85S10646 CJC/MEW-D
	By: Raymond	H.J.R. No. 32

	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,
	1st Called 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."