Bulletin: TX2023008

Dear Associates:

HJR2, passed during the 88^th Texas Legislative Second Called Session, proposes a constitutional amendment authorizing the legislature to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads. Upon an affirmative vote on November 7, Article VIII of the Texas Constitution would increase the tax-exempt amount of residence homestead from $40,000 to $100,000. 

SB2 provides that the taxing unit assessor is to determine the total taxable value of property as if the change in law were in effect for that tax year and the tax rolls amended to reflect the passage of HJR2. The tax statement must provide the bill is provisional and include language that if the Legislature had not reduced the taxes your bill would have been a higher amount. If the amendment is not passed in the November 7 vote, there will be a supplemental bill prepared and sent to collect the difference in the amount of tax. The supplemental tax is due upon receipt of the supplemental tax bill and will become delinquent on March 1, 2024. 

What you should know/do:

Taxes should be collected pursuant to the tax statement as though the amendment will pass. All purchase and sale transactions through November 7, the date of the vote, should include the following Note on Schedule C: Taxes have been prorated based on current tax information. If the proposed constitutional amendment fails to pass, a supplemental tax bill will be sent and is due upon receipt. The supplemental tax will become delinquent on March 1, 2024. It is suggested that the parties agree, in writing, as to how such supplemental taxes will be paid.

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