HJR200 - Proposing a constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation by a school district of a portion of the market value of certain leased residential real properties, to establish and prescribe the permissible uses of the property tax relief to rental households fund, and to include payments from the property tax relief to rental households fund in the exception of certain appropriations to pay for ad valorem tax relief from the const

  89R11518 DRS-D     By: Bryant H.J.R. No. 200       A JOINT RESOLUTION   proposing a constitutional amendment to authorize the legislature   to provide for an exemption from ad valorem taxation by a school   district of a portion of the market value of certain leased   residential real properties, to establish and prescribe the   permissible uses of the property tax relief to rental households   fund, and to include payments from the property tax relief to rental   households fund in the exception of certain appropriations to pay   for ad valorem tax relief from the constitutional limitation on the   rate of growth of appropriations.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Article VIII, Texas Constitution, is amended by   adding Sections 1-b-3 and 30 to read as follows:           Sec.   1-b-3.     (a)   In this section, "qualified residential   real property" means real property that:                 (1)     is at least 15 years old on the date the owner of   the property applies for the exemption authorized under this   section;                 (2)     is a multifamily residential property that   consists of or includes residential units leased to lessees and   used by those lessees as a primary residence; and                 (3)     satisfies the eligibility requirements prescribed   by the legislature by general law.           (b)     The legislature by general law may exempt from ad   valorem taxation by a school district:                 (1)     50 percent of the market value of qualified   residential real property a person owns, excluding the portion of   the market value of the property described by Subdivision (2) of   this subsection, if applicable; and                 (2)     any increase in the market value of qualified   residential real property that is attributable to the   rehabilitation of the property.           (c)     The legislature by general law may prescribe additional   eligibility requirements for the exemption.           (d)     The legislature by general law may prescribe procedures   for the implementation and administration of this section.           Sec.   30.     (a)   The property tax relief to rental households   fund is established as a fund in the state treasury.           (b)     The property tax relief to rental households fund may   consist of money:                 (1)     transferred or appropriated to the fund by the   legislature; or                 (2)     dedicated for deposit to the credit of the fund by   the legislature by general law.           (c)     Money in the property tax relief to rental households   fund may be appropriated to the comptroller of public accounts only   for the purpose of making direct payments to rental households to   provide property tax relief in the manner prescribed by the   legislature by general law.           (d)  A general law enacted under this section may:                 (1)     define "rental household" for purposes of this   section;                 (2)     prescribe eligibility requirements for the   receipt of a payment from the property tax relief to rental   households fund; and                 (3)     prescribe procedures for the administration of   this section.           (e)  On January 1, 2026:                 (1)     the amount of $3.8 billion is appropriated from   the general revenue fund to the comptroller of public accounts for   the purpose of immediate deposit to the credit of the property tax   relief to rental households fund; and                 (2)     the amount of $3.8 billion is appropriated from   the property tax relief to rental households fund to the   comptroller of public accounts for the purpose of making direct   payments to rental households during the state fiscal biennium   ending August 31, 2027, in the manner prescribed by the general law   enacted under this section.           (f)     For purposes of Section 22 of this article, an   appropriation made under Subsection (e) of this section is treated   as if it were an appropriation of revenues dedicated by this   constitution.           (g)     This subsection and Subsections (e) and (f) of this   section expire December 31, 2026.          SECTION 2.  Section 22(a-1), Article VIII, Texas   Constitution, is amended to read as follows:          (a-1)  Appropriations from state tax revenues not dedicated   by this constitution that are made for the purpose of paying for ad   valorem tax relief as identified by the legislature by general law ,   including payments made from the property tax relief to rental   households fund under Section 30 of this article, are not included   as appropriations for purposes of determining whether the rate of   growth of appropriations exceeds the limitation prescribed by   Subsection (a) of this section.          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 89th Legislature,   Regular Session, 2025, to authorize the legislature to provide for   an exemption from ad valorem taxation by a school district of a   portion of the market value of certain leased residential real   properties, to establish and prescribe the permissible uses of the   property tax relief to rental households fund, and to include   payments from the property tax relief to rental households fund in   the exception of certain appropriations to pay for ad valorem tax   relief from the constitutional limitation on the rate of growth of   appropriations.           (b)     The amendments adding Sections 1-b-3 and 30 to Article   VIII of this constitution take effect beginning with the tax year   beginning January 1, 2026.           (c)     The amendment to Section 22(a-1), Article VIII, of this   constitution applies to appropriations made for the state fiscal   biennium beginning September 1, 2025, and subsequent state fiscal   bienniums.           (d)  This temporary provision expires January 1, 2027.          SECTION 4.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 4, 2025.   The ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment to authorize the   legislature to provide for an exemption from ad valorem taxation by   a school district of a portion of the market value of certain leased   residential real properties, to establish and prescribe the   permissible uses of the property tax relief to rental households   fund, and to include payments from the property tax relief to rental   households fund in the exception of certain appropriations to pay   for ad valorem tax relief from the constitutional limitation on the   rate of growth of appropriations."