorem tax has previously been pledged for the payment of
  debt, the governing body of a political subdivision may continue to
  levy and collect the tax against the value of the 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 by general law may
  prescribe procedures for the administration of residence homestead
  exemptions.
         [(f)     The surviving spouse of a person who received an
  exemption under Subsection (b) of this section for the residence
  homestead of a person sixty-five (65) years of age or older is
  entitled to an exemption for the same property from the same
  political subdivision in an amount equal to that of the exemption
  received by the deceased spouse if the deceased spouse died in a
  year in which the deceased spouse received the exemption, the
  surviving spouse was fifty-five (55) years of age or older when the
  deceased spouse died, and the property was the residence homestead
  of the surviving spouse when the deceased spouse died and remains
  the residence homestead of the surviving spouse. A person who
  receives an exemption under Subsection (b) of this section is not
  entitled to an exemption under this subsection. The legislature by
  general law may prescribe procedures for the administration of this
  subsection.
         [(g)     If the legislature provides for the transfer of all or
  a proportionate amount of a tax limitation provided by Subsection
  (d) of this section for a person who qualifies for the limitation
  and subsequently establishes a different residence homestead, the
  legislature by general law may authorize the governing body of a
  school district to elect to apply the law providing for the transfer
  of the tax limitation to a change of a person's residence homestead
  that occurred before that law took effect, subject to any
  restrictions provided by general law. The transfer of the
  limitation may apply only to taxes imposed in a tax year that begins
  after the tax year in which the election is made.
         [(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 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 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. 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 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 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.
         [(i)     The legislature by general law may exempt from ad
  valorem taxation all or part of the market value of the residence
  homestead of a disabled veteran who is certified as having a
  service-connected disability with a disability rating of 100
  percent or totally disabled and may provide additional eligibility
  requirements for the exemption. For purposes of this subsection,
  "disabled veteran" means a disabled veteran as described by Section
  2(b) of this article.]
         SECTION 4.  Sections 13(c) and (d), Article VIII, Texas
  Constitution, are amended to read as follows:
         (c)  The former owner of [a residence homestead,] land
  designated for agricultural use[,] or a mineral interest sold for
  unpaid taxes shall within two years from date of the filing for
  record of the Purchaser's Deed have the right to redeem the property
  on the following basis:
               (1)  Within the first year of the redemption period,
  upon the payment of the amount of money paid for the property,
  including the Tax Deed Recording Fee and all taxes, penalties,
  interest, and costs paid plus an amount not exceeding 25 percent of
  the aggregate total; and
               (2)  Within the last year of the redemption period,
  upon the payment of the amount of money paid for the property,
  including the Tax Deed Recording Fee and all taxes, penalties,
  interest, and costs paid plus an amount not exceeding 50 percent of
  the aggregate total.
         (d)  If the [residence homestead or] land designated for
  agricultural use is sold pursuant to a suit to enforce the
  collection of the unpaid taxes, the Legislature may limit the
  application of Subsection (c) of this section to [property used as a
  residence homestead when the suit was filed and to] land designated
  for agricultural use when the suit was filed.
         SECTION 5.  Sections 1(i) and (j), Article VIII, Texas
  Constitution, are repealed.
         SECTION 6.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION. (a)  This temporary provision applies
  to the constitutional amendment proposed by the 82nd Legislature,
  Regular Session, 2011, exempting residential real property from ad
  valorem taxation.
         (b)  The amendments to Sections 1(d), 1-a, 1-b, and 13(c) and
  (d), Article VIII, of this constitution and the repeal of Sections
  1(i) and (j), Article VIII, of this constitution take effect
  January 1, 2012, and apply only to a tax year beginning on or after
  that date.
         (c)  This temporary provision expires January 1, 2013.
         SECTION 7.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 8, 2011.
  The ballot shall be printed to permit voting for or against the
  proposition: "The constitutional amendment exempting residential
  real property from ad valorem taxation."