82R935 SMH-D
	By: Paxton	H.J.R. No. 83

	A JOINT RESOLUTION
	proposing a constitutional amendment to phase out ad valorem taxes
	on the residence homesteads of elderly persons by 2021.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1-b, Article VIII, Texas Constitution,
	is amended by amending Subsections (b), (c), (d), and (h) and adding
	Subsections (j) and (j-1) to read as follows:
	(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.]
	(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.
	(j)  A person 65 years of age or older is entitled to an
	exemption from ad valorem taxation of the total market value of the
	person's residence homestead. The surviving spouse of a person who
	received an exemption under this subsection for the residence
	homestead of a person 65 years of age or older is entitled to an
	exemption from ad valorem taxation of the total market value of the
	same property if the deceased spouse died in a year in which the
	deceased spouse received the exemption, the surviving spouse was 55
	years of age or older when the deceased spouse died, the property
	was the residence homestead of the surviving spouse when the
	deceased spouse died and remains the residence homestead of the
	surviving spouse, and the surviving spouse has not remarried since
	the death of the deceased spouse. Where ad valorem tax of a school
	district has previously been pledged for the payment of debt, the
	taxing officers of the 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. The legislature by general
	law may prescribe procedures for the administration of this
	subsection.
	(j-1)  Subsection (j) of this section applies to the ad
	valorem taxation of the residence homestead of a person 65 years of
	age or older only for the 2021 and subsequent tax years. The ad
	valorem taxation of the residence homestead of a person 65 years of
	age or older for the 2017, 2018, 2019, and 2020 tax years is
	governed by this subsection. In addition to any exemptions
	authorized by Subsections (b) and (c) of this section, the
	legislature by general law may exempt from ad valorem taxation a
	percentage of the market value of the residence homestead of a
	person 65 years of age or older. For the 2017 tax year, the amount
	of the exemption may not exceed 20 percent of the market value of
	the homestead. For the 2018 tax year, the amount of the exemption
	may not exceed 40 percent of the market value of the homestead. For
	the 2019 tax year, the amount of the exemption may not exceed 60
	percent of the market value of the homestead. For the 2020 tax
	year, the amount of the exemption may not exceed 80 percent of the
	market value of the homestead. The legislature by general law may
	provide that the surviving spouse of a person who received an
	exemption under this subsection for the residence homestead of a
	person 65 years of age or older is entitled to an exemption for the
	same property in an amount equal to that of the exemption for which
	the deceased spouse would have qualified had the deceased spouse
	continued to qualify for the exemption if the deceased spouse died
	in a year in which the deceased spouse received the exemption, the
	surviving spouse was 55 years of age or older when the deceased
	spouse died, the property was the residence homestead of the
	surviving spouse when the deceased spouse died and remains the
	residence homestead of the surviving spouse, and the surviving
	spouse has not remarried since the death of the deceased spouse. A
	person who receives an exemption under this subsection for a person
	65 years of age or older is not entitled to an exemption under this
	subsection for the surviving of a person 65 years of age or older.
	Where ad valorem tax of a school district has previously been
	pledged for the payment of debt, the taxing officers of the 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. The legislature by general law may prescribe
	procedures for the administration of this subsection. This
	subsection expires January 1, 2021.
	SECTION 2.  Section 1-b(f), Article VIII, Texas
	Constitution, is repealed.
	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 82nd Legislature,
	Regular Session, 2011, to phase out ad valorem taxes on the
	residence homesteads of elderly persons by 2021.
	(b)  Except as provided by Subsection (c) of this section,
	the amendments to Section 1-b, Article VIII, of this constitution
	and the repeal of Section 1-b(f), Article VIII, of this
	constitution take effect January 1, 2021.
	(c)  Section 1-b(j-1), Article VIII, of this constitution
	takes effect January 1, 2017.
	(d)  This temporary provision expires January 1, 2022.
	SECTION 4.  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 to phase out ad valorem
	taxes on the residence homesteads of elderly persons by 2021."