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TX HJR202
Joint Resolution
Status
3/14/2025
Primary Sponsor
Dade Phelan
Click for details
AI Summary
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Proposes a constitutional amendment allowing the legislature to exempt real property from ad valorem (property) taxes if the owner prepays an estimate of the property's future tax liability based on a comptroller-adopted formula
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Establishes the Prepaid Property Tax Trust Fund as a trust fund outside the state treasury, administered by the comptroller, to hold prepayment amounts received from property owners
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Requires the comptroller to make annual disbursements from the fund to political subdivisions (cities, counties, school districts) that would otherwise have collected taxes on the exempt properties
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Authorizes the comptroller to proportionally reduce distributions if necessary to prevent the fund from becoming insolvent, and to invest fund assets using prudent investor standards
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Requires additional prepayments to maintain the exemption for any value added through improvements made after the initial prepayment
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Scheduled to appear on the November 4, 2025 ballot for voter approval
Legislative Description
Proposing a constitutional amendment to provide for an exemption from ad valorem taxation of the total market value of real property on which the ad valorem taxes have been prepaid and to establish the prepaid property tax trust fund to provide annual distributions to political subdivisions affected by the exemption.
State Finances
Last Action
Referred to Ways & Means
4/7/2025